IAMGOLD (IAG) Q3 2024 earnings summary

Executive summary

• Attributable gold production reached 173,000 ounces in Q3 2024 and 490,000 ounces YTD, driven by strong performance at Essakane, Westwood, and ramp-up at Côté Gold, positioning the company to meet or exceed full-year guidance.

• Côté Gold achieved commercial production on August 1, 2024, operated at or above nameplate throughput, and is ramping up to 90% by year-end, generating positive free cash flow for the first time.

• The company is positioned to become a leading Canadian gold producer with a strong balance sheet, available liquidity of $959.3 million as of September 30, 2024, and significant near-term growth potential.

• Repurchase of a 9.7% interest in Côté Gold from Sumitomo is set to close November 30, 2024, increasing the stake to 70%.

• Health and safety improved, with a total recordable injury frequency rate of 0.46 and zero incidents at Essakane in September.

Financial highlights

• Q3 2024 revenues were $438.9 million from sales of 184,000 ounces at a record average realized price of $2,391/oz, impacted by gold prepay arrangements.

• Adjusted EBITDA was $221.7 million for Q3 and $565.2 million YTD; adjusted net earnings per share were $0.18 for Q3.

• Net earnings reached $598.1 million in Q3, including a $462.3 million impairment reversal on Westwood.

• Operating cash flow before working capital changes was $161.2 million in Q3; mine-site free cash flow totaled $120.7 million.

• Cash and cash equivalents were $553.4 million, with total liquidity of $959.3 million and an undrawn $425 million credit facility at quarter-end.

Outlook and guidance

• 2024 attributable gold production guidance is 495,000–540,000 ounces, with Essakane and Westwood expected at the upper end and Côté Gold at the lower end of 130,000–175,000 ounces (60.3% basis).

• Cash cost guidance for Essakane and Westwood is $1,175–$1,275/oz and $1,200–$1,300/oz, respectively; AISC guidance is $1,575–$1,675/oz for Essakane and $1,775–$1,900/oz for Westwood.

• Côté Gold cash costs and AISC expected at $700–$800/oz and $1,100–$1,200/oz (100% basis) as ramp-up continues.

• Capital expenditures for 2024 are expected to be $175 million for Essakane, $70 million for Westwood, and $454 million for Côté Gold (100% basis).

• 2025 expected to be a steady year with strong cash flow, focus on ramping up Côté and maximizing value at all assets.