IAMGOLD Corp ((TSE:IMG)) has held its Q4 earnings call. Read on for the main highlights of the call.
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IAMGOLD Corp’s recent earnings call presented a slightly positive sentiment, primarily attributed to robust growth in production and financial stability. The company celebrated significant achievements with an impressive rise in gold production and strengthened financial metrics. Nonetheless, challenges at Côté Gold and increasing costs at Essakane were notable concerns that tempered the overall optimism.
Record Gold Production Increase
IAMGOLD Corporation concluded 2024 with a remarkable 43% increase in total attributable gold production, reaching 667,000 ounces. This surge was driven by the successful startup of Côté Gold and strong outputs from Essakane and Westwood.
Financial Strength and Liquidity
The company demonstrated financial robustness, ending the year with approximately $767 million in liquidity. This was further complemented by a significant adjusted EBITDA of $781 million, underscoring a strengthened balance sheet and enhanced credit facilities.
Significant Mineral Resource Updates
IAMGOLD announced a substantial increase in ounces and grades at the Nelligan project, solidifying its position as one of Canada’s largest gold deposits. This update signals potential for continued growth and development.
Safety Improvement
Efforts in health and safety were highlighted by an improvement in the total recordable injury frequency rate, which decreased to 0.63, reflecting the company’s commitment to a safer work environment.
Côté Gold Operational Challenges
Despite the successful startup, Côté Gold encountered higher-than-expected downtime due to unplanned repairs. These challenges impacted throughput, falling short of the intended 90% of nameplate capacity by year-end.
Increased Cash Costs and AISC
IAMGOLD faced rising cash costs and all-in sustaining costs (AISC) due to increased waste stripping, lower grades at Essakane, and external supply chain pressures. These factors contributed to the higher cost environment.
Operational Delays at Côté Gold
Operational delays at Côté Gold were attributed to unscheduled equipment maintenance, including issues with conveyor belts and accelerated wear on HPGR rollers, which disrupted planned operations.
Guidance and Future Outlook
Looking ahead, IAMGOLD anticipates production at Côté Gold to reach between 360,000 to 400,000 ounces in 2025, with cash costs expected between $950 to $1,100 per ounce and AISC ranging from $1,350 to $1,550. The company plans to achieve a steady operational state at Côté Gold by late 2025 while continuing to optimize operations and manage costs.
In summary, IAMGOLD Corp’s earnings call conveyed a slightly positive outlook, driven by record production and financial gains. However, operational challenges at Côté Gold and increased costs at Essakane present areas for improvement as the company moves forward.
