Each one in plain English, with the numbers worked through for a shareholder.
15 June 2016drilling result● Neutral
IAMGOLD reported final assays from its 2016 winter drilling at Monster Lake in Quebec (21 holes, 8,105 m), with best intercepts such as 1.21 m at 20.16 g/t and 4.26 m at 3.07 g/t. It says results suggest a possible second zone along the main shear structure, 200 to 400 m north of the 325-Megane Zone, and that more drilling is needed; a summer 2016 program of mapping, surveys and later drilling has begun. IAMGOLD holds 50%, with the option to earn a further 25% for C$10.0M, as before. This is early-stage exploration with no resource declared.
Ressources Québec (a subsidiary of Investissement Québec) joined IAMGOLD's revolving credit facility with an extra C$50M (US$38M) commitment. The facility, led by National Bank of Canada and Deutsche Bank, now totals US$138M, matures February 2020, and can still grow to US$250M on the same terms with existing lenders. This fills part of the $150M accordion from the February 2016 facility; the CFO links the new lender to confidence in the Westwood ramp-up. No drawing is mentioned.
IAMGOLD filed a full technical report (NI 43-101, dated and effective March 15, 2016) on the Sadiola Sulphide Project in Mali, prepared by IAMGOLD with G Mining Services and Snowden. The visible text is only the cover page and contents list, so no resource, reserve, cost or economic figures can be seen. The contents show it covers resources, reserves, capital and operating costs and an economic analysis, so it is the supporting document for the Sadiola sulphide project that the record says had its approval delayed; whether the project is approved is not stated here.
22 Mar 2016capital raising announcement▲ GoodMajor
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.
IAMGOLD sold all 21,875,000 Galane Gold shares it held, which it received in the 2011 sale of the Mupane mine in Botswana, and now holds no Galane shares or warrants (0%). No sale price is given in the filing, and the company states no present intention to buy more Galane securities. This ends the Galane stake thread (the stake was ~48.5% in the record); the promissory note's status is not mentioned.
IAMGOLD filed the full NI 43-101 technical report (by RPA, dated Jan 25, 2016) supporting the Siribaya resource announced in February. It confirms the figures already given: total indicated 2.1Mt at 1.90 g/t (128,600 oz) and inferred 19.8Mt at 1.71 g/t (1,091,800 oz), including Diakha inferred 863,200 oz, at a $1,500/oz price. This is the supporting document for the earlier announcement, not new information as far as the visible text shows.
IAMGOLD reported the last assays from its 2015 fall drilling at Monster Lake in Quebec (9 holes, 3,925 m), with best intercepts of 2.76 m at 9.05 g/t (incl. 0.49 m at 48.9 g/t) and 3.93 m at 3.30 g/t; these are modest compared with the 2014 results. IAMGOLD now holds 50%; the TomaGold option was amended Oct 30, 2015, so it can earn a further 25% (75% total) by spending a further C$10.0M within seven years from Jan 1, 2015, and a 2016 winter program of 6,000-7,000 m has started. This revises the earlier US$17.6M earn-in terms in the record; it remains early-stage exploration with no resource declared.
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.
IAMGOLD filed a full technical report (NI 43-101) on the Essakane mine in Burkina Faso, effective Dec 31, 2015. The visible text is only the cover pages and contents list; the truncated text shows no resource, reserve, cost or mine-plan numbers. The contents show it covers the main EMZ and Falagountou deposits, a five-year mine plan and economic analysis, so it is the supporting document for Essakane figures already published, not a new announcement as far as can be seen.
IAMGOLD reported a first resource estimate for the Siribaya project in Mali (50:50 JV with Merrex), mostly from the Diakha deposit discovered in 2014: indicated 129,000 oz (2.1Mt at 1.90 g/t) and inferred 1.1M oz (19.8Mt at 1.71 g/t), effective Dec 31, 2015 at a $1,500/oz gold price. This follows the earlier Siribaya earn-in thread, now with a resource; the company plans more drilling in 2016 and says Diakha is open in all directions. Most of the ounces are in the lower-confidence inferred category, and no development decision is stated.
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.
IAMGOLD reported the last assays from its 2015 infill drilling at its wholly owned Boto project in Senegal: 26 holes (7,782 m) of the 12,416 m program, with Malikoundi intercepts such as 36 m at 3.59 g/t gold and 25 m at 4.26 g/t. This finishes the drilling that the April update said was complete; the company says results confirm continuity of mineralization and that the deposit appears open at depth. The resource is still the Feb 2015 figure (1.23M oz indicated, 635,000 oz inferred), with an updated estimate still expected in Q3 2015 and metallurgical test work in Q3; no development decision is stated.
IAMGOLD reported assays from 24 more holes (9,802 m) at its wholly-owned Pitangui project in Brazil, with intercepts such as 7.61 m at 9.78 g/t and 11.98 m at 6.84 g/t; 61 holes (22,406 m) have been drilled at São Sebastião in total. The infill program is largely complete, and a revised resource estimate is targeted by year-end; the current resource remains the January 2014 inferred 4.07Mt at 4.88 g/t (0.64M oz). Follow-up of electromagnetic conductor targets will continue.
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.
IAMGOLD reported results from 21 holes (7,782 m) of its 2015 winter drilling at Monster Lake in Quebec, with best intercepts such as 1.46 m at 18.80 g/t and 10.72 m at 3.64 g/t; these are lower-grade than the 2014 results (e.g. 9.18 m at 46.33 g/t). It says it has met its first-year commitments under the TomaGold earn-in (50% for US$17.6M over five and a half years), with summer work and more drilling in early fall planned. This is still early-stage exploration with no resource declared.
IAMGOLD raised the indicated resource at its Essakane mine in Burkina Faso by 6% to 4.98M oz (129.5Mt at 1.20 g/t, 100% basis, effective April 1, 2015), mainly from a larger Falagountou deposit (indicated 0.61M oz, up 84%). Mining at Falagountou is expected to begin in the second half of 2015, and the COO says the extra resources could extend Essakane's peak production beyond the previously forecast four years. At Boto in Senegal, infill drilling is complete (12,416 m in 2015) with results from 28 holes (e.g. 61 m at 2.61 g/t, 11 m at 11.29 g/t); the company cites Boto resources of 1.23M oz indicated and 635,000 oz inferred (per Feb 18, 2015), and the next resource update is now expected in Q3 (earlier plan said July).
23 Mar 2015asset acquisition disposition▲ GoodMajor
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.
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.
IAMGOLD reported final 2014 drilling results from Monster Lake in Quebec (17 holes, 8,233 m), including 9.18 m at 46.33 g/t gold (incl. 2.2 m at 182.8 g/t) in the 325-Megane zone, which remains open at depth. It plans an initial 5,000 m winter drilling program in 2015. This continues the TomaGold earn-in (50% for US$17.6M over five and a half years, now described as longer than the 'five years' previously noted); it is early-stage exploration with no resource declared.
IAMGOLD reported more drilling from its 100%-owned Boto project in Senegal: 16 infill holes (5,085 m) from a 15,824 m program completed in 2014, with Malikoundi intercepts such as 44 m at 4.46 g/t and 61 m at 2.91 g/t. The company says an updated resource estimate is due in its year-end statement in February 2015 and expects these results to positively affect future estimates; about 12,000 m more drilling is planned for 2015, with a further resource estimate scheduled for July. The existing resource is still the July 2013 figure (1.14M oz indicated, 81,000 oz inferred) until the update appears; no development decision is stated.
22 Jan 2015asset acquisition disposition▲ GoodMajor
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.
16 Jan 2015asset acquisition disposition▲ GoodMajor
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.
IAMGOLD reported more drilling from its 100%-owned Boto project in Senegal: 36 holes (over 9,200 m) this year, with Malikoundi intercepts such as 64 m at 3.37 g/t gold (including 38 m at 5.85 g/t). Management says results are expected to have a positive impact on the Malikoundi resource, and they feed an updated resource model for the ongoing scoping study; the resource stays at the July 2013 figures (1.14M oz indicated, 81,000 oz inferred) until updated, and no development decision is announced.
IAMGOLD filed the redacted share purchase agreement dated October 3, 2014 for selling all shares of Niobec Inc. to 8961166 Canada Inc., the buyer entity for the Niobec deal announced that day. Visible text is mostly the contents list and definitions, and the truncated text shows no new price; it does show a US$75M cap on the indemnity, a closing date no earlier than 45 days after signing, and that closing is subject to Competition Act approval and other conditions. This is the legal paper behind the announced sale, not a new event.
3 Oct 2014asset acquisition disposition▲ GoodMajor
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).
IAMGOLD reported final results of its phase one drilling (4,528 m, nine holes) at Monster Lake in Quebec and is starting a second phase of about 5,000 m, scheduled by the end of October 2014. The project is held under an earn-in with TomaGold, under which IAMGOLD can earn 50% of the Monster Lake, Winchester and Lac à l'eau jaune properties by paying cash and spending US$17.6M over five years. Phase one expanded the 325-Megane Zone and found two further zones, with intercepts such as 5.86 m at 2.62 g/t and 10.47 m at 11.55 g/t (reported earlier in May). This is an early-stage exploration project with no resource declared, and it is a new thread; it is the Quebec option deal alluded to in the earlier mention of new option agreements.
IAMGOLD reported Q2 2014 results: adjusted net earnings of $8.8M ($0.02/share), a net loss of $16.0M ($0.04/share), and net cash from operations of $96.8M, up $58.9M (155%) from Q2 2013. Attributable gold production was 206,000 oz (up 20% from Q1), all-in sustaining costs at the gold mines were $1,136/oz, and cash plus gold bullion was $297.3M with none of the $750M credit facilities drawn. The company maintains 2014 gold guidance, raised Niobec's 2014 niobium guidance, and confirms Westwood's commercial production from July 1; the Essakane mill expansion lifted its output 35% from Q1. Earnings from mining operations fell to $42.3M from $92.3M a year earlier, with a lower realized gold price ($1,288 vs $1,373/oz) and higher cost of sales. A Pitangui drilling update is also mentioned, confirming continuity of the known resource and new high-grade intersections in a second zone; the filing text provided is truncated.
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.
IAMGOLD filed SRK's NI 43-101 technical report (signed March 28, 2014) supporting the Pitangui São Sebastião maiden resource announced April 9: inferred 4.07M tonnes at 4.88 g/t for 638,000 oz, at a 3.0 g/t cut-off, effective January 9, 2014. It is based on 57 holes (about 19,575 m). SRK classes all blocks as inferred and mainly suited to underground mining. This is the supporting document, not a new estimate.
IAMGOLD declared a first resource for its 100%-owned Pitangui project in Brazil: inferred 4.07M tonnes at 4.88 g/t for about 0.64M oz (São Sebastião deposit, underground scenario, 3.0 g/t cut-off, by SRK). It also reported new Boto (Senegal) drilling, with the Malikoundi zone extended a further 300 m north and intercepts such as 23 m at 2.53 g/t. The 2014 Boto plan is 14,500 m of diamond drilling plus 9,000 m of aircore, supporting a scoping study now in progress. The Pitangui figure is an inferred resource only, and the Boto resource stands at the July 2013 figures until an update is made as merited.
