Iamgold reports solid start to the year, plans technical reports for all operations

The company generated earnings before interest, taxes, depreciation and amortisation of $666-million in the first quarter of the year, as well as mine-site free cash flow of $525-million.

The results reflect the significant leverage the company has to the current gold price environment, which allowed Iamgold to return $260-million to shareholders through its share buyback programme and repay $100-million in debt.

The group remains on track to achieve its full-year guidance of between 720 000 oz and 820 000 oz.

In the quarter under review, Iamgold’s Westwood and Essakane operations, in Québec and Burkina Faso, respectively, delivered quarterly production improvements year-on-year driven by higher grades and improved operating efficiency.

However, throughput at the Côté Gold mine, in Ontario, was limited by unplanned conveyor downtime as increased crushed ore volumes from the additional secondary cone crusher accelerated prior wear and splits on the belt.

The performance of the conveyor has since improved following repairs, which bodes well for Côté to meet its fill-year production target of between 270 000 oz and 310 000 oz. Iamgold also expects costs to improve at the mine throughout the year as throughput increases and the temporary aggregate crushing circuit is phased out.

Additionally, Iamgold plans to publish an updated mineral resource statement for Côté in the second quarter, followed by a technical report that is on track for publishing by year-end. The technical report will outline a larger-scale mine incorporating both the Côté and Gosselin zones.

Technical reports are also planned for Westwood, Essakane and the company’s Nelligan Mining Complex, in Québec, which, combined, are expected to illustrate meaningful potential for production growth, mine life extension and value accretion.