IAMGOLD Boosts Q2 Gold Production by 55% as Côté Gold Reaches Commercial Milestone
IAMGOLD Corporation (TSX: IMG) has released its financial and operational results for the second quarter ending June 30, 2024, showcasing a significant improvement in production and financial performance compared to the same period last year. The Toronto-based gold miner highlighted its progress on several fronts, including the commencement of commercial production at its Côté Gold mine in Canada and increased output from its Essakane and Westwood mines.
The mining firm’s total attributable gold production for Q2 2024 reached 166,000 ounces, a substantial 55% increase compared to 107,000 ounces in Q2 2023. This growth was primarily driven by strong performances at the Essakane mine in Burkina Faso and the Westwood mine in Quebec, as well as the initial production from the newly operational Côté Gold mine in Ontario.
- Essakane Mine: Essakane remains IAMGOLD’s largest contributor, producing 111,000 ounces of gold in Q2 2024, up from 88,000 ounces in Q2 2023. This 26% year-over-year increase is attributed to higher mill throughput and improved ore grades.
- Westwood Mine: The Westwood mine produced 35,000 ounces in Q2 2024, nearly doubling the 19,000 ounces produced in Q2 2023. This sharp increase is due to the ramp-up of underground mining activities and operational improvements that have enhanced productivity.
- Côté Gold Mine: The Côté Gold mine, which achieved commercial production on August 2, 2024, contributed 20,000 ounces in Q2 2024. This marked the mine’s first quarter of production, following the initial gold pour on March 31, 2024. The mine processed over 620,000 tonnes of ore in July, with a peak daily throughput rate of 36,000 tonnes on August 1st. However, the company noted that production is expected to be on the lower end of its guidance for 2024 as it focuses on optimizing mill availability.
IAMGOLD also reported Q2 2024 revenues of $385.3 million, a 61% increase from $238.8 million in Q2 2023. The surge in revenue was driven by higher gold sales volumes and a stronger average realized gold price of $2,294 per ounce, compared to $1,973 per ounce in the same quarter last year.
Despite the revenue growth, IAMGOLD continues to face challenges in managing production costs. The company’s cost of sales for Q2 2024 was $234.6 million, up 11% from $212.2 million in Q2 2023. The increase is partly due to the higher production volumes, particularly with the commencement of operations at Côté Gold.
IAMGOLD’s all-in sustaining cost (AISC) for Q2 2024 was $1,617 per ounce, down from $1,912 per ounce in Q2 2023, driven by cost management at Essakane and Westwood. The company has also revised its AISC guidance for the full year downward, expecting it to range between $1,700 and $1,825 per ounce, reflecting confidence in ongoing cost control measures.
As of June 30, 2024, IAMGOLD reported total liquidity of $915.7 million, up from $754.1 million on June 30, 2023. This liquidity is composed of $511.4 million in cash and cash equivalents and $403.3 million available under the company’s secured revolving credit facility. The increase in liquidity reflects the company’s improved operational cash flow and the completion of a “bought deal” equity financing in May 2024, which raised gross proceeds of $300.2 million.
Net cash from operating activities for Q2 2024 was $160.1 million, a significant increase from $23.2 million in Q2 2023. This growth in cash flow was primarily due to higher sales volumes and the stronger gold price, alongside a reduction in working capital requirements.
IAMGOLD’s net debt decreased to $495.1 million as of June 30, 2024, down from $649.5 million at the end of 2023.
The firm said it continues to advance its strategic initiatives, with a focus on optimizing its existing operations and enhancing its financial flexibility. A key part of this strategy is the planned repurchase of a 9.7% interest in the Côté Gold mine from Sumitomo Metal Mining Co., Ltd., scheduled for November 2024. This transaction will increase IAMGOLD’s ownership of the Côté Gold mine to 70%, reinforcing its position in one of Canada’s emerging gold mining districts.
The company has also updated its production guidance for 2024, raising expectations for the Essakane and Westwood mines. The revised guidance anticipates total attributable production of between 495,000 and 540,000 ounces, up from the previous range of 430,000 to 490,000 ounces.
Following the release of its second-quarter 2024 earnings, the company’s stock saw a significant uptick, jumping by over 13% on opening bell coming from its last closing price of $5.08.
Information for this briefing was found via Sedar and the sources and companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
