Make Kitco Your Homepage

IAMGOLD posts net loss in second quarter, updates on Côté gold project

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - IAMGOLD (TSX: IMG) reported Wednesday that its attributable gold production in Q2 2022 was 170,000 ounces, down 2% from the prior quarter and up 22% from Q2 2021 (139,000 ounces).

The company said that its attributable gold production increased over Q2 2021 on continued strong performance from Essakane and improvements at Rosebel, adding that annual production is expected to be in the upper end of the guidance range of 570,000 to 640,000 ounces.

The company noted that its cost guidance for 2022 is unchanged with cash costs expected to be between $1,100 and $1,150 per ounce sold and AISC expected to be between $1,650 and $1,690 per ounce sold.

Second quarter 2022 mine site free cash flow was $42.8 million, down $44.7 million from the prior quarter, due to lower operating cash flow at Essakane ($54.6 million) and Westwood ($11.1 million), mainly due to higher operating costs, lower sales volume and a lower average realized gold price, and higher capital expenditures at Rosebel ($16.0 million), the company said.

For the second quarter ended June 30, 2022, net earnings and adjusted net earnings per share attributable to equity holders were ($0.02) and ($0.01), respectively, EBITDA was $101.4 million and adjusted EBITDA was $110.0 million.

In addition, the company announced the remaining costs to complete, project economics and updated life-of-mine plan for Côté Gold. The company's share of remaining spend to complete construction and bring Côté Gold into production is estimated to be between approximately $1.2 and $1.3 billion from July 1, 2022, net of leases and working capital.

"The construction of Côté is happening in an environment with significant headwinds, including COVID-19, inflation and other global events. The project today is over 57% complete and the updated project costs and schedule give us greatly improved visibility towards completion. Given the strategic importance of Côté Gold to achieve our goal of becoming a leading high-margin gold producer, we are actively pursuing various alternatives to increase liquidity to deliver Côté on its updated schedule. I am confident we will address the near-term challenges in order to advance Côté and better position IAMGOLD as a more resilient, agile company for the current environment," stated Maryse Bélanger, Chair and Interim President and CEO of IAMGOLD.

IAMGOLD is a mid-tier gold mining company operating in North America, South America and West Africa. The company has three operating mines: Essakane (Burkina Faso), Rosebel (Suriname) and Westwood (Canada), and is building the large-scale, long life Côté Gold project (Canada) which is expected to commence production in early 2024.

B2Gold announces net income of $41 million in Q2, says will seek alternatives for Gramalote project

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.