Iamgold

Iamgold Corporation
FormerlyInternational African Mining Gold Corporation
Company typePublic
TSX: IMG
NYSE: IAG
IndustryGold mining
FoundedMarch 27, 1990 (34 years ago) (1990-03-27)
Founders
  • Mark I. Nathanson
  • William D. Pugliese
Headquarters
Toronto, Ontario
,
Canada
Number of locations
  • 3 mines
  • 2 development projects
Key people
  • William Pugliese (CEO 1997-2002)
  • Joseph Conway (CEO 2002-10)
  • Stephen Letwin (CEO 2010-20)
  • Gordon Stothart (CEO 2020-22)
  • Maryse Belanger (interim CEO 2022-23)
  • Renaud Adams (CEO 2023-current)
ProductsGold
Production output
Increase 560,000 - 665,000 oz[1] (2024)
Websiteiamgold.com

IAMGOLD is an intermediate gold producer and developer based in Canada with operating mines in North America and West Africa. The Company has commenced production at the large-scale, long life Côté Gold Mine in partnership with Sumitomo Metal Mining Co. Ltd., which is expected to be among the largest gold mines in Canada. In addition, the Company has an established portfolio of early stage and advanced exploration projects within high potential mining districts. IAMGOLD employs approximately 3,600 people and is committed to maintaining its culture of accountable mining through high standards of Environmental, Social and Governance practices, including its commitment to Zero Harm®, in every aspect of its business. IAMGOLD is listed on the New York Stock Exchange (NYSE:IAG) and the Toronto Stock Exchange (TSX:IMG).

Operations

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The company's largest operating mine, Côté Gold, is located in Canada in the Chester and Yeo Townships, District of Sudbury, in northeastern Ontario. It is approximately 25 km southwest of Gogama, 125 km southwest of Timmins, and 175 km northwest of Sudbury. The project is accessible year-round via a 5 km road connecting to Highway 144. The Côté Gold properties were assembled through staking and option agreements covering a total area of approximately 596 km2. Côté Gold is located on Treaty 9 Territory, on the traditional lands of Mattagami First Nation and Flying Post First Nation, and within the traditional harvesting area of the Métis Nation of Ontario, Region 3. Starting production on March 31, 2024, Côté Gold is a transformational mine for IAMGOLD. Based on the August 2022 technical report, the mine is projected to offer robust free cash flow generation, averaging 365,000 ounces per year at AISC of $854 per ounce for 18 years, based on 7.2 million ounces estimated in Mineral Reserves, and a total of 12.0 million ounces in Measured & Indicated. There is tremendous potential for future expansion, starting with the Gosselin deposit, located immediately adjacent to the Côté pit containing 4.4 million ounces in Indicated Mineral Resource and an additional 3.0 million ounces in Inferred Resources. [2]

IAMGOLD's longest operating mine, Essakane, is located in Burkina Faso. The IAMGOLD subsidiary company Essakane S.A. operates the Essakane gold mine with the Government of Burkina Faso owning a 10% stake. It is an open pit mine, with heap leach processing, along the Gorouol River near the town of Falagountou and the border with Niger. It was acquired by Iamgold in 2009 from Orezone Resources who had conducted exploration and development activities. The mine began commercial production in July 2010. With 2.2 million ounces in proved and probable reserves as of December 31, 2023, the mine has produced approximately 350,000-450,000 ounces of gold per year.[3]

In the Abitibi Municipality of Quebec, Iamgold acquired the Doyon Division mining property with its 2006 acquisition of Cambior. As its older Doyon mine ceased production in 2009, the facilities were re-purposed to support the developing and operation of the new Westwood gold mine which began commercial production in 2014. The ore from the open pit mine is processing at the refurbished Doyon mill using the carbon in pulp method. Zinc deposits. With 1.2 million ounces in proved and probable reserves as of 2023, the mine has produced around 100,000 ounces of gold per year.[4]

Corporate history

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The Iamgold International African Mining Gold Corporation (re-named Iamgold Corporation in 1997) was founded on March 27, 1990, by businessmen Mark Nathanson and William Pugliese to pursue a mining concession being offered in Mali.[5] Headquartered in Markham, Ontario, the company partnered with South African gold mining company Anglo American's AngloGold Ashanti to develop the Sadiola Gold Mine.[6] To fund this, Iamgold raised $60 million in an initial public offering becoming a publicly-listed company on the Toronto Stock Exchange in 1996,[7] with an additional $13 million worth of shares being issued the following year.[8] With the success of developing the Sadiola Gold Mine, Iamgold and AngloGold Ashanti developed a second mine, the Yatela Mine, which began production in 2001. With profits now being realized, Iamgold was listed on the TSE 300 index and began issuing dividends to shareholders, uniquely the dividends were aid in bullion instead of cash.[9][10] Additional shares were issued in 2002 and they company became listed on the American Stock Exchange.[11] The company incurred a court-ordered $1.7 million fine, payable to Kinbauri Gold for withdrawing from a merger agreement.[12] Also in late-2002, in a $218 million in all-stock deal, Iamgold acquired royalty company Repadre Capital Corp. which had stakes in several gold and diamond mines in Canada and Africa, most significant of which was a 19% interest in Gold Fields's Tarkwa and Damang mines in Ghana.[13] With Repadre's Joseph Conway taking over as CEO of the combined company, the merger boosted Iamgold's attributable gold production to 421,000 ounces from 290,000 ounces the year before.[14]

After moving its headquarters from Markham to Toronto, the directors and CEOs of Iamgold and Wheaton River Minerals Ltd. agreed to a merger deal that would create a new company to be called Axiom Gold, valued at about $2.9 billion in 2004. However Iamgold stakeholders fought the proposal. BMO Nesbitt Burns and CIBC World Markets organized competing offers, Golden Star Resources Ltd. to acquire Iamgold for $1.2-billion and Coeur d'Alene Mines Corp. to acquire Wheaton River for $2.56 billion, whose rejection by the Iamgold and Wheaton River board of directors was fought in court.[15] While the shareholder votes were delayed due to the court cases, Wheaton River shareholders voted in favour of the merger but Iamgold shareholders rejected it.[16] The company subsequently made a failed bid to acquire assets of Gold Fields. With the failed merger and acquisition behind them, in the next two years the company acquired Australian company Gallery Gold and its Mupane gold mine in Botswana in an $235 million all-stock deal,[17] and Cambior with its Rosebel mine in Suriname, a Niobium mine in Quebec and several older Quebec gold mines in a $1.2 billion deal.[18] With 100% interest in the Mupane, Doyon & Mouska, Sleeping Giant and Niobec mines, as well as a 95% interest in the Rosebel mine, the mergers transitioned the company from an investor into an operator and increased their attributable gold production from 642,000 ounces in 2006 to 965,000 ounces in 2007, and peaking at 997,000 ounces in 2008. The company fared well during the 2008 recession with its stock falling from $8 per share at the beginning of the year to bottoming out at $4 in October and peaking again at $20 by November 2009. They sold off numerous non-core assets, such as royalties acquired from Repadre, the La Arena copper project in Peru acquired from Cambior,[19] and closed the Sleeping Giant (selling the mill and remaining property),[20] and Doyon mines. In the same timeframe, they initiated plans to develop the Westwood mine using the Doyon property and acquired Orezone Resources Inc. and its Essakane Project in Burkina Faso.[21]

CEO Joseph Conway stepped down in January 2010,[22] replaced by interim CEO Peter Jones until Enbridge executive Stephen Letwin was hired, the Essakane mine had commenced production in July 2010. In June 2011, Iamgold sold its 19% stake in the Tarkwa and Damang gold mines in Ghana to Gold Fields Limited for $667 million[23] and its Mupane gold mine in Botswana to Galane Gold Ltd. for $34 million.[24] In 2012, in a $608-million purchase, Iamgold acquired Trelawney Mining and Exploration and its Côté Lake gold deposit, near Sudbury, Ontario which they believed could be developed into a significant mine; in 2018 IAMGOLD formed a 70%/30% JV partnership with Sumitomo Metal Mining to help fund its development.[25][26] While the sales also helped finance the expansion of Essakane and the development of the Westwood mine, production would peak again at 882,000 ounces in 2017 and 2018, before falling to 762,000 ounces in 2019 as the Yatela mine became exhausted and Sadiola mine was sold in December 2019.[27]

On January 12, 2022, the Company announced that Mr. Stothart had resigned from his positions as President and CEO and from the Board, and that Ms. Dimitrov had been appointed as President and CFO and as CEO on an interim basis, effective immediately. The Company also announced it would undertake a process of strategic evaluation of certain of its assets, as well as a new life-of-mine plan for Rosebel.

On January 31, 2022, the Company announced that Donald K. Charter had retired from his position as Chair of the Board, and that Mr. O’Kane had been elected as Interim Chair of the Board. On February 2, 2022, the Company issued a news release regarding its engagement with RCF Management and Resource Capital Fund VII LP (together, "RCF"), then an approximate 5.2% shareholder of the Company, with respect to the refreshment of the Board. On February 13, 2022, the Company and RCF entered into a collaboration agreement (the “Collaboration Agreement”) regarding the governance processes and constitution of the Board, including, among other things, (i) the appointment of Maryse Bélanger, Ian Ashby and David Smith to the Board; (ii) the appointment of Ms. Bélanger as the Chair of the Board, (iii) the establishment of a process for the selection and appointment of one additional independent director nominee by no later than March 14, 2022, and (iv) the reconstitution of the standing committees of the Board and establishment of a CEO Search Committee and an Ad Hoc Nominating and Corporate Governance Committee, the latter of which oversaw the appointment Peter O’Hagan as an independent director on March 14, 2022.

On May 3, 2022, the Company announced the appointment of Ms. Bélanger as Interim President and Chief Executive Officer and of Mr. Smith as Lead Independent Director. On August 3, 2022, the Company announced the results of the costs, schedule, execution strategy and risk review of the Côté Gold Project and its intention to file an updated NI 43-101 technical report in respect of the project. The results of the review reported that, among other things, there was estimated remaining project costs to complete construction and bring the Côté Gold Project into production of $1,908 million ($1,335 million attributable to IAMGOLD) including escalation and contingency as of May 1, 2022; a mine life of 18 years with initial production expected in early 2024; average annual production of 495,000 ounces (320,500 ounces attributable) during the first six years following commercial production, and 365,000 ounces (236,000 ounces attributable) over the life of mine. On September 16, 2022, the Company announced the departure of Ms. Dimitrov, the Company’s Chief Financial Officer and Executive Vice President, Strategy and Corporate Development. Maarten Theunissen, the then-Vice President, Finance, was appointed as Interim Chief Financial Officer.

On October 18, 2022, the Company announced that it had entered into a definitive agreement with Zijin Mining Group Co. Ltd. (“Zijin”) to sell its 95% interest in RGM, which held the Company’s interest in Rosebel. Under the terms of the agreement, Zijin agreed to pay IAMGOLD cash consideration of $360 million for its 95% interest in RGM, subject to certain working capital adjustments on closing. In addition, IAMGOLD's obligations for certain equipment leases related to operations at Rosebel amounting to approximately $41 million would be released on closing of the transaction. The sale of RGM to Zijin was completed on January 31, 2023.

On December 19, 2022, the Company announced that it reached an agreement with SMM to amend the terms of the Côté Gold joint venture agreement with SMM and its subsidiary SMM Gold Côté Inc. Under the terms of the agreement, commencing in January 2023, SMM agreed to contribute certain of IAMGOLD’s funding amounts to the Côté Gold Project that in aggregate are expected to total approximately $340 million over the course of 2023. As a result of SMM funding such amounts, IAMGOLD agreed to transfer, in aggregate, an approximate 10% interest in the Côté Gold Project to SMM as funding is made by SMM, subject to the right for IAMGOLD to repurchase such transferred 10% interest pursuant to the terms of the agreement. IAMGOLD agreed to pay a repurchase option fee to SMM on the terms set forth in the agreement, and IAMGOLD has the right to exercise the right to repurchase the transferred 10% interest on seven dates between November 30, 2023, and November 30, 2026, to return to its previous 70% interest in the Côté Gold Project. IAMGOLD may exercise its option through the payment of the aggregate amounts advanced by SMM in respect of the transferred 10% interest, subject to certain adjustments as set out in the amending agreement relating to the period between initial gold production and commercial production.

On December 20, 2022, IAMGOLD announced that it had entered into definitive agreements with Managem S.A. to sell the Company’s interests in its exploration and development projects in Senegal, Mali and Guinea, including the Boto Gold Project for an aggregate consideration of approximately $282 million subject to certain working capital adjustments on closing. Under the terms of the agreements, IAMGOLD will receive total cash payments of approximately $282 million (subject to certain adjustments) as consideration for the shares and subsidiary/intercompany loans for the entities that hold the Company’s 90% interest in the Boto Gold Project in Senegal and 100% interest in each of: the Diakha�Siribaya Gold Project in Mali, Karita Gold Project and associated exploration properties in Guinea, and the early stage exploration properties of Boto West, Senala West, Daorala and the vested interest in the Senala Option Earn-in Joint Venture also in Senegal. The remaining 10% interest in the Boto Gold Project will continue to be held by the Government of Senegal. The total consideration of $282 million is subject to certain working capital adjustments and changes in intercompany loans associated with continued advancement of the projects between the date of the definitive agreement announcement and closing of respective asset sales.

On March 6, 2023, the Company announced the appointment of Renaud Adams as President and Chief Executive Officer and as a member of the Board, effective as of April 3, 2023, and that Mr. Theunissen had been appointed Chief Financial Officer. Mr. Theunissen had served as Interim Chief Financial Officer since September 16, 2022.

On April 26, 2023, the Company announced the closing of the sale of its 90% interest in the Boto Gold Project in Senegal and its 100% interest in the early-stage exploration properties of Boto West, Senala West, Daorala and the vested interest in the Senala Option Earn-in joint venture also in Senegal for aggregate gross cash proceeds of approximately $197.6 million (pre-tax). The closing of the sale is part of the previously announced transactions with Managem S.A. There are two transactions remaining to close and both are subject to certain regulatory approvals from the respective Governments, as well as other customary closing conditions included in the transaction agreements and are expected to close in 2024.

On May 16, 2023, the Company announced that it had entered into a five-year second lien secured term loan (“Term Loan”) in a principal amount of $400 million from three institutional investors. The Term Loan forms part of the Company’s ongoing initiatives to proactively increase the strength of its balance sheet during the construction, commissioning and ramp-up of the Côté Gold Project.

On September 22, 2023, the Company announced the retirement of Ms. Maryse Bélanger as Chair and director of the Company’s board of directors. Immediately following Ms. Bélanger’s retirement, the board appointed Mr. David S. Smith to serve as Chair of the Board.

Past mines (divested and closed)

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Since opening the Sadiola Gold Mine in 1996, Iamgold has held stakes or outright owned numerous mines that later sold or ceased operation.

  • The Rosebel Gold Project was acquired through the acquisition of Cambior in 2006. It was sold to Zijin Mining in October 2022.
  • The Sadiola Gold Mine in Mali was operated by joint-venture partner AngloGold Ashanti, each with a 41% working interest. It was sold to Allied Gold in 2019.[28]
  • The Yatela Mine gold mine in Mali was operated by joint-venture partner AngloGold Ashanti, each with a 40% working interest. Mining activities had ceased in 2013, though processing continued into 2016.[29]
  • The Tarkwa mine and Damang mine in Ghana were operated by Gold Fields. Iamgold secured a 19% stake in the mines with the acquisition of Repadre Capital in 2002 but sold their interests to Gold Fields in 2011.[23]
  • The Mupane gold mine in Botswana, opened in 2004, was secured with the acquisition of Gallery Gold in 2005. Its 100% interest in the mine was sold in 2011 to Galane Gold, though Iamgold retained 48% interest in Galane until 2016 when the company totally divested.[24]
  • The Doyon and Mouska gold mines in Abitibi, Quebec, were secured with the acquisition of Cambior in 2006. Though the Doyon mine, which had opened in 1980, closed in 2008, its mill was refurbished and upgraded for processing the Westwood mine's ore with treated material being disposed of in the old Doyon open pit. The Mouska mine continued until 2014 before being decommissioned.[30]
  • The Sleeping Giant gold mine (known in French as Mine Géant Dormant) in Quebec was also acquired in 2006 with Cambior but sold to Cadiscor Resources in 2008.[20]
  • La Arena, a Peruvian copper / gold project acquired with Cambior was sold to Rio Alto Mining in 2008.[19]
  • The Niobec underground mine near Chicoutimi, Quebec. This mine is North America's only source of pyrochlore, the primary niobium ore, and one of only three major producers of niobium. Sold to Magris Resources in 2015.[31]

References

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  1. ^ "Iamgold 2024 Operating Outlook". iamgold.com. October 23, 2024. Retrieved October 23, 2024.
  2. ^ "Cote Gold Mine". Iamgold Corporation. October 23, 2024. Retrieved October 23, 2024.
  3. ^ "Technical Report on the Essakane Gold Mine, Sahel Region, Burkina Faso". Iamgold Corporation. February 17, 2016. Retrieved March 21, 2020.
  4. ^ "Annual Information Form". Iamgold Corporation. February 20, 2019. Retrieved March 21, 2020.
  5. ^ "New gold rush to change face of western Africa: Canadian firm discovered Sadiola deposit". The Hamilton Spectator. Hamilton, Ontario. September 20, 1996. p. C10.
  6. ^ "Mali mine going ahead". The Globe and Mail. January 14, 1995. p. B4.
  7. ^ Kennedy, Peter (March 6, 1996). "Iamgold to raise $60M in share offering". Financial Post. p. 3.
  8. ^ "Iamgold units". Financial Post. October 16, 1997. p. 37.
  9. ^ Hanley, William (October 19, 2001). "TSE 300 heading down market". National Post. p. IN1.
  10. ^ Hasselback, Drew (January 10, 2002). "Bullion bull Iamgold turns cash into gold: Dividends paid in metal". National Post. p. FP1.
  11. ^ "Iamgold share sale to bolster cash". The Globe and Mail. May 21, 2002. p. B7.
  12. ^ "Merger backdown brings $1.7-million fine". Vancouver Sun. December 26, 2002. p. E8.
  13. ^ "Repadre profit up on purchase". Toronto Star. November 12, 2002. p. F6.
  14. ^ "Iamgold earned $5.2M US in Q4 and $15M US in 2003 on higher gold prices" (Press release). The Canadian Press. March 3, 2004.
  15. ^ Critchley, Barry (May 31, 2004). "Bankers scramble on mine mergers: Veteran managers say they've seen nothing like it". National Post. p. FP6.
  16. ^ Won, Shirley; Kennedy, Peter (June 9, 2004). "Delay ordered on Iamgold merger vote". The Globe and Mail. p. B1.
  17. ^ "Iamgold to buy Australian miner". Toronto Star. December 6, 2005. p. C9.
  18. ^ Hasselback, Drew (September 15, 2006). "Iamgold bids $1.16B for Cambior". National Post. p. FP4.
  19. ^ a b "Iamgold sells Peru stake to Rio Alto for $47.6M". Toronto Star. May 9, 2008. Retrieved March 21, 2020.
  20. ^ a b "Cadiscor secures Sleeping Giant, Dormex". Canadian Mining Journal. November 5, 2008.
  21. ^ "Iamgold, Orezone deal suits both parties". Financial Post. December 11, 2008. Archived from the original on March 24, 2020. Retrieved March 24, 2020.
  22. ^ "Iamgold CEO stepping down". The Globe and Mail. January 4, 2010.
  23. ^ a b "IamGold sells Tarkwa and Damang mine for $667-M cash". Canadian Mining Journal. April 18, 2011.
  24. ^ a b "IamGold completes sale of Mupane mine in Botswana". Canadian Mining Journal. August 31, 2011.
  25. ^ "Iamgold acquires Trelawney Mining in $608-million deal". The Globe and Mail. April 27, 2012. Retrieved March 24, 2020.
  26. ^ "IAMGOLD Closes Transaction with Sumitomo Metal Mining Co. to Develop Côté Gold Project in Ontario". www.juniorminingnetwork.com. June 20, 2017. Retrieved June 20, 2017.
  27. ^ "AngloGold, Iamgold to sell stake in Mali's Sadiola mine". Glacier Media. December 23, 2019. Retrieved March 24, 2020.
  28. ^ "Iamgold Agrees to Sell Its Interest in the Sadiola Gold Mine". Iamgold. December 23, 2019. Retrieved March 17, 2020.
  29. ^ "Yatela Gold Mine". Mining Technology. Retrieved March 26, 2020.
  30. ^ "Doyon Division Gold Mines, Abitibi, Quebec". Mining Technology. Retrieved March 26, 2020.
  31. ^ Praet, Nicolas Van (October 3, 2014). "Former Barrick Gold chief buys Iamgold's Niobec mine in Quebec with help from Asian backers". Financial Post.
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