IAMGOLD Earnings Call: Record Cash, Rising Returns

IAMGOLD Corp ((TSE:IMG)) has held its Q4 earnings call. Read on for the main highlights of the call.

IAMGOLD’s latest earnings call struck a notably upbeat tone as management highlighted record revenue, surging profitability and powerful free cash flow alongside strong production performance across its portfolio. While higher costs and royalties are weighing on per-ounce margins in the near term, executives repeatedly emphasized balance sheet strength, clear cost-reduction levers and growing resource optionality as key drivers for future value creation.

Record revenue, margins and cash generation

IAMGOLD reported nearly $3.0 billion of revenue in 2025, with gross margins exceeding 40%, reflecting the combined impact of higher gold prices and stronger operating performance. Adjusted EBITDA roughly doubled year over year to about $1.6 billion versus $780.6 million in 2024, underscoring a step-change in earnings power and operating leverage.

Free cash flow surge strengthens balance sheet

The company generated record mine-site free cash flow of $626.6 million in the fourth quarter and $1.2 billion for the full year, providing ample funds for debt reduction and shareholder returns. Net debt fell by $468.8 million to $344.4 million after repaying a $400 million term loan, leaving year-end cash of $422 million and total liquidity around $868 million.

Production records and guidance delivery

All operating mines delivered record quarterly production, validating prior ramp-up and optimization efforts. Fourth-quarter attributable output reached 242,400 ounces, up 28% sequentially, while full-year attributable production of 765,900 ounces landed squarely at the midpoint of 2025 guidance.

Côté Gold ramps strongly to high output

Côté Gold’s first full year was a standout, producing 399,800 ounces on a 100% basis, hitting the top end of its guidance range. In the fourth quarter, attributable production was 87,200 ounces, with the operation sustaining nameplate throughput of 36,000 tonnes per day for 30 consecutive days and setting a record head grade of 1.44 grams per tonne.

Share buybacks highlight rising shareholder focus

IAMGOLD initiated a normal course issuer bid and moved quickly, repurchasing about 3.0 million shares for roughly $43 million in December and another 2.6 million shares for $50 million after quarter-end. Management signaled that, at current gold prices, repatriated cash flows could support $400–$500 million of additional buybacks, making capital returns a key element of its strategy.

Resource growth and strategic asset consolidation

The company reported substantial resource growth, with Côté and Gosselin together holding about 18.2 million ounces of measured and indicated resources plus 2.2 million inferred on a 100% basis. IAMGOLD also announced an acquisition that consolidates assets into the Nelligan complex, now boasting more than 4.3 million measured and indicated ounces and 7.5 million inferred, positioning it as one of Canada’s largest preproduction projects.

Major assets drive mine-site free cash flow

Fourth-quarter results showed the core mines are strong cash engines, with Essakane generating $340.4 million of attributable mine-site free cash flow. Côté, despite still ramping, delivered $197.0 million in the same period, signaling that both assets can fund corporate priorities while still absorbing ongoing investment needs.

EPS growth and capital returns improve

Adjusted earnings per share climbed to $1.23 in 2025, up sharply from $0.55 in 2024, a gain of roughly 124% that mirrors the surge in EBITDA and cash flows. Management is using this improved earnings base to support shareholder-friendly moves, including dividends via repatriated cash and the launch of the buyback program.

Higher costs and royalty burden hit AISC

Despite strong revenue, IAMGOLD’s costs remain elevated, with all-in sustaining costs averaging $1,900 per ounce for the year and $1,750 in the fourth quarter. Royalties have become a major drag, averaging about $330 per ounce company-wide in Q4 and reaching roughly $460 per ounce at Essakane, accounting for more than a third of that mine’s cash costs.

Côté’s temporary crusher inflates unit costs

Côté posted fourth-quarter cash costs of $1,265 per ounce and AISC of $1,688, inflated by a temporary aggregate crushing circuit brought in to accelerate the ramp to nameplate throughput. Management expects to remove this contractor circuit and believes that doing so should cut processing costs by around $4–$5 per tonne in 2026, helping to bring unit costs down.

Non-recurring capex drives cost guidance higher

The company cautioned that sustaining and expansion capital will be higher in 2026, weighing on AISC guidance. About $50 million of non-recurring sustaining capital, equivalent to roughly $185 per ounce, plus $85 million of expansion spending are embedded in the cost outlook, but management framed these as necessary investments to support long-term performance.

Essakane reserve decline contrasts with resource gain

At Essakane, mineral reserves fell by 640,000 ounces to 1.7 million ounces due to depletion and model updates, a setback for headline life-of-mine metrics. However, measured and indicated resources at the mine increased by about 50% to 4.4 million ounces, giving the company more optionality for future conversion and potential mine-life extension.

Higher 2026 AISC at key operations

Looking ahead, IAMGOLD flagged that some operations will carry relatively high all-in sustaining costs in 2026, reflecting both royalties and capital intensity. Essakane’s AISC is guided to $2,000–$2,150 per ounce, while Westwood is expected to run at $1,950–$2,100 per ounce, keeping cost discipline a central focus for management.

Seasonality and planned downtime at Côté

Côté’s production profile for 2026 will be back-end weighted, with lower output expected in the first half due to winter effects and a planned five-day maintenance shutdown on the high-pressure grinding roll unit. Management anticipates that about 55% of the site’s annual production will fall in the second half, when conditions improve and throughput stabilizes.

Guidance points to disciplined growth and shareholder returns

For 2026, IAMGOLD is guiding Essakane to 340,000–380,000 ounces of attributable production, with cash costs excluding royalties at $1,150–$1,300 per ounce and AISC at $2,000–$2,150, reflecting royalty drag. Westwood is forecast to produce 107,000–113,000 ounces with cash costs of $1,500–$1,650 per ounce, AISC of $1,950–$2,100 and a blend of sustaining and expansion capital, while Côté focuses on sustaining 36,000 tonnes per day and an AISC range of $1,725–$1,925, all against a backdrop of ongoing deleveraging and active share repurchases.

IAMGOLD’s earnings call painted the picture of a company emerging from a heavy investment phase with stronger assets, higher earnings power and a cleaner balance sheet, even as cost inflation and royalties cloud near-term margins. For investors, the key story is whether sustained free cash flow, ongoing debt reduction and a sizable buyback program can offset those headwinds and unlock the value implied by the company’s growing production base and resource pipeline.