Release Date: February 21, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Iamgold Corp (IAG, Financial) achieved a 43% increase in total attributable gold production, reaching 667,000 ounces, aligning with their raised guidance estimates.
- The company reported a significant improvement in financial position, with total adjusted EBITDA for the year reaching approximately $781 million.
- Iamgold Corp (IAG) completed a repurchase agreement to return to a 70% interest level at Côté Gold, enhancing their asset portfolio.
- The updated mineral resources and reserve estimates showed a significant increase in ounces and grades at the Nelligan project, positioning it among the largest gold deposits in Canada.
- The company ended the year with total liquidity of approximately $767 million, providing financial flexibility and the expectation of increasing free cash flow in the coming year.
Negative Points
- Côté Gold was unable to sustainably exit the year at 90% throughput due to higher than expected downtime, impacting production guidance.
- Cash costs and all-in sustaining costs (ASIC) increased quarter over quarter in 2024, primarily due to rising waste stripping and lower relative grades at Essakane.
- The company faced challenges with equipment maintenance at Côté Gold, including unscheduled shutdowns for repairs, affecting operational stability.
- Essakane reported relatively high Q4 costs due to planned lower quarterly production and higher realized fuel prices, impacting overall cost efficiency.
- The definitive agreement to sell the Diakha-Siribaya gold project in Mali expired and was not extended, indicating potential challenges in asset divestiture.
Q & A Highlights
Q: Can you confirm if the January guidance accounted for the issues with the HPGR and crushers? Should we be more conservative with the guidance?
A: Yes, the guidance issued in January accounted for all known issues, including repairs on the belt and Vertimill. We remain confident in our guidance, expecting Q1 to be lower but with increased tonnage processed in the second half of the year.
Q: How do you see mining rates evolving over the course of the year?
A: We expect to achieve 48 million tonnes this year, moving from the previous average of 40 million tonnes. We have the capacity and equipment to achieve this, with improvements already seen in December.
Q: What should we expect in terms of quarterly performance for Côté Gold, considering the planned maintenance and changes?
A: Q1 will be the weakest due to maintenance, but we expect improvements in Q2 and Q3, with Q4 being the strongest. The installation of the second cone crusher will occur in late Q2 or early Q3, with minimal disruptions expected.
Q: Are there any other critical aspects we should be aware of for the year?
A: Stability is key. We've learned a lot from the commissioning phase, and with the last repair of the Vertimill, we aim to increase tonnage and stability. The focus is on achieving higher availability and capacity.
Q: How does the production profile look for Essakane as it transitions from Phase 5 to Phases 6 and 7?
A: Essakane may see slightly lower production in Q1 due to the transition to Phases 6 and 7, but we expect it to pick up for the rest of the year. Overall, the company should see quarter-over-quarter improvements in 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
