TORONTO (miningweekly.com) – Canadian midtier miner Iamgold has launched a $500-million senior notes offering due 2025, which it will use in combination with cash on hand to redeem its outstanding 6.75% senior notes due in 2020.
Under the terms of the indenture governing the existing notes, Iamgold will issue a conditional notice of redemption to redeem all the outstanding existing notes, pending the successful completion of the notes offering.
Iamgold’s balance sheet is strong, ending 2016 with about $750-million in cash, cash equivalents and restricted cash, which exceeds the $489-million of bonds that are due in October 2020.
The company expects to increase its output by between 4% and 9% year-on-year, to between 845 000 oz and 885 000 oz of gold, in 2017, with all-in sustaining costs estimated at between $1 000/oz and $1 080/oz.