Iamgold hits record gold output

Canadian miner Iamgold (TSX: IMG; NYSE: IAG) has reported strong third-quarter results, driven by record production at its flagship Côté gold mine in Ontario and continued debt reduction efforts.

The company’s three operations — Côté, Westwood and Essakane — produced 190,000 attributable oz. of gold during the quarter, bringing year-to-date output to 524,000 ounces. Iamgold said it remains on track to meet its full-year forecast of 735,000 to 820,000 ounces.

Côté delivered a record 106,000 oz,, while Westwood in Quebec added 23,000 ounces. The Essakane mine in Burkina Faso contributed 92,000 ounces. Quarterly revenue reached $706.7 million (C$999 million) from sales of 203,000 oz. at an average realized gold price of $3,492 per ounce. Year-to-date revenue totalled $1.76 billion. All-in sustaining costs averaged $1,956 per oz., placing the company at the upper end of its cost guidance.

The third quarter marked “a pivotal moment” for the company with operational discipline and financial strength, CEO Renaud Adams said in a release. 

Shares in Iamgold shot up 13% to C$17.46 apiece in Toronto on Wednesday morning, valuing the company at C$10.1 billion. The stock, like most gold producers, has more than doubled this year as bullion prices have rocketed. 

Record cash 

“Our trailing 12-month earnings before interest, tax, depreciation now exceeds $1-billion, and we have repaid about $270-million of our second lien notes, further strengthening our balance sheet and financial flexibility,” Adams said.

Net earnings for the quarter were $139.4 million, or 24¢ per share, while adjusted net earnings reached $170.9 million, or 30¢ per share. Free cash flow hit a record $292.3 million, including $135.6 million from Côté alone. Iamgold ended the quarter with $707 million in liquidity and net debt of $813 million, down $202 million from the previous quarter.

With its balance sheet strengthening, the board approved a share buyback program for up to 10% of outstanding shares, funded from operating cash flow after debt repayments.

BMO analyst Matthew Murphy said that while Iamgold IMG beat on production, it missed on cash costs. 

“Earnings before interest, taxes, depreciation and amortization were in-line while free cash flow was a slight miss,” Murphy said in a note. “Unit costs were high at both Côté and Westwood and full year unit costs are headed to the top end of guidance,” he wrote. Côté costs are expected to fall into 2026, but execution “remains key,” the analyst said.

Canadian growth

During the quarter, Iamgold also advanced plans to grow its Canadian footprint through the proposed acquisitions of Northern Superior Resources and Mines d’Or Orbec, valued at a combined $280 million in cash and shares. The deals would consolidate the Chibougamau region in Quebec into the Nelligan Mining Complex — a 1,340-sq. km land package holding 3.75 million oz. of measured and indicated resources and 8.65 million oz. inferred.

Adams said Iamgold would continue to focus on cost control and disciplined capital deployment while advancing expansion plans at Côté. “We are…positioning Iamgold as a modern, Canada-focused gold producer with a robust growth pipeline,” he said.

The company’s next phase will hinge on ramping up Côté, integrating new Quebec assets, and reducing debt. The strategy is expected to build long-term shareholder value.