IAMGOLD(US:IAG)2025-08-07 21:45Production and Sales - Attributable gold production was 173,000 ounces in Q2 2025, up from 166,000 ounces in Q2 2024, with year-to-date production at 334,000 ounces compared to 317,000 ounces last year[10]. - The Côté Gold Mine achieved full nameplate capacity of 36,000 tonnes per day in June 2025, producing 67,000 attributable ounces in Q2 2025[6]. - Attributable gold production was 67,000 ounces in Q2 2025, a significant increase from 20,000 ounces in Q2 2024, with total gold production of 96,000 ounces on a 100% basis[50]. - Total ore mined in Q2 2025 was 413,000 tonnes, an increase of 196,000 tonnes or 90% from the same prior year period[65]. - The company expects 2025 production at Côté Gold to be between 360,000 to 400,000 ounces on a 100% basis, with a focus on stabilizing the processing plant at 36,000 tpd[51]. - The company expects Westwood production in 2025 to be between 125,000 to 140,000 ounces, with an increase in grade anticipated in the second half of the year[64]. - Essakane produced 77,000 ounces of attributable gold in Q2 2025, a decrease of 34,000 ounces or 31% compared to Q2 2024[74]. - Essakane's production outlook for 2025 is expected to be between 400,000 to 440,000 ounces, with higher grades anticipated in the second half of the year[77]. Financial Performance - Revenues for Q2 2025 were $580.9 million from sales of 182,000 ounces at an average realized gold price of $3,182 per ounce, compared to $356.0 million from 156,000 ounces at $2,294 per ounce in Q2 2024[10]. - Revenues for Q2 2025 increased to $580.9 million, up 50.8% from $385.3 million in Q2 2024[14]. - Year-to-date revenues for 2025 reached $1,058.0 million, up $333.8 million or 46% from the previous year, primarily due to a $774 per ounce increase in realized gold price[145]. - Gross profit for Q2 2025 was $198.8 million, representing a 31.9% increase compared to $150.7 million in Q2 2024[14]. - Net earnings attributable to equity holders for Q2 2025 were $78.7 million, or $0.14 per share, compared to $118.4 million year-to-date[6]. - The average realized gold price for Q2 2025 was $3,336 per ounce, compared to $2,341 per ounce in Q2 2024[45]. - The average realized gold price in Q2 2025 was $3,284 per ounce, compared to $2,362 per ounce in Q2 2024[74]. - Year-to-date cost of sales excluding depreciation was $543.3 million, up $191.6 million or 54% compared to the prior year, attributed to the ramp-up of sales at the Côté Gold mine[147]. Costs and Expenses - Cost of sales per ounce sold increased to $1,561 in Q2 2025 from $1,076 in Q2 2024, with cash costs at $1,556 per ounce compared to $1,071 per ounce last year[10]. - The annual attributable cash cost guidance has been revised to $1,375 to $1,475 per ounce sold, and AISC guidance has been revised to $1,830 to $1,930 per ounce sold[6]. - Cash costs per ounce sold for Côté Gold increased to $1,237, with updated full year guidance of $1,100 to $1,200[27]. - Cost of sales, excluding depreciation, increased by $29.3 million or 23% to $158.1 million in Q2 2025, with cost per ounce sold rising by $774 or 71% to $1,858[74]. - Cash costs for Q2 2025 were $157.8 million, up by $29.4 million or 23%, resulting in cash costs per ounce sold of $1,855, an increase of $774 or 72%[74]. - AISC per ounce sold in Q2 2025 was $2,224, higher by $743 or 50% compared to the prior year period[74]. - The Company revised cash cost guidance to $1,275 to $1,375 per ounce sold, and AISC to $1,800 to $1,900 per ounce sold[66]. Capital Expenditures and Investments - Capital expenditures for 2025 are now expected to total $335 million, with $310 million categorized as sustaining capital[32]. - Sustaining capital expenditures guidance has been increased to $130 million attributable to IAMGOLD, primarily for plant improvements and tailings dam construction[54]. - The Company expects to pay cash taxes in the range of $165 to $175 million during 2025, revised upwards from previous guidance[34]. - The Company completed a transaction with Summit Royalty Corporation, resulting in cash proceeds of $10.0 million and share consideration valued at $7.5 million[93]. - The Company issued $450 million of 5.75% Senior Notes, maturing on October 15, 2028, with semi-annual interest payments of approximately $12.9 million[114]. - The Company entered into a $400.0 million Term Loan in May 2023, with a floating interest rate of SOFR + 8.25% and a maturity date of May 16, 2028[116]. Exploration and Development - The Gosselin zone drilling program plans to complete 45,000 metres in 2025, with 19,700 metres completed in Q2 2025, contributing to resource confidence and category conversion[55]. - The Côté zone infill drilling program has initiated with a target of 20,000 metres, aiming to convert Inferred Resources to Indicated Resources, with 6,500 metres completed in Q2 2025[57]. - Exploration expenditures for 2025 are projected to be approximately $38 million, primarily focused on Côté Gold and Essakane[33]. - The diamond drilling program for 2025 has been increased from 13,000 metres to 16,000 metres, with 4,300 metres completed in Q2 2025[85]. - Exploration drilling activities in Q2 2025 totaled approximately 56,300 metres, with a total of 99,800 metres year-to-date[91]. Regulatory and Operational Challenges - The Burkina Faso Government's new Mining Code increased the government's free-carried interest from 10% to 15%, impacting the Company's financial outlook[176]. - The Company faces risks related to political instability in Burkina Faso, which has seen military coups and increased militant attacks, affecting supply chains and operational costs[173][174]. - VAT refunds from the Burkina Faso Government remain unpaid, potentially constraining the Company's cash flow and dividend payments[175]. - Security-related costs continue to burden operating expenses, with no assurance of reduction in the near future[175]. - The Company is actively assessing its exposure to tariffs and trade restrictions, which could further complicate its supply chain and financial health[172].