- Essakane production up in the third trimester
- In addition to increased plant throughput and higher gold grade
- The coup has not affected the mine’s operations
- Security crisis affects supply chain
In Burkina Faso, the Essakane gold mine is operated by the Canadian group IAMGOLD. In a press release issued on 8 November 2022, IAMGOLD informed that its gold production in the third trimester of 2022 was 184,000 ounces, up by 14,000 ounces, representing an 8% difference from the previous trimester.
The increase in production in the third trimester was due to higher production at its mines in Burkina Faso, namely Essakane (8,000 ounces) and Westwood (5,000 ounces). The increase in production at Essakane was mainly due to higher mill throughput compared to the previous quarter and better grade allowing for higher recoveries compared to the same period last year, the statement said.
Ph: DR
IAMGOLD also reported on political developments in Burkina Faso in the third trimester. It reports that all personnel continue to be safe and Essakane continues to operate in accordance with the 30 September 2022 coup.
Regarding the security situation in Burkina Faso, IAMGOLD believes it continues at high risk levels and “Essakane continues to take proactive measures to ensure the safety and security of personnel in the country. It is constantly adjusting its protocols and activity levels on site in response to the security environment,” the statement said. To deal with this situation, the company is pursuing some additional investments in security and supply chain infrastructure in the region and at the mine site, with the support of the government. The security situation continues to put pressure on the supply chain in the country, but mitigation measures have minimised the impact in the third trimester.
In terms of financial results, free cash flow from the mines for the third trimester of 2022 was 59.2 million $, an increase of 16.4 million $ compared to the previous trimester, mainly due to higher free cash flow at Essakane (20, 2 million $) and Westwood ( 9.2 million $) due to higher sales volumes, partially balanced by lower free cash flow at Rosebel ( 13.0 million $), mainly due to changes in working capital and a lower average realised gold price.
Cash flow used to support environmental closure cost obligations related to Essakane, the Doyon Division and the Côté Gold project totalled 47.2 million dollars.
As a reminder, IAMGOLD has three operating mines including Essakane (Burkina Faso), Rosebel (Suriname) and Westwood (Canada). It also has one large-scale mine under construction, Côté Gold (Canada), which is expected to begin production in early 2024. In addition, the Company has a strong development and exploration portfolio in high potential mining districts in the Americas and West Africa.
Pierre Balma
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