IAMGOLD CORP

IAMGOLD's Boto feasibility study shows better economics than the February 2018 pre-feasibility study: after-tax IRR of 23% (was 13.3%), NPV of $261M at 6% and $1,250/oz (was $104M), payback 3.4 years, and initial capital of $254M (was $249M). Proven and probable reserves rise by 0.51Moz to 1.93Moz, with a 12.8-year mine life and average output of 140,000 oz/yr. This delivers the feasibility study that was due in H2 2018. The company says no final investment decision has been made and permitting remains; a mining concession application is planned for Q4 2018, with approval expected in H1 2019.

resource reserve update

IAMGOLD reported a pre-feasibility study for a heap leach addition at Essakane in Burkina Faso (the Heap Leach PFS expected in Q2 2018). Probable reserves rise 39% (1.3M oz) to 4.7M oz on a 100% basis, with an 8.5-year mine life, average output of 480,000 oz a year once heap leach runs, all-in sustaining cost of $946/oz and initial heap leach capital of $155M. A feasibility study is now underway for completion in Q1 2019, and a Gossey maiden resource is now guided for Q4 2018. The company says higher-grade drill intercepts accounted for more than a third of the reserve increase.

drilling result

IAMGOLD reported a first-time inferred resource for Eastern Borosi in Nicaragua, a joint venture it holds 51% of with Calibre Mining (49%). Total inferred is 4,418,000 tonnes at 4.93 g/t gold for 700,500 oz of gold and 11.36M oz of silver (effective Mar 15, 2018, at US$1,500/oz gold). This delivers the maiden resource that was being initiated for 2018. IAMGOLD vested its 51% in 2017 and has now entered a second option to earn a further 19% by paying US$450,000 and spending US$5M more. A 6,000 m drilling program has started, with up to 10,000 m possible if results warrant.

resource reserve update

IAMGOLD reported the first resource estimate for Monster Lake in Quebec: 1,109,700 tonnes of inferred resource at 12.14 g/t for 433,300 oz of gold (effective Feb 26, 2018, at US$1,300/oz). This delivers the maiden resource that the February 2018 statement said was being initiated for 2018. The release gives the project split as IAMGOLD 50%, TomaGold 45% and Quinto Resources 5% on the claims block. A 2018 program of about 7,500 m of drilling has started, and a supporting technical report is due within 45 days.

resource reserve update

IAMGOLD reported the remaining Phase II drilling results at Saramacca in Suriname (60 holes, about 14,360 m; the full program was 97 holes, 24,282 m). Best intercepts were 46.0 m at 11.73 g/t and 15.0 m at 22.90 g/t gold. The company is building an updated resource model and still expects reserve status in 2018 and production in 2019. About 50,000 m of drilling is planned for 2018, including the Brokolonko concession. The Phase II program ended up larger than the 22,000 m stated in November, and the 2018 plan is new.

drilling result

IAMGOLD published the pre-feasibility study for its 100%-owned Boto gold project in Senegal: 13.5-year mine life, nearly 100,000 oz a year, initial capital of $249M, and all-in sustaining costs of $829/oz. At $1,275/oz gold it shows an after-tax return of 13.3% and a value of $104M (6% discount rate). The CEO says it is still short of the company's usual investment criteria for West Africa. The 1.4M oz reserve (1.415M oz probable) matches the figure in the Feb 12 year-end statement, and the feasibility study is due in H2 2018 with a 25% higher mill rate.

resource reserve update

IAMGOLD's year-end 2017 statement shows attributable reserves up 86% to 14.5M oz (from 7.8M oz), mainly from converting resources to reserves at Côté Gold and Boto after pre-feasibility studies, plus the Rosebel increase announced in July. Measured and indicated resources rose 6% to 24.7M oz and inferred rose 44% to 8.8M oz, with 2017 attributable production of 882,000 oz. Côté's feasibility study is now expected in the first half of 2019, when a construction decision will be taken (earlier guidance was H2 2018). The Saramacca initial reserve is now guided for the second half of 2018 (earlier H1 2018). The release also notes Sadiola's sulphide project awaits an agreement with Mali's government, and that IAMGOLD was granted the Brokolonko concession near Saramacca on Jan 24, 2018.

resource reserve update

IAMGOLD announced the first NI 43-101 resource for Saramacca in Suriname, about 25 km from Rosebel: 14.4M tonnes indicated at 2.20 g/t for 1,022,000 oz, plus 13.6M tonnes inferred at 1.18 g/t for 518,000 oz (effective Aug 28, 2017, at a US$1,500/oz gold price). This delivers the maiden resource that was targeted for Q3 2017, and the company calls it above its expectations; the deposit remains open along strike and at depth. A follow-up program of about 20,000 m of drilling is planned for the rest of 2017, with a preliminary reserve estimate and permitting targeted for the first half of 2018 and initial production in 2019 (all company intentions, not decisions).

drilling result

IAMGOLD released a pre-feasibility study for Côté Gold in Ontario: 5.9Moz of probable reserves (project basis), a 17-year mine averaging 320,000 oz/yr, initial capital of $1,047M, total cash cost of $605/oz, and a 14% after-tax return (NPV $703M at 5%) at $1,250/oz gold. It also announced that Sumitomo Metal Mining will acquire a 30% participating interest in the project, with terms not visible in the text. This delivers the PFS due by end of Q2 2017; the feasibility study is now expected in the second half of 2018, and there is no construction decision.

resource reserve update

IAMGOLD said the 2017 Saramacca infill program is finished (113 diamond holes, about 19,600 m) and reported assays from 49 more holes, including 76.6 m at 7.74 g/t and 43.5 m at 12.26 g/t gold. Results for the remaining holes are expected in June, preliminary engineering and permitting studies have started, and the first NI 43-101 resource is still expected by Q3 2017. This continues the March results; it is still not a resource.

drilling result

IAMGOLD reported first results from its 2017 infill drilling at Saramacca in Suriname (29 diamond holes, 6,008 m), including 60.5 m at 40.91 g/t gold (with 19.5 m at 75.91 g/t) and 52.6 m at 5.33 g/t. This continues the Feb 2017 drilling update; the company says soft rock extends to about 100 m depth, three rigs are running, 15,000-17,000 m of drilling is planned (up from the ~15,000 m and 2 rigs previously noted), and a first NI 43-101 resource is still targeted for Q3 2017. No resource exists yet; the 0.5-1.4Moz figure remains a conceptual exploration target.

drilling result

IAMGOLD launched an offering of $500M of senior notes due 2025, intending to use the proceeds plus cash on hand to redeem all of its outstanding 6.75% senior notes due 2020. The redemption notice will be conditional on the new offering completing. Pricing and the interest rate are not given, so the savings are unknown. This follows the 2016 partial buyback of the 2020 notes, and a successful deal would replace the remaining 2020 debt with longer-dated debt.

debt financing

IAMGOLD completed its acquisition of the Merrex Gold shares it did not already own, so Merrex is now a wholly-owned subsidiary. It issued about 6.9M IAMGOLD shares (1.5% of shares outstanding), at 0.0433 of a share per Merrex share and 0.0043 per warrant. IAMGOLD now owns 100% of the Siribaya-Diakha project in Mali, plus Merrex's Karita permit in Guinea and Nova Scotia zinc-lead property. This resolves the Merrex deal announced Dec 22, 2016 and slightly dilutes existing shareholders.

business combination

IAMGOLD reported year-end 2016 attributable reserves of 7.8M oz (up 1% from 7.7M oz, a net addition of 108,000 oz after 2016 production of 813,000 oz) and measured and indicated resources of 23.3M oz (down 0.6%, or 150,000 oz). Westwood reserves rose by a net 448,000 oz from resource conversion, supporting the ramp-up story, and Essakane gained 331,000 oz of reserves from mine design and economic changes. Inferred resources are 6.1M oz. Côté Gold, Boto, Siribaya and Pitangui resources are unchanged, Rosebel resources fell 278,000 oz with a new estimate due in 2017, and the CEO says a Saramacca maiden resource is on track for 2017.

resource reserve update

IAMGOLD released a preliminary economic assessment (an early, conceptual study) for Côté Gold in Ontario: a 21-year mine averaging 302,000 oz/yr, with initial capital of $1,031M, total cash costs of $564/oz, and a 12.9% after-tax return (NPV $543M at 6%) at $1,200/oz gold. Ontario also approved the provincial environmental assessment on Jan 25, 2017, following the federal approval of April 2016. The study includes inferred resources (15.3% of the mine plan tonnes) and is not a reserve; a pre-feasibility study is due by end of Q2 2017, and the earlier feasibility study on the initial development scenario now waits for it. Resources cited are 8.35Moz indicated and 1.17Moz inferred (100% basis; IAMGOLD owns 92.5%).

resource reserve update

IAMGOLD's Rosebel mine signed an agreement with the Government of Suriname to acquire an interest in the Saramacca property (Anomaly M), about 30 km from the Rosebel mill and next to the Sarafina property IAMGOLD has an option on, aiming to define a resource within 24 months. It pays $200,000 now; if due diligence is satisfactory, it pays a further $10M plus 3.125M IAMGOLD shares held in escrow and released over three roughly 12-month steps after ratification, with price adjustments tied to drilling success and capped at $10M. The company's exploration target is 0.5 to 1.4M ounces (8-40Mt at 1.0-1.8 g/t), which it stresses is conceptual and not a resource, so this is an early-stage bet on extending Rosebel's life.

business combination

By the Aug 19 early deadline, holders had tendered $145,702,000 of the 6.75% notes due 2020 (about 23.0% of the $635M outstanding), and IAMGOLD intends to accept all of them, paying $970 per $1,000 around Aug 22. This is just under the $150M cap, so no pro-rating is needed on these; later tenders until the Sep 2 expiry would get $940, and the company may raise the cap but is not obliged to. This continues the debt-reduction step funded by the August equity raise.

debt financing

IAMGOLD closed the bought-deal offering at $5.15 a share, with the underwriters taking the over-allotment option in full: 44,677,500 new shares sold for gross proceeds of $230M. This completes the equity offering announced on Aug 8, so the dilution is now fixed and the condition on the notes tender is met; the filing does not give an updated share count.

capital raising announcement

IAMGOLD agreed a bought-deal sale of 38,850,000 new shares at $5.15 each for about $200M (up to about $230M if the underwriters use a 5,827,500-share over-allotment option). Up to about $150M is earmarked for the 6.75% notes tender launched the day before, and the rest for growth projects (including the Sadiola mine expansion, subject to its joint venture partner's timely approval), debt reduction and general purposes. This is the equity offering the tender was conditional on, and it dilutes existing shareholders; the offering itself is not conditional on the tender.

capital raising announcement

IAMGOLD launched a cash tender offer to buy back up to $150M of its 6.75% Senior Notes due 2020, of which $635M is outstanding, paying $940 per $1,000 of notes, or $970 for those tendered by August 19, 2016. The offer expires September 2, 2016, and is conditional on completion of a previously announced equity offering (details not in this filing). This would cut the notes below the $650M issued in 2012; the $635M outstanding suggests some were already repurchased (inference). If completed, the equity offering would dilute shareholders.

debt financing

IAMGOLD sold 135,148 oz of its gold bullion holding between Feb 16 and Mar 17, 2016 at an average $1,260/oz for $170.3M ($170.1M after tax), against a $97.4M book value (after-tax gain $72.7M). It also issued 12.0 million flow-through shares in Q1 2016 at a weighted average C$3.41 to raise C$41M, which the CEO says funds about half of 2016 Westwood capital; shares outstanding are now 405.4 million. This follows the Feb 2016 note of ~$700M in cash and bullion and keeps Westwood's ramp-up (full production targeted for 2019) as a priority; the share issuance is dilutive.

capital raising announcement

IAMGOLD's 2015 year-end statement shows attributable gold reserves down 11% (918,000 oz) to 7.7M oz, mainly from depletion (2015 attributable production 806,000 oz) and a lower reserve gold price ($1,200 vs $1,300/oz, -294,000 oz), partly offset by Essakane (+337,000 oz), Westwood and Sadiola resource conversions. Measured and indicated resources rose 10% (2.1M oz) to 23.5M oz, with 6.7M oz inferred; this continues the reserve decline seen at end-2014 (8.6M oz) while resources reversed their 2014 fall. Exploration spend was $49M in 2015 (30% below 2014, versus the $56M planned), and the 2016 budget is $47M with more weight on studies such as Boto; the CEO says the reserve equals about 10 years of mine life at current rates.

resource reserve update

IAMGOLD signed a new $250M credit facility with a bank group, replacing its expiring unsecured revolver: $100M is fully committed, secured and available now, with an option to add $150M. It expires in February 2020 and was led by National Bank of Canada and Deutsche Bank; the company says it does not expect to draw on it and ended 2015 with about $700M in cash and bullion. This is a smaller facility than the undrawn $500M revolver cited in 2015 (the earlier $750M/$500M discrepancy is not explained here), and the $650M notes are still due October 2020; the existing letters-of-credit facility stays in place.

debt financing

After a localized seismic event at Westwood on May 26, 2015, IAMGOLD cut 2015 Westwood gold guidance from 110,000-130,000 oz to 60,000-75,000 oz, lowering total attributable 2015 guidance to 780,000-815,000 oz (from 820,000-860,000 oz), partly offset by +10,000 oz expected from the Mali joint ventures. The company says the cost impact is still being assessed but Westwood's production costs are expected to be adversely affected, and it remains confident in the mine's long-term viability; mining continues in unaffected areas under a rehabilitation and recovery plan. This is a setback for the mine that began commercial production on July 1, 2014 and contradicts the earlier ramp-up outlook, and the company's earlier view that an initial assessment was inconclusive and guidance was left unchanged.

production update

IAMGOLD agreed to sell its gross proceeds royalty over the Diavik Diamond Mine area (Northwest Territories) to Sandstorm Gold for $56.8M in total: $52.5M cash on closing plus three million five-year warrants (exercise price $4.50, exercisable after initial production from the A21 pipe), valued at $4.3M by the company's own method. Coming after the Niobec sale, the company says all its mines and projects are now focused on gold, and it can invest in existing assets and consider acquisitions that add cash flow, though no specific plan is stated.

asset acquisition disposition

IAMGOLD's 2014 year-end statement shows attributable gold reserves down 15% (1.5M oz) to 8.6M oz, and measured and indicated resources down 9% (2.0M oz) to 21.4M oz, with 7.0M oz inferred. The reserve fall comes from Rosebel (-735,000 oz, changed economic and geotechnical parameters), depletion (-790,000 oz), and a lower gold price assumption ($1,300 vs $1,400/oz, -360,000 oz), partly offset by Sadiola (+269,000 oz) and Westwood (+117,000 oz). This continues the 2013 decline at Rosebel. Exploration spending is planned to fall from $69M in 2014 to $56M in 2015; the CEO says the reserve equals over 10 years of mine life at current production rates.

resource reserve update

IAMGOLD completed the sale of Niobec to the Magris Resources-led group, receiving $500M in cash after tax on closing; the $30M rare earth payment and 2% royalty remain contingent. With current cash and gold bullion, the balance is about $800M, above the $650M notes due October 2020, and a $500M revolver is undrawn. This ends the Niobec thread and leaves IAMGOLD describing itself as having four operating gold mines (including joint ventures), down from the five cited earlier. The release says it can invest in existing assets and consider acquisitions that add cash flow, but states no specific plan.

asset acquisition disposition

IAMGOLD said it received the regulatory approvals needed to complete the Niobec sale to the Magris Resources-led group, with closing expected before the end of January 2015. Terms are unchanged from October 2014: $500M cash after tax on closing, $30M when the adjacent rare earth deposit enters commercial production, and a 2% gross proceeds royalty on rare earth output. This clears the main open condition on the deal; management says liquid assets would exceed $800M and describes $500M of unused credit facilities.

asset acquisition disposition

IAMGOLD agreed to sell its Niobec niobium mine in Quebec, including the adjacent rare earth deposit, to a group led by Magris Resources (with CEF Holdings and Temasek) for $530M: $500M cash on closing plus $30M when the rare earth deposit enters commercial production, and a 2% gross proceeds royalty on any rare earth production. This replaces the earlier plan to sell only a 10-20% stake and leaves IAMGOLD describing itself as a pure gold company; the company expects a gain of roughly $50-60M, targets closing in Q4 2014 subject to regulatory approvals, and says liquid assets would exceed $800M (over $1.3B with unused credit facilities). Management says it will look for appropriately sized gold investments, and absent those would consider reducing financial leverage as the bond indenture prescribes (an option, not a commitment).

asset acquisition disposition

IAMGOLD declared commercial production at its Westwood mine in Quebec effective July 1, 2014, after ore hoisting averaged 1,075 tonnes per day over the first 30 days of July. This resolves the open question of when Westwood's gold production would start; from July 1 its sales are booked in earnings instead of being netted against capital spending. The company expects the Doyon division (including the last Mouska output) to produce 100,000-120,000 oz of gold in 2014, with Westwood total cash costs averaging $750-$850/oz; longer-term profiles under study are 165,000-180,000 oz/yr at $630-$690/oz, which are studies, not decisions. Westwood's plant will also process up to 192,000 tonnes a year of ore from the neighbouring Gold Bullion mine, as announced July 14, 2014.

production update

IAMGOLD's 2013 year-end statement shows attributable gold reserves of 10.1M oz, down 11% (1.2M oz) from 11.3M oz after depletion, mainly from Rosebel (-1.4M oz, higher hard-rock mining costs) and Sadiola (-0.7M oz, gold price assumption change), partly offset by Essakane (+0.8M oz). Measured and indicated resources rose 4% to 23.4M oz, helped by Boto (+1.1M oz) and Essakane (+0.6M oz). Westwood reserves rose from 348,000 to 510,000 oz, and niobium probable reserves fell 3% to 1,707M kg. The release says a $125M company-wide cost reduction program included a $41M cut to the exploration plan. The Niobec rare earth resource was unchanged in 2013. Rosebel's reserves, held flat last year pending its feasibility study, have now been cut.

drilling result

IAMGOLD suspended its dividend until further notice, ending the $0.125 semi-annual payments that in June it said it could maintain. The CEO cites the current gold price and the aim to preserve the balance sheet; the company says it is on target to cut costs by $100 million this year and still has $750 million of undrawn unsecured credit facilities. This reverses the June 2013 stance on keeping the payout.

dividend declaration

IAMGOLD declared the first resource estimate for its 100%-owned Boto project in Senegal: indicated 22 million tonnes at 1.62 g/t for 1.14 million oz, plus inferred 1.9 million tonnes at 1.35 g/t for 81,000 oz, effective April 19, 2013. This delivers the maiden estimate expected in Q2 (it arrived in late July), with much of it from the Malikoundi zone found in 2012. Next steps stated are resuming drilling after the rainy season and commissioning a scoping study in 2014; this is a resource, not a reserve, and no development decision is announced.

resource reserve update

Suriname's National Assembly approved on April 13, 2013 the definitive agreement for Rosebel announced November 26, 2012, resolving the approval step left open in the context. Once executed it will amend the Mineral Agreement, extend its term 15 years to 2042, and create a joint venture in which Rosebel holds 70% and the Government 30% (fully paid) over a ~6,190 km2 area, with up to 300 million kWh a year of extra power at 11 cents per kWh for JV production. Lower power cost for Rosebel's existing base capacity is still to be discussed with the Government as a priority in 2013; execution of the agreement is still pending.

material agreement

IAMGOLD's year-end 2012 statement shows attributable gold reserves of 11.3M oz (13.3M oz a year earlier; down 2% excluding the 1.7M oz Quimsacocha sold in 2012), with Rosebel's reserves held at December 2011 levels net of depletion pending its feasibility study. Measured and indicated resources rose 24% to 22.6M oz, mainly from Côté Gold, and Westwood now has a declared reserve of 348,000 oz. Niobium probable reserves are about 1.8bn kg, and the rare earth zone near Niobec now has indicated resources of 531M tonnes at 1.64% TREO plus inferred 527M tonnes at 1.83% TREO. The CEO links the new Rosebel agreement to further exploration there.

resource reserve update

IAMGOLD updated the Côté Gold resource (100% basis, 92.5% owned): indicated 269M tonnes at 0.88 g/t for 7.61M oz and inferred 44M tonnes at 0.74 g/t for 1.04M oz, based on 85 more holes since the October 4 estimate (indicated up 114%). It also reported 2012 attributable gold production of 830,000 oz, slightly below the 840,000-910,000 oz guidance range, which it attributes primarily to underperforming joint ventures. For 2013 it guides 875,000-950,000 oz at total cash costs of $850-925/oz (up from about $670-695 expected for 2012) and niobium of 4.7-5.1M kg. Côté Gold construction is now planned to start the year after development studies and permitting finish in 2014, with start-up expected in 2017. The CEO says the Sadiola underperformance has led the company to re-assess its joint venture strategy. Exploration in Mali is reduced as a precaution, though production there is undisrupted. This continues the Côté Gold resource thread and brings higher costs and a lower-than-guided 2012 output.

resource reserve update

IAMGOLD reached a definitive agreement with the Government of Suriname on future resource development and related power costs at the Rosebel mine. It follows the December 2011 Heads of Agreement, and will amend the existing Mineral Agreement once executed. It still needs review and approval by Suriname's National Assembly, and the details are confidential until then, so the terms are not yet known.

material agreement

IAMGOLD completed the sale of IAMGOLD Ecuador S.A., which holds the Quimsacocha project, to INV Metals. It received 221,280,903 INV Metals shares plus 10M more bought in a private placement at C$0.10 each, about 47% of INV Metals, for a deal value of approximately C$30M based on a deemed C$0.13 per share. It can receive 50M more shares when an exploitation contract is signed with Ecuador and 25M more at commercial production, capped so it holds no more than 49.9%. The payment is in shares, not cash. This ends 100% ownership of the project (PFS reserve 1.68M oz in the prior context), leaving IAMGOLD with a minority stake in the buyer.

asset acquisition disposition

IAMGOLD reported an updated Côté Gold resource (100% basis; IAMGOLD holds 92.5%): indicated 131M tonnes at 0.84 g/t for 3.56M oz, and inferred 165M tonnes at 0.88 g/t for 4.66M oz, based on 79 more drill holes. Indicated ounces are up 274% from Trelawney's February 2012 figure (0.93M oz), and indicated is now over 44% of the resource versus 14%. Inferred ounces fell from 5.94M to 4.66M, largely as drilling converted them to indicated. This resolves the October resource update planned after the June acquisition. The company says a pre-feasibility study should start in Q4 2012 and finish in the second half of 2013, and a further update with data to Oct 1 is due with the year-end statement.

resource reserve update

IAMGOLD completed its offering of US$650 million of 6.75% senior unsecured notes due 2020, resolving the offering launched September 10 and priced September 14. Proceeds are intended for general corporate purposes including capital expenditures and exploration.

debt financing

IAMGOLD priced its senior notes offering at US$650 million, upsized from the US$500 million announced on September 10. The notes are due 2020, carry 6.75% interest and were issued at 100% of face value, for gross proceeds of US$650 million, with closing expected around September 21, 2012. Proceeds are for general corporate purposes including capital expenditures and exploration. This adds fixed-rate debt to the company, which previously showed credit facilities only.

debt financing

IAMGOLD announced it intends to offer up to US$500 million of senior unsecured notes due 2020, with proceeds for general corporate purposes including capital expenditures and exploration. This is a proposal at the launch stage: terms and pricing were not yet set.

debt financing

IAMGOLD completed its purchase of Trelawney Mining and Exploration on June 21, 2012 through a plan of arrangement, paying former Trelawney shareholders C$3.30 in cash per share. This resolves the April 2012 agreement, closing within the targeted end-of-June window; the main asset acquired is the Côté Lake project in northern Ontario. IAMGOLD says it will prepare an NI 43-101 technical report by mid-October 2012 and expects to begin a pre-feasibility study by the fourth quarter of 2012. Resources are unchanged from the earlier estimate (0.93M oz indicated, 5.94M oz inferred, 100% basis).

business combination

IAMGOLD agreed to buy all of Trelawney Mining and Exploration, owner of the Côté Lake gold project in northern Ontario, for C$3.30 cash per share, about C$608M fully diluted (enterprise value C$505M net of cash), a 36.6% premium to the 20-day average price. It needs a 66⅔% vote of Trelawney shareholders, court and regulatory approval, with closing expected by the end of June 2012, and a C$21M break fee is payable to IAMGOLD under certain circumstances. IAMGOLD says it is redeploying cash from last year's asset sales and that, being all-cash, it does not dilute its shareholders. Côté Lake has 0.93M oz indicated and 5.94M oz inferred resources (100% basis); IAMGOLD says it would raise its inferred resources 95%. It is a new project and the first use of the cash raised from the Ghana and Mupane sales that the filing names.

business combination

IAMGOLD filed the technical report for its Westwood project in Quebec, which confirms the February 23, 2012 development study except for a small grade change at Warrenmac (8.6 to 8.5 g/t). Start-up remains targeted for early 2013, with 2013 output forecast at 120,000-140,000 oz. The study shows pre-production capital of $518M (of which $198M remains for 2012), life-of-mine cash costs of $533/oz (higher than previously forecast, which the company attributes to a change in mining method, labour inflation, exchange rates and input costs) and an after-tax IRR of 9-11%. The report says the indicated resources (about 308,000 oz) are too small for the studies to count as feasibility or pre-feasibility level, and most of the mine plan relies on inferred resources (3.4M oz). This continues the Westwood completion thread; the Mouska mine is expected to wind down in 2014.

resource reserve update

IAMGOLD's 2011 year-end statement shows gold reserves from continuing operations of 13.3M oz, down 0.74M oz (5%) net of depletion, mainly from Essakane (-0.54M oz) and Rosebel (-0.16M oz). Including the sold Tarkwa, Damang and Mupane mines, total reserves fell 3.1M oz. Measured and indicated resources are 18.2M oz and inferred 5.8M oz. For Niobec, the pre-feasibility study chose block caving and niobium probable reserves rose 616% to 1.7 billion kg of contained Nb2O5; a 34,000 m underground drill program is planned for 2012. The rare earth inferred resource (466.8Mt at 1.65% TREO) from the Feb 2 release is restated. This answers the open question on the Niobec pre-feasibility study, and the year-end resource update for Essakane.

resource reserve update

IAMGOLD has bank commitments to raise its unsecured revolving credit facility to $500M (four years, expiring February 2016) and its letters-of-credit facility to $75M. Its subsidiary Niobec Inc. also has commitments for a new four-year $250M unsecured revolving facility, supported by the company, for general needs including expanding the Niobec mine. All three are expected to close before the end of February 2012; the filing does not say any amount has been drawn. This replaces the $350M revolver (to Mar 2013) and the $50M LC facility in the prior context.

debt financing

IAMGOLD declared a first rare earth inferred resource of 466.8M tonnes at 1.65% total rare earth oxides next to Niobec, from 13,798 m of drilling in 29 holes, calculated by an independent consultant. The resource is only inferred, the recovery assumed for now is 53.5%, and a scoping study is still to come. The company plans to look at joint ventures or strategic alliances to develop it, without affecting its gold business, and a 2,750 m follow-up drill program began in January. This resolves the 2011 drilling thread into a resource estimate and opens a development question.

resource reserve update

IAMGOLD raised its annual dividend 25%, from $0.20 to $0.25 per share, with the next semi-annual payment of $0.125 due January 5, 2012 to holders of record December 20, 2011. The company calls it the third increase in twelve months and a 317% rise over that period. This continues the dividend raise from $0.06 to $0.08 in December 2010 and the semi-annual plan. The figures in the filing are as stated, and the earlier $0.08 base is not reconciled with the $0.20 'from' figure in this release.

dividend declaration

IAMGOLD completed the sale of its Mupane mine in Botswana to Galane Gold for $34.2M after adjustments: $12.5M cash, $17.9M in Galane shares and a $3.8M promissory note over 3 years at 6%. IAMGOLD now holds 21,875,000 Galane shares (about 48.5%) plus warrants that could lift it to 49.9%, so it keeps a large stake in Mupane's future through Galane. The release now describes five gold mines, down from six.

asset acquisition disposition

The sale of IAMGOLD's 18.9% interest in the Tarkwa and Damang mines in Ghana to Gold Fields closed, and IAMGOLD received the $667 million in cash. This resolves the April 2011 agreement, which was due to close by July 31. 2011 gold production guidance is 950,000-1,050,000 oz, counting only first-quarter output (46,000 oz) from the two mines. The company has not yet allocated the proceeds but names Rosebel-type expansions at existing mines, completing Westwood, exploration and small acquisitions as focus areas. It now describes six gold mines, down from eight.

asset acquisition disposition

IAMGOLD announced it filed the Niobec technical report, repeating the May results (691% rise in measured and indicated resources, up to $2.0 billion after-tax value). New: the company plans in the near term to sell 10-20% of Niobec to raise part of the expansion capital, aiming to fund the expansion without using gold-business cash flow. The pre-feasibility study is planned for completion by end of 2011. This turns the May talk of 'monetizing' into a stated plan, with no buyer or price given.

resource reserve update

IAMGOLD and the Government of Suriname reached a framework agreement to support a substantial capacity expansion of the Rosebel mine, centred on more IAMGOLD investment in nearby resource development, infrastructure and energy. The filing gives no amounts or timetable; specifics are to be announced 'in the near term', so this is an intention, not a committed project.

production update

An independent preliminary study on the wholly-owned Niobec niobium mine in Quebec shows measured and indicated resources up 691% to 1.93 billion kg of contained niobium pentoxide (from 243.8 million kg at end 2010). It examines switching to open pit or block caving to raise output to 13-15 million kg a year (roughly triple current levels), with after-tax asset value of $1.6-2.0 billion and estimated capital of $1.4 billion. The study is preliminary, partly based on inferred resources, and is to be followed by a pre-feasibility study in 2011. The CEO says the company has been exploring opportunities to monetize the asset, but no deal is stated.

resource reserve update

IAMGOLD agreed to sell its 18.9% interest in the Tarkwa and Damang gold mines in Ghana to Gold Fields for $667M in cash, which exits the Ghana joint-venture mines held in its portfolio. The deal needs Gold Fields shareholder approval and is expected to close by July 31, 2011. IAMGOLD says it will then have over $1B in cash, cash equivalents and gold bullion, plus an undrawn $350M credit facility, and will update production guidance in its Q1 release. 2010 attributable output from the two mines was 139,000 oz (Tarkwa) and 43,000 oz (Damang).

asset acquisition disposition

IAMGOLD raised its annual dividend 33%, from $0.06 to $0.08 per share, payable January 14, 2011 to holders of record December 24, 2010, and plans to pay semi-annually in future. It guides 2011 attributable gold output of 1.1-1.2M oz at a cash cost of $565-595/oz, assuming $1,300 gold, and niobium of 4.7-5.0M kg at a $15-17/kg margin. It says a November electrical problem at Essakane was fully fixed and the mine is at or above nameplate capacity. The release names Steve Letwin as President and CEO, replacing Peter C. Jones, who was named in the August and October 2010 releases.

dividend declaration

IAMGOLD has launched a full feasibility study on expanding Essakane, based on positive drilling and a completed conceptual study, due Q3 2011. If it works out, the plan is to double hard-rock mill capacity to about 10.8M tonnes a year and lift output from the current 315,000 oz/yr life-of-mine average to 450,000-470,000 oz/yr. It has committed $14M, and construction could start as early as Q4 2011. This is a new growth thread that builds on the Essakane start-up and is not yet a decision to build.

resource reserve update

IAMGOLD says the Essakane mine in Burkina Faso, acquired in February 2009 via Orezone, reached commercial production effective July 16, 2010. This resolves the construction thread; the filing says it started about six months ahead of initial predictions, with construction costing about $453M. Essakane is expected to produce 165,000-175,000 oz in 2010 (100% basis) at a cash cost below $400/oz, and IAMGOLD's total 2010 gold output is expected at 980,000-1,010,000 oz. The release names Peter C. Jones as President and CEO and Gordon Stothart as EVP and COO, and the IR contact is now Bob Tait.

production update

IAMGOLD replaced its US$140 million secured revolving credit facility (signed April 2008) with a US$350 million unsecured revolver expiring March 2013, led by Scotia Capital, Société Générale and CIBC. It also plans a US$50 million letter-of-credit facility supported by Export Development Canada, arranged by National Bank of Canada, to back certain asset retirement obligations. The filing does not say how much is drawn. It also notes the 2009 audited financials were filed and sets the annual meeting for May 19, 2010 (record date April 13).

debt financing

The board of the company that owns the Sadiola mine in Mali approved a $9 million, 11-month feasibility study on the Sadiola Deeps project, after IAMGOLD led the update of the pre-feasibility study. That study projects 400,000-500,000 oz a year (100% basis) from 2013-2018, mine life to 2019, about 2.2M oz more than the current plan, on a $400M initial investment, with an 11% after-tax return at $800 gold and breakeven near $625. Its economics depend on Malian government agreement on grid power and new-project tax treatment. IAMGOLD also reached a tentative deal to buy the IFC's 6% stake in Sadiola for $12M, plus up to $0.5-1M a year for 2010-2012 depending on gold price, and $1M on approval to mine the deep sulphide deposit. AngloGold Ashanti and Mali have 45 days to take up their shares, and IAMGOLD expects completion before year end. This builds on the Sadiola/Yatela exploration program already underway.

resource reserve update

IAMGOLD signed an option with Avnel Gold Mining to earn an initial 51% of Avnel's 80% interest in the Kalana project in Mali (the Malian government holds the other 20%). To earn it, IAMGOLD must spend US$11M on exploration over three years, deliver a resource of at least 2 million oz and proceed with a feasibility study; it can raise its stake to 65-70% with a supportive feasibility study. IAMGOLD pays Avnel $1M cash on signing and receives warrants for 2 million Avnel shares at C$0.45; a first-year $2.5M program of at least 6,500 m of drilling is planned. This is a new West Africa growth project, still only at the option stage.

joint venture update

IAMGOLD's Q2 exploration update raises 2009 exploration spending to $54.2M (from $53.1M), $34M of it greenfields. Highlights: Rosebel's 90,000 m drilling is 48% done; Eagle Mountain has a first inferred resource of 587,800 oz at 1.15 g/t; a $14.9M accelerated program at Sadiola/Yatela runs to Q3 2010; and Boto and Siribaya drilling was completed or substantially complete, with Siribaya assays mostly pending. Negative: IAMGOLD has taken steps to end the Buckreef joint venture agreements alongside the sale of the Kitongo project and will record a $9.3M impairment in Q2 2009, which closes out the Buckreef advanced-exploration thread. The filing is truncated, so later sections are not visible.

drilling progress report

IAMGOLD raised its 2009 gold production guidance to 910,000-920,000 ounces, up 30,000-40,000 oz from before, with average cash cost of $460-470 per ounce, $10 lower than previous guidance. The filing attributes the gains mainly to productivity increases at Rosebel and the Doyon mine running into Q3 2009 (it was due to close in Q2), partly offset by lower grades at Mupane. Niobec niobium output is forecast at 4,200-4,400 tonnes with operating margin of $20-22/kg, and 2009 capital spending is now $448M (about $153M spent by May 31). The guidance assumes $900/oz gold versus $800 before.

production update

IAMGOLD closed its share offering on March 26, 2009 at Cdn$8.75 per share, issuing 39,445,000 shares (including the full over-allotment option) for gross proceeds of Cdn$345,143,750. About $250 million of net proceeds is expected to fund Essakane construction, with the rest for other properties and general purposes including acquisitions. This resolves the offering announced March 9-10 and answers the Essakane financing thread, with equity funding in place of the earlier proposed debt facility (the filing says replacing 'all or substantially all' of it, so a small remainder is not ruled out). Shareholders' stakes are diluted by the new shares.

capital raising announcement

IAMGOLD signed the underwriting agreement for its share offering: 34.3 million shares at Cdn$8.75, for gross proceeds of Cdn$300,125,000, up from the roughly Cdn$275 million first announced. The underwriters hold an option for 5,145,000 more shares, which would bring proceeds to Cdn$345,143,750 if fully used. Planned use of proceeds is unchanged: Essakane construction (replacing all or substantially all of the previously proposed project debt facility and gold hedging) and other spending, with closing expected around March 26, 2009. This sets the final terms of the offering announced the day before.

capital raising announcement

IAMGOLD announced a planned share offering to raise about Cdn$275 million (about Cdn$316.25 million if the underwriters' 15% extra-share option is used in full), led by Canaccord and TD Securities. The money is meant mainly for building Essakane, replacing all or substantially all of the previously proposed Essakane project debt facility and related gold hedging, with the rest for other capital spending and general purposes including future acquisitions. Closing is expected around March 26, 2009. For shareholders this means new shares and dilution, and it follows up the open question of how Essakane construction would be financed after the Orezone purchase.

capital raising announcement

IAMGOLD filed a new technical report on the Westwood project in Quebec, dated February 27, 2009 and prepared by its own technical team, to support its public disclosure. It says the property is held 100% by an IAMGOLD subsidiary and gives inferred resources of 11,283 thousand tonnes at 8.7 g/t, about 3.15 million oz, at a 4 g/t cut-off. This updates the resource estimate noted in the prior record (inferred ~3.5M oz in the context) and the scoping study that was due; the economics are mostly based on inferred resources, which the report calls preliminary and speculative. The visible text does not show the economic results or timelines.

resource reserve update

IAMGOLD completed its acquisition of Orezone on February 25, 2009, on the announced terms (0.08 IAMGOLD share plus 0.125 Orezone Gold Corporation share per Orezone share). Orezone shares were delisted that day, and IAMGOLD now owns the Essakane gold project in Burkina Faso. Management says it lowers average cash cost by $40 to $50 per ounce and moves it toward the 1.8 million oz a year target for 2012. This resolves the pending Orezone deal; Essakane construction financing is not described in this release.

business combination

Orezone shareholders approved the arrangement with IAMGOLD, with 99.94% of votes cast in favour (those votes represented 78.10% of Orezone's outstanding shares). Court approval was set for February 20 and closing expected February 25, 2009. Orezone holders get 0.08 IAMGOLD share plus 0.125 of a share of new Orezone Gold Corporation per Orezone share. The CEO said Essakane adds more than 30% to IAMGOLD's reserves.

business combination

IAMGOLD agreed to buy all of Orezone Resources in an all-share deal valued at about US$139 million, giving it the Essakane gold project in Burkina Faso (construction began September 2008; remaining capex about US$350 million; full production anticipated late 2010). Orezone holders get 0.08 IAMGOLD share plus a share of a spun-out 'New Orezone' per share, ending up with about 9% (28.6 million shares) of 324.3 million IAMGOLD shares, so existing holders are modestly diluted. IAMGOLD will also buy Cdn$20M of Orezone shares, assume a US$40M bridge loan, and is in talks with lenders for US$160-220M of project financing; closing is expected by end of February 2009, subject to a two-thirds Orezone vote, court and regulatory approval.

business combination

IAMGOLD released the long-awaited pre-feasibility study for its 100%-owned Quimsacocha gold project in Ecuador (due Q1 2008, so about four months late): 7.5-year mine life, average 202,000 oz/yr of gold, initial capital of US$337 million (±25%, including US$45M contingency), and a 21.3% pre-tax return at US$750/oz gold (13.4% at US$650). The filing says capital cost has risen substantially from cost pressures; a feasibility study is now due Q4 2009, construction early 2010 and commercial production in the second half of 2011, all dependent on Ecuador's new Mining Code, whose draft went to the President on June 27 and which he intends to publish by end of August.

resource reserve update

IAMGOLD bought the participation royalty on the Doyon/Westwood property from Barrick Gold for US$13 million in cash, ending a royalty of 24.75% of the gold price above US$375/oz. The company says this cuts Doyon cash costs by about US$140/oz at current gold prices, and future Westwood production will be royalty-free.

business combination

IAMGOLD raised the Westwood inferred resource to 3.5 million ounces (14.2 Mt at 7.6 g/t, 3.0 g/t cut-off), about 5% more gold than the June 2007 estimate. The company is accelerating development: a revised scoping study is due by end of September 2008, a feasibility study in the second half of 2009, and production from the near-surface Warrenmac deposit in late 2010. This follows the 2007 scoping study and the Zone 2 drilling.

resource reserve update

IAMGOLD agreed to sell its La Arena copper/gold project in Peru to Rio Alto Mining for US$47.55 million in cash plus a 5.5% interest in Rio Alto, expected to close in the coming months. Management called it part of rationalizing non-core assets; Rio Alto has hired an investment bank to arrange financing for the purchase, so closing is not yet certain.

asset acquisition disposition

IAMGOLD signed a US$140 million five-year revolving credit facility with a bank syndicate led by Scotia Capital and Société Générale (with National Bank of Canada, N.M. Rothschild and TD also lending); the filing describes it as senior secured. It is the company's first debt facility in the running record, and management said it adds financial capacity alongside a cash/bullion position above US$200 million. The filing does not say whether any of it has been drawn.

debt financing

IAMGOLD reached an agreement with Ecuador's Government, which recognizes the company has met its legal, social and environmental obligations at Quimsacocha and will give the project full support. In return IAMGOLD is giving up about 3,000 hectares (23% of its 12,967 hectare holding) that it says contains no resources or targets; the pre-feasibility study is still due in Q1 2008.

regulatory community update

IAMGOLD's internal scoping study on Westwood, which follows the exploration drilling reported in June, indicates about 200,000 ounces of gold a year for roughly 15 years, starting in 2012, based on inferred resources of over 3 million ounces. It estimates pre-production capital of US$316 million, with shaft sinking expected to begin in 2009; the company calls the study preliminary and notes inferred resources are too speculative to count as reserves.

resource reserve update