IAMGOLD Completes Gold Prepay Deal, Reaches Côté Gold Mine Milestone

IAMGOLD has completed its 150,000-ounce gold prepay arrangement, with the final delivery of 75,000 ounces in H1 2025 affecting potential $200-225 million cash flow. The Côté Gold Mine has reached nameplate throughput capacity, marking an operational milestone. IAMGOLD anticipates improved free cash flows and plans to implement a disciplined deleveraging strategy to reduce its debt burden.

IAMGOLD (NYSE: IAG, TSX: IMG) has announced a significant operational milestone as the Côté Gold mine has officially achieved its nameplate capacity of 36,000 tonnes per day. The open-pit mine, located 125 km southwest of Timmins, Ontario, made its first gold pour in April 2024 and transitioned to commercial production in August [1].

The achievement of nameplate capacity comes nearly 15 months after the first gold pour, exemplifying the company's commitment to excellence and accountability, according to CEO Renaud Adams. The processing plant has been operating at its nameplate capacity for 30 consecutive days, marking a notable operational milestone [1].

Shares of IAMGOLD surged as high as 9% to C$10.78 apiece in Toronto, reaching a near two-month high. By midday, the shares had pulled back to around C$10.58, with a market capitalization of C$6.1 billion ($4.4 billion) [1].

At full capacity, the Côté Gold mine is expected to produce an average of 365,000 ounces of gold over an 18-year mine life. During its first six years of operation, gold output could reach as high as 495,000 ounces [1].

In addition to this operational milestone, IAMGOLD has completed its 150,000-ounce gold prepay arrangement. The final delivery of 75,000 ounces in the first half of 2025 is anticipated to generate potential cash flow of $200-225 million [2].

The company plans to use the increased cash flow to implement a disciplined deleveraging strategy, aiming to reduce its debt burden. IAMGOLD anticipates improved free cash flows as a result of these efforts [2].

IAMGOLD currently holds a majority 70% interest in Côté Gold, with Sumitomo Metal Mining owning the other 30% [1].

References:
[1] https://www.mining.com/iamgold-shares-rise-as-cote-gold-mine-achieves-nameplate/
[2] https://www.globenewswire.com/news-release/2025/06/25/3104976/0/en/Q-Gold-Resources-has-commenced-the-third-phase-of-diamond-drilling-at-the-historic-Foley-Shaft-area-within-its-Mine-Centre-project-in-Northern-Ontario.html