Iamgold soars on Q2 production, cost beat

Iamgold (TSX: IMG; NYSE: IAG) reported strong results for the second quarter of 2024, surpassing its production and cost targets, and lifting its stock price as much as 17% on Friday. 

The company produced 166,000 oz. of gold across its Essakane, Westwood and Côté gold mines, at all-in sustaining costs (AISC) of US$1,617 per ounce. That beat Raymond James’ expectations of 157,000 ounces at an AISC of US$1,731 per ounce, mining analyst Farooq Hamed said in a note to clients. 

The performance was mainly driven by high grades at Essakane, in Burkina Faso. Iamgold’s Westwood mine is in Quebec, and its newest mine, Côté, in Ontario. 

Iamgold shares traded at $5.86, up 78¢, at the end of the day. 

“Essakane and Westwood teams have continued to deliver strong operational results, which has positioned the company to beat our production and cost guidance targets set at the beginning of the year,” said CEO and president Renaud Adams.  

The company posted adjusted net earnings of US$137.8 million for the first half, up from just US$22 million in the same period last year. Second quarter net earnings came in at US$84.8 million, compared to a loss of US$3.3 million last year.  

Côté marks commercial production

Côté reached commercial production on Aug. 2. During the quarter, the mine, which is 60% owned by Iamgold produced 20,000 oz. of gold at an AISC of US$1,150 per ounce. It recorded 22,000 oz. at US$1,100 per oz. in the previous quarter. The company plans to ramp up production to between 130,000 and 175,000 oz. annually, aiming for AISCs of US$1,100 to US$1,200 per ounce. 

The company is on track to buy back a 10% interest in Côté from joint-venture partner Sumitomo in November 2024, increasing its ownership to 70%. 

Overall, Iamgold has revised its 2024 production guidance to between 625,000 and 715,000 oz. of gold. This compares to earlier guidance of 560,000 to 665,000 ounces. The company also lowered its cost expectations for the Essakane and Westwood mines, setting new AISC targets of $1,175 to $1,275 per oz. for Essakane and $1,700 to $1,825 per oz. for Westwood.