- Decline in production compared to the last trimester of 2022
- Security situation impacts on the supply chain
- Good prospects for the rest of the year
Iamgold Corporation released on 11 May 2023 its financial and operating results for the first trimester ended 31 March 2023 in a press release. These results include those of Iamgold Essakane Sa, the mine it operates in Burkina Faso.
Highlights of the results indicate that Iamgold Corporation produced 113,000 ounces of gold. Gold sales for the period generated 226.2 million dollars at an average price of 1,893 $ per ounce.
On the financial side, earnings before interest, taxes, depreciation and amortisation from operations were 68.4 million dollars adjusted to 83.0 million dollars.
The Essakane mine recorded attributable production of 92,000 ounces, down by 20,000 ounces of gold compared to the last trimester of 2022. According to IAMGOLD president and CEO Renaud Adams, Essakane recorded impressive production results, while cost pressures remained in line with their estimates and what appears to be a new normal for the company. “Our Burkinabe teams have shown remarkable resilience and flexibility, with higher than modelled grades offsetting lower than expected mining tonnes due to ongoing supply chain and security management challenges in the country,” continued Renaud Adams.
Gold production from Essakane in 2023 is expected to be between 340,000 and 380,000 ounces. Mining activity is expected to gradually return to normal operating levels during the year, including increased levels of waste stripping in the second half of the year. Mill throughput in the second trimester is expected to return to normal levels and mill feed will be a combination of direct feed and stockpiles.
Essakane’s capital expenditure for the year 2023 is expected to be approximately 195 million dollars, the majority of which is related to stripping capital at Essakane. Other expansion capital expenditure is expected to be around 5 million dollars at Essakane to meet the commitment to relocate the Essakane village.
The security situation in Burkina Faso continues to be a priority for the company due to ongoing terrorist incidents in the country and in the north-eastern region, including the Seno and Oudalan provinces adjacent to the Essakane mine. The company continues to take proactive measures to ensure the safety of personnel in the country and is constantly adjusting its protocols and site activity levels in response to the security environment, combined with its programme of investment in security and supply chain infrastructure in the region and at the mine site, with government support. The security situation continues to put pressure on the supply chain in the country and further escalation could have a significant negative impact on future operating results.
According to the release, Essakane has made significant progress on the studies and action plan for the updated mine closure plan, in consultation with government authorities. The updated closure plan is expected to be completed by mid-2023.
The Company continued its participation in the Mining Fund for Local Development in Burkina Faso, a government programme under which the Company has committed to contribute 1% of its annual revenues. The contribution for the first trimester of 2023 is estimated at 1.9 million dollars.
As a reminder, Iamgold is a Canadian-based mining company with operations in North America and West Africa. The company is building the large-scale, long-life Côté Gold project in Canada in partnership with Sumitomo Metal Mining Co. Ltd, which is expected to begin production in early 2024. In addition, the company has a well-established portfolio of early and advanced exploration projects in high potential mining districts in the Americas. IAMGOLD employs approximately 3,200 people and is committed to maintaining its culture of responsible mining through high standards of environmental, social and governance practices.
Elie KABORE
#Mines_Actu_Burkina
