- In addition to higher fuel and electricity costs
- Production down 18% on the first trimester
- Low grade, partially offset by higher throughput
- In its financial report for the second trimester 2023
Iamgold Corporation released its financial and operating results for the second trimester ended 30 June 2023 on 10 August 2023 in Toronto, Canada. Iamgold Corporation operates the Essakane mine in Burkina Faso.
Rising fuel prices impact electricity production costs
The Essakane mine recorded gold production of 88,000 ounces in the second trimester of 2023, down 18% compared to the same period last year, mainly due to lower grades, partially offset by higher throughput. Production costs in the second trimester were 128.0 million dollars, up 38% mainly due to higher volumes of mine waste resulting from increased stripping ratios as the mine enters new phases, increases in landed fuel costs due to the impact of the security situation on the supply chain, and higher labour costs due to the appreciation of the local currency. In addition to fuel price pressures, power generation costs have increased as the heavy fuel normally used for power generation has been periodically replaced with more expensive light fuel to maintain operations during periods of limited supply. In terms of outlook, attributable gold production from Essakane in 2023 is expected to be between 340,000 and 380,000 ounces. Mining activity is expected to maintain normal operating levels in the second half of the year, including increased levels of waste rock stripping. Plant feed will consist of a combination of direct feed and stockpiles as the mine park moves through targeted waste rock stripping phases. The Company expects to file an updated technical report in the fourth trimester of 2023 detailing the Essakane mine life plan and updated Mineral Reserve and Mineral Resource. The technical report will incorporate the decision to forego a capital-intensive heap leach project in favour of processing the 9.9 million tonnes of material previously stockpiled over the life of mine through the existing CIL circuit.
Iamgold Corporation: 2023 gold production guidance unchanged
Iamgold Corporation recorded gold production of 107,000 ounces. Revenues from continuing operations were 238.8 million dollars on sales of 121,000 ounces at an average realised gold price of 1,973 $ per ounce. Cost of sales per ounce sold from continuing operations was 1,376 $, cash cost per ounce sold from continuing operations was 1,372 $ and all-in cost per ounce sold from continuing operations was 1,912 $.
Attributable gold production guidance for 2023 remains unchanged at between 410,000 and 470,000 ounces.
In terms of health and safety, for the semester ended 30 June 2023, the Company recorded an absence, restriction and transfer day frequency rate and recordable injury frequency rate of 0.68, with a downward trend since the last trimester. In financial terms, it recorded a net profit attributable to shareholders1 of 92.6 million dollars, or 0.19 dollar per share, and an adjusted net loss attributable to shareholders of 3.3 million dollars, or 0.01 dollar per share. Net cash from operating activities was 23.2 million dollars. Net cash from operating activities, before movements in non-cash working capital and long-term ore inventories1, was 21.8 million dollars. The Company has liquid assets of 1,200.2 million dollars, made up of 747.7 million dollars in cash and cash equivalents and 452.5 million dollars in the available balance of the secured revolving credit facility at 30 June 2023.
Elie KABORE
