Côté Construction Remains On Track
IAMGOLD Corporation (TSX: IMG) has reported strong consolidated financial and operating results for the first quarter ended March 31, 2021
President and CEO, Gordon Stothart, said that in the first quarter 2021, the IAMGOLD team made good progress toward its operating and development goals.
“Our operations generated US$89.5 million in mine-site free cash flow and we ended the quarter with approximately US$1.5 billion in available liquidity,” Mr Stothart said.
“Production was strong at Essakane and as expected at Westwood’s Grand Duc open pit, with Rosebel and satellite Saramacca impacted by unusually heavy seasonal rains and COVID-19 restrictions.
“ We completed the CIL mill upgrade at Essakane and continue to expand camp capacity at Rosebel. At Côté, we started major earthworks ahead of schedule and have attained 18% completion of the project at March 31st. We continue to de-risk our Boto project by advancing essential infrastructure work including the access road and camp construction.
“And, we recently announced two important initiatives in further support of our host communities: a substantial donation to UNICEF’s COVAX vaccination program and sponsorship of the Giants of Africa youth development programme.
“With the normalisation of operations and continuous improvement, we expect to see improved production levels and costs over the balance of the year and to continue to steadily advance our development projects and pipeline.”
Environmental, Social and Governance
- Ranked 10th out of 116 global mining companies on the Corporate Knights 2021 Global 100 Sustainability scorecard.
- Included in the 2021 Bloomberg Gender Equality Index for the 3rd consecutive year, and recognised among 380 global companies that foster a more inclusive and equitable workplace.
- Provided US$400,000 from the Rosebel Community Fund, along with supplemental government contributions, for the installation of solar LED street lights, electrification and potable water supplies in local communities.
- Completed Phase I of the Public-Private Partnership with Canada’s government, One Drop Foundation, and Cowater on the Triangle d’Eau Project bringing potable water to 60,000 people near Essakane; advanced Phase II to bring potable water to an additional 75,000 people.
- Contributed US$250,000 to UNICEF to support the International ACT-A / COVAX Emergency Response.
- Investing US$950,000 in a 4-year Giants of Africa programme, aimed at encouraging the development of youth through sports in Burkina Faso, Senegal and Mali.
- Sponsored the Artemis Project, which aims to promote female business owners and entrepreneurs in the mining sector.
- Received Mining Association of Canada’s prestigious Towards Sustainable Mining® (TSM) Excellence Award in the Environmental category for innovative recycling of plastic at Essakane.
FINANCIAL RESULTS AND FINANCIAL POSITION
- Sold 153,000 ounces at an average realised gold price of $1,781 per ounce, resulting in gold margin of US$729 per ounce1.
- Gross profit for the first quarter 2021 was US$44.2 million, an increase of US$12.3 million compared to the prior year quarter, primarily due to higher realised prices partially offset by lower sales volumes.
- Net earnings for the first quarter 2021 were US$19.5 million, compared to net loss of US$34.4 million in the prior year quarter. The increase was primarily due to the gain on the sale of the company’s non-core royalties (US$35.7 million) in March 2021, a decrease in loss on non-hedge derivatives and warrants and higher gross profit, partially offset by higher other expenses and higher income taxes.
- Adjusted net earnings were US$6.2 million compared to adjusted net loss in prior year quarter of US$4.9 million,
- Net cash from operating activities in the first quarter 2021 was US$101.7 million, up US$57.7 million from the prior year quarter, primarily due to higher earnings, favourable movements in non-cash working capital items (US$38.8 million) primarily resulting from receipts for value-added taxes and a decrease in inventory and non-current ore stockpiles. Mine-site free cash flow was US$89.5 million for the first quarter 2021 compared to $14.1 million in the prior year quarter.
- Cash, cash equivalents and short-term investments of US$967.8 million at March 31, 2021.
- Total available liquidity at March 31, 2021 of $US1,466 million, providing appropriate headroom to finance the company’s ongoing development activities, with the maturity date of US$490 million of the company’s largely undrawn US$500 million credit facility extended to January 31, 2025.
Outlook
Rehabilitation activities are expected to ramp up following the workforce recall in the second quarter. The company expects to make a decision in the second quarter with respect to a possible targeted safe restart, which would commence with the East Zone and progress to the other zones in a staged manner.
The business continuity assessment in the West Zone will be ongoing. The production guidance range for the Westwood complex for 2021 remains 45,000 to 65,000 ounces assuming a restart of underground mining in the second half of the year. Mill feed will continue to be sourced from the Grand Duc open pit and would be supplemented with underground material when the Westwood mine restarts.
