Iamgold's output will be below 700 000 oz this year
Canadian miner Iamgold has again lowered its production guidance for the year, with the miner now forecasting output in the range of 630 000 oz to 680 000 oz, owing to the suspension of operations at the Westwood mine, in Quebec.
The miner, which operates in Burkina Faso, Suriname and Canada, initially expected to produce between 700 000 oz and 760 000 oz this year, but lowered its guidance several times as it faced headwinds from the Covid-19 crisis and recently a seismic event at Westwood.
CEO Gordon Stothart said on Wednesday that underground mine operations at Westwood remained suspended, but that the mill would restart operations in the next few days.
The lower production at Westwood and higher royalties resulted in Iamgold revising upwards its all-in sustaining cost (AISC) guidance for the year to a range of $1 240/oz to $1 270/oz.
In the third quarter, Iamgold produced 159 000 oz at an AISC of $1 206/oz. It reported free cash flows from its operating mine site of $80-million.
"Iamgold performed well in challenging circumstances, generating $105.1-million in operating cash flows,” said Stothart.
In the quarter, Iamgold also completed a new bond issuance, lowering its interest costs, extending the maturity to 2028 and enhancing its financial flexibility with a cash balance of about $900-million.
“This cash position, along with access to our largely undrawn $500-million credit facility, brings our total liquidity to over $1.4-billion, enabling us to cover our portion of Côté's capital expenditures,” he reported.
Project engineering at Côté, in Ontario, is 66% complete, as early works continue and permitting advances to enable construction activities
In the fourth quarter, production will be underpinned by Essakane, in Burkina Faso, and by Saramacca's contribution to Rosebel.
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