- IAMGOLD (TSX:IMG) has ramped up to commercial production at its Côté gold mine in Sudbury, Ontario, a 60-40 joint venture minority owned by Sumitomo Metal Mining
- The mine is expected to generate 220,000-290,000 ounces of gold by year end
- IAMGOLD is an intermediate gold producer and developer based in Canada operating mines in North America and West Africa
- IAMGOLD stock is up by 60.71 per cent year-over-year, but only by 9.31 per cent since 2019
IAMGOLD (TSX:IMG) has ramped up to commercial production at its Côté gold mine in Sudbury, Ontario, a 60-40 joint venture minority owned by Sumitomo Metal Mining.
The company defines commercial production as “a minimum of 30 consecutive days of operations, during which the mill operated at an average of 60 per cent of nameplate throughput of 36,000 tons per day,” according to Friday’s news release.
Côté is well on its way to generating an estimated 220,000-290,000 ounces by year end, with all major equipment operating at or above expectations.
Focus is now shifting to a multi-day shutdown in September to mitigate expected wear and tear and support a throughput ramp up to 90 per cent by year end.
Côté houses 16.5 million ounces of gold measured and indicated and 4.2 million ounces inferred, granting it an estimated mine life through 2041. Annual production will average around 350,000 ounces at all-in sustaining costs (AISC) of US$851 per ounce, representing a 2.9x margin to the current spot price of US$2,475 per ounce.
The asset complements IAMGOLD’s two producing mines, as well as numerous exploration properties, which position it to benefit from operational leverage above gold’s recent ascent to an all-time-high:
- Essakane, an open-pit mine in Burkina Faso, has been in operation since 2010 and is expected to generate 330,000-370,000 ounces of gold in 2024 and operate through 2028. The mine has averaged production of at least 400,000 ounces per year over the past five years.
- Westwood, an underground mine in Quebec, has been in operation since 2014 and is expected to produce 100,000-120,000 ounces in 2024 and operate through at least 2033.
- Cash costs for Essakane and Westwood are expected to be between US$1,280 and US$1,400 per ounce sold, while AISC are expected to be between US$1,780 to US$1,940 per ounce sold.
IAMGOLD will report Q2 2024 results after market close on Aug. 8.
Leadership insights
“I would like to commend our teams at Côté Gold who have come together to achieve another great milestone as we progress and ramp up what we believe will be one of Canada’s largest gold mines and a model for modern mining in Canada,” Renaud Adams, IAMGOLD’s president and chief executive officer, said in a statement. “Since achieving the first pour of gold on March 31, 2024, our teams have spent the last four months methodically and iteratively testing and ramping up all facets of the mine. This process has required remarkable commitment, ingenuity and teamwork to bring all the systems online together to achieve this milestone.”
“With commercial production behind us, we continue to focus on improving plant availability towards our goal of Côté exiting the year at 90 per cent of nameplate throughput,” Adams added. “Further, in May we completed our equity financing, which has positioned us well to repurchase a 9.7 per cent interest in Côté this November [from Sumitomo] and return to 70 per cent ownership, thereby gaining more exposure to this foundational and keystone asset for the benefit of all our stakeholders.”
About IAMGOLD
IAMGOLD is an intermediate gold producer and developer based in Canada, operating mines in North America and West Africa.
IAMGOLD stock (TSX:IMG) is down by 5.1 per cent, trading at C$5.40 per share as of 11:21 am ET. The stock is up by 60.71 per cent year-over-year, but only by 9.31 per cent since 2019.
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(Top photo of the first gold pour at IAMGOLD’s Côté mine in Sudbury, Ontario: IAMGOLD)
