IAMGOLD's Q4 2024: Unpacking Contradictions in Mining Rates, Mill Performance, and Production Outlook

These are the key contradictions discussed in IAMGOLD's latest 2024 Q4 earnings call, specifically including: Mining Rates and Production Guidance, Mill Availability and Production, Essakane Production Expectations, and Côté Mill Utilization Rates:



Production and Financial Performance:
- IAMGOLD Corporation achieved total attributable gold production of 667,000 gold ounces in 2024, a 43% increase from the previous year.
- The company reported total adjusted EBITDA of approximately $781 million for the year, more than double the amount from 2023, and generated a total adjusted EBITDA for the year of approximately $781 million.
- The growth in production and financial metrics was driven by the successful startup of Cote Gold, exceptional performance at Essakane and Westwood, and the completion of key financial transactions such as the repurchase of interest in Cote Gold.

Mineral Resource Increase:
- The company announced a significant increase in ounces and grades at its Nelligan Project, with a Mineral Resource estimate of 3.1 million indicated gold ounces and 103 million tonnes grading 0.5 grams per tonne.
- This update positions Nelligan as one of the largest gold deposits in Canada, with potential for further growth.
- The increase was due to a focused exploration program and a relatively conservative drill program that totaled only 23,400 meters over the last two years.

Operational Challenges and Outlook:
- Cote Gold's production was below expectations in the fourth quarter due to higher-than-expected downtime for unscheduled repairs, particularly affecting the fourth quarter.
- However, IAMGOLD remains optimistic, forecasting 360,000 to 400,000 ounces of gold on a 100% basis for 2025, indicating plans to double production compared to the previous year.
- The company's outlook reflects confidence in addressing operational challenges and implementing improvements to stabilize production and reduce costs.

Strategic Focus on Canada:
- Approximately 80% of IAMGOLD's measured and indicated ounces and 90% of its global inferred ounces are now located in Canada.
- The company is focused on ramping up Cote Gold and optimizing production in Quebec to maximize Mineral Measured and Indicated Resources.
- This strategic focus aims to leverage Canada's well-established mining jurisdictions and position IAMGOLD as a leading modern Canadian gold producer with a strong balance sheet.