IAMGOLD Corporation (TSX: IMG) (NYSE: IAG) has released preliminary full year and fourth quarter 2021 operational results, 2022 operational outlook, a progress update for the Côté Gold Project, updated Mineral Reserves and Mineral Resources estimates and a new life-of-mine plan (Rosebel 2022 LOMP) for the Rosebel Gold Mine, including the satellite Saramacca Mine (Rosebel).
As part of a focused strategy to prioritise the highest return assets within the portfolio to achieve the strongest net free cash flow and value creation for shareholders, while concentrating on core operating jurisdictions, the company has been progressing a review of its portfolio of assets.
The key objective of this review is to deliver an appropriate allocation of capital and resources between the company’s existing mines and its Côté Gold project to generate the best return on invested capital while advancing Côté Gold to production.
“IAMGOLD finished with a strong quarter bringing production for the year to the upper end of revised guidance as we strive to deliver on our commitments,” President and CEO, Gordon Stothart, said.
“Looking ahead, we are fully focused on bringing Côté Gold into production and we remain on track to commence commercial production in the second half of 2023. Operationally, we expect continued strong performance at Essakane, following a record year of production in 2021, supporting the turnaround at Rosebel and continued ramp up of Westwood.
“At the same time, we will continue our review to ensure we focus on value generating assets, maximising net free cash flow, and prudent management of IAMGOLD’s capital – towards our goal of becoming a leading high-margin gold producer.”
OPERATIONS
Fourth Quarter and Full Year 2021 Operational Results
In 2021, IAMGOLD achieved attributable gold production of 601,000 ounces, in line with updated guidance of 565,000 to 605,000 ounces, and including 153,000 ounces produced in the fourth quarter. Annual revenue were approximately $1.2 billion based on attributable gold sales of 590,000 ounces. Fourth quarter revenues were approximately $295 million based on attributable gold sales of 152,000 ounces.
Annual attributable gold production for Essakane was 412,000 ounces (457,000 ounces on a 100% basis), exceeding the upper end of the updated guidance range of 390,000 to 400,000 ounces, as the mine continued to benefit from the mill debottlenecking project completed earlier in the year. In the fourth quarter, attributable production was 98,000 ounces based on a record mill feed of 3.3 million tonnes at a head grade of 1.13 grams per tonne gold (“g/t Au”) and improved gold recoveries of 91% as mining activities moved into lower graphitic ore zones.
Annual attributable gold production for Rosebel was 154,000 ounces (188,000 ounces on a 100% basis), at the upper end of the updated guidance range of 140,000 to 160,000 ounces. In the fourth quarter, attributable production was 42,000 ounces based on total mill feed of 2.4 million tonnes at an average head grade of 0.78 g/t Au and average recovery of 86%. Mining activities saw the Rosebel pits contribute 1.16 million ore tonnes with a strip ratio of 8.1 (waste to ore), and Saramacca contribute 1.03 million ore tonnes with a strip ratio of 2.1 (waste to ore). Efficiency improvements of the carbon adsorption/desorption circuit were completed at the end of the fourth quarter, with further improvements in the drawdown from gold-in-circuit expected in the first quarter of 2022.
Annual gold production for Westwood was 35,000 ounces, at the lower end of updated guidance of 35,000 to 45,000 ounces, following the restart of underground operations in June 2021. In the fourth quarter, the operations produced 13,000 ounces, as ore production from Westwood underground ramped up and resulted in a higher average head grade of 1.83 g/t Au. Mill feed totalled 254,000 tonnes and gold recoveries were 90%.
Although underground mine productivity is improving, the pace of the ramp up remains cautious in keeping with the safety-first culture of IAMGOLD, as the company continues to prioritise the implementation of enhanced ground support and additional safety measures, coupled with continued pressures associated with general labour shortages in the region.
The Company’s consolidated cash costs and consolidated AISC for its three operating mines are expected to be between the 2021 updated guidance ranges of $1,115 and $1,150 per ounce sold and $1,395 and $1,435 per ounce sold, respectively, excluding the impact of potential net realizable value adjustments on long term stockpiles. Long term stockpiles include historic costs which relate to ore mined in prior periods not expected to be processed in 2022. Capital expenditures for 2021 are expected to come in line with expectations, with Côté Gold preliminary spending in the fourth quarter estimated at $147 million, comparing well with guidance estimates of $150 million.
IAMGOLD ended 2021 with approximately $545 million in cash and cash equivalents, $42 million in restricted cash, $8 million in short term investments and $498 million in its undrawn credit facility.
For further information please visit: https://www.iamgold.com
