Canadian miner Iamgold has emerged from a period of significant transformation over the past year and has ended 2022 on a “much stronger” financial footing, following the implementation of key strategic transactions, says chairperson and interim CEO Maryse Belanger.

The company has sold its interest in the Rosebel mine, in Suriname, for $471.5-million, has announced the sale of its Bambouk exploration assets, in West Africa, for $282-million, and amended a joint venture (JV) agreement with Sumitomo to fund construction of Côté gold, in Canada.

These transactions mean that Iamgold has met the remaining funding requirements to complete construction of Côté and that it will not require any additional liquidity this year.

The cost to completion for Côté is C$800-million to C$875-million, of which Sumitomo is expected to fund $340-million, leaving Iamgold with C$460-million to C$535-million. Sumitomo will receive a 10% interest in Côté as it provides funding for the project over the next year.

Sumitomo has already provided C$126.4-million in funding, resulting in Iamgold’s interest in Côté being diluted by 5% to 65%. In terms of the amended JV agreement, agreed to in December, Iamgold will have the right to return to its full 70% interest in Côté at one of seven future dates.

Belanger comments that Côté will be a strong focus point for Iamgold in 2023. “We remain on track to commence production at Côté early next year and we are eager to showcase what will be Canada’s third largest gold mine by production.”

Once in production, Côté will average 365 000 oz/y at an all-in sustaining cost (AISC) of $854/oz for 18 years, based on 7.2-million ounces currently estimated in mineral reserves.

At the end of December, the project was estimated to be about 73% complete.

Meanwhile, Iamgold has reported strong operational results for the fourth quarter and 2022 year-end, beating its revised guidance with quarterly output of 185 000 oz and full-year output of 713 000 oz.

AISC were C$1 572/oz in the fourth quarter and C$1 581/oz in the full year.

The miner posted an adjusted loss of C$0.07 a share in the year. Earnings before interest, income tax, depreciation and amortisation (Ebitda) from continuing operations were C$292.3-million for 2022 and adjusted Ebitda was C$38.9-million.

Iamgold’s attributable gold production for 2023, excluding Rosebel, is expected to be in the range of 410 000 oz to 470 000 oz, with Essakane attributable gold production expected to be in the range of 340 000 oz to 380 000 oz and Westwood gold production expected to be in the range of 70 000 oz to 90 000 oz.

The AISC guidance of 2023 is in the range of C$1 625/oz to $1 700/oz.

"Ïn 2022, the industry was faced with considerable inflationary headwinds, and this year is expected to continue to underscore the necessity to focus on safety, productivity and efficiency at all our operations. 

"At Essakane, following a record performance last year, we will be conducting additional stripping in the first half of the year to position the mine for stronger production in the second half; while at Westwood, we expect to see continued gains in underground development providing access to higher grade zones in the second half of the year,” Belanger says.