UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16
OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of August, 2019
Commission File Number: 001-31528
IAMGOLD Corporation
(Translation of registrant's name into English)
401 Bay Street Suite 3200, PO Box 153
Toronto, Ontario, Canada M5H 2Y4
Tel: (416) 360-4710
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
[ ] Form 20-F [ x ] Form 40-F
Indicate by check mark if the registrant is submitting the
Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____
Note: Regulation S-T Rule
101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely
to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the
Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____
Note: Regulation S-T Rule
101(b)(7) only permits the submission in paper of a Form 6-K if submitted to
furnish a report or other document that the registrant foreign private issuer
must furnish and make public under the laws of the jurisdiction in which the
registrant is incorporated, domiciled or legally organized (the registrants
home country), or under the rules of the home country exchange on which the
registrants securities are traded, as long as the report or other document is
not a press release, is not required to be and has not been distributed to the
registrants security holders, and, if discussing a material event, has already
been the subject of a Form 6-K submission or other Commission filing on EDGAR.
Indicate by check mark whether by furnishing the information
contained in this Form, the registrant is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under the Securities
Exchange Act of 1934.
Yes [ ]
No [ x ]
If "Yes" is marked, indicate below the file number assigned
to the registrant in connection with Rule 12g3-2(b): 82- ________
SUBMITTED HEREWITH
Exhibits
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
|
IAMGOLD CORPORATION |
|
(Registrant) |
|
|
|
Date: August 7, 2019 |
By: |
/s/ Tim Bradburn |
|
|
Tim Bradburn |
|
Title: |
Vice President, Legal and Corporate Secretary |
IAMGOLD REPORTS SECOND QUARTER 2019 RESULTS;
EXPECTING
STRONGER SECOND HALF OF THE YEAR AT
ESSAKANE AND WESTWOOD
All monetary amounts are expressed in U.S. dollars, unless
otherwise indicated.
For more information, refer to the Management
Discussion and Analysis (MD&A) and Unaudited Consolidated
Interim
Financial Statements for the three months ended June 30, 2019.
Toronto, Ontario, August 7, 2019 - IAMGOLD Corporation (IAMGOLD or the Company) reported its consolidated financial and
operating results for the quarter ended June 30, 2019.
"While our second quarter demonstrated improved performance
over the first quarter, our outlook at Essakane and Westwood is stronger for the
balance of the year," commented Steve Letwin, President and CEO of IAMGOLD, As
margins improve on higher gold prices and our continued focus on costs, we
anticipate higher grades and production at Essakane and increasing production at
Westwood, with Sadiola contributing to year-end. Production for the year will be
impacted by a temporary suspension of mining activities at Rosebel as we work
alongside our local stakeholders to resolve the security issues related to
unauthorized mining. As a result of this, combined with lower grades at Rosebel,
we have adjusted our production and cost guidance for the year. Additionally, we
have reduced capital expenditures for 2019, including deferrals. Our balance
sheet remains strong, with $660 million in cash and short-term investments as we
continue to build out our self-funding operating model across our sites.
Saramacca development remains on track, with initial ounces to the Rosebel mill
targeted later this year. And, we continue to see exploration potential across
our sites, as highlighted by the drill results from Nelligan, Rouyn, Monster
Lake and Gosselin.
Second Quarter 2019 Highlights
|
|
Attributable gold production of 198,000 ounces at cost of
sales1 per ounce of $941, total cash costs2 per
ounce produced of $896 and all-in sustaining costs2 per ounce
sold of $1,132. |
|
|
|
|
|
Attributable gold sales of 187,000 ounces, lower than
production primarily due to inventory in circuit at Rosebel, at an average
realized gold price per ounce of $1,314. |
|
|
|
|
|
Revenues of $246.5 million. |
|
|
|
|
|
Net loss attributable to equity holders of $14.4 million,
or $0.03 per share. |
|
|
|
|
|
Adjusted net loss attributable to equity holders2 of $15.5 million or $0.03 per share2. |
|
|
|
|
|
Net cash from operating activities of $40.6 million. |
|
|
|
|
|
Net cash from operating activities before changes in
working capital2 of $42.8 million. |
|
|
|
|
|
Cash, cash equivalents, short-term investments, and
restricted cash totaled $688.5 million at June 30, 2019. Cash and cash
equivalents were $609.7 million, short term investments, primarily in
money market funds, were $50.7 million and restricted cash was $28.1
million. Additionally, there was $499.6 million available under our almost
undrawn revolving credit facility. |
Strategic Developments
Financial
|
On June 27, 2019, we executed a €20.5 million ($23.3
million) loan agreement with Caterpillar Financial Services Corporation
("Equipment Loan") with an interest rate of 5.23% per annum. The Equipment
Loan, secured by certain mobile equipment at Essakane, matures on June 27,
2024 and is repayable in quarterly installments starting September 27,
2019. |
|
|
|
We have lowered our full-year 2019 total attributable
gold production guidance to 765,000 to 810,000 ounces primarily due to
lower production expected at Rosebel resulting from the temporary
suspension of mining activities subsequent to the second quarter 2019 and
lower grades realized in the first half of the year. Additionally, we have
revised upwards our guidance for cost of sales per ounce sold and total
cash cost2 per ounce produced to the range of $910 to $960 and
$860 to $910 per ounce, respectively, due to higher waste volumes being
classified as operational waste as opposed to capitalized stripping and
lower owner-operator sales volumes relative to the initial guidance.
All-in sustaining costs2 per ounce sold guidance has been
revised upwards to the range of $1,090 to $1,130. |
|
|
|
Capital expenditures guidance for 2019 has been reduced
by $80 million to $275 million (±5%) primarily due to timing of spend on
the haul road construction and deferral of non-critical infrastructure at
Saramacca, and lower capitalized stripping at Rosebel as a result of mine
sequencing. |
Reserves and Resources
|
On May 30, 2019, we reported initial drilling results
from its 2019 delineation diamond drilling program at the Nelligan Project
in Quebec. Drilling highlights included: 37.43 metres grading 1.32 g/t Au
and 73.0 metres grading 1.09 g/t Au; 16.7 metres grading 4.04 g/t Au and
28.42 metres grading 2.11 g/t Au. |
Exploration
|
During the quarter, we reported initial drilling results
from our delineation program completed on the Lac Gamble Zone at the Rouyn
Gold Project in Quebec. Drilling highlights included: 7.75 metres grading
11.02 g/t Au; 10.6 metres grading 8.21 g/t Au; 29.7 metres grading 8.96
g/t Au, including 11.1 metres grading 17.49 g/t Au (See news releases
dated May 23 and June 12, 2019) |
Operations and Development
|
Development work on Saramacca continued with the haul
road construction progressing, and the commencement of pit clearing,
pre-stripping activities and the construction of essential infrastructure
during the quarter. |
|
|
|
The carbon-in-column plant at Rosebel, which became fully
operational in the first quarter 2019, produced an additional 2,100 ounces
in the second quarter 2019, for total year-to-date recoveries of 4,300
ounces. |
|
|
|
We continued to advance its application for a mining
concession, optimize the design elements of the Boto Gold Project
development, maintained stakeholder engagement and completed a
condemnation and delineation drilling program to improve the resource
model. |
|
|
|
The oxygen plant at Essakane, designed to improve
recoveries by 0.5%, became fully operational, with ongoing optimization. |
Subsequent to the Quarter
|
On July 23, 2019, we reported drilling results from its
2019 drilling program completed at the Monster Lake Joint Venture Project
in Quebec. Drilling highlights included: 0.8 metres grading 357.0 g/t Au;
0.5 metres grading 133.0 g/t Au. |
|
|
|
On July 30, 2019, we reported drilling results from the
2019 drilling program completed at the Gosselin Discovery at the Côté Gold
Project in Ontario. Drilling highlights included: 342.5 metres grading
0.98 g/t Au; 412.0 metres grading 1.28 g/t Au. |
|
|
|
On July 31, 2019, we reported additional drilling results
from our delineation program completed on the Lac Gamble Zone at the Rouyn
Gold Project in Quebec. Drilling highlights included: 9.7 metres grading 6.64 g/t Au; 23.4 metres grading 6.08 g/t Au
including 8.1 metres grading 13.25 g/t Au; 10.05 metres grading 6.59 g/t
Au. |
2
|
On August 1, 2019, we reported that an incident involving
local police and unauthorized artisanal miners within the Rosebel
concession had resulted in the death of an unauthorized miner. The
incident also resulted in damage to equipment. To ensure the safety and
security of the workforce, mining activities have been temporarily
suspended while the mill continues to operate. |
|
|
|
On August 7, 2019, we reported initial drilling results
testing the underground mining potential of our Saramacca deposit.
Drilling highlights included 21.0 metres grading 6.05 g/t Au including
10.5 metres grading 9.72 g/t Au, 22.7 metres grading 8.54 g/t Au including
9.0 metres grading 15.23 g/t Au, and 24.0 metres grading 9.67 g/t Au
including 6.0 metres grading 26.41 g/t Au. |
Upcoming Growth Catalysts
|
Development of Saramacca continues, with mining and
stockpiling expected to begin in the third quarter 2019 and targeting
nominal production from Saramacca in the fourth quarter 2019. |
|
|
|
At Rosebel, a scoping study is underway to evaluate the
underground mining potential of Saramacca, which could result in higher
grades and significantly lower waste volumes, thereby reducing costs. |
|
|
|
We continue to advance exploration activities along the
Saramacca-Brokolonko trend in Suriname to confirm the presence of
additional zones of mineralization and evaluate the resource potential. |
|
|
|
The Carbon-In-Leach ("CIL") and Heap Leach feasibility
study at Essakane is progressing well and is expected to be completed in
the third quarter 2019: the feasibility study is expected to support an
investment in a mill de-bottlenecking project, which could increase CIL
plant throughput by 6% to 11.7 million tonnes per annum at 100% hard rock,
compared to our 2018 hard rock run rate of 11.0 million tonnes per annum. |
|
|
|
Discussions with the Government of Senegal on obtaining a
mining concession for the Boto Gold Project are well advanced, with
approval expected in the second half of 2019. |
|
|
|
Completed the planned diamond drilling program for the
Nelligan Project in Quebec, and an initial resource estimate is expected
in the second half of 2019. |
|
|
|
Studying various design approaches to Westwood with a
preliminary life of mine plan update expected in the fourth quarter 2019,
followed by a NI 43-101 compliant plan in the first half of 2020. |
3
SUMMARY OF FINANCIAL AND OPERATING RESULTS |
|
|
Three months |
|
|
Six
months ended |
|
|
|
ended June 30, |
|
|
June 30, |
|
Financial
Results ($ millions, except where noted) |
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Revenues |
$ |
246.5 |
|
$ |
277.4 |
|
$ |
497.5 |
|
$ |
591.9 |
|
Cost of sales |
$ |
239.9 |
|
$ |
247.8 |
|
$ |
491.8 |
|
$ |
486.5 |
|
Gross profit |
$ |
6.6 |
|
$ |
29.6 |
|
$ |
5.7 |
|
$ |
105.4 |
|
Net earnings (loss) attributable to equity holders of
IAMGOLD |
$ |
(14.4 |
) |
$ |
(26.2 |
) |
$ |
(55.7 |
) |
$ |
16.1 |
|
Net earnings
(loss) attributable to equity holders ($/share) |
$ |
(0.03 |
) |
$ |
(0.06 |
) |
$ |
(0.12 |
) |
$ |
0.03 |
|
Adjusted net earnings (loss) attributable to equity holders
of IAMGOLD1 |
$ |
(15.5 |
) |
$ |
13.1 |
|
$ |
(17.7 |
) |
$ |
52.8 |
|
Adjusted net
earnings (loss) attributable to equity holders ($/share)1 |
$ |
(0.03 |
) |
$ |
0.03 |
|
$ |
(0.04 |
) |
$ |
0.11 |
|
Net cash from operating activities |
$ |
40.6 |
|
$ |
50.6 |
|
$ |
48.7 |
|
$ |
156.6 |
|
Net cash from
operating activities before changes in working capital1 |
$ |
42.8 |
|
$ |
73.4 |
|
$ |
75.9 |
|
$ |
193.0 |
|
Key Operating Statistics |
|
|
|
|
|
|
|
|
|
|
|
|
Gold sales attributable (000s oz) |
|
187 |
|
|
215 |
|
|
377 |
|
|
450 |
|
Gold production attributable (000s oz) |
|
198 |
|
|
214 |
|
|
383 |
|
|
443 |
|
Average realized gold price1 ($/oz) |
$ |
1,314 |
|
$ |
1,299 |
|
$ |
1,311 |
|
$ |
1,316 |
|
Cost of sales2 ($/oz) |
$ |
941 |
|
$ |
826 |
|
$ |
952 |
|
$ |
781 |
|
Total cash costs1 ($/oz) |
$ |
896 |
|
$ |
812 |
|
$ |
890 |
|
$ |
773 |
|
All-in sustaining costs1 ($/oz) |
$ |
1,132 |
|
$ |
1,077 |
|
$ |
1,109 |
|
$ |
1,012 |
|
Gold margin1 ($/oz) |
$ |
419 |
|
$ |
487 |
|
$ |
421 |
|
$ |
543 |
|
1 |
This is a non-GAAP measure. Refer to the non-GAAP
performance measures section of the MD&A. |
|
|
2 |
Cost of sales, excluding depreciation, as disclosed in
note 29 of the Company's consolidated interim financial statements is on
an attributable ounce sold basis (excluding the non-controlling interests
of 10% at Essakane and 5% at Rosebel) and does not include Joint Ventures
which are accounted for on an equity basis. |
SECOND QUARTER 2019 SUMMARY |
|
Revenues for the second quarter 2019 were $246.5 million,
down $30.9 million or 11% from the same prior year period. The decrease
was primarily due to lower sales volume at Essakane ($15.5 million),
Rosebel ($11.5 million), and Westwood ($6.8 million), partially offset by
a higher realized gold price ($3.1 million). |
|
|
|
Cost of sales for the second quarter 2019 was $239.9
million, down $7.9 million or 3% from the same prior year period. The
decrease was primarily due to lower depreciation expense ($8.6 million),
partially offset by higher operating costs ($0.9 million). Operating costs
were higher primarily due to lower capitalized stripping at Essakane and
Rosebel, partially offset by labour reductions at Westwood and a stronger
U.S. dollar relative to the euro and the Canadian dollar. |
|
|
|
Depreciation expense for the second quarter 2019 was
$63.7 million, down $8.6 million or 12% from the same prior year period.
The decrease was primarily due to lower production and an increase in
reserves at Essakane and Rosebel. |
|
|
|
Income tax expense for the second quarter 2019 was $3.9
million, down $3.5 million from the same prior year period. Income tax
expense for the second quarter 2019 comprised current income tax expense
of $0.2 million (June 30, 2018 - $11.4 million) and deferred income tax
expense of $3.7 million (June 30, 2018 - recovery of $4.0 million). The
decrease in income tax expense was primarily due to changes to deferred
income tax assets and liabilities, differences in the impact of
fluctuations in foreign exchange, and differences in the level of taxable
income in IAMGOLD's operating jurisdictions from one period to the next. |
|
|
|
Net loss attributable to equity holders for the second
quarter 2019 was $14.4 million, or $0.03 per share, compared to net loss
of $26.2 million, or $0.06 per share in the same prior year period. The decrease in net loss was primarily due to higher interest
income, derivatives and other investment gains (losses) ($16.8 million),
lower foreign exchange gain (loss) ($12.1 million) and lower income tax
expense ($3.5 million), partially offset by lower gross profit ($23.0
million). |
4
|
Adjusted net loss attributable to equity holders2 was $15.5 million, or $0.03 per share2, compared to
adjusted net earnings2 of $13.1 million, or $0.03 per
share2 in the same prior year period. |
|
|
|
Net cash from operating activities for the second quarter
2019 was $40.6 million, down $10.0 million from the same prior year
period. The decrease was due to lower earnings after non-cash adjustments
($29.8 million), partially offset by lower movements in non-cash working
capital items and non-current ore stockpiles ($20.3 million). |
|
|
|
Net cash from operating activities before changes in
working capital2 for the second quarter 2019 was $42.8 million,
down $30.6 million from the same prior year period. The decrease was
primarily due to lower earnings after non-cash adjustments. |
We ended the quarter in a strong financial position, with cash,
cash equivalents, short-term investments primarily in money market funds and
restricted cash were $688.5 million at June 30, 2019, down $69.5 million from
December 31, 2018. The decrease was primarily due to spending on property, plant
and equipment ($133.6 million), interest paid ($14.7 million) and an increase in
restricted cash ($3.5 million), partially offset by cash generated from
operating activities ($48.7 million), net proceeds received from the Equipment
Loan ($23.0 million), interest received ($6.9 million) and other investing
activities ($5.8 million).
|
Attributable gold production, inclusive of joint venture
operations, was 198,000 ounces for the second quarter 2019, down 16,000
ounces from the same prior year period. The decrease was primarily due to
lower head grades at Essakane (9,000 ounces) and Westwood (7,000 ounces)
and lower throughput and recoveries at Sadiola (2,000 ounces), partially
offset by higher recoveries at Rosebel (2,000 ounces). |
|
|
|
Attributable gold sales, inclusive of joint venture
operations, were 187,000 ounces for the second quarter 2019, down 28,000
ounces from the same prior year period. The decrease was due to lower
sales at Essakane (11,000 ounces), Rosebel (8,000 ounces), Westwood (6,000
ounces) and Sadiola (3,000 ounces). |
|
|
|
Cost of sales1 per ounce for the second
quarter 2019 was $941, up 14% from the same prior year period primarily
due to lower sales volumes in addition to the factors noted above. |
|
|
|
Total cash costs2 per ounce produced for the
second quarter 2019 were $896, up 10% from the same prior year period
primarily due to lower production volumes at Essakane and Westwood in
addition to the factors noted above. |
|
|
|
All-in sustaining costs2 per ounce sold for
the second quarter 2019 were $1,132, up 5% from the same prior year
period. The increase was primarily due to higher cost of sales per ounce,
partially offset by lower sustaining capital expenditures. |
|
|
|
Included in total cash costs2 and all-in
sustaining costs2 for the second quarter 2019 were realized
derivative gains from hedging programs of $5 per ounce produced and sold,
respectively (2018 - $14 and $15). |
Commitment to
Zero Harm Continues |
The DART rate3, representing the frequency of all
types of serious injuries across all sites and functional areas for the second
quarter 2019 was 0.59, below IAMGOLD's target of 0.63. We continue the
implementation of several initiatives, including a behaviour-based safety
program, to ensure a safer work environment.
5
IAMGOLD Full Year Attributable
Guidance1,2 |
Revised |
Previous |
Essakane (000s oz) |
380 - 390 |
375 - 390 |
Rosebel (000s oz) |
240 - 260 |
315 - 330 |
Westwood (000s oz) |
95 - 105 |
100 - 120 |
Total owner-operated production (000s oz) |
715 - 755 |
790 - 840 |
Sadiola Joint
Venture (000s oz) |
50 - 55 |
20 - 30 |
Total
attributable production (000s oz) |
765 - 810 |
810 - 870 |
Cost of
sales3 ($/oz) |
$910 - $960 |
$790 - $840 |
Total cash costs4 - owner-operator ($/oz) |
$860 - $910 |
$765 - $815 |
Total cash
costs4,5 ($/oz) |
$860 - $910 |
$765 - $815 |
All-in sustaining costs4- owner-operator ($/oz) |
$1,100 - $1,140 |
$1,030 - $1,080 |
All-in sustaining
costs4,5 ($/oz) |
$1,090 - $1,130 |
$1,030 - $1,080 |
1 |
The revised outlook is based on 2019 full year
assumptions with an average realized gold price of $1,300 per ounce, U.S.$
/ Canadian $ exchange rate of 1.33, € / U.S.$ exchange rate of 1.13 and
average crude oil price of $63 per barrel. |
2 |
The previous outlook was based on 2019 full year
assumptions with an average realized gold price of $1,225 per ounce, U.S.$
/ Canadian $ exchange rate of 1.30, € / U.S.$ exchange rate of 1.15 and
average crude oil price of $62 per barrel. |
3 |
Cost of sales, excluding depreciation, is on an
attributable ounce sold basis (excluding the non-controlling interest of
10% at Essakane and 5% at Rosebel) and does not include the Sadiola Joint
Venture which is accounted for on an equity basis. |
4 |
This is a non-GAAP measure. Refer to the non-GAAP
performance measures section of the MD&A. |
5 |
Consists of Essakane, Rosebel, Westwood and the Sadiola
Joint Venture on an attributable basis. |
GOLD PRODUCTION, COST OF SALES, TOTAL CASH COSTS AND ALL-IN
SUSTAINING COSTS
We have lowered the range of our 2019 total attributable gold
production guidance to 765,000 to 810,000 ounces from 810,000 to 870,000 ounces
primarily due to lower production expected at Rosebel resulting from the
temporary suspension of mining activities subsequent to the second quarter 2019
and lower grades realized in the first half of the year.
Gold production at Westwood is expected to continue improving
progressively throughout the second half of 2019 compared to the first half, and
is expected to be strongest in the fourth quarter.
Cost of sales per ounce sold guidance has been revised upwards
to the range of $910 to $960 from $790 to $840 primarily due to higher waste
volumes being classified as operational waste as opposed to capitalized
stripping, and due to lower production volumes relative to the initial guidance.
Total cash cost2 per ounce produced guidance has
been revised upwards to the range of $860 to $910 from $765 to $815 primarily
due to a higher waste volumes being classified as operational waste as opposed
to capitalized stripping.
All-in sustaining costs2 per ounce sold guidance has
been revised upwards to the range of $1,090 to $1,130 from $1,030 to $1,080.
6
CAPITAL EXPENDITURES OUTLOOK
|
|
|
|
|
Revised |
|
|
|
|
|
|
|
|
Previous |
|
|
|
|
($ millions) |
|
Sustaining1 |
|
|
Non-
sustaining
(Development/
Expansion) 1 |
|
|
Total |
|
|
Sustaining1 |
|
|
Non-sustaining
(Development/
Expansion) 1 |
|
|
Total |
|
Owner-operator |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Essakane |
$ |
40 |
|
$ |
70 |
|
$ |
110 |
|
|
55 |
|
|
70 |
|
|
125 |
|
Rosebel |
|
40 |
|
|
50 |
|
|
90 |
|
|
70 |
|
|
75 |
|
|
145 |
|
Westwood |
|
15 |
|
|
20 |
|
|
35 |
|
|
15 |
|
|
30 |
|
|
45 |
|
|
|
95 |
|
|
140 |
|
|
235 |
|
|
140 |
|
|
175 |
|
|
315 |
|
Corporate and
development projects2 |
|
|
|
|
40 |
|
|
40 |
|
|
|
|
|
40 |
|
|
40 |
|
Total3,4 (±5%) |
$ |
95 |
|
$ |
180 |
|
$ |
275 |
|
|
140 |
|
|
215 |
|
|
355 |
|
1 |
Sustaining capital includes capitalized stripping of $5
million for Essakane and $2 million for Rosebel. In accordance with the
World Gold Council guidance on all-in sustaining costs, capitalized
stripping of $35 million is included in non-sustaining capital for
Essakane. |
2 |
Includes estimated attributable capital expenditures for
the Côté Gold Project (70%) for the first nine months of 2019. |
3 |
Includes $14 million of capitalized exploration and
evaluation expenditures. Refer to the Exploration section of the
MD&A. |
4 |
Excludes capitalized borrowing costs and $10 million of
principal lease payments. |
We have reduced our 2019 capital expenditure guidance by $80
million to $275 million (±5%). Sustaining and non-sustaining capital
expenditures decreased by $45 million and $35 million, respectively. The $80
million decrease is due to timing of spend on the Saramacca Project ($25
million), reduction in sustaining capital expenditures at Rosebel primarily due
to lower capitalized stripping ($30 million), timing of spend at Essakane ($15
million), and a decrease in non-sustaining capital at Westwood ($10 million).
ATTRIBUTABLE GOLD PRODUCTION AND COSTS |
|
|
Gold Production
(000s
oz) |
|
|
Cost of Sales1
($ per ounce) |
|
|
Total Cash Costs2
($ per ounce
produced) |
|
|
All-in Sustaining
Costs2
($ per ounce sold) |
|
Three months
ended June 30, |
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Owner-operator |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Essakane (90%) |
|
88 |
|
|
97 |
|
$ |
960 |
|
$ |
771 |
|
$ |
887 |
|
$ |
728 |
|
$ |
1,077 |
|
$ |
1,003 |
|
Rosebel (95%) |
|
72 |
|
|
70 |
|
|
944 |
|
|
862 |
|
|
915 |
|
|
842 |
|
|
1,116 |
|
|
1,035 |
|
Westwood
(100%)4 |
|
24 |
|
|
31 |
|
|
869 |
|
|
924 |
|
|
849 |
|
|
929 |
|
|
990 |
|
|
1,129 |
|
Owner-operator3 |
|
184 |
|
|
198 |
|
$ |
941 |
|
$ |
826 |
|
$ |
893 |
|
$ |
799 |
|
$ |
1,146 |
|
$ |
1,086 |
|
Joint ventures |
|
14 |
|
|
16 |
|
|
|
|
|
|
|
|
934 |
|
|
962 |
|
|
937 |
|
|
968 |
|
Total operations |
|
198 |
|
|
214 |
|
|
|
|
|
|
|
$ |
896 |
|
$ |
812 |
|
$ |
1,132 |
|
$ |
1,077 |
|
Cost of
sales1 ($/oz) |
|
|
|
|
|
|
$ |
941 |
|
$ |
826 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash costs, excluding royalties |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
837 |
|
$ |
756 |
|
|
|
|
|
|
|
Royalties |
|
|
|
|
|
|
|
|
|
|
|
|
|
59 |
|
|
56 |
|
|
|
|
|
|
|
Total cash
costs2 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
896 |
|
$ |
812 |
|
|
|
|
|
|
|
All-in sustaining
costs2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,132 |
|
$ |
1,077 |
|
7
|
|
Gold Production
(000s
oz) |
|
|
Cost of
Sales1
($ per ounce) |
|
|
Total Cash
Costs2
($ per ounce
produced)
|
|
|
All-in Sustaining
Costs2
($ per ounce sold)
|
|
Six months
ended June 30, |
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Owner-operator |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Essakane (90%) |
|
178 |
|
|
206 |
|
$ |
927 |
|
$ |
739 |
|
$ |
885 |
|
$ |
695 |
|
$ |
1,043 |
|
$ |
956 |
|
Rosebel (95%) |
|
140 |
|
|
135 |
|
|
916 |
|
|
831 |
|
|
908 |
|
|
836 |
|
|
1,089 |
|
|
976 |
|
Westwood
(100%)4 |
|
39 |
|
|
71 |
|
|
1,165 |
|
|
808 |
|
|
853 |
|
|
809 |
|
|
1,078 |
|
|
984 |
|
Owner-operator3 |
|
357 |
|
|
412 |
|
$ |
952 |
|
$ |
781 |
|
$ |
891 |
|
$ |
761 |
|
$ |
1,124 |
|
$ |
1,017 |
|
Joint Ventures |
|
26 |
|
|
31 |
|
|
|
|
|
|
|
|
882 |
|
|
933 |
|
|
889 |
|
|
947 |
|
Total operations |
|
383 |
|
|
443 |
|
|
|
|
|
|
|
$ |
890 |
|
$ |
773 |
|
$ |
1,109 |
|
$ |
1,012 |
|
Cost of
sales1 ($/oz) |
|
|
|
|
|
|
$ |
952 |
|
$ |
781 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash costs, excluding royalties |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
830 |
|
$ |
715 |
|
|
|
|
|
|
|
Royalties |
|
|
|
|
|
|
|
|
|
|
|
|
|
60 |
|
|
58 |
|
|
|
|
|
|
|
Total cash
costs2 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
890 |
|
$ |
773 |
|
|
|
|
|
|
|
All-in sustaining
costs2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,109 |
|
$ |
1,012 |
|
1 |
Cost of sales, excluding depreciation, as disclosed in
note 22 of the Company's consolidated interim financial statements is on
an attributable ounce sold basis (excluding the non-controlling interests
of 10% at Essakane and 5% at Rosebel) and does not include Joint Ventures
which are accounted for on an equity basis. |
2 |
This is a non-GAAP measure. Refer to the non-GAAP
performance measures section of the MD&A. Consists of Essakane,
Rosebel, Westwood and the Joint Ventures on an attributable
basis. |
3 |
Owner-operator all-in sustaining costs include corporate
general and administrative costs. Refer to all-in sustaining costs
reconciliation on page 28. |
4 |
Cost of sales per ounce sold for Westwood does not
include the impact of normalization of costs for the three and six months
ended June 30, 2019 of $nil and $30 per ounce (three and six months ended
June 30, 2018 - $nil and $nil), respectively. |
OPERATIONS ANALYSIS BY MINE SITE |
Essakane Mine - Burkina Faso (IAMGOLD interest -
90%)
Attributable gold production for the second quarter 2019 was
lower by 9% compared to the same prior year period primarily due to lower head
grades. Ore feed for the second quarter 2019 was primarily sourced from lower
grade zones relative to the higher grades realized in the same prior year
period. Mill throughput was favourably impacted in the second quarter 2019 by
higher mill availability due to the timing of mill maintenance. Optimization of
oxygen distribution is ongoing at the oxygen plant, which was commissioned
during the first quarter 2019. Once optimized, the oxygen plant is expected to
increase recoveries by 0.5% through improved leach kinetics and to improve the
efficiency of the circuit by reducing reagent consumption.
Material mined for the second quarter 2019 was higher compared
to the same prior year period primarily due to an increase in the fleet size and
improved equipment availability. Essakane commissioned an additional haul truck,
loader and two excavators in the second quarter 2019. The new equipment received
and commissioned has allowed for increased hauling capacity, improved equipment
availability and reduced reliance on the contracted mining fleet. Ore mined for
the second quarter 2019 was higher compared to the same prior year period
primarily due to the mining and stockpiling of lower grade ore to support the
construction of a proposed heap leach facility at the end of carbon-in-leach
(CIL) operations, in addition to the items noted above.
The CIL and Heap Leach feasibility study at Essakane is
progressing well and is expected to be completed in the third quarter 2019. The
feasibility study is expected to support an investment in a mill
de-bottlenecking project, which could increase CIL plant throughput by 6% to
11.7 million tonnes per annum at 100% hard rock, compared to the 2018 hard rock
run rate of 11.0 million tonnes per annum. The CIL crushing circuit would be
used for the heap leach process at the end of CIL operations.
8
Cost of sales per ounce sold and total cash costs per ounce
produced for the second quarter 2019 were higher by 25% and 22%, respectively
compared to the same prior year period primarily due to lower capitalized
stripping in addition to the impact of lower sales and production volumes.
Essakane also continued to face cost pressures with rising energy prices which
were partially mitigated by the supply of energy from the solar plant and
IAMGOLD's hedging program. Operating costs were higher primarily due to
increased mining activity and the continued utilization of mining contractors,
however a stronger U.S. dollar relative to the euro for the quarter helped to
mitigate the impact of these cost pressures.
All-in sustaining costs per ounce sold for the second quarter
2019 were higher by 7% compared to the same prior year period primarily due to
higher cost of sales per ounce, partially offset by lower sustaining capital
expenditures. Included in total cash costs and all-in sustaining costs for the
second quarter 2019 was the impact of realized derivative gains from hedging
programs of $8 per ounce produced and sold, respectively (2018 - $22 and $24).
Sustaining capital expenditures for the second quarter 2019 of
$10.4 million included capital spares of $2.1 million, capitalized stripping of
$2.0 million, mobile equipment of $1.5 million, resource development of $0.8
million, power generator overhaul of $0.4 million, and various other sustaining
capital expenditures of $3.6 million. Non-sustaining capital expenditures of
$16.6 million included capitalized stripping of $8.1 million, tailings liners
and dams of $5.0 million, mobile equipment of $2.2 million, and CIL optimization
feasibility study of $1.3 million.
Outlook
Essakane's 2019 attributable gold production guidance has been
narrowed to the range of 380,000 to 390,000 ounces from 375,000 to 390,000
ounces. Capital expenditures are expected to be lower at $110 million compared
to $125 million in the previous guidance primarily due to timing of spend.
Sustaining capital expenditures are expected to be $40 million and
non-sustaining capital expenditures are expected to be $70 million.
Rosebel Mine - Suriname (IAMGOLD interest - 95%)
Attributable gold production for the second quarter 2019 was
higher by 3% compared to the same prior year period primarily due to higher
recoveries. The carbon-in-column plant, which became fully operational in the
first quarter 2019, continued to have a favourable impact on recoveries with an
additional 2,100 ounces recovered from tailings in the quarter, bringing
year-to-date tailings recoveries to 4,300 ounces. The plant has been installed
between the two existing ponds at the Rosebel tailings management facility and
will be used to passively treat tailings decant water to recover residual gold
that is present in the solution. The plant is currently on track to exceed the
minimum expected recovery of 5,000 ounces annually at a marginal operating cost
of approximately $35 per ounce to cover additional power and elution costs.
Development work on Saramacca continued to progress as pit
clearing and the construction of essential infrastructure commenced during the
quarter. Pre-stripping activities are also underway with mining and stockpiling
expected to begin in the third quarter 2019. Haul road construction has
substantially progressed from the Rosebel concession across the Mindrinetti
Creek and design optimization continued on the final section of the haul road
towards the Saramacca mine site. In addition, deliveries for the hauling fleet
from orders placed in 2018 commenced in the second quarter 2019 as two haul
trucks and three graders were received and commissioned, with additional units
expected to arrive in the coming months. Technical and engineering studies also
continued during the quarter, including pit slope design improvements,
metallurgical testing to further optimize recoveries and site infrastructure
engineering.
9
Rosebel is also conducting a scoping study to evaluate the
underground mining potential of Saramacca which could substantially reduce waste
stripping costs. Saprolite mining in the initial years is expected to continue
as planned with future potential for underground mining once hard rock is
reached. Diamond drilling to support this study and work to continue defining
the mineral resource is ongoing. Subsequent to the quarter, we reported initial
drilling results testing the underground mining potential of our Saramacca
deposit. Drilling highlights included 21.0 metres grading 6.05 g/t Au including
10.5 metres grading 9.72 g/t Au, 22.7 metres grading 8.54 g/t Au including 9.0
metres grading 15.23 g/t Au, and 24.0 metres grading 9.67 g/t Au including 6.0
metres grading 26.41 g/t Au (see news release dated August 7, 2019).
Cost of sales per ounce sold and total cash costs per ounce
produced for the second quarter 2019 were higher by 10% and 9%, respectively,
compared to the same prior year period. Rosebel continued to face maintenance
cost pressures and will focus on improving preventative maintenance practices.
In addition, local labour costs increased following the finalization of the
Collective Labour Agreement in the third quarter 2018. Lower capitalized waste
stripping due to mine sequencing also contributed to higher costs.
All-in sustaining costs per ounce sold for the second quarter
2019 were higher by 8% compared to the same prior year period primarily due to
higher cost of sales per ounce, partially offset by lower sustaining capital
expenditures. Included in total cash costs and all-in sustaining costs for the
second quarter 2019 was the impact of realized derivative gains from hedging
programs of $4 per ounce produced and sold, respectively (2018 - $11 and $11).
Sustaining capital expenditures for the second quarter 2019 of
$9.8 million included capital spares of $3.5 million, mill equipment of $1.8
million, mobile equipment of $0.7 million, tailings dam of $0.5 million, and
various other sustaining capital expenditures of $3.3 million. Non-sustaining
capital expenditures for the second quarter 2019 of $9.6 million related to the
Saramacca Project.
Outlook
Rosebel's 2019 attributable gold production guidance has been
lowered to the range of 240,000 to 260,000 ounces from 315,000 to 330,000
ounces, reflecting the temporary suspension of mining activities subsequent to
the second quarter 2019 and lower grades realized in the first half of the year.
Capital expenditures are expected to be $90 million, comprising $40 million of
sustaining and $50 million of non-sustaining capital expenditures. The
sustaining capital expenditure guidance was lowered by $30 million primarily due
to lower volumes of capitalized stripping as a result of mine sequencing. The
non-sustaining capital expenditure guidance reflects a decrease of $25 million
due to timing of spend on the haul road construction and the deferral of
non-critical infrastructure, such as the maintenance workshop and on-site camp
construction, into 2020.
Westwood Mine - Canada (IAMGOLD interest - 100%)
Gold production for the second quarter 2019 was lower by 23%
compared to the same prior year period primarily due to lower throughput, as the
prior year period reflected the processing of a greater proportion of marginal
ore stockpiles to leverage available mill capacity, which led to a lower head
grade. Head grade, excluding this marginal ore for the second quarter 2019 was
5.44 g/t (2018 - 6.26 g/t). The mine continues to assess and adjust stope
sequences to address the increased seismic activity in localized areas in the
fourth quarter 2018. As a result, mine production activities are limited on the
affected levels until a risk mitigation plan for the areas can be formalized.
Mining has been expanded in unaffected areas which contain lower grade stopes.
The risk of seismicity varies according to the geometry of the
openings and mining sequence. To manage this, we are studying various design
approaches to Westwood with a preliminary life of mine plan update expected in
the fourth quarter 2019, followed by a NI 43-101 compliant plan in the first
half of 2020. In addition, we continue to adjust mining methods, ground support
and safety protocols to address seismic activity, with the commissioning of
additional equipment capable of operating remotely in challenging areas. To
ensure that mining is both safe and profitable, we expect that the steady state
production level for the mine may be lower than prior ramp-up target levels.
10
Despite heading closures in respect of seismic protocol,
underground development continued at planned rates in the second quarter 2019 to
open up access to new mining areas with lateral development of approximately
1,900 metres, averaging 21 metres per day. To aid in the continuation of
underground development while respecting safety protocols in place for mining in
areas where seismicity is present, three units of bolting equipment received in
2018 which are designed to manage seismic exposure were commissioned during the
first quarter 2019 and training is ongoing. Infrastructure development continued
in future development blocks at lower levels.
Cost of sales per ounce sold and total cash costs per ounce
produced for the second quarter 2019 were lower by 6% and 9%, respectively,
compared to the same prior year period primarily due to a reduction in labour
costs. At the end of the first quarter 2019, we announced a 32% reduction in the
mine workforce due to the current stage of mine development and to realign costs
with reduced production levels.
All-in sustaining costs per ounce sold for the second quarter
2019 were lower by 12% compared to the same prior year period primarily due to
lower sustaining capital expenditures and lower cost of sales per ounce.
Included in total cash costs and all-in sustaining costs for the second quarter
2019 was the impact of realized derivative gains from currency hedging programs
of $nil per ounce produced and sold, respectively (2018 - $7 and $9).
During the first quarter 2019, Westwood normalized costs
attributed to inventory in accordance with International Financial Reporting
Standards, following increased seismic activity in December 2018. Normalization
of these costs ended at the onset of the second quarter 2019 when Westwood
reached normal production levels.
Sustaining capital expenditures for the second quarter 2019 of
$2.9 million included deferred development of $2.0 million, underground
equipment of $0.7 million, and underground construction of $0.2 million.
Non-sustaining capital expenditures for the second quarter 2019 of $4.4 million
included deferred development of $2.9 million, development drilling of $0.8
million and underground construction of $0.7 million.
Outlook
Westwoods gold production guidance has been lowered to the
range of 95,000 to 105,000 ounces from 100,000 to 120,000 ounces. This reflects
the steady progression of mining and development activities towards higher-grade
zones, while respecting safety protocols for areas where seismicity is present.
Capital expenditures are expected to be $35 million, comprising $15 million of
sustaining and $20 million of non-sustaining capital expenditures. The
non-sustaining capital expenditure guidance decreased by $10 million reflecting
the rationalization of the 2019 capital program in response to the abnormal
levels of production in the first quarter 2019.
Sadiola Mine - Mali (IAMGOLD interest - 41%)
Attributable gold production for the second quarter 2019 was
lower by 13% compared to the same prior year period primarily due to lower
throughput. Total cash costs per ounce produced and all-in sustaining costs per
ounce sold for the second quarter 2019 were lower compared to the same prior
year period as a result of continued labour reductions and a greater utilization
of marginal stockpiles following the cessation of mining activity in the second
quarter 2018.
An agreement with the Government of Mali, on terms for
investment in the Sadiola Sulphide Project, must be reached in order to prevent
the operation from entering a phase of suspended exploitation (care and
maintenance), once processing of the ore stockpiles is complete. Processing of
the ore stockpiles is expected to be completed in the fourth quarter 2019. While
this agreement has not yet been reached, IAMGOLD and AngloGold Ashanti, who
collectively own an 82% interest in Sadiola, have initiated a process to
identify third parties that may be interested in acquiring their collective
interest in Sadiola. The process is ongoing and there is no certainty of its
outcome.
Yatela Mine - Mali (IAMGOLD interest - 40%)
On February 14, 2019, Sadiola Exploration Limited (SADEX), a
subsidiary jointly held by IAMGOLD and AngloGold Ashanti Limited, entered into a
share purchase agreement with the Government of Mali, whereby SADEX agreed to sell to the Government of Mali its 80%
participation in Société dExploitation des Mines dOr de Yatela (Yatela), for
a consideration of $1. The transaction remains subject to the fulfillment of a
number of conditions precedent, among which the adoption of two laws, confirming
the change of status of Yatela to a State Entity, and also the creation of a
dedicated state agency, notably in charge of mine rehabilitation and closure. As
part of the transaction, and upon its completion, SADEX will make a one-time
payment of approximately $18.5 million to the said state agency, in an amount
corresponding to the estimated costs of completing the rehabilitation and
closure of the Yatela mine, and also financing certain outstanding social
programs. Upon completion and this payment being made, SADEX and its affiliated
companies will be released of all obligations relating to the Yatela mine
including those relating to rehabilitation, mine closure and the financing of
social programs.
11
Côté Gold Project, Canada
The Côté Gold Project is a 70:30 joint venture between the
operator IAMGOLD and Sumitomo Metal Mining Co., Ltd. ("SMM").
In January 2019, we announced a deferral of the decision to
proceed with the construction of the Côté Gold Project (see news release dated
January 28, 2019).
During the second quarter 2019, de-risking activities continued
at the Côté Gold Project, within capital expenditure guidance, pending a future
development decision. Activities included tree cutting and clearing over 173
hectares of ground where mining and key infrastructure have been proposed.
Project engineering is now approximately 35% complete. De-risking activities
also included geotechnical evaluation and modelling of the proposed tailings
management facility, the completion of approximately 4,800 metres of additional
definition drilling to improve the resource block model, advancing project
permitting, developing the operational context of mine automation, and general
mine design improvements. Negotiations were also successfully concluded
resulting in the execution of an Impacts and Benefits Agreement with the
Matagami and Flying Post First Nations.
In addition, we completed 405 metres of exploration diamond
drilling during the second quarter 2019, concluding its planned program totaling
approximately 4,900 metres. The program was designed to evaluate the new
Gosselin Zone discovery, located approximately 1.5 kilometres northeast of the
Côté Gold deposit (see new release dated March 26, 2019), testing both for
extensions of mineralization at shallow depth as well as evaluate the continuity
of mineralization between the Gosselin and Young-Shannon zones. The results will
be used to guide future drilling programs with an objective of evaluating the
resource potential of this new discovery. Subsequent to the quarter, we reported
assay results from the drilling program, which included the following
highlights: 342.5 metres grading 0.98 g/t Au; 412.0 metres grading 1.28.0 g/t Au
(see news release dated July 30, 2019).
Boto - Senegal
During the second quarter 2019, we continued to optimize the
design elements of the Boto Gold Project development, maintained stakeholder
engagement, and completed approximately 13,500 metres of diamond and reverse
circulation ("RC") drilling. The drilling program included further resource
delineation and evaluation of potential resource expansions adjacent to the
Malikoundi design pit, as well as condemnation drilling of proposed
infrastructure sites. We also continued to advance its application for a mining
concession with the government of Senegal, with approval expected in the second
half of 2019.
12
We were active at brownfield and greenfield exploration
projects in select countries located in West Africa and the Americas.
In the second quarter 2019, expenditures for exploration and
project studies totaled $14.8 million compared to $21.9 million in the same
prior year period, of which $10.6 million was expensed and $4.2 million was
capitalized. IAMGOLD's accounting policy is to expense exploration costs and
capitalize costs of evaluating the technical feasibility and commercial
viability of extracting a mineral resource, including those on or adjacent to
existing mine sites. The decrease of $7.1 million in total exploration
expenditures compared to the same prior year period primarily reflects decreased
spending on feasibility and other studies and decreased activities related to
near-mine and brownfield programs. Drilling activities on active projects and
mine sites totaled approximately 83,900 metres for the second quarter 2019.
OUTLOOK
In support of our commitment to a self-funding model, we
revised our 2019 exploration expe
($ millions) |
|
Capitalized1 |
|
|
Expensed |
|
|
Total |
|
Exploration projects - greenfield |
$ |
|
|
$ |
27 |
|
$ |
27 |
|
Exploration
projects - brownfield2 |
|
14 |
|
|
8 |
|
|
22 |
|
|
$ |
14 |
|
$ |
35 |
|
$ |
49 |
|
nditure guidance from $60 million to $49
million, excluding project studies. As a result, the 2019 resource development
and exploration program is expected to be reduced from 250,000 to 275,000 metres
to between approximately 215,000 to 235,000 metres of diamond and RC drilling.
1 |
The 2019 planned spending for capitalized expenditures of
$14 million is included in the Company's capital spending guidance of $275
million (±5%). |
2 |
Exploration projects - brownfield include planned
near-mine exploration and resource development of $12
million. |
BROWNFIELD EXPLORATION PROJECTS
Our mine and regional exploration teams continued to conduct
systematic brownfield exploration and resource development work during the
second quarter 2019 at the Essakane, Rosebel and Westwood operations.
Essakane, Burkina Faso
During the second quarter 2019, drilling programs commenced
with a primary focus on resource expansion and conversion in an effort to
replace depletion from mining activities in 2019 at the Essakane Main Zone
(EMZ), as well as to evaluate the resource potential of soft oxide
mineralization southeast of the EMZ and at the Tassiri satellite prospect.
Approximately 8,100 metres of diamond and RC drilling were completed in the
second quarter.
Rosebel, Suriname
The near-mine and regional exploration programs continue to
focus on evaluating potential resource expansions and exploration targets in the
vicinity of existing operations. During the second quarter 2019, approximately
11,800 metres of diamond and RC drilling were completed. The drilling program
targeted the continuation of mineralization along strike of the Saramacca
deposit, extensions at depth below the Saramacca reserve pit design which may
have potential to support an underground mining scenario, as well as infill
drilling at the Rosebel, J Zone and Pay Caro pits.
Westwood, Canada
During the second quarter 2019, underground excavation totaled
1,864 metres of lateral development. In addition, approximately 17,420 metres of
resource development diamond drilling and 1,923 metres for service holes were
completed during the quarter. The diamond drilling program continues to focus on
infilling known zones to upgrade existing inferred mineral resources and advance
resource definition in areas to be mined.
13
GREENFIELD EXPLORATION PROJECTS
In addition to the near-mine and brownfield exploration
programs described above, we conducted active exploration and drilling programs
on a number of early to advanced stage greenfield exploration projects during
the second quarter 2019. Highlights included:
Joint Venture Projects
Following are the highlights for our joint venture exploration
projects. The agreements are typically structured in a way that gives us the
option of increasing our ownership interest over time, with the decision
dependent upon the exploration results as time progresses.
Monster Lake - Canada (Option Agreement with TomaGold
Corporation)
During the second quarter 2019, approximately 2,250 metres of
diamond drilling were completed, concluding the 5,300 metre planned drilling
program. The objective of the program was to discover additional zones of
mineralization with potential to increase total mineral resources on the
property. Subsequent to the quarter, we reported assay results from the drilling
program, which included the following highlights: 0.8 metres grading 357.0 g/t
Au; 0.5 metres grading 133.0 g/t Au (see news release dated July 23,
2019).
Nelligan - Canada (Option Agreement with Vanstar Mining
Resources Inc.)
During the second quarter 2019, we completed its planned
diamond drilling program designed to infill and further test continuity of
mineralization associated with the Renard Zone. An additional 4,700 metres of
drilling were completed during the quarter for a total program of approximately
17,500 metres. We also announced initial assay results from the 2019 drilling
program which continued to intersect wide zones of alteration and associated
mineralization. Drilling highlights included: 37.43 metres grading 1.32 g/t Au
and 73.0 metres grading 1.09 g/t Au; 16.7 metres grading 4.04 g/t Au and 28.42
metres grading 2.11 g/t Au (see news release dated May 30, 2019). The
drilling results, together with ongoing geological, geochemical and structural
studies, will be used to complete an initial NI 43-101 compliant resource
estimate expected in the second half of 2019.
Rouyn - Canada (Option Agreement with Yorbeau Resources
Inc.)
During the second quarter 2019, approximately 1,200 metres of
diamond drilling were completed as part of an approximately 13,400 metre
delineation drilling program to evaluate the resource potential of the Lac
Gamble zone. Initial assay results from the drilling program were reported, with
highlights including: 7.75 metres grading 11.02 g/t Au, 10.6 metres grading 8.21
g/t Au and 29.7 metres grading 8.96 g/t Au, including 11.1 metres grading 17.49
g/t Au (see news releases dated May 23 and June 12, 2019). Subsequent to the
quarter, we reported assay results from the drilling program, which included the
following highlights: 9.7 metres grading 6.64 g/t Au; 23.4 metres grading 6.08
g/t Au, including 8.1 metres grading 13.25 g/t Au; 10.05 metres grading 6.59 g/t
Au (see news release dated July 31, 2019).
The assay results will be used to initiate the development of a
deposit model to support a future initial resource estimation.
End Notes (excluding tables)
1 |
Cost of sales, excluding depreciation, as disclosed in
note 29 of the Company's consolidated interim financial statements is on
an attributable ounce sold basis (excluding the non-controlling interests
of 10% at Essakane and 5% at Rosebel) and does not include Joint Ventures
which are accounted for on an equity basis. |
|
|
2 |
This is a non-GAAP measure. Refer to the reconciliation
in the non-GAAP performance measures section of the MD&A. |
|
|
3 |
The DART refers to the number of days away, restricted
duty or job transfer incidents that occur per 100
employees. |
14
CONFERENCE CALL
A conference call will be held on Thursday, August 8, 2019 at
8:30 a.m. (Eastern Standard Time) for a discussion with management regarding
IAMGOLD's 2019 second quarter operating performance and financial results. A
webcast of the conference call will be available through IAMGOLD's website -
www.iamgold.com.
Conference Call Information: North America Toll-Free:
1-800-319-4610 or International Number: 1-604-638-5340.
A replay of this conference call will be accessible for one
month following the call by dialing: North America toll-free: 1-800-319-6413 or
International Number: 1-604-638-9010, passcode: 3393#.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
All information included in this news release, including any
information as to the Companys future financial or operating performance, and
other statements that express managements expectations or estimates of future
performance, other than statements of historical fact, constitute
forward-looking information or forward-looking statements and are based on
expectations, estimates and projections as of the date of this news release. For
example, forward-looking statements contained in this news release are found
under, but are not limited to being included under, the headings "Upcoming
Growth Catalysts", Second Quarter 2019 Summary, "2019 Guidance", "Development
Projects", and "Exploration", and include, without limitation, statements with
respect to: the Companys guidance for production, cost of sales, total cash
costs, all-in sustaining costs, depreciation expense, effective tax rate,
capital expenditures, operations outlook, development and expansion projects,
exploration, the future price of gold, the estimation of mineral reserves and
mineral resources, the realization of mineral reserve and mineral resource
estimates, the timing and amount of estimated future production, costs of
production, permitting timelines, currency fluctuations, requirements for
additional capital, government regulation of mining operations, environmental
risks, unanticipated reclamation expenses, title disputes or claims and
limitations on insurance coverage. Forward-looking statements are provided for
the purpose of providing information about managements current expectations and
plans relating to the future. Forward-looking statements are generally
identifiable by, but are not limited to, the use of the words may, will,
should, continue, expect, "budget", "forecast", anticipate, estimate,
believe, intend, plan, "schedule", guidance, outlook, potential,
seek, targets, strategy or project or the negative of these words or
other variations on these words or comparable terminology. Forward-looking
statements are necessarily based upon a number of estimates and assumptions
that, while considered reasonable by management, are inherently subject to
significant business, economic and competitive uncertainties and contingencies
and, as such, undue reliance must not be placed on them. The Company cautions
the reader that reliance on such forward-looking statements involve risks,
uncertainties and other factors that may cause the actual financial results,
performance or achievements of IAMGOLD to be materially different from the
Companys estimated future results, performance or achievements expressed or
implied by those forward-looking statements. Forward-looking statements are in
no way guarantees of future performance. These risks, uncertainties and other
factors include, but are not limited to, changes in the global prices for gold,
copper, silver or certain other commodities (such as diesel and electricity);
changes in U.S. dollar and other currency exchange rates, interest rates or gold
lease rates; risks arising from holding derivative instruments; the level of
liquidity and capital resources; access to capital markets, and financing;
mining tax regimes; ability to successfully integrate acquired assets;
legislative, political or economic developments in the jurisdictions in which
the Company carries on business; operating or technical difficulties in
connection with mining or development activities including geotechnical
difficulties and seismicity; laws and regulations governing the protection of
the environment; employee relations; availability and increasing costs
associated with mining inputs and labour, negotiations with respect to new,
reasonable collective labour agreements may not be successful which could lead
to a strike or work stoppage in the future, and any such strike or work stoppage
could have a material adverse effect on the Company's earnings and financial
condition; the speculative nature of exploration and development, including the
risks of diminishing quantities or grades of reserves; adverse changes in the
Companys credit rating; contests over title to properties, particularly title
to undeveloped properties; the ability to deliver gold as required under forward
gold sale arrangements; the rights of counterparties to terminate forward gold
sale arrangements in certain circumstances, the inability to participate in any
gold price increase above the cap in any collar transaction entered into in
conjunction with a forward gold sale arrangement, such as the collar entered
into in conjunction with the gold sold forward in January of 2019; and the risks
involved in the exploration, development and mining business. The Compan y is
also subject to litigation and legal and political risks. Risks and unknowns
inherent in IAMGOLD's operations and projects include the inaccuracy of
estimated reserves and resources, metallurgical recoveries, capital and
operating costs, and the future price of gold. Exploration and development
projects have no operating history upon which to base estimates of future cash
flows. The capital expenditures and time required to develop new mines or other
projects are considerable, and changes in costs or construction schedules can
affect project economics. Actual costs and economic returns may differ
materially from IAMGOLDs estimates or IAMGOLD could fail to obtain the
governmental approvals necessary for the continued development or operation of a
project.
15
For a comprehensive discussion of the risks faced by the
Company, and which may cause the actual financial results, operating performance
or achievements of IAMGOLD to be materially different from the Companys
estimated future results, operating performance or achievements expressed or
implied by forward-looking information or forward-looking statements, please
refer to the Companys latest Annual Information Form (AIF), filed with
Canadian securities regulatory authorities, at www.sedar.com, and filed under
Form 40-F with the United States Securities Exchange Commission, at
www.sec.gov/edgar.shtml. The risks described in the AIF (filed and viewable on
www.sedar.com and www.sec.gov/edgar.shtml, and available upon request from the
Company) are hereby incorporated by reference into this news release.
The Company disclaims any intention or obligation to update or
revise any forward-looking statements whether as a result of new information,
future events or otherwise except as required by applicable law.
Qualified Person Information
The technical information relating to exploration activities
disclosed in this news release was prepared under the supervision of, and
reviewed and verified by, Craig MacDougall, P.Geo., Senior Vice President,
Exploration, IAMGOLD. Mr. MacDougall is a Qualified Person as defined by
National Instrument 43-101.
About IAMGOLD
IAMGOLD (www.iamgold.com) is
a mid-tier mining company with four operating gold mines on three continents. A
solid base of strategic assets in North and South America and West Africa is
complemented by development and exploration projects and continued assessment of
accretive acquisition opportunities. IAMGOLD is in a strong financial position
with extensive management and operational expertise.
For further information please
contact:
Indi Gopinathan, Investor Relations Lead, IAMGOLD
Corporation |
Tel: (416) 360-4743 Mobile: (416) 388-6883 |
|
Martin Dumont, Senior Analyst, Investor Relations,
IAMGOLD Corporation |
Tel: (416) 933-5783 Mobile: (647) 967-9942 |
|
Toll-free: 1-888-464-9999 info@iamgold.com |
Please note:
This entire news release may be accessed via fax, e-mail,
IAMGOLD's website at www.iamgold.com and through Newsfile's website at
www.newsfilecorp.com. All material information on IAMGOLD can be found at www.sedar.com or at www.sec.gov.
Si vous désirez obtenir la version française de ce communiqué
de presse, veuillez consulter le http://www.iamgold.com/French/accueil/default.aspx.
16
This regulatory filing also includes additional resources:
exhibit99-1.pdf
Iamgold (NYSE:IAG)
Historical Stock Chart
From Mar 2024 to Apr 2024
Iamgold (NYSE:IAG)
Historical Stock Chart
From Apr 2023 to Apr 2024