Each one in plain English, with the numbers worked through for a shareholder.
7 Mar 2014joint venture update▲ Good
IAMGOLD signed a five-year option agreement with Sarafina N.V. under which Rosebel may earn 100% of a 10,000-hectare concession 25 km from the Rosebel mine. Option payments total US$575,000 over five years, the purchase price is US$1M cash, and a 1.6% NSR royalty applies if it reaches production. The property sits inside the 70/30 Rosebel/Government joint venture area negotiated in 2013, so ore from it could use the $0.11/kWh power rate. The CEO says the aim is to find softer, higher-grade ore as Rosebel's reserves become harder and costlier to process. This is the first use of the Rosebel JV area for new exploration.
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.
IAMGOLD filed technical reports as exhibits: a Westwood NI 43-101 report on its resource and reserve estimate as of December 31, 2012 (signed October 16, 2013), plus listed reports on updated rare earth resources at Niobec and an update on the Niobec expansion (December 2013). The visible text covers only signatures, certificates and the table of contents, with no new figures; the Westwood report supports the 348,000 oz reserve already reported for year-end 2012. The Niobec expansion report's contents are not shown, so any change to the Q3 2013 feasibility timeline is unknown.
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.
IAMGOLD filed the full NI 43-101 technical report (dated June 30, 2013, by Roscoe Postle Associates) supporting the Boto resource announced July 29, with the same figures: indicated 21,960k tonnes at 1.62 g/t for 1,142k oz and inferred 1,861k tonnes at 1.35 g/t for 81k oz, from 423 holes (56,832 m). It notes the zones remain open and describes a three-year US$11.5M exploration program (30,000 m diamond, 10,000 m RC, 9,000 m aircore) that RPA considers reasonable. This is the supporting document, not a new estimate.
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.
IAMGOLD declared a semi-annual dividend of $0.125 per share, payable July 12, 2013 to holders of record July 3, 2013, the same rate as the January payment. The company says this is more than a 4% yield on the 20-day average share price (up from 'more than 2%' in the December declaration); the CEO says the gold sector is in challenging times and the company is well advanced on a cost-reduction program that lets it maintain the payout.
IAMGOLD reported results from 29 more diamond holes (7,325 m, Nov 2012 to Apr 2013) at its 100%-owned Boto project in Senegal, with intercepts such as 42 m at 2.16 g/t and 34 m at 2.20 g/t at Boto 2, and 29 m at 2.08 g/t at Boto 4. The company says they confirm earlier results and extend the zones. A first NI 43-101 resource estimate by RPA is in progress and is expected in the second quarter of 2013; about 11,000 m of drilling is planned for 2013, stopping when the rainy season starts. This continues the Boto thread; no resource has been declared yet.
IAMGOLD filed the NI 43-101 technical report (dated March 18, 2013) on the 2012 diamond drilling program for rare earth elements at the Niobec mine, the zone whose resource was first reported in the February 2013 year-end statement. The visible text is only the title page, consent, and table of contents (it lists the REE resource estimate, 2012 holes 029-061, and recommendations); no resource figures or conclusions appear in the portion provided. It is the supporting document for the earlier REE resource, not a new estimate.
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.
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.
IAMGOLD, through its 95%-owned subsidiary, received 3,236,246 shares of Eagle Mountain Gold Corp. (formerly Stronghold Metals) as consideration under the earn-in agreement for the remaining 50% interest in the Eagle Mountain concession in Guyana. It now holds 5,536,246 shares, about 14.93%, for investment purposes. This continues the Stronghold earn-in thread, now showing shares received as consideration. The filing does not state a cash amount.
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.
IAMGOLD declared its semi-annual dividend of $0.125 per share, payable January 7, 2013 to holders of record December 21, 2012, the same rate as the July payment (more than a 2% yield per the company). The CEO says the company has over $2 billion of liquidity to fund it.
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.
14 Nov 2012asset acquisition disposition● NeutralMajor
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.
IAMGOLD reported assay results from 44 drill holes (Dec 2011 to July 2012) at its 100%-owned Boto project in Senegal, with intercepts such as 58 m at 2.58 g/t and 74 m at 1.80 g/t at Boto 2. The company says results show good grades and confirm continuity at several zones along a 4 km trend; geological modeling to assess resource potential is under way. Drilling resumes in mid-November, aimed at infill to support a resource estimate. This builds on the earlier note that continuity was not shown at the Guemedji trend, but no resource has been declared.
IAMGOLD filed the full NI 43-101 technical report, dated October 24, 2012 and prepared by Roscoe Postle Associates, supporting the October 4 Côté Gold resource estimate. The visible text covers the table of contents and the introduction, which restates the Trelawney acquisition and the February 2012 resource; no new figures appear in the portion provided. This is the supporting document promised in the October 4 release, not a new estimate.
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.
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.
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.
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.
IAMGOLD reported assay results from 24 more drill holes at Côté Gold (the former Côté Lake project), with wide intervals of low-to-moderate grade gold, for example 454 m at 1.46 g/t uncut (0.91 g/t cut) in hole E12-205. Since the February 2012 estimate, 189 more holes have been drilled, and 12 rigs are running toward a 70,000-85,000 m program by year end. A revised resource estimate is planned for October and a pre-feasibility study is expected to start in Q4 2012. These are drill results, not new resources; the company states it is working to upgrade a significant portion of the inferred resources to indicated. IAMGOLD holds a 92.5% interest in the deposit through the Trelawney acquisition. Craig MacDougall is named as Senior Vice President, Exploration.
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).
IAMGOLD declared a semi-annual dividend of $0.125 per share, payable July 13, 2012 to holders of record June 29, 2012, which the company says is more than a 2% yield. This is the next payment at the $0.25 annual rate set in December 2011, with no change in the rate. The CEO links it to cash flow and the pending Côté Lake acquisition. The release describes five gold mines on three continents.
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.
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.
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.
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.
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.
