Iamgold shares rise as Côté mine reaches nameplate

Iamgold’s (TSX: IMG; NYSE: IAG) Côté mine has officially achieved its nameplate capacity nearly 15 months after pouring its first gold, the company said Monday. Shares rose to a near two-month high.

The open-pit mine, located 125 km southwest of Timmins, Ont., made its first gold pour in April of 2024 and moved into commercial production last August.

Iamgold confirmed on Monday that the processing plant has been operating at its nameplate capacity of 36,000 tonnes per day on average over 30 consecutive days.

The work to bring a gold project from first gold to the design nameplate rate within 15 months “exemplifies the commitment to excellence and accountability that is at the core of Iamgold,” CEO Renaud Adams said in a release.

Company shares surged as high as 9% to C$10.78 apiece in Toronto, the highest since mid-April. By midday, it had pulled back to around C$10.58, with a market capitalization of C$6.1 billion.

Canada’s new large gold mine

At full capacity, the Côté mine would be one of Canada’s largest gold producers, averaging 365,000 oz. over an 18-year mine life. During its first six years of operation, gold output could reach as high as 495,000 ounces.

“This milestone was made possible as momentum built from March in which the Côté processing plant achieved an average monthly throughput rate of 90% of nameplate and then reached 96% over a 30-day period in April,” Adams continued.

“The achievement confirms our confidence in the Côté Gold production guidance of 360,000 to 400,000 oz. on a 100% basis, with costs expected to decline through the year.”

Iamgold currently holds a majority 70% interest in Côté, with Sumitomo Metal Mining owning the other 30%.