IS IAMGOLD GOING TO IMPLODE?The sudden departure of Daniella Dimitrov, Chief Financial Officer and Executive Vice President, Strategy & Corporate Development has created a vacuum at the top of the mining company’s corporate structure. The IAMGOLD Corp. management picture at the top of the organization is getting worse at instead of better.
It’s incomprehensible that IAMGOLD Corp. (IMG.TO) Maryse Blanger, Chair of the Board and Interim President and CEO, recently stated that she is looking forward to working directly with Mr. Maarten Theunissen the newly appointed temporary CFO on advancing and finalizing the funding problem. How on earth can these two interim and under-qualified mining executives find an equitable solution to deal with soaring mining costs and out of control budget construction costs for the Cote gold project in the next few months?
RBC Capital Markets put out an up-dated news report this week on Tuesday that IAMGOLD Corp. (IMG.TO) will seek financing to cover the funding gap at the Cote gold project. During a presentation from the 2022 Gold Forum Americas, the company said it is evaluating securing debt, selling a stream, divesting assets or partnerships as options. The company has launched a strategic review of the Rosebel operation and its portfolio of West African properties to potentially fund the liquidity gap. IAMGOLD reiterated the project's remaining initial capital of $1.2 billion to $1.3 billion as of July but will need additional liquidity before year-end.
The mounting costs and the liquidity issue have been plaguing the company or months, and should have been addressed and resolved by now with a competent management team. I can just imagine the uneasiness of the major shareholders, creditors, bankers and contractors regarding the company’s inability to secure full funding for the Cote gold mine.
As I’ve mentioned previously, this funding issue should have been assigned to an outside consulting firm that specializes in this field. A new set of eyes with an independent and objective point of view could have analyzed this thorny problem and would have certainly have come up with an optimal and plausible solution by now.
Moreover, the under-qualified management group may be facing a more serious and pressing problem and that’s the historical low share price.
As a shareholder aptly stated recently, IMG is bleeding cash, quarter after quarter and they have created a real mess that were in today at current prices. IMG is at "gut check time", where they need to do something drastic or this is under 1 dollar and delisted off the NYSE. Unfortunately, for the past decade, the BOD’s interests have never been aligned with the shareholders. They have always been concerned with their own vested interests. Now it’s time to pay the piper!
The IAMGOLD shareholders certainly deserve a more transparent exchange of information regarding the problematic issues and with an up-date with the hiring of the two top positions in the organization. If they don’t make any positive major announcements in the short term, the company will implode! Keep your seatbelts fastened, stay nimble, alert and try to stay safe…