The Canadian gold producer Iamgold (WKN 899657) has presented robust figures for the third quarter, citing record output from the Côté gold mine in Ontario, consistent debt reduction and disciplined growth. The company believes it is on track to achieve its annual targets and further strengthen its position as a North America-focused gold producer.
The Group’s focus is on the Côté (Ontario), Essakane (Burkina Faso) and Westwood (Québec) mines, as well as announced acquisitions in Québec. Iamgold reports 190,000 ounces of attributable gold production in the quarter, 524,000 ounces since the start of the year and ongoing optimisation of the cost structure.
Operating Performance: Côté Drives Iamgold Forward
The central driver of the quarter was Côté: The mine in Ontario delivered a record 106,000 ounces of gold. Essakane contributed 92,000 ounces, Westwood added another 23,000 ounces. Iamgold thus confirms the operational availability of its core assets and the targeted increase in production over the annual horizon.
In parallel, the company reported revenues of US$706.7 million from the sale of 203,000 ounces at an average realised gold price of US$3,492 per ounce. All-in Sustaining Costs (AISC) for the quarter were US$1,956 per ounce; according to management, Iamgold is thus moving at the upper end of the annual forecast for this cost indicator.
The combination of increasing production in Canada and stable contributions from West Africa is expected to support output in the remainder of the year. According to the company, the 12-month value for earnings before interest, taxes, depreciation and amortisation (EBITDA) now exceeds US$1 billion.
Finances and Balance Sheet: Cash Flow, Debt Reduction and Share Buy-Back
Financially, the quarter marked another step towards strengthening Iamgold’s balance sheet. Free cash flow reached a record level of US$292.3 million; Côté alone contributed US$135.6 million as ‘mine-site free cash flow’. The quarterly profit amounted to US$139.4 million (US$0.24 per share), the adjusted result to US$170.9 million (US$0.30 per share). Liquidity at the end of the quarter was US$707 million. The net debt, according to the company, fell by US$202 million compared to the previous quarter to US$813 million, supported by the repayment of approximately US$270 million from second-ranking subordinated bonds.
Against this backdrop, the Iamgold Board of Directors has approved a share buy-back programme comprising up to 10% of the outstanding common shares. The financing is to be provided from operating cash flow after debt repayments. In addition, Iamgold’s issuer rating was raised by S&P Global Ratings to BB- (from B) with a stable outlook – a step that reflects the improved financial flexibility and lower debt.
Project Portfolio in Québec: Acquisitions and Resource Base Strengthen Iamgold
In parallel with operational development, Iamgold is driving forward the expansion of its Canadian portfolio. The acquisitions of Northern Superior Resources and Mines d’Or Orbec are planned with a combined transaction value of approximately US$280 million in cash and share components. The aim is to consolidate the Chibougamau region (Québec) into the so-called Nelligan Mining Complex – a contiguous land package of approximately 134,000 hectares. According to company information, the merged projects have combined measured and indicated resources of 3.75 million ounces of gold and inferred resources of 8.65 million ounces.
For Iamgold, this results in a clear roadmap: bundling capacities in Canada, broadening the data basis through additional drill metres and thus accelerating project development in Québec. Management emphasises that the next investment decisions will continue to be made under the sign of cost control and capital discipline – regardless of the currently high gold price.
Outlook: Ramp-up at Côté, Integration in Québec and further Debt Reduction
Iamgold’s next growth phase is defined by several building blocks: Firstly, the continued ramp-up and planned expansion at Côté Gold in Ontario. Secondly, the integration of the new Québec assets into a consolidated production and development network that is intended to unlock economies of scale and logistical synergies. Thirdly, the continued reduction of debt, which should give the company additional scope for future investments and portfolio management.
For the current reporting period, Iamgold confirms its annual targets and refers to the ongoing focus on safety, productivity and capital discipline. With Côté as a top performer, stable contributions from Essakane and Westwood and the planned portfolio additions in Québec, the company intends to further expand its role as a modern, Canada-centred gold company with a resilient project pipeline. In the short term, the focus is on operational fine-tuning in Ontario and the preparation of the integration steps in Québec – steps that are likely to set the framework for Iamgold’s future production profile and cost structure.
