IAMGOLD (TSX: IMG) has cleared a major hurdle in terms of profitability, announcing this morning that the company has completed the final delivery of gold under a prepayment facility.
The facility, which dates back to originally to 2019, was originally put in place as a means of funding the construction of the Cote Gold Mine. Later revised in 2021, the arrangement called for the delivery of 150,000 ounces of gold at an average pre-funded price of $1,753 an ounce on the first 50,000 ounces, and a range of $1,700 to $2,100 an ounce on the remaining portion.
The first half of 2025 saw a total of 75,000 ounces of gold delivered under the revised arrangement, which is estimated by IAMGOLD to have consumed between $200 to $225 million in cashflow that would have been received under normal operating conditions in the first half of 2025, had the prepay arrangement not been in place.
“The conclusion of the arrangements comes at a strategically favourable time for the Company, as the Côté Gold Mine reached nameplate throughput earlier this week and the expectations of improved operating results at all our assets in the second half of the year. Combined with the current favourable gold price environment, the Company is well-positioned to generate stronger free cash flows and commence a disciplined deleveraging strategy,” commented CEO Renaud Adams.
Cote Gold in 2025 is expected to produce 360,000 to 400,000 ounces of gold on a 100% basis, with the mine now operating at nameplate capacity of 36,000 tonnes per day.
IAMGOLD last traded at $9.95 on the TSX.
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