IAMGOLD Corporation Q3 FY2025 earnings call

Management Statement and Operational Highlights

• Safety: Total recordable injury rate was 0.56, a 15% improvement year-over-year on a 12-month rolling average, with focus on integrating contractors into safety management.
• Production: Third quarter production was 190,000 ounces of gold. Cote produced a record 106,000 ounces on a 100% basis. Essakane saw production rebound on higher grades.
• Financials: Revenues from continuing operations totaled $706.7 million, adjusted EBITDA was a record $359.5 million, and mine site free cash flow was $292.3 million.
• Brand: Introduced new logo and refreshed brand reflecting innovative, accountable mining.
• Share Buyback: Board approved a share buyback program to purchase up to ~10% of outstanding common shares, subject to TSX approval.
• Cote Expansion: Working towards an updated mine plan in 2026 with higher throughput, targeting a larger ore base from Cote and Gosselin; over 50,000 meters drilled so far.
• Quebec Operations: Westwood facing challenges with underground mining but seeing improvements in October; Grand Duc open pit evaluated for expansion.
• Essakane: Overcoming fuel shortages with 48+ days of inventory and specific supply routes; production expected to be higher in Q1 2026 due to higher grades.
• Acquisitions: Consolidating Chibougamau region with Northern Superior, aiming to create a leading multi-asset Canadian gold mining complex.

Segment Performance

• Cote Gold: Produced a record 106,000 ounces in the third quarter on a 100% basis. Year-to-date attributable production for Cote is part of the 360,000 to 400,000 ounces guidance. Mine site free cash flow from Cote was $135.6 million in Q3. Cash costs for Cote are expected to exceed the top end of the updated guidance range of $1,100 to $1,200 per ounce sold due to higher royalties, supplementary crushing usage, and expensing of certain parts.
• Quebec (Westwood): Third quarter production was 23,000 ounces, year-to-date 76,000 ounces, below the guidance range of 125,000 to 140,000 ounces. Challenges included lower grade stopes, higher dilution, and lower mining recoveries. Cash costs in Q3 were $1,924 per ounce. Annual average cash costs are expected above the guided range of $1,275 to $1,375 per ounce.
• Essakane: Produced 108,000 ounces on a 100% basis in Q3. Year-to-date guidance is 400,000 to 440,000 ounces. Cash costs in Q3 were $1,737 per ounce. Impacted by fuel shortages in August, but had over 48 days of fuel inventory and specific supply routes to mitigate risks.
• Nelligan-Chibougamau: Acquisitions to consolidate the area, including Northern Superior's assets. Nelligan has 3.1 million ounces indicated and 5.2 million inferred, Monster Lake is a high-grade underground project, and Philibert has ~2 million ounces. The goal is to create a multi-asset gold mining complex with synergies.

Guidance

• Production: Expected to achieve 735,000 to 825,000 ounces of gold for the year.
• Cote Gold: Cash costs expected above the updated guidance range of $1,100 to $1,200 per ounce sold due to higher royalties, supplementary crushing, and expensing of parts.
• Share Buyback: Board approved a program to purchase up to ~10% of outstanding common shares via NCIB, subject to TSX approval.

Risks

• Safety: Potential for high potential incidents despite ongoing risk management efforts.
• Operational: Fuel shortages at Essakane could impact operations; challenges in Westwood's underground mining with lower grades and higher dilution.
• Cost: Inflationary pressures affecting mining and processing costs; higher royalties impacting Cote's cash costs.
• Regulatory: Uncertainty with mining lease renewals for Essakane in 2028.

Question and Answer

Q: Can you talk about the anticipated cost improvements at Cote Gold once the secondary crusher is installed?

A: Renaud Adams and Bruno Lemelin discussed that using the aggregate plant added about $6 per tonne, and with the secondary crusher, they aim to stabilize milling costs towards $12 per tonne and mining costs towards $3 per tonne, with improvements expected in 2026.

Q: When is the new technical report and mine plan for Cote Gold expected?

A: Renaud Adams clarified it was a misstatement, and the updated mine plan is still expected in late 2026.

Q: What pricing assumptions are you using for mine plans?

A: For Cote, reserve pricing is expected to remain around $1,700, and resource deposits like Nelligan may be tested up to $2,500, but disciplined.

Q: How are you addressing fuel pressures at Essakane?

A: Bruno Lemelin stated Essakane has specific supply routes and over 48 days of fuel inventory, using government support to maintain operations uninterrupted.

Q: What are the next key steps for the Nelligan-Chibougamau complex?

A: Renaud Adams mentioned focusing on resource growth in 2026, increased drilling at Philibert, and developing a comprehensive mine plan for the consolidated assets.