Ontario’s newest gold mine, Côté, to start production next month, Iamgold says

Iamgold‘s (TSX: IMG; NYSE: IAG) 60%-owned Côté gold mine, in Sudbury, Ont., is set to enter production in March, the company said on Thursday.

The project entered 2023 with construction about 64% completed and finished the year at 98% complete, said CEO Renaud Adams.

“While first gold is on the horizon, our primary focus and efforts are on positioning the project for a steady ramp up of gold production through the year to achieve commercial production in the third quarter,” said Adams.

The project is a joint venture with Sumitomo Metal Mining, which holds 40%.

“At steady run-rate, Côté gold will be the third largest gold mine in Canada with an expected mine life exceeding 18 years and significant opportunities for growth.”

Côté is expected to produce 495,000 oz. per year at an all-in sustaining cost of US$854 per oz. for the first six years of its mine life.

Adams said the joint venture is in the midst of commissioning at the plant, with crushing and screening successfully commissioned, and pre-commissioning ongoing on the high-pressure grinding rolls (HPGR) and wet side of the plant.

Production at Côté, based on 100% ownership, is projected to range between 220,000 oz and 290,000 oz next year.

Across its operations, Iamgold produced 465,000 oz last year, hitting the upper end of its guidance range of 410,000 oz to 470,000 oz.

The majority of production in 2023 came from the Essakane mine in Burkina Faso, with output totaling 372,000 oz. The Westwood mine in Quebec exceeded its guidance range of 70,000 oz to 90,000 oz by producing 93,000 oz. for the year, including a record 12,400 oz. in December.

Shares of Iamgold rose 0.3% by 11:30 p.m. ET. The miner has a market capitalization of $1.2 billion.