IAMGOLD Corp. Q2 FY2024 earnings call

Management Statement and Operational Highlights

• Health and Safety: Total recordable injury frequency rate was 0.6 in Q2, an improvement from prior quarter. Essakane team surpassed 5 million hours work without recordable safety incident.
• Production: Strong performances from Essakane (111,000 ounces in Q2) and Westwood (35,000 ounces in Q2), with Cote Gold ramping up. Year-to-date attributable gold production 317,000 ounces.
• Costs: Cash costs and all-in sustaining costs improved for Essakane and Westwood. Cote Gold had mining costs comparable to Canadian open pit peers at under $4 a ton.
• Ramp-Up: Cote Gold ramped up, with processing circuit components proving capability, though some dry-side improvements needed. Plan to address issues with September shutdown.
• Mine Life: Examining opportunities to extend Essakane's mine life, with Westwood expected to have updated technical report and mine plan in Q4.

Segment Performance

• Essakane: Attributable gold production in Q2 was 111,000 ounces, year-to-date 229,000 ounces. Cash cost was $1,081 per ounce and all-in sustaining costs were $1,481 per ounce. Production guidance has been revised upwards to 380,000 to 410,000 ounces, with cost guidance revised to cash cost $1,175 to $1,275 per ounce and all-in sustaining costs $1,575 to $1,675 per ounce. Capital expenditure guidance increased to approximately $175 million.
• Westwood: Produced 35,000 ounces in Q2, year-to-date 67,000 ounces. Cash cost averaged $1,131 per ounce and all-in sustaining costs averaged $1,663 per ounce. Production guidance revised to 115,000 to 130,000 ounces, with cost guidance $1,200 to $1,300 cash cost per ounce and $1,775 to $1,900 all-in sustaining costs per ounce.
• Cote Gold: Produced 34,000 ounces in Q2. Production guidance maintained at 220,000 to 290,000 ounces but near the lower end due to mill availability issues. Mining activities achieved 10.5 million tons of total material mined, with processing throughput 834,000 tons at an average head grade of 1.4 grams a ton.

Guidance

• Increased production guidance for Essakane and Westwood: Essakane and Westwood attributable gold production guidance revised to 495,000 to 540,000 ounces (previously 430,000 to 490,000 ounces).
• Lowered cost estimates: Essakane and Westwood combined cash cost guidance now $1,175 to $1,275 per ounce, all-in sustaining costs $1,700 to $1,825 per ounce (previously $1,280 to $1,400 cash cost, $1,780 to $1,940 all-in sustaining costs).
• Cote Gold production guidance maintained at 220,000 to 290,000 ounces but near lower end due to mill availability improvements needed.
• Capital expenditure guidance for Essakane increased to approximately $175 million.

Risks

• VAT Receivables: Uncertainty in recouping all VAT receivables, though some sold to local bank in Q2.
• Essakane Mine Life: Challenges in extending Essakane's mine life while ensuring team safety.
• Cote Gold Ramp-Up: Operational challenges during ramp-up, including mill availability issues and dry-side improvements needed.

Question and Answer

Q: What factors drove the indication of being near the bottom end of Cote Gold's production guidance range?

A: Mostly related to total tons milled; took time to correct deficiencies during ramp-up, leading to near lower end of guidance.

Q: How long will the September shutdown at Cote Gold last?

A: Up to 10-15 days to address issues and improve long-term availability.

Q: On Westwood, do you see grades continuing through the year and if it's considered core?

A: Close to reaching reserve grade, extremely pleased with performance, and sees Westwood continuing as a contributor to the story.

Q: Clarity on Bambouk assets final payment and credit risk?

A: Still working towards closing both remaining Bambouk assets in Mali and Guinea, confident of closing both in second half of 2024.