Monster is one of Iamgold's top exploration properties. NEWS RELEASE
IAMGOLD REPORTS SOLID THIRD QUARTER 2019 RESULTS, WITH PATHWAY TO IMPROVED FOURTH QUARTER; CONFIRMS COST AND PRODUCTION GUIDANCE
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 nine months ended September 30, 2019.
Toronto, Ontario, November 6, 2019 - IAMGOLD Corporation (“IAMGOLD” or the “Company”) reported its consolidated financial and operating results for the quarter ended September 30, 2019.
"We had a solid third quarter, with operating cash flow increasing by 28% over the second quarter 2019 and 354% over the prior year period, and continuing efforts toward cost containment," commented Steve Letwin, Chief Executive Officer of IAMGOLD. "Essakane is contributing to a strong second half, Westwood is progressing and Rosebel continues to ramp back up to normal operations. On the exploration front, our team has delivered a 3.2 million ounce initial inferred resource at Nelligan, recognized by the AEMQ with the Discovery of the Year Award. Additionally, we announced the new Karita discovery in Guinea on trend between our Boto and Diakha deposits. Through our self-funding lens, we completed the Essakane CIL/HL feasibility study, which supports a lower capital investment with heap-leach optionality in the mine life. We look forward to continuing our momentum with stronger fourth quarter results, and we confirm our production and cost guidance. We believe that the combination of strong Essakane performance, Saramacca ramp up, stabilization at Westwood, productivity improvements across all assets, and our exploration successes build the case for investment in IAMGOLD."
Mr. Letwin continued: "It is with great enthusiasm that I would like to announce the appointment of P. Gordon Stothart to the position of President & Chief Operating Officer of IAMGOLD. Gord has been with the Company since late 2007 as Executive Vice President and COO, and we are thrilled to expand his leadership role. I will continue in my role of Chief Executive Officer of IAMGOLD."
Third Quarter 2019 Highlights
• Attributable gold production of 187,000 ounces at cost of sales1 per ounce of $986, total cash costs2 per ounce produced of $902 and all-in sustaining costs2 per ounce sold of $1,118. • Attributable gold sales of 186,000 ounces at an average realized gold price per ounce of $1,481. • Revenues of $274.4 million. • Net loss attributable to equity holders of $3.0 million, or $0.01 per share. • Adjusted net loss attributable to equity holders2 of $0.0 million or $0.00 per share2. • Net cash from operating activities of $51.8 million. • Net cash from operating activities before changes in working capital2 of $65.4 million. • Cash, cash equivalents, short-term investments and restricted cash totaled $677.2 million at September 30, 2019.
2
Strategic Developments Reserves and Resources • On August 7, 2019, we reported initial drilling results testing the underground mining potential of the Saramacca Project in Suriname. 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; 24.0 metres grading 9.67 g/t Au including 6.0 metres grading 26.41 g/t Au. • On August 13, 2019, we reported additional drilling results from our delineation drilling program at the Nelligan Gold Project in Quebec. Drilling highlights included: 123.7 metres grading 1.26 g/t Au; 50.2 metres grading 1.82 g/t Au; 17.3 metres grading 5.50 g/t Au.
Exploration • On July 23, 2019, we reported drilling results from our 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 our 2019 drilling program completed at the Gosselin Discovery at the Ct 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. Operations and Development • At Rosebel, we resumed mining activities in the northern pits in late August and began ramping up in the southern pits in late September, following the temporary suspension of mining activities that resulted from a security incident reported on August 1, 2019. • Development work on Saramacca continued with the haul road construction and bush clearing activities progressing, and deliveries for hauling fleet and technical engineering work continuing during the quarter. • The carbon-in-column plant at Rosebel, which became fully operational in the first quarter 2019, produced an additional 1,300 ounces in the third quarter 2019, for total year-to-date recoveries of 5,600 ounces. • We continued to advance our application for a mining concession and optimize the design elements of the Boto Gold Project development, while we maintained stakeholder engagement. Subsequent to the Quarter • IAMGOLD appointed P. Gordon Stothart as President & Chief Operating Officer of the Company. • IAMGOLD was awarded the Discovery of the Year at the Mining Exploration Association of Quebec’s XPLOR 2019 Awards Gala for the Nelligan Gold Project. • We reported an initial inferred resource estimate for the Nelligan Gold Project in Quebec of 97.0 million tonnes grading 1.02 g/t Au for 3.2 million ounces (on a 100% basis). • First ore was delivered to the Rosebel mill from the Saramacca deposit. • The Carbon-In-Leach ("CIL") and Heap Leach feasibility study at Essakane was completed: the feasibility study supported an investment in a mill optimization project to increase CIL plant capacity and postponement of heap leach operations to the end of life of mine. • We announced drilling results from our 2019 drilling program completed at the Karita Project in Guinea, confirming a new grassroots exploration discovery along the Senegal-Mali Shear Zone, on trend between our Boto and Diakha deposits. Drilling highlights included: 29.0 metres grading 2.96 g/t Au; 21.0 metres grading 9.01 g/t Au; 16.0 metres grading 3.17 g/t Au. • IAMGOLD participated in INV Metals' private placement of common shares and acquired an additional 13.9 million common shares of INV Metals at a price of C$0.40 per share for an aggregate amount of $4.2 million (C$5.6 million). This acquisition allowed IAMGOLD to maintain a 35.6% ownership in INV Metals, a Canadian mineral resource company focused on the development and exploration of the Loma Larga Project in Ecuador.