IAMGOLD(US:IAG)2024-05-10 15:31Financial Data and Key Metrics Changes - Revenue from continuing operations totaled $338.9 million from sales of 163,000 ounces at a record average realized price of $2,077 per ounce, leading to an adjusted EBITDA of $152.5 million compared to $110.6 million in Q4 2023 and $83 million in Q1 2023 [15][41] - Adjusted earnings per share was $0.11 for the quarter compared to $0.06 in Q4 2023 and $0.05 in Q1 2023 [15] - Cash and cash equivalents at the end of the quarter were $291.2 million, with total liquidity approximating $603.8 million [41] Business Line Data and Key Metrics Changes - Essakane reported first quarter cash costs of $1,002 per ounce and an all-in sustaining cost of $1,312 per ounce, an improvement from the prior quarter due to higher production and sales volume [18] - Westwood produced 32,000 ounces in Q1, with cash costs averaging $1,236 per ounce and all-in sustaining costs averaging $1,836 per ounce, marking a nearly 30% decrease from the previous year [48] - Côté Gold achieved its first gold pour at the end of Q1, with mining activity totaling 7.6 million tons, including 1.9 million tons of ore [22] Market Data and Key Metrics Changes - The realized gold price was significantly high, with the average realized price including the impact of the gold prepay arrangement [15][69] - The company expects cash costs at Côté Gold to be in the range of approximately $700 to $800 per ounce sold as it ramps up production [28] Company Strategy and Development Direction - IAMGOLD aims to become a leading mid-tier and modern gold producer, focusing on ramping up Côté Gold to achieve commercial production in Q3 2024 [8][38] - The company is prioritizing options to return to a 70% interest in Côté Gold, believing the project's value exceeds current market sentiment [10] - IAMGOLD is committed to a zero-harm principle in health and safety, achieving a total recordable injury rate of 0.61, which is below last year's performance [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving commercial production at Côté Gold in Q3 2024, with all key equipment operating near nameplate capacity [38] - The company noted emerging risks related to VAT reimbursements in Burkina Faso, which have not been received in recent quarters [13] - Management highlighted the strong performance of Essakane and Westwood, positioning the company well for its annual guidance targets [9] Other Important Information - Project expenditures in Q1 totaled $196.3 million, with total project expenditures for Côté Gold since construction commencement reaching $2.935 billion of the planned $2.965 billion [53] - The company is conducting a drill program targeting the central zone of the Gosselin project, with results expected later in the year [29] Q&A Session Summary Question: How does the decline in grades at Essakane look over the course of the year? - Management indicated that while grades are expected to decline, they remain confident in achieving throughput targets and have made adjustments to improve operations [58] Question: Can you provide insights on the realized gold price? - The realized gold price was noted to be high, with specific figures discussed regarding the impact of prepaid arrangements [69] Question: What is the current status of mill utilization rates at Côté? - Management stated that they are systematically addressing bottlenecks and are confident in achieving their objectives for ramp-up [78] Question: What are the expectations for recovery rates once the gravity circuit is operational? - Current recovery rates are around 81%, with expectations for improvement once the gravity circuit is fully commissioned [91]