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IAMGOLD's 2025 Q2 Earnings Call: Unpacking Contradictions in Essakane and Côté Gold Productions
Generated by AI AgentEarnings Decrypt
Friday, Aug 8, 2025 4:11 pm ET1min read
Aime SummaryEssakane's grade profile and production improvement, Essakane's cost guidance and impact of higher royalty rates, stability of Cote Gold Production and Costs, Esakane Production Stability and Financial Performance, Cote Gold strip ratio and mining efficiency are the key contradictions discussed in IAMGOLD's latest 2025Q2 earnings call.
Production and Cost Performance:
- IAMGOLD's attributable production in Q2 was 173,000 ounces of gold, with Cote producing 96,000 ounces, the highest quarterly production to date.
- Costs were higher in the first half due to elevated royalties, foreign currency movement, and stabilization efforts at Cote.
- The company revised its cash cost guidance upward and now expects cash costs to be in the range of $1,375 to $1,475 an ounce and all-in sustaining costs between $1,830 and $1,930 per ounce.
Strategic Financial Moves:
- concluded gold prepayment arrangements, delivering 75,000 ounces into the arrangements.
- This resulted in deferred revenue recognized, which increased future cash flows by potentially $200 million to $225 million.
- The company is now focused on repaying its second lien term loan, aiming to reduce average debt costs.
Operational Advancements at Cote Gold:
- Cote Gold achieved nameplate throughput of 36,000 tonnes per day earlier than expected, marking a significant operational milestone.
- While cash and milling costs remain elevated due to ramp-up activities, costs are expected to decline after maintenance and equipment improvements.
- The installation of a second cone crusher will enhance processing capacity and reduce costs.
Dividend and Shareholder Returns:
- Essakane declared a significant dividend of $855 million, representing all undistributed profits up to 2024.
- IAMGOLD's 85% portion of the dividend, net of withholding taxes, is approximately $680 million.
- The dividend declaration aligns with the company's strategy to improve cash repatriation and supports its deleveraging efforts.
Production and Cost Performance:
- IAMGOLD's attributable production in Q2 was 173,000 ounces of gold, with Cote producing 96,000 ounces, the highest quarterly production to date.
- Costs were higher in the first half due to elevated royalties, foreign currency movement, and stabilization efforts at Cote.
- The company revised its cash cost guidance upward and now expects cash costs to be in the range of $1,375 to $1,475 an ounce and all-in sustaining costs between $1,830 and $1,930 per ounce.
Strategic Financial Moves:
- concluded gold prepayment arrangements, delivering 75,000 ounces into the arrangements.
- This resulted in deferred revenue recognized, which increased future cash flows by potentially $200 million to $225 million.
- The company is now focused on repaying its second lien term loan, aiming to reduce average debt costs.
Operational Advancements at Cote Gold:
- Cote Gold achieved nameplate throughput of 36,000 tonnes per day earlier than expected, marking a significant operational milestone.
- While cash and milling costs remain elevated due to ramp-up activities, costs are expected to decline after maintenance and equipment improvements.
- The installation of a second cone crusher will enhance processing capacity and reduce costs.
Dividend and Shareholder Returns:
- Essakane declared a significant dividend of $855 million, representing all undistributed profits up to 2024.
- IAMGOLD's 85% portion of the dividend, net of withholding taxes, is approximately $680 million.
- The dividend declaration aligns with the company's strategy to improve cash repatriation and supports its deleveraging efforts.
Earnings Decrypt
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