All monetary amounts are expressed in U.S. dollars, unless otherwise
indicated.
Refer to the annual Management Discussion and Analysis (MD&A) and
audited consolidated
Financial Statements for more information.
TSX: IMG NYSE: IAG
TORONTO, Feb. 19, 2014 /CNW/ - IAMGOLD Corporation ("IAMGOLD" or the "Company") reports consolidated financial and
operating results for the fourth quarter and year ending December 31,
2013.
"Early in 2013, we recognized that the gold environment was
deteriorating and took several critically important proactive steps to
lessen the effect on our business and to better position IAMGOLD going
forward," stated Steve Letwin, President and CEO. "The 27% decline in
the gold price created challenges for the gold industry and for our
company. The lower price impacted many key areas of our business,
including our financial results, mine plans and related reserves and
resources, as well as our costs and asset values. The proactive steps
I'm referring to included balancing our cost structure in light of
lower earnings and production levels, reducing costs by $125 million,
which contributed to us beating our cost guidance, focusing production
on higher value ore, preserving our liquidity by lowering planned
capital expenditures and suspending the dividend, and driving excellent
results from our niobium operations. In the fourth quarter, we adjusted
asset values to reflect our forecast of continuing relatively flat gold
prices and took a non-cash charge to earnings. As a result of these
actions, IAMGOLD remained profitable in 2013, excluding asset write
downs and impairments. The Company ended the year with liquidity of
more than $1 billion in cash, bullion and undrawn credit facilities.
"Given the gold price climate, our near-term focus is on mining
profitable ounces, rigid cost containment, optimization of assets and
economic returns and the preservation of liquidity," continued Mr.
Letwin. "Mine plan optimization will be geared towards maximizing
positive cash flow rather than the number of ounces produced. Cash
costs, capital and exploration expenditures will be managed prudently
while preserving opportunity for future growth in an improved economic
environment."
OPERATING HIGHLIGHTS
-
Cost reductions of $125 million; surpassing target by 25%.
-
Total cash costs per ounce1,2 for the fourth quarter:
-
Gold mines3 - $828 per ounce.
-
IAMGOLD owner-operator mines - $749 per ounce.
-
Total cash costs per ounce for full year 2013:
-
Gold mines - $801 per ounce within guidance.
-
IAMGOLD owner- operator mines - $743 per ounce beats guidance.
-
All-in sustaining costs per ounce1 for the fourth quarter.
-
Gold mines - $1,242 per ounce.
-
IAMGOLD owner-operator mines - $1,213 per ounce.
-
All-in sustaining costs per ounce for full year 2013:
-
Gold mines - $1,232 per ounce within guidance.
-
IAMGOLD owner-operator mines - $1,174 per ounce within guidance.
-
Attributable gold production of 195,000 ounces for the fourth quarter.
-
Commercial production of 175,000 ounces with attributable gold sales of
173,000 ounces.
-
Attributable gold production of 835,000 ounces for full year 2013.
-
Commercial production of 762,000 ounces with attributable gold sales of
740,000 ounces.
-
Record niobium production of 5.3 million kilograms for 2013 with
operating margin1 of $18 per kilogram, up 13% and 20%, respectively, from 2012.
FINANCIAL HIGHLIGHTS
-
With no impact on cash, after-tax impairment charges of $772.8 million
were recorded by the Company in the fourth quarter against the carrying
amount of our mining assets, including the write-off of $256.7 million
of goodwill.
-
Reported net loss attributable to equity holders of $840.3 million
($2.23 per share) for the fourth quarter and $832.5 million ($2.21 per
share) for 2013.
-
Adjusted net earnings4 attributable to equity holders of $19.7 million ($0.05 per share4) for the fourth quarter and $137.3 million ($0.36 per share) for 2013.
-
Net cash from operating activities before changes in working capital4 of $54.7 million ($0.15 per share4) for the fourth quarter and $305.6 million ($0.81 per share) for 2013.
-
Cash, cash equivalents, and gold bullion (at market value) of $384.6
million and undrawn credit facilities of $750 million as at December
31, 2013.
-
Capital spending of $669 million in 2013 in line with guidance; guidance
of $400 million ± 5% approximately 40% lower for 2014.
-
Dividend suspended in December 2013.
FOURTH QUARTER AND FULL-YEAR 2013 HIGHLIGHTS
Non-Cash Impairment Charge
We reported after-tax impairment charges of $772.8 million, largely as a
result of the lower short-term and long-term gold price assumptions
related to Suriname, Essakane and the Doyon division. The gold price
assumptions used in the most recent life of mine plans declined
significantly in the fourth quarter 2013. The decrease was the primary
cause of the impairment charges recorded against the carrying amount of
mining assets and goodwill. After-tax impairment charges were
recognized in the fourth quarter 2013 comprising $290.6 million for
Suriname, $335.1 million for Essakane, and $147.1 million for the Doyon
division. Included in the impairment charges for Suriname and the Doyon
division were goodwill write-offs of $168.4 million and $88.3 million,
respectively.
Financial Performance
-
Revenues for the fourth quarter 2013 were $247.2 million, $151.4 million
lower than the same prior year period. The decrease was mainly due to
lower gold sales volume and a lower average realized gold price.
Revenues for 2013 were $1,147.1 million, $306.3 million lower than the
prior year, mainly due to a lower realized gold price ($181.2 million)
and lower gold sales volume ($134.7 million), partially offset by
higher niobium revenues ($9.1 million).
-
Cost of sales for the fourth quarter 2013 was $196.1 million, down $14.0
million from the same prior year period due to lower production
volumes, partially offset by higher depreciation. Cost of sales for
2013 was $807.0 million, up $32.8 million from the prior year. The
increase was due to higher operating costs ($32.6 million) and higher
depreciation expense ($19.5 million), partially offset by lower
royalties due to lower realized gold prices ($19.3 million). Operating
costs were higher primarily due to mine operating costs associated with
Mouska ($43.3 million) and a non-current ore stockpile write-down at
Essakane ($10.6 million), partially offset by lower operating costs at
Rosebel, Niobec and Essakane.
-
Net losses attributable to equity holders for the fourth quarter 2013
were $840.3 million compared to net earnings of $84.6 million for the
same prior year period, mainly due to after-tax impairment charges on
goodwill and mining assets ($772.8 million) and the other factors noted
below explaining the year-over-year variance. Net losses attributable
to equity holders for 2013 were $832.5 million compared to net earnings
of $334.7 million in 2012. The decrease mainly related to the $772.8
million of after-tax impairment charges recorded in the fourth quarter,
lower revenue ($306.3 million), higher cost of sales ($32.8 million),
higher share of net losses from associates and joint ventures ($114.1
million), impairment of investments ($45.0 million) and lower gains on
sale of marketable securities ($24.7 million), partially offset by
lower income taxes ($202.7 million) and lower exploration expenses
($38.8 million).
-
Adjusted net earnings attributable to equity holders4 for the fourth quarter 2013 were $19.7 million ($0.05 per share4), compared with $89.8 million ($0.24 per share) in the same prior
period 2012. Adjusted net earnings attributable to equity holders for
2013 were $137.3 million ($0.36 per share), down $178.3 million
($0.48 per share) from the prior year.
-
Net cash from operating activities for the fourth quarter 2013 was $44.0
million, $56.7 million lower than the same prior year period. The
decrease was mainly due to lower revenues partially offset by lower
exploration expenses and lower income taxes paid. Net cash from
operating activities for 2013 was $246.3 million, down $169.0 million
from 2012. The decrease was mainly due to lower revenues ($306.3
million) partially offset by lower exploration expenses ($38.8 million)
and lower income taxes paid ($85.6 million).
-
Net cash from operating activities before changes in working capital4 for the fourth quarter 2013 was $54.7 million ($0.15 per share4) compared with $116.1 million ($0.31 per share) in the same prior year
period. Net cash from operating activities before changes in working
capital for 2013 was $305.6 million ($0.81 per share), down from $474.4
million ($1.26 per share) in 2012.
Financial Position
-
Cash, cash equivalents and gold bullion (at market value) were $384.6
million at December 31, 2013, down $636.0 million from December 31,
2012. The decline was mainly due to capital expenditures on mining
assets ($636.9 million), dividend and interest paid ($130.7 million), a
decrease in the market value of the gold bullion ($61.0 million) and
loans provided to related parties net of repayments ($47.7 million),
partially offset by cash generated from operating activities ($246.3
million).
-
As at December 31, 2013, no funds were drawn against our $750 million
total unsecured revolving credit facilities.
Liquidity Planning
-
Changes in the market price of gold significantly impact our liquidity.
In 2013, we suspended the dividend to conserve cash and we reduced
costs by $125 million.
-
In 2014, we plan to look for further opportunities to reduce costs and
improve the efficiency of business processes and systems. We plan to
monetize a portion of the non-cash items within working capital, such
as supplies and consumables inventory. We will also focus on optimizing
our asset portfolio through the further evaluation of life of mine
plans and the efficient allocation of capital and human resources. The
undrawn credit facility of $750 million remains accessible to the
Company.
Production, Costs and Margins
Gold Operations
-
Attributable gold production, inclusive of joint venture operations, was
195,000 ounces in the fourth quarter, compared to 214,000 ounces in the
same quarter 2012. The decline was mainly due to lower grades at
Rosebel and Essakane, partially offset by increased production at the
Doyon division. For the full year 2013, attributable gold production,
inclusive of joint venture operations, was 835,000 ounces, up 5,000
ounces from 2012. The increase was due to pre-commercial production
from the Westwood mine (73,000 ounces) and higher production at Mouska
(59,000 ounces). This was partially offset by lower tonnes of ore mined
due to pit sequencing combined with lower grades at Rosebel (46,000
ounces), lower grades as expected at Essakane (65,000 ounces) and lower
grades at Sadiola (14,000 ounces).
-
Attributable gold sales volume, inclusive of joint venture operations,
for the fourth quarter 2013 was 173,000 compared to attributable
commercial production of 175,000 ounces. Attributable gold sales
volume, inclusive of joint venture operations, for 2013 was 740,000
ounces compared to attributable gold commercial production of 762,000
ounces. The variance of 22,000 ounces was mainly related to timing
differences.
-
Total cash costs1,2 - gold mines3 for the fourth quarter 2013 were $828 per ounce, up 13% from the same
prior year period mainly due to lower grades at Rosebel, Essakane and
Sadiola. Total cash costs - gold mines for 2013 were $801 per ounce, up
12% from the prior year. The increase was mainly due to the impact of
lower grades and the increased processing of hard rock together with
inflationary cost pressures across all sites. This was partially offset
by the benefits from the cost reduction program.
-
All-in sustaining costs1 - gold mines3 for the fourth quarter 2013 were $1,242 per ounce up 14% from the same
prior year period. All-in sustaining costs - gold mines for 2013 were
$1,232 per ounce sold, up 16% from the prior year. The increases
reflect higher cash costs, as noted above, as well as higher sustaining
capital expenditures to support increased hard rock capacity levels at
Rosebel and Essakane.
-
All-in sustaining costs - total5 for the fourth quarter 2013 were $1,125 per ounce sold, up 3% from the
same prior year period. All-in sustaining costs - total for 2013 were
$1,153 per ounce sold, up 9% from the same prior year period. This
measure includes the impact of the Niobec mine's operating margin and
its sustaining capital expenditures.
Niobium Operation
-
In the fourth quarter niobium production was 1.6 million kilograms, up
33% from the same prior year period. Niobium production for 2013 was a
record 5.3 million kilograms, up 13% from the prior year. Niobec's
strong performance in 2013 was the result of improved recoveries and
grades, along with an increase in mill throughput.
-
The operating margin1 in the fourth quarter 2013 was $20 per kilogram, 33% higher than the
same quarter in 2012. For the full year 2013, the operating margin was
$18 per kilogram, up 20% from 2012. The higher margins reflect the
increased production and the benefits from the cost reduction program.
-
Niobec is one of three significant producers of ferroniobium in the
world, with a market share of approximately 10% in 2013. The largest
producer in the niobium market is a Brazilian producer whose dominant
market position can impact market dynamics. Demand for niobium is
largely tied to the steel industry. World steel production in 2013 was
3% higher than 2012 due to surging production in China. Niobium demand,
however, was down slightly from the prior year due to the slowdown in
steel demand in developed countries. The average realized sales price
was marginally higher in 2013 when compared to the average realized
sales price in the prior year.
Commitment to Zero Harm Continues
Regarding health and safety, the frequency of all types of serious
injuries (measured as DART rate6) for 2013 was 1.01, compared to 1.08 for 2012, representing a 6.5%
improvement. Unfortunately, we reported a death of a local contractor
at Rosebel during the third quarter 2013.
2013 COST REDUCTION PROGRAM
In the first quarter 2013, we initiated a $100 million cost-reduction
program. By the end of the year, we exceeded our target by 25% with a
total savings of $125 million. While all sustainable cost reductions
and productivity improvements have been rolled forward into 2014 as
embedded savings, we continue to seek opportunities for further cost
reductions and productivity improvements. The following table presents
examples of how the cost reductions were achieved:
Operations Examples
Target: $54 million
Realized in 2013: $75 million
|
Reduced Power Costs and Consumption of Consumables
-
Reduced power rates at Rosebel.
-
Reduced consumption of energy and steel in the SAG and ball mill
grinding process at Essakane through accelerated commissioning of the
pebble crusher.
-
Reduced fuel consumption at Westwood through a fuel and waste oil
management program.
Reduced Labour Costs
-
Reduced staffing requirements in mining and maintenance through business
process and operating efficiency improvements and improved contract
maintenance.
-
Reduced the cost of consultants.
Renegotiated Supplier Contracts
-
Renegotiated supplier contracts, such as food and security at Essakane.
-
Consolidated bus contracts for transporting workers to and from the
Essakane mine.
Improved Operating Efficiencies and Reduced Maintenance Costs
-
Improved productivity at Rosebel through an aggressive dewatering
process of the pits during the rainy season combined with better
coordination of shifts for the drilling and blasting crews.
-
Reduced the frequency and cost of preventive truck maintenance through
the replacement of the oil renewal system.
-
Redesigned mine roads, resulting in improved tire life and reduced
hauling cycle times.
-
Installed a potable water system at Essakane, eliminating the need for
bottled water.
-
Increased monitoring and management of tire wear at Westwood.
|
Exploration Examples
Target: $40 million
Realized in 2013: $41 million
|
-
Downsized exploration teams by 34% mainly in West Africa, Suriname,
Brazil and Canada.
-
Reduced drilling activities mainly in Mali, Burkina Faso, Peru and
Suriname.
-
Reprioritized projects and deferred others.
-
Deferred or redesigned certain study elements related to the Côté Gold
project and exploration program.
|
Corporate Examples
Target: $6 million
Realized in 2013: $9 million
|
-
Reduced use of consultants and renegotiated contractor/supplier
agreements.
-
Lowered stock based compensation.
-
Increased reliance on communications technology resulting in less
travel.
|
RESERVES AND RESOURCES
(Additional detail behind the gold price assumptions used to determine
reserves and resources can be found in the Reserves and Resources
section of the MD&A)
At December 31, 2013:
-
Total attributable proven and probable gold reserves were 10.1 million
ounces compared to 11.3 million ounces at the end of 2012. The weighted
average gold price assumption used to determine mineral reserves as at
December 31, 2013 was $1,357 per ounce compared to $1,263 per ounce as
at December 31, 2012. The weighted average gold price assumption for
2012 was lower than what would be expected given that its calculation
included a gold price assumption for Rosebel of $1,200, which was
unchanged from 2011 since the mine's reserves were in the process of
being reviewed and updated as part of the feasibility study that was
underway.
-
Total attributable measured and indicated gold resources (inclusive of
reserves) were 23.4 million ounces compared to 22.6 million ounces at
the end of 2012. The weighted average gold price assumption used to
determine mineral resources as at December 31, 2013 was $1,540 per
ounce compared to $1,584 per ounce as at December 31, 2012.
Note: In mining operations, measured and indicated resources that are
not mineral reserves are considered uneconomic at the price used for
reserves estimations, but are deemed to have a reasonable prospect of
economic extraction.
-
Niobium probable reserves were 1,707 million kilograms of contained
niobium pentoxide (Nb2O5), compared to 1,768 million kilograms at the end of 2012.
-
Niobium measured and indicated resources (inclusive of reserves) were
2,653 million kilograms of contained niobium pentoxide (Nb2O5), compared to 2,563 million kilograms at the end of 2012.
Note: Niobium mineral reserves have been estimated based on a Technical
Report (NI 43-101) prepared in December 2013, using a block caving
scenario using $45 per kilogram of Niobium and include dilution
material. Niobium mineral resources have been estimated using a cutoff
of 0.20% Nb2O5 per tonne (before recovery) under the block caving scenario. There is a
large volume of the material within the planned block caving that has a
measured resource classification. However, due to the uncertainty
associated with estimating material movement within the cave, a
probable classification has been applied to the reserve.
|
SUMMARY OF FINANCIAL AND OPERATING RESULTS
|
|
|
Three months ended December 31,
|
|
Years ended December 31,
|
|
|
2013
|
Change
|
|
20121
|
|
2013
|
Change
|
|
20121
|
Financial Results ($ millions, except where noted)
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
247.2
|
(38%)
|
$
|
398.6
|
$
|
1,147.1
|
(21%)
|
$
|
1,453.4
|
Cost of sales
|
$
|
196.1
|
(7%)
|
$
|
210.1
|
$
|
807.0
|
4%
|
$
|
774.2
|
Earnings from mining operations2
|
$
|
51.1
|
(73%)
|
$
|
188.5
|
$
|
340.1
|
(50%)
|
$
|
679.2
|
Net earnings (losses) attributable to equity holders of IAMGOLD
|
$
|
(840.3)
|
(1,093%)
|
$
|
84.6
|
$
|
(832.5)
|
(349%)
|
$
|
334.7
|
Net earnings (losses) per share ($/share)
|
$
|
(2.23)
|
(1,114%)
|
$
|
0.22
|
$
|
(2.21)
|
(348%)
|
$
|
0.89
|
Adjusted net earnings attributable to equity holders of IAMGOLD2
|
$
|
19.7
|
(78%)
|
$
|
89.8
|
$
|
137.3
|
(56%)
|
$
|
315.6
|
Adjusted net earnings per share2 ($/share)
|
$
|
0.05
|
(79%)
|
$
|
0.24
|
$
|
0.36
|
(57%)
|
$
|
0.84
|
Net cash from operating activities
|
$
|
44.0
|
(56%)
|
$
|
100.7
|
$
|
246.3
|
(41%)
|
$
|
415.3
|
Net cash from operating activities before changes in working capital2
|
$
|
54.7
|
(53%)
|
$
|
116.1
|
$
|
305.6
|
(36%)
|
$
|
474.4
|
Net cash from operating activities before changes in working capital
($/share)2
|
$
|
0.15
|
(52%)
|
$
|
0.31
|
$
|
0.81
|
(36%)
|
$
|
1.26
|
Key Operating Statistics
|
|
|
|
|
|
|
|
|
|
|
Gold sales - attributable (000s oz)
|
|
173
|
(25%)
|
|
232
|
|
740
|
(11%)
|
|
827
|
Gold commercial production - attributable (000s oz)
|
|
175
|
(18%)
|
|
214
|
|
762
|
(8%)
|
|
830
|
Gold production - attributable (000s oz)3
|
|
195
|
(9%)
|
|
214
|
|
835
|
1%
|
|
830
|
Average realized gold price2 ($/oz)
|
$
|
1,273
|
(25%)
|
$
|
1,704
|
$
|
1,399
|
(16%)
|
$
|
1,667
|
Total cash costs2,4,5 - gold mines7 ($/oz)
|
$
|
828
|
13%
|
$
|
731
|
$
|
801
|
12%
|
$
|
715
|
Gold margin2 ($/oz)
|
$
|
445
|
(54%)
|
$
|
973
|
$
|
598
|
(37%)
|
$
|
952
|
All-in sustaining costs2,6 - gold mines ($/oz)
|
$
|
1,242
|
14%
|
$
|
1,090
|
$
|
1,232
|
16%
|
$
|
1,064
|
All-in sustaining costs - total8 ($/oz)
|
$
|
1,125
|
3%
|
$
|
1,087
|
$
|
1,153
|
9%
|
$
|
1,054
|
Niobium production (millions of kg Nb)
|
|
1.6
|
33%
|
|
1.2
|
|
5.3
|
13%
|
|
4.7
|
Niobium sales (millions of kg Nb)
|
|
1.3
|
18%
|
|
1.1
|
|
4.9
|
4%
|
|
4.7
|
Operating margin2 ($/kg Nb)
|
$
|
20
|
33%
|
$
|
15
|
$
|
18
|
20%
|
$
|
15
|
Financial Position ($ millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2013
|
|
|
Change
|
|
|
|
December 31, 20121
|
Cash, cash equivalents, and gold bullion
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
at market value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
384.6
|
|
|
(62%)
|
|
|
$
|
1,020.6
|
at cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
319.2
|
|
|
(64%)
|
|
|
$
|
894.2
|
Total assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,190.4
|
|
|
(21%)
|
|
|
$
|
5,295.6
|
Long-term debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
640.3
|
|
|
0%
|
|
|
$
|
638.8
|
Available credit facilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
750.0
|
|
|
0%
|
|
|
$
|
750.0
|
1
|
Refer to note 4(b) of the consolidated financial statements.
|
2
|
This is a non-GAAP measure. Refer to the non-GAAP performance measures
section of the MD&A for the reconciliation to GAAP.
|
3
|
Balances related to 2013 include Westwood pre-commercial production for
the three months and year ended December 31, 2013 of 20,000 and 73,000
ounces, respectively.
|
4
|
The total cash costs computation does not include Westwood
pre-commercial production for the three months and year ended December
31, 2013 of 20,000 and 73,000 ounces, respectively.
|
5
|
By-product credits are included in the calculation of total cash costs.
Excluding these credits increases total cash costs - gold mines by $2
per ounce for the years ended December 31, 2013 and 2012 and $2 per
ounce for the three months ended December 31, 2013 and 2012.
|
6
|
By-product credits are included in the calculation of all-in sustaining
costs - gold mines. Refer to non-GAAP performance measures section of
the MD&A for the reconciliation to GAAP.
|
7
|
Gold mines, as used with total cash costs and all-in sustaining costs,
consist of Rosebel, Essakane, Mouska, Sadiola and Yatela on an
attributable basis.
|
8
|
Total, as used with all-in sustaining costs, includes the impact of
niobium contribution, defined as the Niobec mine's operating margin and
sustaining capital, on a per gold ounce sold basis. Refer to the all-in
sustaining costs table in this news release.
|
|
ATTRIBUTABLE GOLD PRODUCTION AND TOTAL CASH COSTS
|
|
|
|
|
|
|
|
|
|
|
Gold Production (000s oz)
|
Total Cash Costs1 ($/oz)
|
|
Three months ended
|
Years ended
|
Three months ended
|
Years ended
|
|
December 31,
|
December 31,
|
December 31,
|
December 31,
|
|
2013
|
2012
|
2013
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Owner-operator
|
|
|
|
|
|
|
|
|
|
|
|
|
Rosebel (95%)
|
70
|
100
|
336
|
382
|
$
|
674
|
$
|
661
|
$
|
718
|
$
|
671
|
Essakane (90%)
|
59
|
77
|
250
|
315
|
|
822
|
|
672
|
|
753
|
|
603
|
Doyon division2 (100%)
|
15
|
-
|
63
|
4
|
|
813
|
|
-
|
|
832
|
|
137
|
|
144
|
177
|
649
|
701
|
|
749
|
|
665
|
|
743
|
|
637
|
Joint ventures
|
|
|
|
|
|
|
|
|
|
|
|
|
Sadiola (41%)
|
24
|
27
|
86
|
100
|
|
1,181
|
|
1,118
|
|
1,101
|
|
1,076
|
Yatela (40%)
|
7
|
10
|
27
|
29
|
|
1,223
|
|
843
|
|
1,243
|
|
1,337
|
|
31
|
37
|
113
|
129
|
|
1,191
|
|
1,046
|
|
1,136
|
|
1,134
|
Total commercial operations
|
175
|
214
|
762
|
830
|
|
828
|
|
731
|
|
801
|
|
715
|
Doyon division2 (100%)
|
20
|
-
|
73
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
195
|
214
|
835
|
830
|
|
828
|
|
731
|
|
801
|
|
715
|
Cash costs1, excluding royalties
|
|
|
|
|
|
770
|
|
632
|
|
729
|
|
624
|
Royalties
|
|
|
|
|
|
58
|
|
99
|
|
72
|
|
91
|
Total cash costs3
|
|
|
|
|
$
|
828
|
$
|
731
|
$
|
801
|
$
|
715
|
1
|
This is a non-GAAP measure. Refer to the non-GAAP performance measures
section of the MD&A for the reconciliation to GAAP.
|
2
|
In 2012, the Mouska mine, as planned, did not produce gold other than
marginal gold derived from the mill clean-up process. In 2013, the
Westwood mill began processing Mouska ore. While the ore from Mouska is
commercial production, the ore from Westwood is at pre-commercial
levels. Until Westwood achieves commercial production, the Westwood
contribution from ounces sold will be netted against capital
expenditures.
|
3
|
The total cash costs computation does not include Westwood
pre-commercial production for the three months and year ended December
31, 2013 of 20,000 and 73,000 ounces, respectively.
|
|
GOLD SALES VOLUME AND REALIZED GOLD PRICE
|
|
|
|
|
|
|
|
|
|
|
Gold Sales1
(000s oz)
|
Average Realized Gold
Price2 ($/oz)
|
|
Three months ended
December 31,
|
Years ended
December 31,
|
Three months ended
December 31,
|
Years ended
December 31,
|
|
2013
|
2012
|
2013
|
2012
|
2013
|
2012
|
2013
|
2012
|
Owner-operator (100%)
|
151
|
205
|
671
|
751
|
$ 1,275
|
$ 1,703
|
$ 1,397
|
$ 1,667
|
Joint Ventures3
|
31
|
41
|
113
|
130
|
$ 1,267
|
$ 1,707
|
$ 1,413
|
$ 1,666
|
Total
|
182
|
246
|
784
|
881
|
$ 1,273
|
$ 1,704
|
$ 1,399
|
$ 1,667
|
1
|
Attributable sales volume for the fourth quarters 2013 and 2012 were
173,000 ounces and 232,000 ounces respectively, and for the years ended
2013 and 2012 were 740,000 ounces and 827,000 ounces respectively,
after taking into account 95% of the Rosebel sales and 90% of the
Essakane sales.
|
2
|
This is a non-GAAP measure. Refer to the non-GAAP performance measures
section of the MD&A for the reconciliation to GAAP.
|
3
|
Attributable sales of Sadiola (41%) and Yatela (40%).
|
|
|
|
|
|
ALL-IN SUSTAINING COSTS
|
|
|
|
|
|
|
All-in Sustaining Costs1 ($/oz)
|
|
Three months ended
December 31,
|
Years ended
December 31,
|
|
2013
|
2012
|
2013
|
2012
|
Owner-operator
|
|
Rosebel (95%)
|
$
|
1,104
|
$
|
798
|
$
|
1,063
|
$
|
884
|
Essakane (90%)
|
1,242
|
1,083
|
1,177
|
937
|
Doyon division (100%)
|
822
|
-
|
889
|
1,059
|
|
|
|
|
|
All-in sustaining costs - owner-operator
|
1,213
|
1,034
|
1,174
|
998
|
|
|
|
|
|
Joint ventures
|
|
|
|
|
Sadiola (41%)
|
1,351
|
1,445
|
1,476
|
1,300
|
Yatela (40%)
|
1,429
|
1,058
|
1,789
|
1,849
|
|
|
|
|
|
All-in sustaining costs - gold mines
|
1,242
|
1,090
|
1,232
|
1,064
|
Niobium contribution2
|
(117)
|
(3)
|
(79)
|
(10)
|
All-in sustaining costs - total3
|
$
|
1,125
|
$
|
1,087
|
$
|
1,153
|
$
|
1,054
|
1
|
This is a non-GAAP measure. Refer to the non-GAAP performance measures
section of the MD&A for the reconciliation to GAAP.
|
2
|
Niobium contribution consists of Niobec mine's operating margin and
sustaining capital on a per gold ounce sold basis.
|
3
|
By-product credits are included in the calculation of this measure.
Refer to the non-GAAP performance measures section of the MD&A for the
reconciliation to GAAP.
|
|
|
|
|
|
|
|
CAPITAL EXPENDITURES1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ended December 31, 2013
|
Three months
|
Twelve months
|
($ millions)
|
Sustaining
|
Development/
Expansion
|
Total
|
Sustaining
|
Development/
Expansion
|
Total
|
Gold segments
|
|
|
|
|
|
|
Rosebel2
|
$
|
34.0
|
$
|
2.1
|
$
|
36.1
|
$
|
115.6
|
$
|
18.0
|
$
|
133.6
|
Essakane2
|
26.4
|
30.0
|
56.4
|
114.9
|
171.0
|
285.9
|
Westwood
|
-
|
15.4
|
15.4
|
-
|
118.1
|
118.1
|
Total gold segments
|
60.4
|
47.5
|
107.9
|
230.5
|
307.1
|
537.6
|
Niobec
|
5.8
|
9.7
|
15.5
|
30.8
|
44.1
|
74.9
|
Corporate and other
|
1.2
|
-
|
1.2
|
4.9
|
-
|
4.9
|
Total capital expenditures,
consolidated
|
67.4
|
57.2
|
124.6
|
266.2
|
351.2
|
617.4
|
Joint ventures3
|
3.3
|
3.5
|
6.8
|
33.1
|
18.1
|
51.2
|
|
$
|
70.7
|
$
|
60.7
|
$
|
131.4
|
$
|
299.3
|
$
|
369.3
|
$
|
668.6
|
1
|
Capitalized borrowing costs are not included.
|
2
|
On an attributable basis, sustaining capital expenditures for Rosebel
(95%) and Essakane (90%) were $32.3 million and $23.8 million,
respectively, for the three months ended December 31, 2013 and $109.8
million and $103.4 million, respectively, for the year ended December
31, 2013.
|
3
|
Attributable capital expenditures of Sadiola (41%) and Yatela (40%).
|
|
OPERATIONS REVIEW WITH FOURTH QUARTER HIGHLIGHTS
|
|
ROSEBEL MINE, SURINAME
|
|
Rosebel Mine (IAMGOLD interest - 95%)
|
Summarized Results 100% Basis, unless otherwise stated
|
|
Three months ended December 31,
|
|
2013
|
Change
|
2012
|
Mine operating statistics
|
|
|
|
Ore mined (000s t)
|
4,163
|
8%
|
3,857
|
Total operating material mined1 (000s t)
|
7,127
|
(51%)
|
14,416
|
Capital waste mined (000s t)
|
9,596
|
1,121%
|
786
|
Strip ratio2
|
3.0
|
3%
|
2.9
|
Ore milled (000s t)
|
3,125
|
(5%)
|
3,275
|
Head grade (g/t)
|
0.78
|
(25%)
|
1.04
|
Recovery (%)
|
95
|
(1%)
|
96
|
Gold production - 100% (000s oz)
|
74
|
(30%)
|
105
|
Attributable gold production - 95% (000s oz)
|
70
|
(30%)
|
100
|
Gold sales - 100% (000s oz)
|
80
|
(27%)
|
110
|
|
|
|
|
Performance measures
|
|
|
|
Average realized gold price3 ($/oz)
|
$
|
1,271
|
(25%)
|
$
|
1,702
|
All-in sustaining costs3 ($/oz)
|
$
|
1,104
|
38%
|
$
|
798
|
Cash costs3 excluding royalties ($/oz)
|
$
|
612
|
9%
|
$
|
564
|
Royalties ($/oz)
|
$
|
62
|
(36%)
|
$
|
97
|
Total cash costs3 ($/oz)
|
$
|
674
|
2%
|
$
|
661
|
1
|
Total operating material mined includes ore mined and expensed waste
material mined and excludes capital waste mined.
|
2
|
Strip ratio is calculated as capital waste and expensed waste material
mined divided by ore mined.
|
3
|
This is a non-GAAP measure. Refer to the non-GAAP performance measures
section of the MD&A for the reconciliation to GAAP.
|
-
Attributable gold production of 70,000 ounces for the fourth quarter
2013 was 30% lower than the same prior year period primarily the result
of the impact of lower grades and pit sequencing.
-
Total cash costs1 in the fourth quarter of $674 per ounce were slightly higher than the
same period in 2012 mainly due to lower production, partially offset by
lower realized power costs as a result of the reduced power rate
agreement with the Government of Suriname, and higher capitalized
stripping. All-in sustaining costs of $1,104 per ounce in the fourth
quarter were higher than the same period in 2012 due mainly to higher
sustaining capital expenditures as well as the lower sales volume.
-
Sustaining capital expenditures were $34.0 million in the fourth quarter
and included capitalized stripping costs ($21.7 million), resource
development ($2.7 million), capital spares ($5.0 million) tailings dam
expansion ($2.0 million) and various other sustaining capital ($2.6
million).
ESSAKANE MINE, BURKINA FASO
|
|
Essakane Mine (IAMGOLD interest—90%)
|
|
Summarized Results 100% Basis, unless otherwise stated
|
|
Three months ended December 31,
|
|
2013
|
Change
|
2012
|
Mine operating statistics
|
|
|
|
Ore mined (000s t)
|
3,360
|
48%
|
2,275
|
Total operating material mined1 (000s t)
|
4,357
|
79%
|
2,435
|
Capital waste mined (000s t)
|
6,727
|
(16%)
|
7,997
|
Strip ratio2
|
2.3
|
(36%)
|
3.6
|
Ore milled (000s t)
|
2,606
|
(7%)
|
2,805
|
Head grade (g/t)
|
0.88
|
(15%)
|
1.04
|
Recovery (%)
|
89
|
(3%)
|
92
|
Gold production - 100% (000s oz)
|
65
|
(24%)
|
86
|
Attributable gold production - 90% (000s oz)
|
59
|
(24%)
|
77
|
Gold sales - 100% (000s oz)
|
60
|
(37%)
|
95
|
|
|
|
|
Performance measures
|
|
|
|
Average realized gold price3 ($/oz)
|
$
|
1,274
|
(25%)
|
$
|
1,706
|
All-in sustaining costs3 ($/oz)
|
$
|
1,242
|
15%
|
$
|
1,083
|
Cash costs3 excluding royalties ($/oz)
|
$
|
772
|
34%
|
$
|
578
|
Royalties ($/oz)
|
$
|
50
|
(47%)
|
$
|
94
|
Total cash costs3 ($/oz)
|
$
|
822
|
22%
|
$
|
672
|
1
|
Total operating material mined includes ore mined and expensed waste
material mined and excludes capital waste mined.
|
2
|
Strip ratio is calculated as capital waste and expensed waste material
mined divided by ore mined.
|
3
|
This is a non-GAAP measure. Refer to the non-GAAP performance measures
section of the MD&A for the reconciliation to GAAP.
|
-
Attributable gold production of 59,000 ounces was 24% lower than the
same period in 2012, mainly due to the processing of lower-grade ore.
-
Total cash costs1 in the fourth quarter of $822 per ounce were higher than the same
period in 2012 mainly due to the impact of lower grades on gold
production, higher energy prices and upward pressure on the price of
consumables. All-in sustaining costs of $1,242 during the fourth
quarter were higher compared to the prior year mainly due to higher
cash costs and sustaining capital expenditures.
-
Sustaining capital expenditures were $26.4 million and included
capitalized stripping costs on the push-back of the pit ($17.5
million), resource development ($2.5 million), capital spares ($3.1
million) and other smaller projects ($3.3 million).
-
The plant expansion at Essakane to accommodate an increasing proportion
of hard rock was completed on time at the end of 2013, and
commissioning is expected to be completed by the end of the first
quarter 2014. We expect production to increase by approximately 25% in
2014 as the new processing line will be processing higher-grade hard
rock. In 2013, ore grades were 10%-15% lower than the life of mine
average, mainly due to the processing of lower-grade, softer ore
stockpiled in prior years. The expected increase in grades in 2014 will
help to mitigate the impact of the higher energy consumption required
to treat harder ore. We are also exploring opportunities to reduce our
power costs, including connecting to the national power grid in
Ouagadougou.
DOYON DIVISION, CANADA
|
|
Doyon Division (IAMGOLD interest - 100%)
|
Summarized Results
|
|
Three months ended December 31,
|
|
2013
|
Change
|
2012
|
Mouska operating statistics
|
|
|
|
Ore mined (000s t)
|
20
|
(13%)
|
23
|
Ore milled (000s t)
|
34
|
100%
|
-
|
Head grade (g/t)
|
14.91
|
100%
|
-
|
Recovery (%)
|
93
|
100%
|
-
|
Gold production - 100% (000s oz)
|
15
|
100%
|
-
|
Gold sales - 100% (000s oz)
|
11
|
100%
|
-
|
|
|
|
|
Mouska performance measures
|
|
|
|
Average realized gold price1 ($/oz)
|
$
|
1,310
|
100%
|
$
|
-
|
All-in sustaining costs1 ($/oz)
|
$
|
822
|
100%
|
$
|
-
|
Cash costs1 excluding royalties ($/oz)
|
$
|
785
|
100%
|
$
|
-
|
Royalties ($/oz)
|
$
|
28
|
100%
|
$
|
-
|
Total cash costs1 ($/oz)
|
$
|
813
|
100%
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31,
|
|
2013
|
Change
|
2012
|
Westwood operating statistics
|
|
|
|
Ore mined (000s t)
|
69
|
245%
|
20
|
Ore milled (000s t)
|
78
|
100%
|
-
|
Head grade (g/t)
|
8.47
|
100%
|
-
|
Recovery (%)
|
95
|
100%
|
-
|
Pre-commercial gold production - 100% (000s oz)
|
20
|
100%
|
-
|
Pre-commercial gold sales - 100% (000s oz)
|
20
|
100%
|
-
|
1
|
This is a non-GAAP measure. Refer to the non-GAAP performance measures
section of the MD&A for the reconciliation to GAAP.
|
-
Batch processing of ore from both Mouska and Westwood continued
throughout the fourth quarter. Mouska produced 15,000 ounces in the
fourth quarter 2013 compared to no production in the fourth quarter of
2012 when the mill was being refurbished.
-
Mouska's total cash costs1 of $813 per ounce and all-in sustaining costs of $822 per ounce are not
comparable to the prior year when ore was being stockpiled during the
refurbishment of the mill.
-
Pre-commercial gold production from the Westwood mine was 20,000 ounces
during the fourth quarter of 2013. The resulting sales of 20,000 ounces
and the related costs were netted against capital expenditures.
-
For the full year 2013 the combined production from Mouska and Westwood
was 136,000 ounces.
-
While the ore from the Mouska mine is in commercial production, the ore
from Westwood is at pre-commercial levels. Until Westwood achieves
commercial production, the contribution from the sale of ounces
produced from Westwood will be netted against capital expenditures. The
revenues and associated costs from the gold sold at Westwood after
obtaining commercial production will be reported in the consolidated
statements of earnings.
-
The Westwood mine is expected to commence commercial production in the
third quarter of 2014. The first half of the year will be mainly
focused on underground development in preparation for the ramp-up in
the second half of the year. Rehabilitation of the zone impacted by the
rockburst in August 2013 is on schedule, with access now being
established in all of the affected sublevels.
-
Close to 80% of gold production in 2014 at the Doyon division is
expected in the second half of the year. Mouska production will be
limited in preparation for closure at the end of the first quarter
2014. As a result, production from the Doyon division will be lower in
the first half of the year. Our outlook for 2014 for the Westwood and
Mouska mines combined is expected to range between 100,000 and 120,000
ounces, with a ramp-up of the Westwood mine to full capacity by the end
of 2016.
SADIOLA MINE, MALI
|
|
Sadiola Mine (IAMGOLD interest - 41%)
|
Summarized Results 41% Basis
|
|
Three months ended December 31,
|
|
2013
|
Change
|
2012
|
Mine operating statistics
|
|
|
|
Ore mined (000s t)
|
438
|
3%
|
424
|
Total operating material mined1 (000s t)
|
2,161
|
(28%)
|
3,015
|
Capital waste mined (000s t)
|
935
|
390%
|
191
|
Strip ratio2
|
6.1
|
(8%)
|
6.6
|
Ore milled (000s t)
|
538
|
(1%)
|
545
|
Head grade (g/t)
|
1.39
|
(17%)
|
1.67
|
Recovery (%)
|
90
|
(3%)
|
93
|
Attributable gold production - (000s oz)
|
24
|
(11%)
|
27
|
Attributable gold sales - (000s oz)
|
24
|
(20%)
|
30
|
|
|
|
|
Performance measures
|
|
|
|
Average realized gold price3 ($/oz)
|
$
|
1,269
|
(25%)
|
$
|
1,703
|
All-in sustaining costs3 ($/oz)
|
$
|
1,351
|
(6%)
|
$
|
1,445
|
Cash costs3 excluding royalties ($/oz)
|
$
|
1,102
|
10%
|
$
|
1,003
|
Royalties ($/oz)
|
$
|
79
|
(31%)
|
$
|
115
|
Total cash costs3 ($/oz)
|
$
|
1,181
|
6%
|
$
|
1,118
|
1
|
Total operating material mined includes ore mined and expensed waste
material mined and excludes capital waste mined.
|
2
|
Strip ratio is calculated as capital waste and expensed waste material
mined divided by ore mined.
|
3
|
This is a non-GAAP measure. Refer to the non-GAAP performance measures
section of the MD&A for the reconciliation to GAAP.
|
-
Attributable gold production of 24,000 ounces for the fourth quarter
2013 was 11% lower than the prior year period due to lower grades.
-
Total cash costs1 of $1,181 per ounce were higher in the fourth quarter than in the same
quarter 2012 due to lower production. All-in sustaining costs of $1,351
for the fourth quarter were 6% lower than the same quarter in 2012
mainly due to timing of sustaining capital expenditures.
-
The Company's attributable portion of sustaining capital expenditures
during the fourth quarter 2013 was $3.0 million.
YATELA MINE, MALI
|
|
Yatela Mine (IAMGOLD interest - 40%)
|
Summarized Results 40% Basis
|
|
Three months ended December 31,
|
|
2013
|
Change
|
2012
|
Mine operating statistics
|
|
|
|
Ore mined (000s t)
|
-
|
(100%)
|
261
|
Total operating material mined1 (000s t)
|
-
|
(100%)
|
1,842
|
Strip ratio2
|
-
|
(100%)
|
6.1
|
Ore milled (000s t)
|
266
|
(4%)
|
277
|
Head grade (g/t)
|
0.99
|
(47%)
|
1.87
|
Attributable gold stacked (000s oz)
|
11
|
(31%)
|
16
|
Attributable gold production (000s oz)
|
7
|
(30%)
|
10
|
Attributable gold sales (000s oz)
|
7
|
(36%)
|
11
|
|
|
|
|
Performance measures
|
|
|
|
Average realized gold price3 ($/oz)
|
$
|
1,261
|
(27%)
|
$
|
1,719
|
All-in sustaining costs3 ($/oz)
|
$
|
1,429
|
35%
|
$
|
1,058
|
Cash costs3 excluding royalties ($/oz)
|
$
|
1,148
|
56%
|
$
|
736
|
Royalties ($/oz)
|
$
|
75
|
(30%)
|
$
|
107
|
Total cash costs3 ($/oz)
|
$
|
1,223
|
45%
|
$
|
843
|
1
|
Total operating material mined includes ore mined and expensed waste
material mined.
|
2
|
Strip ratio is calculated as expensed waste material mined divided by
ore mined.
|
3
|
This is a non-GAAP measure. Refer to the non-GAAP performance measures
section of the MD&A for the reconciliation to GAAP.
|
-
Attributable gold production of 7,000 ounces for the fourth quarter 2013
was 30% lower than the prior year period. Mining activities ceased in
the third quarter of 2013 and gold production is continuing from the
heap leach pads.
NIOBEC NIOBIUM MINE, CANADA
|
|
|
|
|
|
|
|
Niobec Mine (IAMGOLD interest - 100%)
|
|
|
|
Summarized Results
|
|
|
|
|
Three months ended December 31,
|
|
2013
|
Change
|
2012
|
Mine operating statistics
|
|
|
|
Ore mined (000s t)
|
610
|
10%
|
556
|
Ore milled (000s t)
|
605
|
8%
|
558
|
Grade (% Nb205)
|
0.58
|
4%
|
0.56
|
Niobium production (millions of kg Nb)
|
1.6
|
33%
|
1.2
|
Niobium sales (millions of kg Nb)
|
1.3
|
18%
|
1.1
|
Operating margin1 ($/kg Nb)
|
$ 20
|
33%
|
$ 15
|
1
|
This is a non-GAAP measure. Refer to the non-GAAP performance measures
section of the MD&A for the reconciliation to GAAP.
|
-
Niobium production of 1.6 million kilograms in the fourth quarter 2013
was 33% higher than the same period in 2012 as a result of higher
grades from mine sequencing and improved recoveries.
-
Niobium revenues increased to $52.1 million in the fourth quarter 2013
compared to $46.0 million in the same period in 2012 primarily due to
higher sales volume. The operating margin during the fourth quarter
2013 was $20 per kilogram of niobium, up 33% from the same quarter in
2012 due to higher sales volume.
-
In the fourth quarter 2013, sustaining capital expenditures were
$5.8 million.
EXPLORATION
In 2013, IAMGOLD was active at brownfield and greenfield exploration
projects in eight countries located in West Africa and North and South
America. Exploration and project study expenditures totaled $93.6
million for 2013 compared to $147.2 million in 2012. The decrease of
$53.6 million in total exploration expenditures from 2012 is primarily
due to the downsizing and significant restructuring of the exploration
program in conjunction with the company-wide cost reduction program
which targeted a $40 million reduction in exploration expenditures.
Drilling activities on projects and mine sites totaled approximately
320,600 metres for the year. Of the $93.6 million spent in 2013, $69.2
million was expensed and $24.4 million was capitalized.
2014 OUTLOOK
In 2014, we plan to spend $87.7 million on greenfield and brownfield
exploration programs and project studies. The greenfield and brownfield
exploration programs will continue focusing on discovering "new
ounces'. Project studies of $19.3 million are planned for Côté Gold,
Ontario, Canada and the Boto Gold project in Senegal.
The outlook for 2014 exploration and project study expenditures of $87.7
million is $5.9 million lower than 2013 due to reduced exploration
activities in West Africa, partially offset by increased programs in
Brazil and Colombia. As well, there has been a re-allocation of
specific mine site operational activities previously included in the
exploration budget to the site operational budgets. Approximately
337,000 meters of reverse circulation and diamond drilling at all sites
is planned for 2014.
The following table presents 2013 actual and 2014 plan for exploration
and project studies:
|
|
|
|
|
|
|
|
|
2013 Actual
|
|
|
|
2014 Plan
|
|
|
($ millions)
|
Capitalized
|
Expensed
|
Total
|
|
Capitalized
|
Expensed
|
Total
|
Exploration projects - greenfield
|
$ 0.1
|
$ 28.1
|
$ 28.2
|
|
$ 0.2
|
$ 38.2
|
$ 38.4
|
Exploration projects - brownfield1
|
24.2
|
17.0
|
41.2
|
|
18.4
|
11.6
|
30.0
|
|
24.3
|
45.1
|
69.4
|
|
18.6
|
49.8
|
68.4
|
Côté Gold studies
|
0.1
|
23.2
|
23.3
|
|
15.0
|
-
|
15.0
|
Other scoping and pre-feasibility studies
|
-
|
0.9
|
0.9
|
|
-
|
4.3
|
4.3
|
|
0.1
|
24.1
|
24.2
|
|
15.0
|
4.3
|
19.3
|
Exploration and Project Studies
|
$ 24.4
|
$ 69.2
|
$ 93.6
|
|
$ 33.6
|
$ 54.1
|
$ 87.7
|
1
|
Exploration projects - Brownfield excludes expenditures related to joint
ventures of $2.3 million in 2013 and $1.2 million of planned
expenditures in 2014.
|
2014 OUTLOOK
PRODUCTION AND COST GUIDANCE
On January 14, 2014 IAMGOLD announced its production and cost guidance
for 2014 as presented below:
|
|
IAMGOLD Full Year Guidance
|
2014
|
Rosebel (000s oz)
|
330 - 350
|
Essakane (000s oz)
|
315 - 330
|
Doyon division1 (000s oz)
|
100 - 120
|
Total owner-operated production (000s oz)
|
745 - 800
|
Joint ventures (000s oz)
|
90 - 100
|
Total attributable production (000s oz)
|
835 - 900
|
|
|
Total cash costs2,3 - owner-operator ($/oz)
|
$790 - $830
|
Total cash costs - gold mines4 ($/oz)
|
$825 - $875
|
|
|
All-in sustaining costs2 - owner-operator ($/oz)
|
$1,100 - $1,200
|
All-in sustaining costs - gold mines4 ($/oz)
|
$1,150 - $1,250
|
All-in sustaining costs - total5 ($/oz)
|
$1,080 - $1,185
|
|
|
Niobec production (millions of kg Nb)
|
4.7 - 5.1
|
Niobec operating margin2 ($/kg Nb)
|
$15 - $17
|
1
|
Doyon division production of 100,000 to 120,000 ounces includes Westwood
pre-commercial production. Associated contribution will be recorded
against its mining assets in the consolidated balance sheets.
|
2
|
This is a non-GAAP measure. Refer to the non-GAAP performance measures
section of the MD&A for the reconciliation to GAAP.
|
3
|
The total cash costs computation does not include the pre-commercial
portion of Westwood's 2014 production.
|
4
|
Gold mines, as used with total cash costs and all-in sustaining costs,
consist of Rosebel, Essakane, Mouska, Westwood (after commencement of
commercial production), Sadiola and Yatela on an attributable basis.
|
5
|
Total, as used with all-in sustaining costs, includes the impact of
niobium contribution, defined as the Niobec mine's operating margin and
sustaining capital, on a per gold ounce sold basis.
|
GOLD PRODUCTION AND COST GUIDANCE
We are forecasting gold production in the range of 835,000 to 900,000
ounces for 2014. Production is expected to build throughout the year
starting with a range of between 175,000 and 195,000 ounces in the
first quarter. With the plant expansion completed at Essakane, the new
processing line will be milling higher-grade hard rock and we expect a
ramp up in the second half of the year, resulting in an approximate 25%
increase in 2014 production for this operation. The second half of the
year is expected to see a lift in production from Westwood as well, as
it ramps up from the first half which will mainly focus on underground
development. Rehabilitation of the zone impacted by the rockburst at
Westwood in 2013 is on schedule, with access now being established to
all of the affected sublevels. Close to 80% of gold production in 2014
at the Doyon division is expected in the second half of the year.
Mouska production will be limited in preparation for closure at the end
of the first quarter 2014. As a result, production from the Doyon
division will be lower in the first half of the year. Production at the
joint venture operations is expected to be lower in 2014 as Yatela
nears the end of its mine life.
Total cash costs1,2 - gold mines3 - for 2014 are expected to range between $825 and $875 per ounce, with
the forecast for IAMGOLD owner-operator mines expected to be lower at
$790 to $830 per ounce. Costs are impacted by inflation and the
transition to harder ore at the Company's mature mines. The growing
proportion of harder ore at Rosebel and Essakane is expected to drive
up stripping ratios and labour costs, and to exert a greater demand on
crushing and grinding capacity, which in turn increases energy
consumption and the use of reagents. As a result of the changing
production mix through the year from different operations, quarterly
variations in cash costs are expected.
Guidance for all-in sustaining costs1 for 2014 remains unchanged from 2013 levels and is expected to range
between $1,150 and $1,250 per ounce, with IAMGOLD owner-operator mines
forecast at between $1,100 and $1,200 per ounce. All-in sustaining
costs net of Niobec's contribution are expected to range between $1,080
and $1,185 per ounce. The netting of the operating margin of Niobec
less its sustaining capital expenditures, against all-in sustaining
costs recognizes the impact of Niobec`s cash flow on our overall cost
of gold production.
The following assumptions have been used for 2014 guidance:
-
Average realized gold price per ounce of $1,300;
-
Average crude oil price per barrel of $95;
-
U.S. dollar value of the Euro of $1.30; and
-
Canadian dollar value of the U.S. dollar of $1.05.
EFFECTIVE TAX RATE
The effective tax rate in 2014 is expected to be about 50% compared to
the adjusted effective tax rate of 38% in 2013. The higher rate is
primarily attributable to certain costs in various jurisdictions that
provide limited tax deductions and in times of shrinking margins have a
greater impact on the effective tax rate than in the prior year.
DEPRECIATION
Depreciation expense is expected to increase in 2014 compared to 2013
with the commencement of commercial production at the Westwood mine,
higher amortization of capitalized stripping at Essakane, and the
completion of the Essakane plant expansion. Depreciation expense is
expected to be in the range of $225 million to $235 million.
CAPITAL EXPENDITURES OUTLOOK1
For 2014, we forecast total capital expenditures of $400 million ±
5%. This represents an approximate 40% reduction from 2013, mainly
reflecting the completion of the Essakane expansion.
|
|
|
Development/
|
|
($ millions)
|
Sustaining
|
Expansion
|
Total
|
Owner-operator
|
Rosebel
|
$
|
70
|
$
|
30
|
$
|
100
|
Essakane
|
80
|
25
|
105
|
Westwood
|
35
|
55
|
90
|
|
185
|
110
|
295
|
Niobec
|
20
|
50
|
70
|
Côté Gold
|
-
|
15
|
15
|
Total owner-operator
|
205
|
175
|
380
|
Joint venture - Sadiola2
|
10
|
10
|
20
|
Total (±5%)
|
$
|
215
|
$
|
185
|
$
|
400
|
1
|
Capitalized borrowing costs are not included.
|
2
|
Attributable capital expenditures of $20 million include sustaining
capital expenditures and existing commitments related to the ordering
of long lead items in 2012 for the Sadiola sulphide project.
|
FUTURE EXPANSION AND DEVELOPMENT PROJECTS
The decision to proceed with future expansion and development projects
depends on expected economic returns under various assumptions. Our
focus at this time is on de-risking the projects with ongoing
evaluation of market conditions. Decisions to proceed will be
conditional upon a number of factors.
ROSEBEL EXPANSION
Our agreement with the Government of Suriname to reduce power rates at
Rosebel supports the transition of the operations to process harder
rock. The agreement lowers power costs for the current operations and
future expansions. This agreement complements the joint venture
agreement with the Government of Suriname relating to areas outside the
existing mining concession. With respect to the joint venture
agreement, the Company is working to acquire additional properties and
to further delineate the surrounding resources.
On January 21, 2014, we announced that the full expansion of Rosebel has
been deferred until 2015-2016. The feasibility study related to this
expansion will be published at a later time when we can capture any
material changes in assumptions such as price, costs, grade or rock
hardness that occur between now and the start of the expansion.
NIOBEC AND SADIOLA
The timing of capital spending related to the Niobec expansion will be
tied to the completion of ongoing work to assess a phased development
approach. We continue to move forward with permitting and are reviewing
the development timeline in light of current market conditions.
Although the expected rate of return is attractive, this project will
remain on hold until we have a partner to jointly fund the project.
While we continue to explore a number of alternatives for the Sadiola
sulphide project, with the exception of prior commitments, sustaining
capital and capitalized stripping, the Company does not intend to
proceed with this project without a partner to jointly fund the project
CÔTÉ GOLD
The Côté Gold project is an attractive asset for our longer-term
production profile. The terms of reference for an environmental
assessment were approved in January of 2014 and we expect to have the
required mining permits by the end of 2014. We will begin work on a
feasibility study in 2014 with completion expected by the first quarter
2016.
NON-GAAP PERFORMANCE MEASURES - ADJUSTED NET EARNINGS
Adjusted net earnings attributable to equity holders of IAMGOLD and
adjusted net earnings attributable to equity holders of IAMGOLD per
share are non-GAAP performance measures. Management believes that
these measures better reflect the Company's performance for the current
period and are a better indication of its expected performance in
future periods. Adjusted net earnings attributable to equity holders of
IAMGOLD and adjusted net earnings attributable to equity holders of
IAMGOLD per share are intended to provide additional information, but
are unlikely to be comparable to similar measures presented by other
issuers. These measures do not have any standardized meaning prescribed
by IFRS and should not be considered in isolation or a substitute for
measures of performance prepared in accordance with IFRS Adjusted net
earnings attributable to equity holders of IAMGOLD represents net
earnings attributable to equity holders excluding certain impacts, net
of taxes, such as impairment of goodwill and mining assets, impairment
or impairment reversals of investments in associates and marketable
securities, write-down of assets, gains or losses on sales of assets
and marketable securities, unrealized derivative gains or losses,
interest expense that is unrelated to financing working capital,
foreign exchange gains or losses, restructuring charges, changes in
estimates of asset retirement obligations and ongoing expenditures at
closed sites, and the impact of significant changes in tax laws for
mining taxes. These measures are not necessarily indicative of net
earnings or cash flows as determined under IFRS. The following table
provides a reconciliation of earnings (losses) before income taxes of
IAMGOLD as per the consolidated statement of earnings, to adjusted net
earnings to equity holders of IAMGOLD.
|
|
|
|
|
|
Three months ended
December 31,
|
Years ended
December 31,
|
($ millions, except where noted)
|
2013
|
20121
|
2013
|
20121
|
Earnings (losses) before income taxes
|
$
|
(976.8)
|
$
|
147.2
|
$
|
(869.8)
|
$
|
564.7
|
Adjusted items:
|
|
|
|
|
|
Impairment of goodwill and mining assets
|
888.1
|
-
|
888.1
|
-
|
|
Impairments of marketable securities and associates
|
4.9
|
3.4
|
69.1
|
24.1
|
|
Write-down of assets2
|
113.8
|
-
|
126.7
|
-
|
|
Gains on sale of assets
|
(12.2)
|
(6.9)
|
(12.8)
|
(24.7)
|
|
Unrealized derivative losses (gains)
|
7.8
|
5.1
|
22.3
|
(16.2)
|
|
Interest expense on senior unsecured notes
|
1.8
|
11.2
|
17.6
|
11.2
|
|
Foreign exchange losses (gains)
|
0.7
|
(2.7)
|
4.5
|
(12.3)
|
|
Restructuring charges
|
0.3
|
-
|
1.8
|
-
|
|
Changes in estimates of asset retirement obligations at closed sites and
ongoing closed sites expenditures
|
4.7
|
4.8
|
(7.8)
|
5.3
|
|
1,009.9
|
14.9
|
1,109.5
|
(12.6)
|
Adjusted earnings before income taxes and non-controlling interests
|
33.1
|
162.1
|
239.7
|
552.1
|
|
Income taxes
|
96.7
|
(52.6)
|
9.2
|
(193.5)
|
|
Tax impact of adjusted items
|
(109.5)
|
(9.7)
|
(99.3)
|
(6.5)
|
|
Non-controlling interests, excluding attributable impairment charge
|
(0.6)
|
(10.0)
|
(12.3)
|
(36.5)
|
Adjusted net earnings attributable to equity holders of IAMGOLD
|
$
|
19.7
|
$
|
89.8
|
$
|
137.3
|
$
|
315.6
|
Basic weighted average number of common shares outstanding (millions)
|
376.6
|
376.2
|
376.6
|
376.2
|
Adjusted net earnings attributable to equity holders of IAMGOLD per
share ($/share)
|
$
|
0.05
|
$
|
0.24
|
$
|
0.36
|
$
|
0.84
|
Effective adjusted tax rate (%)
|
38%
|
36%
|
38%
|
36%
|
1
|
Refer to note 4(b) of the consolidated financial statements.
|
2
|
Includes asset write-downs related to joint ventures of $97.4 million
and $102.8 million for the three months and year ended December 31,
2013, respectively.
|
NON-GAAP PERFORMANCE MEASURES - NET CASH FROM OPERATING ACTIVITIES
BEFORE CHANGES IN WORKING CAPITAL
The Company makes reference to a non-GAAP performance measure for net
cash from operating activities before changes in working capital and
net cash from operating activities before changes in working capital
per share. Working capital can be volatile due to numerous factors
including a build-up of inventories. Management believes that, by
excluding these items, this non-GAAP measure provides investors with
the ability to better evaluate the cash flow performance of the
Company. The following table provides a reconciliation of net cash from
operating activities before changes in working capital:
|
|
|
|
|
|
Three months ended
December 31,
|
Years ended
December 31,
|
($ millions, except where noted)
|
2013
|
20121
|
2013
|
20121
|
Net cash from operating activities per consolidated financial statements
|
$ 44.0
|
$ 100.7
|
$ 246.3
|
$ 415.3
|
Adjusting items from non-cash working capital items and non-current ore
stockpiles
|
|
|
|
|
|
Receivables and other current assets
|
(10.3)
|
0.3
|
(10.0)
|
(3.7)
|
|
Inventories and non-current ore stockpiles
|
21.4
|
9.7
|
51.0
|
73.1
|
|
Accounts payable and accrued liabilities
|
(0.4)
|
5.4
|
18.3
|
(10.3)
|
Net cash from operating activities before changes in working capital
|
$ 54.7
|
$ 116.1
|
$ 305.6
|
$ 474.4
|
Basic weighted average number of common shares outstanding (millions)
|
376.6
|
376.2
|
376.6
|
376.2
|
Net cash from operating activities before changes in working capital per
share ($/share)
|
$ 0.15
|
$ 0.31
|
$ 0.81
|
$ 1.26
|
1
|
Refer to note 4(b) of the consolidated financial statements.
|
End Notes (excluding tables)
|
(1)
|
This is a non-GAAP measure. Please refer to the non-GAAP performance
measures section of the MD&A for reconciliation to GAAP.
|
(2)
|
The total cash costs computation does not include Westwood
pre-commercial production for the three months and year ended December
31, 2013 of 20,000 ounces and 73,000 ounces, respectively.
|
(3)
|
Gold mines, as used with total cash costs and all-in sustaining costs,
consist of Rosebel, Essakane, Mouska, Sadiola and Yatela on an
attributable basis.
|
(4)
|
This is a non-GAAP measure. Please refer to the reconciliation to GAAP
above in this news release.
|
(5)
|
Total, as used with all-in sustaining costs, includes the impact of
niobium contribution, defined as the Niobec mine's operating margin and
sustaining capital, on a per gold ounce sold basis. Refer to the all-in
sustaining cost table in this news release.
|
(6)
|
The DART rate refers to the number of days away, restricted duty or job
transfer incidents that occur per 100 employees.
|
IAMGOLD CORPORATION
Consolidated Balance Sheets
|
|
|
|
|
|
|
December 31,
|
December 31,
|
January 1,
|
(Audited: In millions of U.S. dollars)
|
2013
|
20121
|
20121
|
Assets
|
|
|
|
Current assets
|
|
|
|
|
Cash and cash equivalents
|
$ 222.3
|
$ 797.3
|
$ 1,046.7
|
|
Gold bullion (market value $162.3; December 31, 2012 - $223.3; January
1, 2012 - $210.9)
|
96.9
|
96.9
|
96.8
|
|
Income taxes receivable
|
37.2
|
25.0
|
26.3
|
|
Receivables and other current assets
|
80.0
|
185.1
|
111.6
|
|
Inventories
|
300.2
|
259.5
|
192.3
|
|
|
736.6
|
1,363.8
|
1,473.7
|
Non-current assets
|
|
|
|
|
Deferred income tax assets
|
74.0
|
55.4
|
41.4
|
|
Investments in associates and joint ventures
|
65.5
|
164.1
|
106.1
|
|
Mining assets
|
2,512.7
|
2,618.0
|
1,819.5
|
|
Exploration and evaluation assets
|
533.3
|
533.3
|
356.5
|
|
Goodwill
|
-
|
256.7
|
256.7
|
|
Other assets
|
268.3
|
304.3
|
247.7
|
|
|
3,453.8
|
3,931.8
|
2,827.9
|
|
|
$ 4,190.4
|
$ 5,295.6
|
$ 4,301.6
|
Liabilities and Equity
|
|
|
|
Current liabilities
|
|
|
|
|
Accounts payable and accrued liabilities
|
$ 185.6
|
$ 219.4
|
$ 173.4
|
|
Income taxes payable
|
12.1
|
60.2
|
100.3
|
|
Dividends payable
|
-
|
48.6
|
47.0
|
|
Current portion of provisions
|
11.4
|
5.9
|
3.7
|
|
Other liabilities
|
6.2
|
1.1
|
6.6
|
|
|
215.3
|
335.2
|
331.0
|
Non-current liabilities
|
|
|
|
|
Deferred income tax liabilities
|
212.3
|
281.5
|
245.1
|
|
Long-term debt
|
640.3
|
638.8
|
-
|
|
Provisions
|
247.0
|
235.0
|
196.3
|
|
Other liabilities
|
3.0
|
0.3
|
0.3
|
|
|
1,102.6
|
1,155.6
|
441.7
|
|
|
1,317.9
|
1,490.8
|
772.7
|
Equity
|
|
|
|
Equity attributable to IAMGOLD Corporation shareholders
|
|
|
|
|
Common shares
|
2,317.6
|
2,315.8
|
2,308.6
|
|
Contributed surplus
|
35.2
|
26.7
|
19.9
|
|
Retained earnings
|
465.1
|
1,343.2
|
1,104.9
|
|
Accumulated other comprehensive income
|
13.3
|
42.4
|
41.1
|
|
|
2,831.2
|
3,728.1
|
3,474.5
|
Non-controlling interests
|
41.3
|
76.7
|
54.4
|
|
|
2,872.5
|
3,804.8
|
3,528.9
|
|
|
$ 4,190.4
|
$ 5,295.6
|
$ 4,301.6
|
1
|
Refer to note 4(b) of the consolidated financial statements.
|
IAMGOLD CORPORATION
Consolidated Statement of Earnings
|
|
|
|
Three months ended
December 31,
|
Years ended
December 31,
|
|
(Unaudited)
|
(Audited)
|
(In millions of U.S. dollars, except per share amounts)
|
2013
|
20121
|
2013
|
20121
|
Revenues
|
$ 247.2
|
$ 398.6
|
$ 1,147.1
|
$ 1,453.4
|
Cost of sales
|
196.1
|
210.1
|
807.0
|
774.2
|
General and administrative expenses
|
11.4
|
15.5
|
50.9
|
58.3
|
Exploration expenses
|
17.6
|
34.3
|
69.2
|
108.0
|
Impairment charges
|
888.1
|
-
|
888.1
|
-
|
Other
|
7.6
|
6.0
|
2.1
|
9.3
|
Operating costs
|
1,120.8
|
265.9
|
1,817.3
|
949.8
|
Earnings (losses) from operations
|
(873.6)
|
132.7
|
(670.2)
|
503.6
|
Share of net earnings (losses) from investments in associates and joint
ventures, net of income taxes
|
(63.1)
|
23.3
|
(67.4)
|
46.7
|
Finance costs
|
(3.8)
|
(10.9)
|
(24.4)
|
(18.1)
|
Foreign exchange gains (losses)
|
(0.7)
|
2.7
|
(4.5)
|
12.3
|
Interest income and derivatives and other investment gains (losses)
|
(35.6)
|
(0.6)
|
(103.3)
|
20.2
|
Earnings (losses) before income tax expense
|
(976.8)
|
147.2
|
(869.8)
|
564.7
|
Income taxes
|
96.7
|
(52.6)
|
9.2
|
(193.5)
|
Net earnings (losses)
|
$ (880.1)
|
$ 94.6
|
$ (860.6)
|
$ 371.2
|
Net earnings (losses) attributable to
|
|
|
|
|
Equity holders of IAMGOLD Corporation
|
$ (840.3)
|
$ 84.6
|
$ (832.5)
|
$ 334.7
|
Non-controlling interests
|
(39.8)
|
10.0
|
(28.1)
|
36.5
|
|
$ (880.1)
|
$ 94.6
|
$ (860.6)
|
$ 371.2
|
Attributable to equity holders of IAMGOLD Corporation
|
|
|
|
|
Weighted average number of common shares outstanding (in millions)
|
|
|
|
|
|
Basic
|
376.6
|
376.2
|
376.6
|
376.2
|
|
Diluted
|
376.6
|
376.8
|
376.6
|
376.9
|
Earnings (losses) per share ($ per share)
|
|
|
|
|
|
Basic
|
$ (2.23)
|
$ 0.22
|
$ (2.21)
|
$ 0.89
|
|
Diluted
|
$ (2.23)
|
$ 0.22
|
$ (2.21)
|
$ 0.89
|
1
|
Refer to note 4(b) of the consolidated financial statements.
|
IAMGOLD CORPORATION
Consolidated Statements of Comprehensive Income
|
|
|
|
|
|
Three months ended
December 31,
|
Years ended
December 31,
|
|
(Unaudited)
|
(Audited)
|
(In millions of U.S. dollars)
|
2013
|
2012
|
2013
|
2012
|
Net earnings (losses)
|
$ (880.1)
|
$ 94.6
|
$ (860.6)
|
$ 371.2
|
Other comprehensive income (loss), net of taxes
|
|
|
|
|
Net unrealized change in fair value of available-for-sale financial
assets, net of taxes
|
(2.3)
|
(4.2)
|
(40.5)
|
8.2
|
Net realized change in fair value and impairment of available-for-sale
financial assets, net of taxes
|
(0.7)
|
(6.3)
|
11.7
|
(6.9)
|
|
(3.0)
|
(10.5)
|
(28.8)
|
1.3
|
Currency translation adjustment
|
0.3
|
-
|
(0.3)
|
-
|
Other
|
1.4
|
(2.3)
|
1.4
|
(2.3)
|
Total other comprehensive loss
|
(1.3)
|
(12.8)
|
(27.7)
|
(1.0)
|
Comprehensive income (loss)
|
$ (881.4)
|
$ 81.8
|
$ (888.3)
|
$ 370.2
|
|
|
|
|
|
Comprehensive income (loss) attributable to
|
|
|
|
|
Equity holders of IAMGOLD Corporation
|
$ (841.6)
|
$ 71.8
|
$ (860.2)
|
$ 333.7
|
Non-controlling interests
|
(39.8)
|
10.0
|
(28.1)
|
36.5
|
|
$ (881.4)
|
$ 81.8
|
$ (888.3)
|
$ 370.2
|
IAMGOLD CORPORATION
Consolidated Statements of Cash Flow
|
|
|
|
|
|
Three months ended
December 31,
|
Years ended
December 31,
|
|
(Unaudited)
|
(Audited)
|
(In millions of U.S. dollars)
|
2013
|
20121
|
2013
|
20121
|
Operating activities
|
|
|
|
|
Net earnings (losses)
|
$ (880.1)
|
$ 94.6
|
$ (860.6)
|
$ 371.2
|
Adjustments for
|
|
|
|
|
|
Finance costs
|
3.8
|
10.9
|
24.4
|
18.1
|
|
Depreciation expense
|
46.2
|
37.9
|
175.2
|
154.6
|
|
Changes in estimates of asset retirement obligations at closed sites
|
3.7
|
4.8
|
(8.8)
|
5.3
|
|
Income taxes
|
(96.7)
|
52.6
|
(9.2)
|
193.5
|
|
Impairment of investments, net
|
4.9
|
3.4
|
69.1
|
24.1
|
|
Impairment charges
|
888.1
|
-
|
888.1
|
-
|
|
Share of net (earnings) losses from investments in associates and joint
ventures, net of income taxes and dividends received
|
79.6
|
(23.3)
|
83.9
|
(46.7)
|
|
Impact of unrealized foreign exchange losses (gains) on cash and cash
equivalents
|
2.8
|
(0.6)
|
0.5
|
(5.1)
|
|
Other non-cash items
|
45.8
|
2.7
|
63.6
|
(23.2)
|
Adjustments for cash items
|
1.0
|
(0.5)
|
7.4
|
(3.8)
|
Movements in non-cash working capital items and non-current ore
stockpiles
|
(10.7)
|
(15.4)
|
(59.3)
|
(59.1)
|
Cash from operating activities, before income taxes paid
|
88.4
|
167.1
|
374.3
|
628.9
|
Income taxes paid
|
(44.4)
|
(66.4)
|
(128.0)
|
(213.6)
|
Net cash from operating activities
|
44.0
|
100.7
|
246.3
|
415.3
|
Investing activities
|
|
|
|
|
Mining assets
|
|
|
|
|
|
Capital expenditures
|
(124.6)
|
(195.7)
|
(617.4)
|
(650.2)
|
|
Capitalized borrowing costs
|
(14.4)
|
-
|
(19.5)
|
-
|
|
Sales proceeds from disposal
|
(1.3)
|
0.5
|
1.4
|
1.2
|
Advances to related parties
|
(30.9)
|
(10.4)
|
(57.7)
|
(36.7)
|
Repayments from related parties
|
0.8
|
-
|
10.0
|
-
|
Additions to exploration and evaluation assets
|
-
|
-
|
-
|
(2.2)
|
Acquisition of Côté Gold project
|
-
|
-
|
-
|
(485.7)
|
Other investing activities
|
(0.8)
|
10.0
|
(5.1)
|
(25.3)
|
Net cash used in investing activities
|
(171.2)
|
(195.6)
|
(688.3)
|
(1,198.9)
|
Financing activities
|
|
|
|
|
Proceeds from issue of long term debt
|
-
|
-
|
-
|
650.0
|
Proceeds from issue of share capital
|
0.1
|
0.6
|
0.2
|
5.4
|
Dividends paid
|
-
|
(1.7)
|
(102.4)
|
(106.9)
|
Interest paid
|
(7.8)
|
(0.8)
|
(28.3)
|
(3.1)
|
Payment of transaction costs
|
-
|
(1.4)
|
-
|
(11.6)
|
Other
|
(0.8)
|
0.1
|
(2.0)
|
(4.7)
|
Net cash from (used in) financing activities
|
(8.5)
|
(3.2)
|
(132.5)
|
529.1
|
Impact of unrealized foreign exchange (losses) gains on cash and cash
equivalents
|
(2.8)
|
0.6
|
(0.5)
|
5.1
|
Reclassification of cash to assets held for sale
|
-
|
0.4
|
-
|
-
|
Decrease in cash and cash equivalents
|
(138.5)
|
(97.1)
|
(575.0)
|
(249.4)
|
Cash and cash equivalents, beginning of the period
|
360.8
|
894.4
|
797.3
|
1,046.7
|
Cash and cash equivalents, end of the period
|
$ 222.3
|
$ 797.3
|
$ 222.3
|
$ 797.3
|
1
|
Refer to note 4(b) of the consolidated financial statements.
|
CONFERENCE CALL
A conference call will be held on Thursday, February 20, 2014 at 8:30
a.m. (Eastern Standard Time) for a discussion with management regarding
IAMGOLD`s 2013 fourth quarter and full-year 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 available from 5:00 p.m.
February 21st to March 21st, 2014. Access this replay by dialing: North America toll-free:
1-800-319-6413 or International Number: 1-604-638-9010, passcode:
1952#.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
All information included in this news release, including any information
as to the Company's future financial or operating performance, and
other statements that express management's 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 "Fourth Quarter and Full-Year 2013
Highlights", "Operations Review with Fourth Quarter Highlights", "2014
Outlook" and "Future Expansion and Development Projects", and include,
but are not limited to, statements with respect to: the Company's
guidance for production, total cash costs, all-in sustaining costs,
depreciation expense, effective tax rate, niobium production and
operating margin, capital expenditures, operations outlook, cost
management initiatives, 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 and unanticipated
reclamation expenses. Forward-looking statements are provided for the
purpose of providing information about management's 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",
"assumption,", "forecast", "anticipate", "estimate", "believe",
"intend", "plan", "suggest", "guidance", "outlook", "potential", "prospects", "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. The Company cautions
the reader not to place any reliance whatsoever on forward-looking
information or forward-looking statements. Forward -looking information
and 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 Company's
estimated future results, performance or achievements expressed or
implied by those forward-looking statements, and the forward-looking
statements are not guarantees of future performance. These risks,
uncertainties and other factors include, but are not limited to,
changes in the global prices for gold, niobium, copper, silver or
certain other commodities (such as diesel, aluminum 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; laws and regulations governing the
protection of the environment; employee relations; availability and
increasing costs associated with mining inputs and labour; the
speculative nature of exploration and development, including the risks
of diminishing quantities or grades of reserves; adverse changes in the
Company's credit rating; contests over title to properties,
particularly title to undeveloped properties; and the risks involved in
the exploration, development and mining business. With respect to
development projects, IAMGOLD's ability to sustain or increase its
present levels of gold production is dependent in part on the success
of its projects. Risks and unknowns inherent in all projects include
the inaccuracy of estimated reserves and resources, metallurgical
recoveries, capital and operating costs of such projects, and the
future prices for the relevant minerals. 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 IAMGOLD's estimates or IAMGOLD could
fail to obtain the governmental approvals necessary for the operation
of a project; in either case, the project may not proceed, either on
its original timing or at all.
For a more comprehensive discussion of the risks faced by the Company,
and which may cause the actual financial results, performance or
achievements of IAMGOLD to be materially different from the company's
estimated future results, performance or achievements expressed or
implied by forward-looking information or forward-looking statements,
please refer to the Company's latest Annual Information Form, 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 Annual Information Form (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.
Notes to investors regarding the use of resources
CAUTIONARY NOTE TO INVESTORS CONCERNING ESTIMATES OF MEASURED AND
INDICATED RESOURCES
This news release uses the terms "measured resources" and "indicated
resources". The Company advises investors that while those terms are
recognized and required by Canadian regulations, the United States
Securities and Exchange Commission ("the SEC") does not recognize them.
Investors are cautioned not to assume that any part or all of mineral
deposits in these categories will ever be converted into reserves.
CAUTIONARY NOTE TO INVESTORS CONCERNING ESTIMATES OF INFERRED RESOURCES
This news release also uses the term "inferred resources". The Company
advises investors that while this term is recognized and required by
Canadian regulations, the SEC does not recognize it. "Inferred
resources" have a great amount of uncertainty as to their existence,
and great uncertainty as to their economic and legal feasibility. It
cannot be assumed that all or any part of an inferred mineral resource
will ever be upgraded to a higher category. Under Canadian rules,
estimates of inferred mineral resources may not form the basis of
feasibility or pre-feasibility studies, except in rare cases. Investors
are cautioned not to assume that part or all of an inferred resource
exists, or is economically or legally mineable.
SCIENTIFIC AND TECHNICAL DISCLOSURE
IAMGOLD is reporting mineral resource and reserve estimates in
accordance with the CIM guidelines for the estimation, classification
and reporting of resources and reserves.
CAUTIONARY NOTE TO U.S. INVESTORS
The United States Securities and Exchange Commission limits disclosure
for U.S. reporting purposes to mineral deposits that a company can
economically and legally extract or produce. IAMGOLD uses certain terms
in this news release, such as "measured," "indicated," or "inferred,"
which may not be consistent with the reserve definitions established by
the SEC. U.S. investors are urged to consider closely the disclosure in
the IAMGOLD Annual Reports on Forms 40-F. Investors can review and
obtain copies of these filings from the SEC's website at
http://www.sec.gov/edgar.shtml or by contacting the Investor Relations
department.
The Canadian Securities Administrators' National Instrument 43-101 ("NI
43-101") requires mining companies to disclose reserves and resources
using the subcategories of "proven" reserves, "probable" reserves,
"measured" resources, "indicated" resources and "inferred" resources.
Mineral resources that are not mineral reserves do not demonstrate
economic viability.
A mineral reserve is the economically mineable part of a measured or
indicated mineral resource demonstrated by at least a preliminary
feasibility study. This study must include adequate information on
mining, processing, metallurgical, economic and other relevant factors
that demonstrate, at the time of reporting, that economic extraction
can be justified. A mineral reserve includes diluting materials and
allows for losses that may occur when the material is mined. A proven
mineral reserve is the economically mineable part of a measured mineral
resource demonstrated by at least a preliminary feasibility study. A
probable mineral reserve is the economically mineable part of an
indicated, and in some circumstances, a measured mineral resource
demonstrated by at least a preliminary feasibility study.
A mineral resource is a concentration or occurrence of natural, solid,
inorganic material, or natural, solid fossilized organic material
including base and precious metals in or on the Earth's crust in such
form and quantity and of such a grade or quality that it has reasonable
prospects for economic extraction. The location, quantity, grade,
geological characteristics and continuity of a mineral resource are
known, estimated or interpreted from specific geological evidence and
knowledge. A measured mineral resource is that part of a mineral
resource for which quantity, grade or quality, densities, shape and
physical characteristics are so well established that they can be
estimated with confidence sufficient to allow the appropriate
application of technical and economic parameters, to support production
planning and evaluation of the economic viability of the deposit. The
estimate is based on detailed and reliable exploration, sampling and
testing information gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drill holes
that are spaced closely enough to confirm both geological and grade
continuity. An indicated mineral resource is that part of a mineral
resource for which quantity, grade or quality, densities, shape and
physical characteristics can be estimated with a level of confidence
sufficient to allow the appropriate application of technical and
economic parameters, to support mine planning and evaluation of the
economic viability of the deposit. The estimate is based on detailed
and reliable exploration and testing information gathered through
appropriate techniques from locations such as outcrops, trenches, pits,
workings and drill holes that are spaced closely enough for geological
and grade continuity to be reasonably assumed. An inferred mineral
resource is that part of a mineral resource for which quantity and
grade or quality can be estimated on the basis of geological evidence
and limited sampling and reasonably assumed, but not verified,
geological and grade continuity. The estimate is based on limited
information and sampling gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drill holes.
Mineral resources which are not mineral reserves do not have
demonstrated economic viability.
Investors are cautioned not to assume that part or all of an inferred
resource exists, or is economically or legally mineable.
A feasibility study is a comprehensive technical and economic study of
the selected development option for a mineral project that includes
appropriately detailed assessments of realistically assumed mining,
processing, metallurgical, economic, marketing, legal, environmental,
social and governmental considerations together with any other relevant
operational factors and detailed financial analysis, that are necessary
to demonstrate at the time of reporting that extraction is reasonably
justified (economically mineable). The results of the study may
reasonably serve as the basis for a final decision by a proponent or
financial institution to proceed with, or finance, the development of
the project. The confidence level of the study will be higher than that
of a Pre-Feasibility Study.
A pre-feasibility study is a comprehensive study of a range of options
for the technical and economic viability of a mineral project that has
advanced to a stage where a preferred mining method, in the case of
underground mining, or the pit configuration, in the case of an open
pit, is established and an effective method of mineral processing is
determined. It includes a financial analysis based on reasonable
assumptions on mining, processing, metallurgical, economic, marketing,
legal, environmental, social and governmental considerations and the
evaluation of any other relevant factors which are sufficient for a
qualified person, acting reasonably, to determine if all or part of the
Mineral Resource may be classified as a Mineral Reserve.
Gold and NiobiumTechnical Information and Qualified Person/Quality
Control Notes
The mineral resource estimates contained in this news release have been
prepared in accordance with National Instrument 43-101 Standards of
Disclosure for Mineral Projects ("NI 43-101") and JORC. The "Qualified
Person" responsible for the supervision of the preparation and review
of all resource and reserve estimates for IAMGOLD is Lise Chenard,
Eng., Director, Mining Geology. Lise has worked in the mining industry
for more than 30 years, mainly in operations, project development and
consulting. She joined IAMGOLD in April 2013 and acquired her knowledge
of the Company's operations and projects through site visits and
information reviews.
She is considered a "Qualified Person" for the purposes of NI 43-101
with respect to the mineralization being reported on. The technical
information has been included herein with the consent and prior review
of the above noted Qualified Person. The Qualified person has verified
the data disclosed, and data underlying the information or opinions
contained herein.
About IAMGOLD
IAMGOLD (www.iamgold.com) is a mid-tier mining company with six operating gold mines (including
current joint ventures) on three continents and one of the world's top
three niobium mines. A solid base of strategic assets in Canada, South
America and 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.
Please note:
This entire news release may be accessed via fax, e-mail, IAMGOLD's
website at www.iamgold.com and through CNW Group's website at www.newswire.ca. 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, veuillez
consulter le http://www.iamgold.com/French/Home/default.aspx.
SOURCE IAMGOLD Corporation