Make Kitco Your Homepage

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.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Precious Metal Charts

Follow Kitco News