Iamgold achieves commercial production at Ontario mine
Iamgold Corp [IMG-TSX, IAG-NYSE] said Friday it has achieved commercial production at its Cote gold mine in northeastern Ontario.
The Cote mine is operated as a 60%/40% joint venture between Iamgold, as the operator, and Sumitomo Metal Mining Co. Ltd. of Japan. But Iamgold holds an option to return to 70% ownership by repurchasing a 9.7% interest in the mine from Sumitomo. Iamgold has said it intends to execute that option before the option expires in 2026.
Commercial production is defined as the achievement of reaching a minimum of 30 consecutive days of operations, during which the mill operated at an average of 60% of nameplate throughput of 36,000 tonnes per day.
Life of mine average annual gold production is expected to reach 365,000 ounces, and average 495,000 ounces in years one to six.
“I would like to commend our teams at Cote gold who have come together to achieve another great milestone as we progress and ramp up what, we believe, will be one of Canada’s largest gold mines and a model for modern mining in Canada,’’ said Iamgold President and CEO Renaud Adams.
“Further, in May we completed our equity financing (US$300 million bought deal) which has positioned us well to repurchase the 9.7% interest in Cote this November and return to 70% ownership, thereby gaining more exposure to this foundational and keystone asset for the benefit of our stakeholders.”
Iamgold shares were active on the news, easing 2.9% or 17 cents to $5.52. The shares are currently trading in a 52-week range of $6.24 and $2.71.
Iamgold is an intermediate gold producer and developer based in Canada with operating mines in North America and West Africa. The company is building the long- life Cote project in Quebec with partner Sumitomo Metal Mining Co. Ltd. of Japan. In October, 2022, the company agreed to sell its interest 95% interest in Rosebel Gold Mines in Suriname to Zijin Mining Group Co. Ltd. for US$360 million.
The deal left Iamgold with the Essakane mine in Burkina Faso, West Africa and the Westwood mine in Canada in addition to the Cote gold project.
Cote Gold is located in the Chester and Yeo Townships, 175 kilometres northwest of Sudbury.
The first gold pour at Cote was completed on March 31, 2024
Iamgold has previously guided he market to anticipate 2024 production on a 100% basis of between 220,000 and 290,000 ounces for the year. (Iamgold’s 60.3% share of that is expected to amount to 132,000 to 174,000 ounces).
As Cote Gold achieves 90% throughput, which is expected by the end of the year, the company estimated all in sustaining costs to be in the range of US$1,000 and US$1,200.