Canada-based Iamgold will not proceed with the construction of the Côté gold project, in Ontario, and is waiting for improved market conditions before it will pull the trigger on the $1.15-billion investment.
Announcing its decision on Monday, CEO Steve Letwin said that the company had substantially derisked the Côté project and that it continued to believe in its potential to positively transform the company. “However, we have decided to wait for improved, and sustainable, market conditions in order to proceed with construction,” he said in a news release.
Iamgold will continue to advance engineering and permitting work at Côté, which it believes will add value.
A November 2018 feasibility study for the joint venture project with Sumitomo Metal Mining demonstrated its economical and technical viability.
The base case is for a 36 000 t/d operation producing 367 000 oz/y over a 16-year mine life at an all-in sustaining cost (AISC) of $694/oz. An extended mine plan adds two years to the base case mine plan, increasing production to 372 000 oz/y at an AISC of $703/oz.
The base case has an after-tax net present value (NPV) of $795-million and an internal rate or return (IRR) of 15.2%, with a payback period of 4.4 years. The extended mine plan scenario increases the NPV by $10-million to $905-million and improves the IRR to 15.4%.