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Iamgold Defers Construction Of Côté Project

Kitco News

(Kitco News) - Iamgold Corp. (TSX: IMG; NYSE: IAG) is deferring construction of its Côté gold project in Ontario until market conditions improve, the company announced Monday.

“We are focused on creating superior shareholder value by allocating our capital to our best near- and long-term opportunities in a manner that is consistent with shareholder expectations, and with our goal of maintaining a strong balance sheet,” said Steve Letwin, president and chief executive officer. “We have substantially de-risked the Côté gold project, from both a technical and financial perspective, and believe in its potential to positively transform the company.

“However, we have decided to wait for improved, and sustainable, market conditions in order to proceed with construction.”

In the meantime, the company said it will with engineering and permitting work at Côté, saying this will add value.

The project is a joint venture between Iamgold and Japan’s Sumitomo Metal Mining Co. Ltd. Iamgold owns 64.75% of the project.

Iamgold has identified almost 10 million ounces of measured and indicated resources at Côté, compared with less than 1 million ounces as of the 2012 acquisition of the site, the company said.

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