The financial and operating results for the third trimester 2023 of the Essakane mine were published today 10 November 2023 in Toronto by Iamgold Corporation.
According to the press release, gold production in the third trimester of 2023 was 84,000 ounces, down 31,000 ounces or 27% on the second trimester of 2023. This decline was due firstly to lower grades and secondly to the fleet not operating at full capacity in August due to disruptions in fuel supplies caused by security problems. However, the situation improved in September and the mining fleet operated at full capacity in September and October. At the end of the trimester, Essakane had sufficient fuel stocks to maintain normal operations.
“The security situation in Burkina Faso continues to be a matter of concern for the company. The situation continues to put pressure on supply chains and the persistence of security incidents or related concerns could have a significant negative impact on future operating results. 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. The company continues to invest in security and supply chain infrastructure in the region and at the mine site. It is also incurring additional costs to bring employees, contractors, supplies and inventory to the mine,” the statement said.
Renaud Adams, President and CEO of Iamgold, praised “the continued resilience of our Essakane operating teams, who are managing the operation in a challenging geopolitical environment”.
On the financial front, the press release mentions that the landed cost of fuel and other consumables has increased due to measures taken to reduce the impact of the security situation on the supply chain, as well as the increase in the production cost of the energy used in the plant, resulting from the periodic substitution of a more expensive light fuel during periods when the heavy fuel used to produce electricity is not available.
Cash costs per ounce sold of 1,372$ increased by 420$ or 44%, mainly as a result of lower production and sales.
In terms of outlook, gold production at Essakane in 2023 is expected to be between 340 000 and 380 000 ounces. Mining activity is expected to return to normal operating levels in the fourth trimester. The company is expanding its fuel storage facilities to mitigate the impact of any future fuel supply shortfalls.
Pierre Balma
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