IAMGOLD Cash Flow Craters 46% In Q2 2025 Despite 51% Revenue Jump

IAMGOLD (TSX: IMG) posted its Q2 2025 results, with revenue jumping 51% to $580.9 million from $385.3 million a year ago.

Cost of sales jumped 63% to $382.1 million, squeezing gross margin to 34.2% from 39.1% a year earlier. Operating income climbed 39% to $177.6 million, but higher interest expense and a doubling of income-tax expense blunted the benefit of stronger gold prices. This led to net earnings also retreating 7% to $78.7 million from Q2 2024’s $84.5 million.

Adjusted EBITDA increased 45% YoY to $276.4 million, but adjusted net earnings fell 9% to $77.3 million, reflecting the heavier tax burden and a $7.8 million swing in other expenses.

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Cash from operating activities collapsed 46% to $85.8 million, hurt by a $82.5 million hit from mandatory gold-prepay deliveries and a $43.5 million jump in cash taxes. Mine-site free cash flow was flat at $140.5 million only because capital spending fell 37% to $79.4 million as the Côté construction phase wound down.

Cash and equivalents dropped 36% since year-end to $223.8 million, while net debt swelled 18% to $1.02 billion.

On the ground, attributable gold production edged 4% higher to 173,000 ounces. Ramp-up at Côté Gold drove the gain—contributing 67,000 ounces versus just 20,000 ounces last year—while Essakane output slid 31% and Westwood 17% as grade profiles rolled over. The production mix shift proved costly: consolidated cash costs per ounce leapt 45% to $1,556, and AISC ballooned 26% to $2,041 per ounce, more than wiping out the 39% rise in average realized price to $3,182 per ounce.

Management conceded the cost surge, lifting 2025 cash cost guidance to $1,375–$1,475 per ounce and AISC guidance to $1,830–$1,930 per ounce.

Capital expenditure guidance rose to $335 million—92% of it now classified as sustaining—to cover plant improvements at Côté. Exploration spending is pegged at $38 million, led by further drilling at the Gosselin deposit.

Looking ahead, IAMGOLD still expects to meet its 2025 output target of 735,000–820,000 ounces, implying a second-half contribution of up to 485,000 ounces.

IAMGOLD last traded at $10.62 on the TSX.


Information for this briefing was found via the sources 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.

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