Release Date: November 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Iamgold Corp (IAG, Financial) reported a strong operating performance with increased overall guidance for the year.
- The company achieved a significant milestone with the ramp-up of the Cote Gold project, which is expected to be one of the largest gold mines in Canada.
- Iamgold Corp (IAG) demonstrated a strong commitment to safety, achieving a record health and safety milestone of 5 million hours worked without a recordable safety incident.
- The company ended the quarter with a strong financial position, holding cash and cash equivalents of $511.4 million and an undrawn credit facility, equating to total liquidity of approximately $915.7 million.
- Iamgold Corp (IAG) increased its 2024 attributable gold production guidance and lowered its cost estimates for the year, reflecting strong first-half performance.
Negative Points
- The Cote Gold project is expected to produce at the lower end of its guidance range due to improvements needed in mill availability.
- Inflationary pressures are easing, but pricing for certain consumables remains high, impacting cost expectations.
- The company faces risks related to the ability to recoup VAT receivables, although some progress has been made in selling a small amount to a local bank.
- There are considerable obligations and factors that will influence Iamgold Corp (IAG)'s liquidity over the next 12 months, including gold prepay arrangements and asset sales.
- The company is planning a multi-day shutdown in September to address issues at the Cote Gold project, which could impact production.
Q & A Highlights
Q: What factors are driving the indication that Cote will be near the bottom end of the production guidance range, and how long will the shutdown in September last?
A: The main factor is the total tons milled. The original guidance was set with the assumption of a perfect commissioning. The company took time in Q2 to correct issues, which may impact short-term production but will benefit long-term performance. The planned shutdown in September is expected to last 10 to 15 days to address these issues.
Q: Can you provide an indication of how processing costs are performing at this stage?
A: Processing costs are within expectations and plans. While there are additional costs for fixing and replacing certain items, the dollar per ton cost is expected to align with previous guidance, considering inflation and the fact that the mill is not yet at 100% capacity.
Q: How is the performance of the autonomous operations at Cote, and are there any challenges?
A: The autonomous operations, including haulage and drilling, are performing well with high availability. There are no significant issues, and the implementation of autonomous haulage has been successful, improving safety and modernizing operations.
Q: Regarding Westwood, do you see the current grades continuing, and is there potential for increased underground run rates?
A: Westwood's grades are improving, and the mine is close to reaching its reserve grade of 10.4 g/t. The company is optimistic about further optimization and increasing underground run rates, with a new technical report expected to provide more clarity.
Q: Can you provide more clarity on the final payment for the Bambouk assets and any associated credit risks?
A: The final payment process has been lengthy, but progress is being made. The company remains confident in closing the remaining transactions for the Bambouk assets in the second half of the year, with approximately $80 million in gross proceeds expected.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
