Q3 2024 IAMGOLD Corp Earnings Call

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Operator: Thank you for standing by. This is the conference operator. Welcome to the IAMGOLD Q3 2024 Operating and Financial Results Conference Call and Webcast. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star then zero. At this time, I would like to turn the conference over to Graeme Jennings, VP, Investor Relations and Corporate Communications for IAMGOLD. Please go ahead, Mr. Jennings.

Thank you for standing by this is the conference operator, welcome to the <unk> Gold's third quarter 2020 for operating and financial results Conference call and webcast. As a reminder, all participants are in listen only mode and the conference is being recorded after the presentation. There will be an opportunity to ask questions to join the question queue.

Speaker Change: You May press Star then one on your telephone keypad should you need assistance during the conference call you May signal, an operator by pressing Star then zero at this time I would like to turn the conference over to Graeme Jennings VP Investor Relations and corporate communications for Ion Gold. Please go ahead Mr. James.

Graeme Jennings: Thank you, operator. Welcome everyone to our conference call today. Joining us on the call are Renaud Adams, President and Chief Executive Officer, Maarten Theunissen, Chief Financial Officer, Bruno Lemelin, Chief Operating Officer, Tim Bradburn, Senior Vice President, General Counsel, and Secretary, and Dorena Quinn, Senior Vice President, People. We are joining today from IAMGOLD's Toronto office, which is located on Treaty 13 territory on the traditional lands of many nations, including the Mississaugas of the Credit, Anishinaabe, the Chippewa, Haudenosaunee, and the Wendat peoples. At IAMGOLD, we believe respecting and upholding indigenous rights that stands upon relationships that foster trust, transparency, and mutual respect. Please note that our remarks on this call will include forward-looking statements and refer to non-IFRS measures.

Graeme Jennings: Thank you operator, and welcome everyone to our conference call today.

Graeme Jennings: Joining us on the call are Renaud Adams, President and Chief Executive Officer, Brian, Jason Chief Financial Officer.

Graeme Jennings: Lebanon, Chief operating Officer, Tim Bradburn, Senior Vice President General Counsel and Secretary.

Graeme Jennings: Quinn Senior Vice President people there.

Speaker Change: We're joined today for mine both draws office, which is located on shrimp Treaty 13 territory on the traditional lands of many nations, including the Mr side because of the credit on a stomach chippewa couldn't of Sony and the wind up People's time Globe, We believe respecting and holding and digital rights. It sounds upon relationships and fostered trust transparency and mutual respect.

Speaker Change: Please note that our remarks on this call will include forward looking statements and refer to non <unk> measures. We encourage you to refer to the cautionary statements and disclosures on non <unk> measures are included in the presentation and the reconciliation of these measures in our most recent MD&A each under the heading non-GAAP financial measures.

Graeme Jennings: We encourage you to refer to the cautionary statements and disclosures on non-IFRS measures included in the presentation and the reconciliations of these measures in our most recent MD&A, each under the heading Non-GAAP Financial Measures. With respect to the technical information to be discussed, please refer to the information in the presentation under the heading Qualified Person and Technical Information. The slides referenced on this call can be viewed on our website. I'll now turn the call over to our President and CEO, Renaud Adams.

Speaker Change: With respect to the technical information to be discussed please refer to the information in the presentation. The heading qualified person and technical information the slides referenced on this call can be viewed on our website I will now turn the call over to our president and CEO.

Renaud Adams: Thank you, Graeme, good morning, everyone, and thank you for joining us. The Q3 was another exciting quarter for IAMGOLD, as our operations performed well, demonstrating safe, stable production, and strong cash flow growth. Gold production year to date for the company totaled 490,000 gold ounces, driven by the strong year-to-date performance at Essakane and the turnaround of Westwood, both assets which are poised to achieve the upper end of the production guidance estimate. Côté Gold, meanwhile, is taking significant strides as the mine continued its ramp-up and achieved multiple milestones in the quarter, including reaching commercial productions on 2 August, demonstrating the capability to operate at or above nameplate throughput levels, completing key maintenance to improve the availability of the plant, and achieving its Q1 of a positive free cash flow production.

Speaker Change: Thank you Graham and good morning, everyone and thank you for joining us.

Speaker Change: Third quarter was a not exciting water for Ian.

Speaker Change: As our operations performed well demonstrating safe stable production and strong cash flow growth.

Speaker Change: Gold production year to date for the company totals 490000 gold ounces.

Speaker Change: Given by the strong year to date performance at a scanner and a turnaround of Westwood.

Speaker Change: Those assets, which are poised to achieve to achieve the near the upper end of the production guidance estimate.

Speaker Change: Corrigo. Meanwhile, is taking significant strike.

Speaker Change: As the mine comes scenario ramp up and achieve multiple milestone in the quarter, including reaching commercial production on August 2nd.

Speaker Change: Demonstrating the capability to operate at or above nameplate throughput level, completing key maintenance doing deep availability of the plan and achieving its first quarter with positive free cash flow production.

Renaud Adams: Côté remains on track towards our goal of the mine achieving 90% nameplate throughput exiting the year. With 2025 just around the corner, a surprising seven weeks away, IAMGOLD is rapidly moving closer to our goal of becoming a leading modern Canadian gold producer with a strong balance sheet and asset that are poised to generate significant value for our stakeholder, partners, and investors, further enhanced by the backdrop of today's gold price action. By the middle of the next year, we anticipate we will have our gold prepayment facility behind us. Côté will be nearing nameplate production, and Essakane and Westwood will be capable of generating near record cash flows. This will conceptually position IAMGOLD uniquely amongst the mid-tier space with significant cash flow generation and some very valuable near-term growth to uncover at Côté Gold.

Speaker Change: Korea remains on track towards our goal of the mine, achieving 90% nameplate throughput exiting the year.

Speaker Change: With 2025, just around the corner the surprising seven weeks away I am gala is rapidly moving closer to our goal of becoming a leading modern Canadian gold producer with a strong balance sheet and that set up are poised to generate significant value for our stakeholders partners in <unk>.

Masters firm.

Speaker Change: Enhanced by the backdrop of Stewart as gold prices.

Speaker Change: Okay.

Speaker Change: But it met all of the next year, we anticipate we will have our golf prepayment facility behind us.

Speaker Change: They will be nearing nameplate production and if a gun and Westwood will be capable of generating near record cash flows.

Speaker Change: This will conceptually position my angle uniquely among amongst the mid tier space with significant cash flow generation and some very valuable near term girls to uncover at call. It to go.

Speaker Change: Looking at our highlights for the quarter.

Renaud Adams: Looking at the highlights for the quarter, starting with health and safety, which is a fundamental pillar of IAMGOLD's visions of zero harm and our commitment to people and the places in which we operate. In the third quarter, our total recordable injury frequency rate was 0.46, an improvement from the prior quarter, led once again by Essakane team, who achieved triple zero for safety incident in September, a testament to the professionalism and commitment to a safety culture by our people in Burkina Faso. In the third quarter, IAMGOLD produced 173,000 attributable gold ounces from our three of its operation, well above the 109,000 ounces achieved in the same period last year. This year-over-year production growth was driven by continued stable operation at Essakane, the successful turnaround at Westwood, and the ramp-up of Côté.

Speaker Change: Starting with health and safety, which is a fundamental pillar of fire golds vision of zero harm and our commitment to people and places in which we operate.

Speaker Change: In the third quarter, our total recordable injury frequency rate was zero point 46, an improvement from the prior quarter led once again by S mechanic team, who achieved triple zero for safety incident in September It's testament to the professionalism and commitment to our safety.

Speaker Change: Chaired by our feet ballroom Burkina Faso.

Speaker Change: In the third quarter I am golf produced 173000 attributable ounces from our three buckets, so price well above the 109000 ounces achieving the same period last year. This year over year production girls was driven by continued stable operation in the scanning this.

Speaker Change: Accessible turnaround at Westwood and the ramp up of Coty.

Renaud Adams: On a cost basis, IAMGOLD reported Q3 cash cost and all-in sustaining costs of $1,165 per ounce and $1,756 per ounce respectively. While costs were lower than the prior year period, the cost increase quarter over quarter was in line with expectation and our guidance as we will discuss in a moment. Sustaining capital expenditure increased in Q3 to $84.7 million, up from $50.4 million the year prior, as Côté achieved commercial production in August, which allowed for the relocation of capital expenditure related to operation to sustaining for the mine. Looking at our targets for the year, IAMGOLD reiterated its guidance estimate in Q3. As you will recall, last quarter, the company increased its production guidance and lowered its cost guidance targets following a very strong H1 performance from our Essakane and Westwood mine.

On a cost basis, I am Gar reported third quarter cash costs and all in sustaining cost of $1165 per ounce and 1750 6000 dollar per ounce respectively.

Speaker Change: <unk> costs were lower than the prior year period, the cost increase quarter over quarter was in line with expectation in our guidance as we will discuss in a moment.

Speaker Change: Sustaining capital expenditure increase in the third quarter to 84.7.

7 million.

Speaker Change: Up from 51 4 million the year prior as they achieve commercial production in August.

Speaker Change: Which allow us further relocation of capital expenditure related to operation to sustaining part of mine.

Speaker Change: Yes.

Speaker Change: Looking at our targets for the year, our aim of golf, we reiterated its guidance estimate in the third quarter as you will recall last water. The company increased its production guidance and lowered cost guidance targets. Following a very strong first half performance from our Ghanaian Westwood mine.

Renaud Adams: Essakane and Westwood are well positioned to achieve the upper end of the production guidance ranges this year, with combined production year to date of 428,000 ounces versus guidance of 495,000 to 540,000 ounces. The 2024 cost guidance for Essakane and Westwood combined is unchanged and is expected to be on the low end of the range of $1,175 to $1,275 for cash cost per ounce sold and $1,700 to $1,825 for AISC per ounce sold. Costs are expected to be higher in Q4 at Essakane, as Essakane is expected to report a lower head grade from an increased production of stockpile material in the mill, and Westwood conduct a scheduled maintenance plan shutdown in the quarter, both in line with our expectations. On a macro level, inflationary pressures have continued to ease, though key input, including labor, remains elevated.

Speaker Change: If the economy of Westwood are well positioned to achieve the upper end of their production guidance ranges. This year with combined production year to date of 428000 ounces versus guidance guidance of 495000 to 540000 ounces.

Speaker Change: The 2020 forecast guidance for a second and Westwood combined is unchanged and is expected to be on the low end of the range of 1975 to $1275 for cash cost per ounce sold and 700 to 825.

Speaker Change: Dollars per for ASIC.

Speaker Change: Costs are expected to be higher in the fourth quarter of this economy.

Speaker Change: This economy is expected to report a lower head grade from an increased production of stockpile material in the mail and Westwood conduct a scheduled maintenance planned shutdown.

Speaker Change: Shut down in the quarter vault in lines with our expectations.

Speaker Change: On a macro level inflationary pressures have continued to ease.

So kicking butt inputs, including labor remains elevated.

Renaud Adams: As well, pricing for certain consumables, including cyanide and grinding media, are in line with the level experienced in 2023. With that, I will pass the call over to our CFO to walk us through our financial results and position. Martin?

As well pricing for certain consumable, including Syn <unk> grinding media are in line with the level of experience in 2023.

Speaker Change: With that I will pass the call over to our CFO to walk us through our financial results and position Martin.

Maarten Theunissen: Thank you, Renaud. Good morning, everyone. In terms of our financial position, IAMGOLD ended the quarter with cash and cash equivalents of CAD 553.4 million. Our credit facility remains undrawn, equating to total liquidity of approximately CAD 959.3 million. We note that within cash and cash equivalents, as of 30 September 2023, CAD 83.4 million was held by Côté Gold and CAD 135.3 million was held by Essakane. Notably, Essakane declared a dividend during Q2 of CAD 180 million, for which the minority interest portion and withholding taxes were paid during Q2. CAD 136.3 million was received by the company in Q3. The balance of CAD 15.6 million was received in October 2023, for a total dividend received by IAMGOLD of CAD 151.9 million.

Martin: Thank you Renaud and good morning, everyone.

Martin: In terms of our financial position.

Martin: <unk> ended the quarter with cash and cash equivalents of $553 4 million and upgraded facility remains undrawn equating to total liquidity of approximately $959 3 million.

Martin: We note that within cash and cash equivalents as of September 30 of this year I D. $3 4 million was held by culture of gold and 135, when 3 million was up by <unk> <unk>.

Martin: Notably is Atlantic played a dividend during the second quarter of 180 million, who reached the minority interest portion and withholding taxes were paid during the second quarter.

Martin: And $136 3 million was received by the company in the third quarter and the balance of $15 6 million was received in October for a total dividend received by Angola, the $151 million.

Martin: On September 32024.

Maarten Theunissen: On 30 September 2024, the company provided Sumitomo with the required 60 days formal notice to exercise the right to repurchase the 9.7% interest in Côté Gold. The transaction is expected to close on 30 November 2024, which will return IAMGOLD to its full 70% interest in Côté Gold. The repurchase price is approximately CAD 377 million and includes CAD 23.7 million for the repurchase option fee accrued during 2023. The payment will be funded using the proceeds from the CAD 300 million bought deal completed during Q2 2024 and with available liquidity. Additionally, as of today, the company has completed a third of its gold prepaid obligations, having delivered 37,500 ounces in Q3 and 12,500 ounces in October. The company received CAD 13.3 million in cash as part of the delivery of the obligation.

Martin: Company provided sumitomo with the required 60 days formal notice to exercise the right to repurchased in nine months you have an interest in Portugal, and the transaction is expected to close on November 32024.

Martin: Which will return <unk> to its full save any interest.

Martin: In Cotai gold.

Martin: The purchase price is approximately $377 million.

Martin: And includes $23 7 million for the repurchase option fee accrued during 2023 the.

Martin: The payment will be funded using the proceeds from the 300 million bought deal completed during the second quarter 2024 and with available liquidity.

Martin: Additionally, as of today. The company has completed a third of its called P paid obligations, having delivered 37500 ounces in the third quarter.

Martin: <unk> thousand 500 ounces in October the.

Martin: The company received $13 3 million in cash as part of the delivery of the obligation.

Maarten Theunissen: The company has remaining 100,000 ounces to deliver on its gold prepay arrangements from November 2024 to 30 June 2025. The prepay arrangements were funded at the time of entering into the arrangements, though the company will receive certain cash payments at the time of delivering into the gold prepay arrangements based on the market price of gold at the time of delivery as follows. In Q4, of the 37,500 ounces that will be delivered, 22,500 ounces will receive the difference between the spot price and $1,700 per ounce, capped at $2,100 per ounce, with the remaining 15,000 ounces pre-funded. In Q2 of next year, for 31,250 ounces that will be delivered through the period of April to June, the company will receive the difference between the spot price and $2,100 per ounce, capped at $2,925 per ounce.

Martin: to deliver on his goal of pre-payment arrangements from November 2024 to June 30, 2025.

Martin: <unk> 31250 ounces that will be delivered through the period of April to June the company will receive the difference between the spot price in 'twenty 100 per ounce capped at $2925 per ounce.

Maarten Theunissen: Please refer to the liquidity outlook section of the MD&A for further details. Looking at our third quarter results, we saw the impact of strong production at near record realized gold prices, resulting in the company realizing high margins, generating higher operating cash flows and Adjusted EBITDA at an important time for the company. The higher gold price is helping set up the company to potentially expedite its plan to reduce debt levels and debt carrying costs. Revenues from operations totaled CAD 438.9 million from sales of 184,000 ounces on 100% basis, at a record average realized price of $2,391 per ounce. The realized price includes impact of gold prepay arrangements in place during the quarter that reduced the realized price by $107 per ounce from $2,498 per ounce. Net earnings was CAD 598.1 million during the quarter and includes a reversal of a previous impairment on Westwood of CAD 462.3 million.

Martin: Please refer to the liquidity optics section of the MD&A for further details.

Martin: Looking at our third quarter results, we saw the impact of strong production at near record realized gold prices, resulting in the company realizing high margins generating higher operating cash flows and adjusted EBITDA at an important time for the company Diebold price is all being set up the company to potentially.

Martin: Expedite, it's bad to reduce debt levels and did carrying cost.

Martin: Revenues from operations totaled 433, $438 9 million from sales of 184000 ounces on 100% basis at a record average realized price of 2000 and $391 per ounce.

Martin: The realized price introduced impact of gold prepay arrangements in place during the quarter that reduced the realized price by $107 per ounce from 2000 and $498 per ounce.

Martin: Net earnings was $598 1 million during the quarter and includes a reversal of previous impairment on waste suite of 462 3 million.

Maarten Theunissen: The impairment reversal mainly results from the update to the long-term gold price assumptions. The strong third quarter operating results and gold price resulted in an Adjusted EBITDA of CAD 221.7 million, which was a record quarter for the company. This brings the year-to-date EBITDA to CAD 565.2 million, with Côté still in the early stages of its ramp-up. Adjusted earnings per share was CAD 0.18 for the quarter compared to CAD 0.16 in the previous quarter and a CAD 0.01 loss in the third quarter of 2023. Operating cash flow before working capital changes was CAD 161 million in the third quarter. Operating cash flow does not include the pre-funded cash flow received as part of the gold prepay arrangements and is CAD 64.4 million lower than what it would have been without the impact of the deferred revenue recognized as part of delivering into the gold prepay.

Martin: The impairment reversal binary results from the update to the long term gold price assumptions.

Martin: The strong third quarter operating results in gold price resulted in an adjusted EBITDA of $221 7 million, which was a record quarter for the company. This brings the year to date EBITDA to 565 2 million with regard to is still in the early stages of its ramp up.

Martin: Adjusted earnings per share was <unk> 18 cents for the quarter compared to six <unk> in the previous quarter and a one cent loss in the third quarter of 2023.

Martin: Operating cash flow before working capital changes was $161 million in the third quarter operating cash flow does not include the pre funded cash received as part of the gold prepay regiments and is $64 4 million lower than what it would've been without the impact of the deferred revenue recognized.

Martin: Our spot delivering into the gold prepay.

Maarten Theunissen: Looking at mine site free cash flow, which is calculated as cash flow from mine site operating activities, less capital expenditures from operating mine sites, Essakane reported Q3 mine site free cash flow of $76.6 million and Westwood of $20.8 million. It is worth highlighting again, as Renaud mentioned in his introductory comments, that it was the Q1 for Côté to contribute positively to mine site free cash flow, with $23.3 million in the quarter, which represents IAMGOLD 60.3% portion of the cash flow. With that, I will pass the call back to Renaud. Thank you, Renaud.

Martin: Looking at the mine site free cash flow, which is calculated as cash flow from mine site operating activities. These capital expenditures from operating mine sites.

Speaker Change: Mr. Ken reported third quarter mine site free cash flow of $76 6 million and waste suite of twin T point.

Speaker Change: $8 million.

Speaker Change: It is worth highlighting again as <unk> mentioned in his introductory comments the Swiss the first quarter for bauxite to contribute positively to mine site free cash flow with $23 3 million in the quarter, which represents an gold 60.3% portion of the cash flow.

Speaker Change: And with that I will pass the call back through and I think you remarked.

Renaud Adams: Thank you, Martin. We will start with Côté, which you can see here on the left image on the slide with a view of active mining activity early in the summer. Last month, we announced the Côté's preliminary Q3 operating results ahead of what was a well-attended mine tour by analysts and institutions. I want to take this moment to once again thank all the attendees for the great turnout and thank our Côté team for hosting what was a very engaging tour. Looking at the quarter, the highlights for Côté was the Q1 of positive free cash flow, as Martin just highlighted, from productions of 68,000 ounces on 100% basis. However, I believe the real advancement were on the progress of the ramp-up and improved understanding of the operation.

Thank you Martin.

Speaker Change: We will start with Coty, which you can see here on the left image on the slide with a view of effective mining activity early in the summer.

Speaker Change: Last month, we announced that code is preliminary Q3 operating results ahead of what was a well attended mine tour by analysts and institutions I want to take this moment to once again, thank all the attendees for a great turnout and thank our coated team for hosting.

Speaker Change: What was a very engaging tour.

Speaker Change: Looking at the quarter, our highlights for Cold day was the first quarter of positive free cash flow has Martin just highlighted from productions of 68000 ounces on a 100% basis.

Speaker Change: However, I believe the real advancement, where on the progress of the ramp up and improve understanding of the operation.

Speaker Change: I am very proud about the progress we achieved in the third quarter.

Renaud Adams: I am very proud about the progress we achieved in Q3, as we saw definitive signs that the improvement that were deployed throughout the quarter and during the shutdown in September are having a measurable and meaningful positive impact on operations. Mining activity totaled 10.4 million tons in Q3 2024, in line with the prior quarter, and ore ton mined increased to 3.2 million tons during the period, with an associated decrease in the strip ratio to 2.321 waste to ore. The average grade of mined ore was 1.02 grams a ton, in line with the mine plan. The reconciliations between the grade control and reserve model is also in line with expected tolerance.

Speaker Change: As we saw definitive sign that the improvement that were deployed throughout the quarter and during the shutdown in September are having a miserable and meaningful positive impact on operations.

Mining activities totaled $10 4 million tons in the third quarter 2024 in line with the prior quarter and our 10 mines increased $3 2 million tons during the period with a necessarily a decrease in the strip ratio to two three to one waste to ore.

Speaker Change: The average grade.

Speaker Change: Mine or was 1.02 grams a ton in line with the mine plan the rig cancellations between the grade controlled and reserve model is also in line with expected tolerance.

Speaker Change: Within the pet the mine currently has two cats 60, 60 electric shock loss and 18 Cat 793 autonomous haul trucks in operation.

Renaud Adams: Within the pit, the mine currently has 2 Cat 6060 electric shovels and 18 Cat 793 autonomous haul trucks in operation, with an additional 3 haul trucks to be commissioned before the end of the year. Utilization rates of the primary mining equipment has been improving. Drilling and blasting activity has seen month-over-month improvement from enhanced drill fleet performance with better blast pattern preparation, resulting in a higher level of intact blasted ore inventory available for loading and hauling. The current mine plan is using multiple stock piles segregated by grade, with the 43-101 estimating a total of 78 million tons of rehandle ore mill feed over the life of mine. This strategy is proving today to require higher than expected amount of rehandling, which are seeing indication of flowing through to mining costs. Year to date, mining costs have averaged $3.77 per ton.

Speaker Change: With an additional three haul trucks to be commissions before the end of the year.

Utilization rates of the primary mining equipment has been improving.

Speaker Change: Drilling and blasting activity has seen months over months improvement from enhanced drilled fleet performance with better blast pattern preparations, resulting in a higher level of vintage blasted all inventory available for loading Ali.

Speaker Change: The current mine plan is using multiple stockpile segregated by great with the 40 311, estimating a total of 78 million tons.

Speaker Change: Re handle or mill feed over the life of mine.

Speaker Change: This strategy is proving to date to require higher than expected amount of re handling which are seeing indication are flowing through to mining costs.

Speaker Change: Year to date mining costs have averaged $3 77 per ton.

Renaud Adams: This is higher than expectation due to the rehandling, as well as higher contractor costs to support the ramp up the mine. We expect to see unit mining costs decline as we bring in the full fleet and reduce the need for external support. Further, we are looking at refining some aspect of the mining strategy to optimize ore handling and move towards more of a bulk mining scenario when economically possible, and as the mill continue to increase its overall throughput. The ramp up of the plant was the primary technical focus of our efforts in the quarter, with a headline milestone of achieving commercial production midway through the quarter, as well as multiple days of achieving above nameplate. Mill throughput in Q3 total of 1.6 million tons.

Speaker Change: This is higher than expectation due to very handling as well as higher contractor costs to support the ramp up the mine.

Speaker Change: We expect to see unit mining costs decline as we bring in the full fleet and reduce the need for external support further we are looking at refining some aspect of the mining strategy to optimize our handling and move towards more of a bulk mining scenario when economically possible.

Speaker Change: And as the mill continued to increase its overall throughput.

Speaker Change: The ramp up of the plan was the primary technical focus of our efforts in the quarter, where the headline milestone of achieving commercial production midway through the quarter as well as multiple days of achieving above nameplate.

Speaker Change: Mill throughput in the third quarter totaled one point, because one 6 million tonnes and notable improvement quarter over quarter.

Renaud Adams: A notable improvement quarter-over-quarter, though throughput was impacted by the mid-September plant shutdown and an unplanned shutdown at the end of the month from an electrical failure in a motor control center. Head grade of 1.41 grams a ton were in line with the mine plan, which requires feed material from a combination of higher grade direct feed ore and higher grade stockpile. Recoveries in the plant averaged a wonderful 93% in the quarter. As we noted on the last call, the main component of the processing plant, including primary, secondary crushing, HPGR, conveyors, ball mill, leaching, et cetera, all have now proven their capability to operate at or above design load when provided with stable conditions.

Speaker Change: Joe throughput was impacted by the mid September planned shutdown and an unplanned shutdown at the end of the months from an electrical failure in our motor control centers.

Speaker Change: Head grade of 141 grams, a tonne were in line with the mine plan, which required feed material from a combination of higher grade direct feed ore and the higher grade stockpile.

Speaker Change: Recoveries in the plan average a runner full 93% in the quarter.

Speaker Change: As we noted on the last call the main component of the processing plant.

Speaker Change: Including primary secondary crushing H b, Dr. Conveyors ball mill, Lychee et cetera, all have now proven our capability to operate at or above design low when provided with stable condition.

Renaud Adams: During the ramp up, the primary areas of focus for the plant were, one, the crushing circuit before the coarse ore dome, and two, everything else after the coarse ore dome or the downstream circuit, which is the HPGR through to the wet side of the plant. With the coarse ore dome filled, the downstream processing circuits demonstrate very strong performance and availability and capacity. We have focused on the crushing circuit to improve the availability and capacity. In September, the companies completed an 8-day mill shutdown at Côté to deploy key optimization and improve the operating availability of the plant in support of the goal to ramp up throughput to 90% of nameplate by the end of the year and achieve nameplate in 2025.

Speaker Change: During the ramp up the primary focus the primary areas of focus for the plan were one the crushing circuit before their car or their cost down and to everything else. After that of course R&R are downstream circuit, which is H Greene Jr. True to that.

Speaker Change: West side of the plant.

Speaker Change: With of course, our abdominal scale the downstream processing circuit demonstrated very strong performance and availability in cubic capacity. So.

So we have focus on the crushing circuit to improve the availability and capacity.

Speaker Change: In September the company's completed an eight day mill shutdown at Coty to deployed key optimization and improved the operating availability of the plant and supported their goal to ramp up throughput to 90% of nameplate by the end of the year and achieved nameplate in 2025.

Renaud Adams: The priority of the work performed during the shutdown was to stabilize the crushing circuit and attend to the primary causes for low availability in Q2, which included replacing 90% of the chute with higher abrasive resistant material to reduce the level of wear, and using new type and sizes of screen in the coarse ore screening area. These improvements have made a difference, and the plant has seen further increases in availability and performance of the secondary crusher and screening over the last few weeks, achieving multi-day performance above 40,000 tons per day in the crushing plant. We are now well-positioned to ramp up the overall processing facility to our 90% of nameplate objective as we exit the year. In October, under 80% of the nameplate has daily throughput. Achieving the additional 10% at Côté is primarily about stability.

Speaker Change: Priority of their work performed during the shutdown was to stabilize the crushing circuit and attempted a primary causes.

Speaker Change: For low availability in the second quarter, which included replacing 90% of the issue with higher abrasive resistant material to reduce the level of where and using new type of sizes of screen and of course for screening area. These improvements have made it made a difference.

Speaker Change: And the plan that I've seen further increases and availability and performance of the secondary crushing and screening over the last few weeks achieving most of the performance of our 40000 tonnes per day in the crushing plant.

Speaker Change: We are now well positioned to ramp up the overall processing facility to our 90% of nameplate objective as we exit the year.

Speaker Change: In October.

Speaker Change: Under 80% of the nameplate as daily throughput.

Speaker Change: Achieving the additional 10% of course is primarily about stability. The objective is to eliminate daily variances and processing as we already know that we can meet nameplate capacity of 36000 tons per day and potentially more.

Renaud Adams: The objective is to eliminate daily variances in processing, as we already know that we can meet nameplate capacity of 36,000 tons per day and potentially more. Every downtime brought new information and an opportunity to further improve. It is really now about achieving stability, more consistency. This is how we will earn the additional 10%. We will be installing a second cone crusher in H2 of next year at a low capital requirement to provide additional capacity and redundancy in support of the operation and throughput maximization. Lastly, as we noted previously, Côté Gold added a mobile crusher unit and conveying system that act as a dome refeed system.

Speaker Change: Every damn time brought new information.

Speaker Change: And then importantly to further improve.

Speaker Change: If the Israeli now my Barber shaving stability.

Speaker Change: More consistency.

Speaker Change: This is how we will earn the additional 10%.

Speaker Change: Furthermore, we will be installing a second cone crusher in the second half of next year.

Speaker Change: Low capital requirement.

To provide additional capacity and redundancy in support of the operation and throughput maximization.

Speaker Change: Lastly, and as we noted previously quoted all added a marble marvell crushers units and conveying system that act as a dome receipt system.

Renaud Adams: This addition provides flexibility and redundancy in time of shutdown by delivering up to 1,000 tons per hour to the dome and can operate in parallel with the crushing circuit for extra daily capacity when sporadically required. Based on the year-to-date ramp up progress, we maintain our guidance set last quarter for annual production to be at the lower end of the previous guidance range or closer to 220,000 ounces on a 100% basis. At the exit rate of 90% throughput, we estimate that cash costs will, at that time, average approximately $700 to 800 per ounce and all-in sustaining costs to be approximately $1,100 to 1,200 per ounce. We know, though, that cost may exceed these ranges depending on the timing and the one-time cost of initiative and improvement implemented to achieve the ramp up target.

Speaker Change: This addition provides flexibility and redundancy and time of shutdown by the delivering up to 1000 tons per hour to Don and can operate in parallel with the crushing circuit for extra daily capacity when sporadically required.

Based on our year to date ramp up progress, we maintain our guidance set last quarter for animal production to be at the lower end of the previous guidance range closer to 220000 ounces on a 100% basis.

Speaker Change: At the exit rate of 90% throughput, we estimate that cost cash cost well at that time average approximately 700 to $800 per ounce and all in sustaining cost to be approximately 11 100 to $200 per ounce.

Speaker Change: We note, though that cost may exceed does ranges, depending on the timing and a onetime cost of finished it says an improvement implemented two achieved a ramp up targets.

Renaud Adams: Looking into 2025, we will advance Côté towards the nameplate throughput rate of 36,000 tons per day while looking for easy win to increase the processing plant capacity. As we have noted in the past, several components of the plan have been designed for 42,000 tons per day, and we have seen multiple days above 40,000 tons per day early on in the life cycle of the project. The addition of the second cone crusher next year is aligned with our strategy of unlocking maximum value by monetizing at low capital requirement a maximum number of tons of ore mined as they become available for processing.

Looking at 2025, we will advance call it towards the nameplate throughput rate of 36000 tonnes per day, while looking for easy win to increase the processing plant capacity as we have noted in the past several component of the plan has been designed for 42000 tonnes per day.

Speaker Change: And we have seen multiple days about 40000 tonnes per day early on in the site and the lifecycle of the project.

Speaker Change: The addition of the second cone Crusher next year is aligning with our strategy of farm locking maximum value by monetizing at low capital requirement maximum number of tonnes of ore mined as they become available for processing.

Renaud Adams: Alongside this, as mentioned, we are evaluating the potential to adjust certain aspects of our mining plan at Côté to potentially shift over time to a more bulk mining approach as the mill throughput capacity is unlocked, which offers numerous efficiency advantages, including reduced rehandling, improved pit sequencing, and less reliance on segregations for the mine plan, and more on maximizing mill throughput and monetizations of gold mined. This compared to our processing rate of 36,000 tons per day, over the current life of mine, the mining rate of ore was estimated to average approximately 50,000 tons per day. The Côté deposit has estimated mineral reserves of 7.6 million ounces that form the basis of the current economics of the project.

Alongside this as mentioned we are evaluating the potential to adjust certain aspects of our mining plan at coty to potentially shift over time to a more bulk mining approach has the mill throughput capacity is unlocked.

Speaker Change: Offers numerous efficiencies advantages, including reduced handling <unk>.

Speaker Change: Proof pit sequencing and less reliance on segregation for their mine plan and more on maximizing mill throughput as monetization of gold mines.

Speaker Change: Over in our current life of mine the mining rate of or was this tomato to average approximately 50000 tons per day.

Speaker Change: This compares to a processing rate of 36000 tons per day.

Speaker Change: Dakota deposit has estimated mineral reserves across seven 6 million ounces that formed the basis of the current economics of the project on.

Renaud Adams: On a measured and indicated resources basis, the Côté zone is currently estimated at a total of 12.1 million ounces, as seen here in the dark blue pit shell at the bottom left. This does not include mineralization outside of the pit shell, highlighted in red, in what we will unofficially call the Côté North East zone. Further, the adjacent Gossan zone has an additional 4.4 million ounces of measured and indicated resources and nearly three million ounces of inferred, bringing the project to a total of 16.5 million ounces of measured and indicated, and an additional four million ounces of inferred. The size of Côté and Gossan together put the project in a very exclusive category amongst large scale producing Canadian assets. We need to consider what Côté will be when it grows up.

Speaker Change: On a measured and indicated resources basis Dakota Zone is currently estimated at a total of $12 1 million ounces as seen here in the dark blue pit shell at the bottom left.

Speaker Change: This does not include mineralization outside of the pit shell highlighted in Red and what we will unveil on officially call the coating nor pizza.

Speaker Change: Further to the adjustment Gosselin zone has an additional four 4 million ounces of measured and indicated resources and nearly 3 million ounces.

Speaker Change: Bringing the project to a total of $16 5 million ounces of measured and indicated and an additional 4 million ounces of inferred.

Speaker Change: Yes.

Speaker Change: The size of Coty, and Gosling together put the project in a very exclusive category.

Speaker Change: Amongst large scales producing Canadian asset.

Speaker Change: We need to come sit there west Coty will be when he grows up.

Renaud Adams: That is to say, we need to consider Côté not as a 7.6 million ounces project, but as a significantly bigger deposit and how to bring this value to the market. Our exploration program on Gossan and at depth under the Côté and Gossan zone progressed well this year, demonstrating extensions of mineralizations outside of the resource pit shell. Next year, we will plan to further increase our drilling efforts to upgrade the mineralization in Gossan and the Côté zone in support of a potential updated study intended for the latter part of 2026. Turning to Westwood, our other Canadian asset. It was another strong quarter for the mine, as underground activity are now able to focus on operations and less on legacy rehabilitation. It may surprise some to say, Westwood so far this year has generated CAD 53.1 million in mine-site free cash flow.

Speaker Change: And that is to say, we need to consider caught a not as a $7 6 million ounces project, but as a significantly bigger deposits and how to bring this value to the market.

Speaker Change: Our exploration program on goslin and adapt under the accordion Gosden zone progress well this year.

Speaker Change: Demonstrating extensions of mineralization outside of the resource pit shell.

Speaker Change: Next year, we will plan to further increase our drilling efforts to upgrade the mineralization and Goslin and Dakota zone in support of a potential updated study intended for the latter part of 2026.

Speaker Change: Yes.

Turning to Westwood.

Speaker Change: Otter Canadian asset it was another strong quarter for the miners underground activity.

Speaker Change: Now able to focus on operations and less on legacy of rehabilitation.

Speaker Change: It may surprise, some to say, but Westwood. So far this year has generated $53 1 million in mind free cash flow in the third quarter at a cost profile below is that correct.

Renaud Adams: In Q3 at a cost profile below Essakane. Looking at operation, Westwood produced 32,000 ounces in the quarter for a total of 99,000 ounces year to date. Ore mined from underground continued to play a more pivotal role and a higher grade, with 84,000 tons in Q3 at an average head grade of 9.09 grams a ton. The mill throughput was relatively flat quarter-over-quarter at 289,000 tons processed at an average blended head grade of 3.67 grams a ton and 93% recovery. The plant availability in the quarter of 90% was higher than the same prior year period of 86%. With plans to further improve availability through an ongoing maintenance program in addition to an annual mill shutdown plan in November. The margin for Westwood continued to improve with a strong gold price and stabilizing cost.

Speaker Change: Looking at operation Westwood produced 32000 ounces in the quarter for a total of 99000 ounces year to date.

Speaker Change: Ore mined from underground continued to play a mark pivot are wrong and our higher grade with 84000 tons into third quarter at an average head grade of 909 grams a tonne.

Speaker Change: The mill throughput was relatively flat quarter over quarter at 289000 tonnes process at an average blended a head grade of 367 grams, a tonne and 93% recovery.

Speaker Change: The plant availability on a quarter of 90% was higher than the same period same prior year period of 86%.

Speaker Change: With plans to further improve availability through an ongoing maintenance program. In addition to an annual shutdown plan in November.

Speaker Change: The margin for Westwood constantly to improve with a strong gold price and stabilizing cost.

Renaud Adams: Cash costs averaged $1,150 an ounce, all-in sustaining costs averaged $1,617 an ounce in Q3. Looking ahead, Westwood production is expected to be at the top of the guided range of 115,000 to 130,000 ounces, while costs are expected to be at the low end of the range of $1,200 to $1,300 for cash cost per ounce sold, $1,775 to $1,900 for AISC per ounce sold. Q4 unit costs are expected to be higher than Q3 due to the scheduled mill shutdown in November. This is to better position the operation for next year. Later this month, we will be issuing an updated technical report and mine plan based on reserve only for Westwood, which should demonstrate the value that has been created by the Westwood teams over the last three years of rehabilitation, redesign, and operation. Finally, looking at Essakane.

Speaker Change: <unk> $1150.

And all in sustaining costs averaged $1617 an ounce in the third quarter.

Speaker Change: Looking ahead Westwood production is expected to be at the top of the guidance range of 115 to 130000 ounces while costs are expected to be at the lower end of their range of 12, hundreds of Turkey and $100 for cash cost per ounce all in 1775 to $1900.

Speaker Change: For ASIC.

So.

Speaker Change: Fourth quarter unit costs are expected to be higher than the third quarter due to the scheduled shutdown mill shutdown in November just to better position the operations for next year.

Speaker Change: Later this month, we will be issuing an updated technical report in mine plan based on reserves only four rigs for Westwood.

Speaker Change: Which would demonstrate the value that has been created by the west with teams over the last three years, our rehabilitation redesign.

Speaker Change: And operations.

Speaker Change: Finally, looking at a sector.

Renaud Adams: It was a steady Q3 at the mine, with operation being able to perform effectively to plan in Q3. Essakane reported attributable gold productions of 100,000 ounces in Q3, bringing the year-to-date total to 329,000. Mining activity totaled 12.2 million tonnes in Q3, with only 1.19 million tonnes of ore mined, as mining prioritized waste stripping sequences in support of the 2025 production plan, including the opening of the upper benches of phase seven. Head grades were 1.26 grams a tonne in line with estimate. Average head grades decreased in Q3 from level in H1 of the year and are expected to continue the trend towards reserve grade in Q4 as the volume from phases six and seven increased and from increased proportion of stockpile ore included in the mill feed.

Speaker Change: It was a aesthetic water at the mine with operation.

Speaker Change: Being able to farm effectively to plan in the quarter. That's the kind of reported attributable gold production of 100000 ounces in the third quarter, bringing the year to date total to 329000 ounces.

Speaker Change: Mining activities totaled $12 2 million tons in the quarter with only one 9 million tonnes of ore mined as mining prioritized waste stripping sequences in support of the 2025 production plan, including the opening of the upper benches of phase seven.

Head grades were 126 grams, a ton in line with estimates average head grades decrease in the third quarter from level in the first half of the year and are expected to continue to trend towards reserve grade in the fourth quarter as the volume from phase six and seven increased and from increased proportion of stockpile.

<unk> are included in the mill feed.

Renaud Adams: On a cost basis, Essakane reported Q3 cash costs of $1,223 per ounce and all-in sustaining costs of $1,730 per ounce. An increase quarter-over-quarter on lower ounces sold, with both cash costs and AISC on track to be at the low end of our cost guidance range. Looking ahead, Essakane attributable production is expected to be at the top end of the guidance range of 380,000 to 410,000 ounces. The mill is expected to continue operating at nameplate capacity and the positive reconciliation of phase 5 is expected to continue. However, the average feed grades are expected to decrease during Q4 as mining activities continue to transition into the next phases of the pit, resulting in a lower level of ore mined, requiring ore feed to be supplemented with low-grade stockpile material.

Speaker Change: On a cost basis.

Speaker Change: It's a Guyana reported third quarter cash cost of $1223 per ounce and all in sustaining costs of $1730 per ounce.

Speaker Change: An increase quarter over quarter on lower ounces sold with both cash cost and they set on our track to be at the low end of our cost guidance range.

Speaker Change: Looking ahead Essakane attributable production is expected to be at the top end of the guidance range of 380000 to 410000 ounces.

Speaker Change: The mill is expected to come to a new operating at nameplate capacity and deposits every constellation of phase five is expected to continue however, the average feed grades are expected to decrease during the fourth quarter as mining activities continued to transition into the next phases of the pit, resulting in the lower level of <unk>.

Speaker Change: Mine, requiring our feed to be supplemented with low grade stockpile material.

Renaud Adams: The focus in the Q4 will be to further enhance the phase positioning in the pit for a strong start next year. As we begin to look into next year, Essakane continues to be a significant cash flow contributor for IAMGOLD. With a current mine life through 2028, this operation has the capability to generate over CAD 1 billion of cash flow at current gold price and is a significant part of our larger plan to deliver the company. Looking beyond the mine plan, we are continuing to examine opportunity to extend the mine life at Essakane, targeting options within the fence to ensure the safety of our team. Thank you all, and I look forward to an exciting year ahead. With that, I would like to pass the call back to the operator.

Speaker Change: Focus on the FERC water will be deferred and hands the face positioning in the pit.

Speaker Change: For a strong start next year.

Speaker Change: As we begin to look into next year is a candidate to continues to be a significant cash flow contributor for I am Bill would occur in mine life through 2020, a this operation that has the capability to generate over $1 billion over a billion dollars of cash flow at current gold price.

Speaker Change: And he is a significant part of our large and plan to de lever the company.

Speaker Change: Looking beyond the mine plan, we are continuing to examine them to examine opportunity to extend the mine life at <unk>.

Speaker Change: Targeting options within the fans to ensure the safety of our team.

Okay.

Speaker Change: So thank you all and I look forward.

Speaker Change: Uh huh.

Speaker Change: I look forward to <unk> and <unk>.

Speaker Change: Exciting year ahead with that I would like to pass the call back.

Speaker Change: Okay.

Speaker Change: Later.

Operator: Our first question comes from Lawson Winder of Bank of America. Please go ahead.

Speaker Change: We will now begin the question and answer session to join the question queue. You May Press Star then one on your telephone keypad, you will hear a tone acknowledging your request if youre using a speakerphone. Please pick up your handset before pressing any keys to withdraw your question. Please press Star then two.

Speaker Change: We will pause momentarily to assemble our roster.

Speaker Change: Our first question comes from Lawson Winder of Bank of America. Please go ahead.

Lawson Winder: Yeah. Thank you operator, and good morning, everyone.

Lawson Winder: Yeah. Thank you, operator, and good morning, everyone. Thank you, Renaud and team, for today's presentation. Can I actually just start off with a pretty basic cash flow question on working capital? Martin, there's been a moderate headwind of free cash flow in 2024 year to date, something like CAD 90 million from working capital build. First of all, at what point do you expect that to stabilize? Assuming flat gold prices from here, what does the working capital build look like for Q4? What about 2025?

Lawson Winder: Renaud and team for today's presentation.

Lawson Winder: Okay, I can just start off with a pretty pretty basic.

Speaker Change: Cash flow question on working capital.

Speaker Change: Martin I mean, theres been a moderate headwind to free cash flow in 2024 year to date, something like $90 million.

Speaker Change: Some working capital build.

Speaker Change: First of all at what point, you expect that to stabilize and then assuming flat rolled prices from here what is the working capital build look like for Q4, and then what about 25.

Renaud Adams: Good morning, Lawson. A big part of the working capital this year was at Côté #7. We had considerable accounts payable balances due to the construction still outstanding, and we've been paying those down over the course of the year as we are closing out those contracts and paying back OPEX. That will continue in Q4, we will be at the back end of that. Part of the working capital is also some of the taxes that's building up, and then we are accruing taxes at Essakane that is increasing because of higher gold prices. Other than that, we expect our accounts payable still to decrease, specifically at Côté #7, and then stabilize after that from next year onwards.

Speaker Change: Good morning listen.

Speaker Change: A big part of the working capital.

Speaker Change: This year was at Cotai.

Speaker Change: We had considerable accounts payable balances due to the construction still outstanding.

Speaker Change: And we've been buying those down over the course of the year as we are closing out those contracts and paying back hold backs.

That will continue in Q4, but then we will be at.

Speaker Change: The back end of that.

Speaker Change:

Speaker Change: We.

Speaker Change: Part of the working capital is also some of the taxes, that's building up and then we accruing taxes at Essakane.

Speaker Change: That is increasing because of higher gold prices.

Speaker Change: But but other than that we expect it to our account stable so to decrease.

Speaker Change: Specifically at Cotai ended stabilize after that.

Speaker Change: From next year onwards.

Speaker Change: Okay.

Lawson Winder: Okay. Just thinking about your net debt. If any of us look at spot gold, I think IAMGOLD could be in a net cash position by year-end of 2025. How are you thinking about what is a sufficient debt reduction target? At what point is your net debt level sufficient? First question, yeah.

Speaker Change: And then.

Speaker Change: Just thinking about.

Speaker Change: Your net debt.

Speaker Change: So any well look at spot gold.

Speaker Change: I think I am gold could be in a net cash position by year end of 2025.

Speaker Change: Or how are you thinking about.

Speaker Change: What is of sufficient debt reduction target at what point as you as your net debt levels sufficient.

Speaker Change:

Speaker Change: First the first question yes.

Renaud Adams: Yeah. We'll be looking at our debt as it comes due when we look at that and using excess cash and liquidity to deal with that. We've started paying debt this quarter already by delivering into the gold prepay, and we'll continue doing that over the course of this year and H1 of next year. Based on spot gold prices, that has a significant impact on cash, so getting that off our balance sheet is important for us.

Speaker Change: Yeah.

Speaker Change: So the first part of our so we will be looking at update as it comes due and when we look at that at using excess cash and liquidity to deal with that but we've restarted Bang date this quarter really by delivering into the gold prepay and then we will continue doing that over the course of this.

Speaker Change: This year in the first half of next year.

Speaker Change: Based on spot gold prices that has a significant impact on cash or getting that off our balance sheet is important for us.

Renaud Adams: In the middle of next year, our second lien notes become callable, and we have an opportunity to pay that back at CAD 20 million increments with excess liquidity when we can. That would be our next target using excess liquidity. After that, the biggest portion of our debt that remains is our high-yield notes, and that is a 5.75% coupon. We won't be in a rush to pay that down off of our balance sheet. Lastly, the leases that we have, about CAD 133 million, CAD 130 million at the moment, and we expect to increase that slightly still. We'll pay that down just based on the scheduled payments. That's our way that we look, and then based on the debt agreements we have without needing to make amendments, that's what we can do.

Speaker Change: Then in the middle of next year, our second lien notes becomes callable and we have an opportunity to pay that back.

Speaker Change:

Speaker Change: At $20 million increments with excess liquidity when we got so that would be our mix.

Speaker Change: Target I'm using excess liquidity and then after that.

Speaker Change: Biggest portion of our debt that remains is our high yield notes.

Speaker Change: And that is a $5 75 per se groupon.

Speaker Change: We won't be in a rush to pay that.

Speaker Change: Off of our balance sheet.

And then lastly, the leases that we have about 133 million $130 million.

Speaker Change: At the moment and we speak to increase that slightly so we.

Speaker Change: We will pay that off just based on the scheduled payments. So thats kind of our rois that we look in and based on the date agreements. We are stopped meeting to make amendments that's what we can do.

Speaker Change: Great Yeah, that's very good I appreciate that detail tremendously.

Lawson Winder: Great. Yeah, that's very good. I appreciate that detail tremendously. Okay. Looking beyond that repayment, which will be mostly wrapped up by some point in H2 of next year, what would be the capital priority considerations at that point? At what point do you start thinking about a dividend or share buybacks?

Speaker Change: Okay, so looking beyond beyond that right.

Speaker Change: Payment.

Speaker Change: The mostly wrapped up by at some point in the second half.

Speaker Change: Of next year.

What would be the capital priority.

Speaker Change: Considerations at that point.

Speaker Change: I mean at what point do you start thinking about a dividend or share buybacks.

Maarten Theunissen: Before we go to the share buyback, the most important thing once we put the prepaid behind us is to really turn the company into a net positive cash flow. That's the priority number 1. This would allow, 2025 for us is a rather continuing the ramp-up of Côté and quite frankly, Westwood and Essakane should be in a pretty steady state type of year, maximizing cash flow. As we enter 2026, as I mentioned, there could be some opportunity of extending the life of mine at Essakane. Where you would remain always positive cash flow, but maybe you could take a little bit less than 6, 7 and extend the life of mine.

Speaker Change: Before we go to the to the share buyback.

Speaker Change: It is the most important thing once we put we put the prepaid behind US is to really turn the company into a net positive cash. So that's the priority number one so this would at al <unk>.

Speaker Change: <unk> 25 for US is that as a writer of continuing to ramp up of <unk> and quite frankly, Westwood and Essakane. This should be like in a pretty stiff.

Speaker Change: Stadia, and all type of fear maximizing our cash flow as we enter 2006 as as I mentioned, there could be some reports of nuclear of extending the life of mine that acts of kindness aware you would remain always positive cash flow, but maybe you could take a little bit less than six seven and extend the life of mine. So I think once we turn to <unk>.

Renaud Adams: I think once we turn the company on a positive cash flow side, we'll be capable to first look at unlocking additional organic growth at each of the assets as everyone will be capable to take care of themselves, and that's what we'll be. As mentioned, opportunities at Côté as well at the low capital requirement, the crusher. We'll eventually look back after that on the Westwood side if there are any opportunities. Net-net, this company should not be entering any additional important capital allocation more than benefiting from the free cash flow at each asset to further unlock some potential and continue to improve on the balance sheet. Even though Côté has its poise with some opportunity to increase, we do not see this as a potential important capital allocation, but rather benefit just from the free cash flow. Hope this clarifies.

Speaker Change: On the positive cash flow side will be capable to first look at unlocking additional organic growth for the asset.

Speaker Change: Everyone will be capable to take care of themselves.

Speaker Change: What would be of mention you know opportunities that car T as well at the low capital requirement of Crusher will eventually look back to that on the west side is there is some opportunities but net maps.

Speaker Change: This company should not be answering any additional important capital allocation more then benefiting from the free cash flow of each asset to further unlock some.

Speaker Change: Some potential and continue to improve on our balance sheet.

Speaker Change: Even though our even though coty has is poised with several parts of the pit to increase we do not see this as a potential important capital allocation, but rather benefit just from the free cash flow.

Speaker Change: I hope this clarified.

Lawson Winder: Okay. Yeah, no, that's very clear. Just one final thought. At some point, it might really benefit IAMGOLD shareholders to consider increasing IAMGOLD's ownership of Côté Gold. Are there certain milestones or timelines or pre-established economic considerations that would allow IAMGOLD to either marginally increase that position from 70% at some point in the future?

Speaker Change: Yeah, No that's very clear and then just one final thought.

Speaker Change: I think at some point it might.

Speaker Change: Really benefit <unk> shareholders to consider increasing I am gold's ownership of.

Speaker Change: <unk> are there certain milestones or time lines or pre established economic considerations that would allow <unk> to even marginally increase that position from 70% at some point in the future.

Speaker Change: I would say at this stage the main limiting factor is this whole thing was designed at a 70 30 right. So.

Renaud Adams: I would say at this stage, the main limiting factor is this whole thing was designed at a $730, right? We do have a partner, and we're very happy on the partnership we have. Should there be any opportunity down the road with our partners, Sumitomo, for sure we would be considering to increase. At this stage of design, that was designed at a $730, which we should be back soon. Côté is by far our best opportunity, right? Any opportunity we would seize that makes a lot of sense and generates return, we'll be looking at improving our positions or the NAV or any unlocking any organic growth. That would be always our priority number one, Côté Gold.

Speaker Change: So we do have a partner, we're very very happy Ananda partnership rehab.

Speaker Change: Should it be at Neal for can you get down the road with our partner Sumitomo for sure we would be or would be considering to to increase but at this stage of the design that was designed at a 70 30, which we should be back soon.

Speaker Change: But co pay as far our best opportunity so.

Speaker Change: Any opportunity with CS.

That makes a lot of sense and generate recurring will be looking at improving our positions are.

Speaker Change: Any locking in the organic growth that will be always a priority.

Speaker Change: Coca Cola.

Lawson Winder: Okay, fantastic. Thanks very much, guys.

Speaker Change: Okay fantastic, thanks, very much guys.

Maarten Theunissen: Thanks.

Speaker Change: Thanks.

Operator: The next question comes from Anita Soni of CIBC World Markets. Please go ahead.

Speaker Change: The next question comes from Anita Soni of CIBC World markets. Please.

Speaker Change: Please go ahead Martin good morning team.

Anita Soni: Good morning. Good morning, Renaud and team. A couple questions. Just firstly on Westwood, you said there was a mill shutdown in November. Could you tell us how long that mill shutdown would be for, how many days?

Speaker Change: Couple of questions just firstly on Westwood you said there was another shutdown in November can you tell us how.

Speaker Change: How long that mill shutdown would be for me Dave.

Speaker Change: Yeah.

Maarten Theunissen: Yeah, we're targeting five. If we see a further opportunity, we'll do it. I would say five to seven, but hopefully we do it in five.

Speaker Change: Getting five if we see further opportunity, we'll do it I would say five to seven but hopefully we do it in fact.

Anita Soni: Okay. Then next on Essakane, just want to understand what Q4 and 2025 look like there. Q4, you indicated that you're going to be pulling more stockpiles as you are focusing on stripping waste. Could you just give us an indication of what the strip ratios would be, both the operating and the capitalized strip ratio in Q4 and 2025?

Speaker Change: Okay.

And then next on that.

Speaker Change: Again, just trying to understand.

Speaker Change: What.

Speaker Change: Q4, and 2025 look like there in Q4, you indicated that youre going to be pulling more stockpiles that you are focusing on stripping waste could you just give us an indication of what the strip ratio would be both the operating and the capitalized strip ratio.

Speaker Change: Oh Bruno is.

Maarten Theunissen: Yeah. Next year we'll be back in more standard. I could already tell you that. It's a year where we should see a reduction of the total capital as well as aligned with the 43-101. In the Q4, we should normally increase. It's going to be like a much lower ore grade mine. We could go probably as far as probably four or five to one.

Speaker Change: Yeah, Yeah. So next year, we'll be back to a more standard so I could already telling you that it's a year, where we should see a reduction.

Speaker Change: Total capital as well as align with the 43 101.

Speaker Change: And the end of Q4, we should normally increase there's going to be like a much though where are our great minds. So.

Speaker Change: He could go probably as far as properly.

Speaker Change: <unk> five to one.

Renaud Adams: Depending on how it goes and the opportunity and the base positioning. In 2025, we would be back to a more regular in line probably with what we've done this year or even lower.

Depending on how it goes in the unfortunate things based positioning but in 2025, we would be back to a more irregular in line with what was done with <unk> or even lower.

Anita Soni: Around two, is that correct?

Speaker Change: So around two is that correct.

Speaker Change: Two two between two and three all waste seizing D. R. Horton they liked this year, what we have done considering another very positive year for free cash flow. So we took advantage to bush.

Renaud Adams: Between two and three, always saving the opportunity. Like this year, what we've done, considering the very positive year, the free cash flow. We took advantage to push, improve the positioning and the pit, do more waste. You can start towards maybe a two to five plan, and you could go a little bit higher. Follow the mine, the 43-101, which I think remains very relevant for 2025.

Speaker Change: Improve the positioning of the bed do more waste, but you can start.

Speaker Change: Two awards may be a two to five plan and you could go a little bit a little bit higher. So followed then by the 43 101, which I think.

Speaker Change: Remain very relevant for 425.

Anita Soni: Okay. One last question on Essakane would be the grade reconciliation. I know you tried to do work on it in the past, but it's clearly beating and continuing to beat. I think the plan for Q2 was lower grade, plan for Q3 was lower grade, and it's still hanging in there well above the reserve grade. How should we think about that on a go-forward basis? I know you'll probably tell me to use the reserve grade, but is that realistic at this point?

Speaker Change: Okay, and then last question on Essakane.

Speaker Change: Would be.

Speaker Change: The grade reconciliation I know you tried to do work on it in the past, but it clearly, beating and continuing to be I think that the plan for Q2 was lower grade planned for Q3 was lower grade and its still hanging in there well above the reserve grade so.

Speaker Change: How should we think about that on a go forward basis. I know you probably tell me to use the reserve grade, but I mean is that realistic at this point.

Renaud Adams: Well, as I mentioned in my opening comment, one of the big contributors is the Phase 5, and we've seen some extension that's going to prolong in 2025. On that point of the Phase 5s alone, it would bring normally opportunity beyond the 43-101. We'll look at this for next year. Now, we're not at the beginning of the Phase 5, but we should benefit at least another quarter, if not more, from the Phase 5. Yes, should the Phase 5 continue, as I mentioned, we should normally be able to improve beyond the 43-101 in term of grades for next year.

Speaker Change: Well as I mentioned in my opening comment I mean, one of the big contributors that phase five and we've seen like some expansion that's been a prolonged 25 so.

Speaker Change: On that point of their face buys along with brain normally opportunity beyond the 43 101, so well look at this for next year now we're not at the beginning of the phase five but we should we should benefit at least another quarter, if not more into phase five.

Speaker Change: So, yes, we shouldn't normally.

Speaker Change: Should the phase five continue as I mentioned, we should normally be able to to improve beyond the 43 101 in term upgrade for next year.

Okay. Thank you I'll pause, there and I'll, let someone else ask questions. Thank you.

Tanya Jakusconek: Thank you. I'll pause there and let someone else ask questions. Thank you.

Renaud Adams: Thank you so much.

Speaker Change: Thank you so much.

Operator: Once again, if you have a question, please press star then one. Our next question comes from Tanya Jakusconek from Scotiabank. Please go ahead.

Speaker Change: Once again, if you have a question. Please press Star then one.

Speaker Change: Our next question comes from Tanya <unk> from Scotia Bank. Please go ahead.

Alright, great. Thank you Aaron good morning, everyone and thank you for taking my question, maybe just to circle back on <unk> question on capital allocation.

Tanya Jakusconek: Great. Thank you. Good morning, everyone. Thank you for taking my questions. Renaud, maybe just to circle back on Lawson's question on capital allocation. Did I understand correctly that the priorities for you in 2025 are obviously paying down the prepaid and the notes and some of the leases, et cetera, et cetera, dealing with the debt side. Then you have some capital that you could put into Côté on the plant side. Is it safe to assume you want to extend the mine life at Essakane? That's 2025, as we go into 2026, do you think at that point you will have any additional free cash flow to look for returns to shareholders? I'm just trying to see whether return to shareholders via dividend and/or share buyback is a 2026 part of your review. It's not 2025 is what I'm understanding.

Speaker Change: Did I understand correctly.

Speaker Change: Alrighty for year end 2020 by.

Speaker Change: Obviously.

Speaker Change: You may now be prepaid in the note.

Speaker Change: And some of the leases et cetera.

Got it.

Speaker Change: Hi, Andy.

And then you will have some capital.

Speaker Change: Okay.

Speaker Change: On the client side and.

Speaker Change: Safe to assume and you want to extend the mine life asset can now that 2025.

Speaker Change: So as we go into 2020.

Speaker Change: Do you think at that point, you wont have any additional free cash flow to look for.

Speaker Change: Return to shareholders I'm, just trying to see whether return to shareholders.

Speaker Change: And or share buyback.

Speaker Change: <unk> Matt.

Speaker Change: Hi, guys.

Speaker Change: With your 2025.

Speaker Change: Im understanding.

Renaud Adams: Thanks for your questions because our shareholders obviously means a lot, and we'll always be taking into account. My capital allocation answer was really focusing more of what we see as real kind of mine site capital needs, which we still see. As you mentioned, and as we have mentioned in previous quarter, as we turn this company positive cash flow and address properly level of debt reductions, we'll continue to generate excess free cash flow. We have mentioned in the past that we will be looking down the road to how could we find a better way to reward our shareholders. This is not for 2025. We'll see how the gold market goes, but I'm expecting this company to be in excess of cash flow as we advance 2026, 2027, and beyond, which will represent some opportunity. We don't have any decision made.

Speaker Change: Thanks for your questions because our shareholders obviously.

Speaker Change: It means a lot and will always be taking into account. So my my capital allocation and serve was really focusing more on what we see has real kind of mine site capital needs, which we still see with them.

Speaker Change: But as you mentioned and as we have mentioned in previous quarter.

Speaker Change: As we turn this company positive cashflow and address properly lab Waldorf debt reductions work constantly to generate excess free cash flow and we have mentioned in the past that we will be looking down the road to how could we find a better way to reward our shareholders. This is not for.

Speaker Change: 25.

Speaker Change: We will see how the amount of gold market goes, but I'm expecting this company to be in excess of cash flow as we advanced six some excitement beyond and which would represent some opportunities. We don't have any decision made this is all part of <unk>.

Renaud Adams: This is all part of strategic approach as we advance in time. I'm looking at 2024, looking how we are advancing. I'm very excited about what this company could be next year towards the Q3. There are some big priority that would make a difference for the shareholders. As you know, the second lien is very expensive, and we must find a way to reduce cost of that. After that, down the road, once you adjust your balance sheet, I think there would be opportunity for the shareholder. Thank you for this question.

Strategic approach as we advance in time, but I'm looking at 'twenty four looking how we are advancing I'm very excited about what this company could be next year towards the Q3.

Speaker Change: There are some big priority that would make a difference for the shareholders. As you know the second lien is very expensive and we must find a way through reduced cost of that.

Speaker Change: But after that down the road once you've adjusted your balance sheet I think they would be a portion to our shareholders. So thank you for this question.

Tanya Jakusconek: Okay. Looking at 2026 and beyond for that opportunity.

Speaker Change: Okay.

Speaker Change: <unk>.

Speaker Change: And beyond for that opportunity, yeah that cannot really be up before that because we do have that so I think as we advanced 26 and beyond looking at the needs of the excess cash flow, we'll be looking at what could be done.

Renaud Adams: Yeah, that cannot really be before that because we do have that. I think as we advance 2026 and beyond, looking at the needs, at the excess cash flow, we'll be looking at what could be done, yeah.

Tanya Jakusconek: Perfect. Renaud, my second question is just on Westwood. I know the 43-101 technical study is coming, and I think I need to ask this on one of the other calls. Can you just remind me what you have said is the long-term production target and cost target for this asset? Was it 150,000 ounces of one? If you could do that's great.

Speaker Change: Okay, and then fair enough.

Speaker Change: Second question is just on Westwood I never be at 43 101 technical savvy.

Speaker Change: And I think I need to ask them.

Speaker Change: One of the other constant can you just remind me.

Speaker Change: Why can't you have kind of status.

Speaker Change: Production target and target.

Speaker Change: <unk>.

Speaker Change: 150000 M D.

Speaker Change: Yes.

Speaker Change: Great.

Speaker Change: Yeah no. Thanks for your questions because we will be filing our 43 101, but in all fairness. The 43 101, you know by the nature of the mindset deep Minders credit bid a fond associate and all not quite into reserve category. So you've seen the reserve of the.

Renaud Adams: Yeah, no, thanks for your question, because we will be filing the 43-101. In all fairness, the 43-101, by the nature of the mine, it's a deep mine, there is quite a bit of ounces not quite in the reserve category. You're seeing the reserve at the end of December is about 1 million ounces, and the 43-101 is based on reserve only. There is quite a significant amount of other ounces that, of course, are part of the life of mine and so forth. An average of 130, 140. I like to say I see this mine down the road at a steady 125 to 150 type of range, and this is just with the current life of mine. Once the Grand Duc is done, there will be further opportunity, and extra capacity at the mill down the road, that could be.

Speaker Change: At the end of December is about the mailing announcing the 43 101 is based on reserve romley.

Speaker Change: But there is quite a significant amount of otter ounces that are of course part of the life of mine and so forth. So.

Speaker Change: An average of 100, then you know 30 40, so I like to say I see this mine down there all of that as a steady 125 to 155 plus range and this is just with the current life of mine.

Speaker Change: Ones that Grand Duke is done they.

They will be further opportunity, you know and and the extra capacity at the mill down the road that could be so I would say as a base case is probably a 125 40.

Renaud Adams: I would say as a base case, it's probably 125, 140. In terms of cost, I would wait for the 43-101 to highlight a little bit more of that. I don't want to be ahead of the ski here, so a few weeks will be a better answer to this question. You will see a drop from the current range just because of the level of rehabilitation that would ease down. That would lower some costs. If we do 1,600 today, you should expect down the road the mine to be capable to do better than that.

And in term of cost Uh Huh I wouldn't wait for the 43 101 to highlight a little bit more of that so I don't want to be ahead of my ski ski here. So a few weeks will be will be a better answer these questions, but you will see a drop from the current range just because of the level.

Speaker Change: Rehabilitations that with.

Speaker Change: Now so that would lower some costs. So if we do 60 and 100 today you should expect down the road the mind to be capable to do better than that.

Speaker Change: Okay Alright.

Tanya Jakusconek: Looking forward to it getting. Maybe my final question, I just wanted to circle back, Renaud, on something you said earlier, which was on inflation. Very focused on this. I think that 35% of your cost structure is labor, correct me if I’m wrong. Can I just understand, number 1, what is your labor inflation currently, and how are you thinking about that into 2025? That’s my first question. Is 35, Martin, the right number as a percentage of cost for labor? The inflation.

Speaker Change: And then maybe my final question I, just wanted to circle back on something.

Speaker Change: In fact earlier rich walk on inflation alright, okay on that.

I think 35% of your cost structure Labor correct me if I'm wrong.

Speaker Change: Can I just.

Speaker Change: Number one what.

Speaker Change: Sure Nathan.

Nathan: <unk> currently and how you're thinking about that into 2025.

Speaker Change: My first question for 35, Martin the right number at the procurement costs for Labor and then.

Speaker Change: Hi.

Renaud Adams: I'll pass it to Martin for more further detail then.

Speaker Change: I'll pass it to Martin for more sort of detail on it.

Maarten Theunissen: Good morning, Tanya. 35% is still the amount for labor and contractors in our cost structure. That will change slightly as Côté becomes a bigger part of our organization now going forward, because Côté has less labor than Essakane, for example. When we look at our budgets, which we're still working on, and we look at what the industry is doing as well as CPI, we're seeing 3% to 3.5% increases for labor on average. I think that's in line with what other people are seeing as well.

Speaker Change: Good morning, Tanya So 35% is is still there.

Martin: The amount.

Martin: Demand for labor and contractors in our cost structure that will change slightly as <unk> becomes a bigger part of our organization now going forward.

Martin: Because go to as this LIBOR Dennis the card for example.

Martin: When we look at our budget, which we're still working on it and we look at what.

Martin: Industry is doing as well as CPI, we're seeing like three to three 5% increases for labor on average, but I think thats in line with what other people are seeing as well.

Tanya Jakusconek: As we go forward, would that 35% move to 40% in labor, or would it be higher, like with the contractor? I am just trying to understand what that 35 would move to.

Martin: And as we go forward with that activity.

That moved from 40% in labor or would it be higher.

Martin: With the contractor.

Martin: Just trying to understand what that 75 million.

Martin: I think that 35 to maybe decrease.

Maarten Theunissen: I think the 35 would maybe decrease because of the higher labor component in Essakane than at Côté. We're just working through those numbers as well.

Martin: Is it because of the labor component dialogue component in a cab CNET.

At Cotai, but we're just working through those numbers as well so it would it would it should not be should not change.

Renaud Adams: It should not increase.

Renaud Adams: It should not change.

Renaud Adams: It should be a slightly decrease.

Martin: It should be a slight decrease slight decrease.

Maarten Theunissen: Yes. Slightly decrease.

Tanya Jakusconek: That 35% includes your employees and your contractors in that 35?

Chris: Hi, Chris.

Speaker Change: Employee and labor and your contract.

Speaker Change: Hey, Matt.

Maarten Theunissen: Correct.

Speaker Change: Correct.

Tanya Jakusconek: Okay. Can you give me the split of what that is now? What is yourself and what is contractors in that 35?

Speaker Change: Okay can you hear me.

Speaker Change: Got it.

Speaker Change: Okay.

And what are your contractor.

Speaker Change: Yeah.

Okay.

Maarten Theunissen: Based on our plan for this year, I've not checked the actuals recently, but it was about 25/10, 25% of the 35 and then 10. Labor, 25, contractors, 10 of that 35.

Speaker Change: So based on our plans for this year I have not checked the actuals recently, but it was about.

Speaker Change: 25, 25% of the 75, and then 10 so labor.

Speaker Change: 25 contractors today.

Speaker Change: All set.

Tanya Jakusconek: Okay, thank you for that. Then that 10% should decrease as Côté comes on next year, is how I understood.

Speaker Change: Okay. Thank you for that.

Speaker Change: At 10%.

Hi.

Okay.

Speaker Change: Understood.

Speaker Change: Yeah.

Maarten Theunissen: Yes.

Speaker Change: Yes, yes.

Tanya Jakusconek: Yes. Okay. Still within the 35, it's just the shift of contractors increasing versus your employees. Renaud.

Speaker Change: Yes, okay.

Speaker Change: And still within the 35.

Contractor of increasing market share.

Speaker Change: And three.

Speaker Change: And then you're right.

Maarten Theunissen: Sorry, Tanya. It's more that our total, the percentage of labor of our cost structure, the 35%, we expect to maybe slightly decrease as Côté becomes a bigger part of our overall cost structure.

Speaker Change: More of that.

Speaker Change: Sorry, Tanya it's more that we are total that the percentage of labor of our cost structure to 35%. We expect it might be slightly decrease as <unk> becomes a bigger part of our overall cost structure.

Tanya Jakusconek: Oh, I see.

Maarten Theunissen: The split between labor and contractors may not change, but it depends on how we operate the business.

Speaker Change: The split between all brands on tractors by not change, but it depends on how we operate the business.

Tanya Jakusconek: Okay. When you look at overall, and I think, Renaud, you mentioned that consumables is in line with your inflation in that portion of the cost structure, obviously the higher gold price impacts royalties that you see. As you think about 2025 and you have this labor inflation that's at 3.5% and let's say flattish on some of the other stuff, plus you have the higher gold price for the royalties, would we be thinking 5% would be a reasonable assumption for year-over-year change, 2025 to 2024?

Speaker Change: Okay.

And so when you look at overall and I think I know you mentioned that Tam came on board is in line with you.

Speaker Change: Yes.

Speaker Change: Exploration.

Speaker Change: And that point.

Speaker Change: Our cost structure, obviously at a high level.

Speaker Change: Okay.

Speaker Change: So as you think about 2025.

Speaker Change: And you have.

Speaker Change: Labor inflation.

Speaker Change: Maintain a handset.

Speaker Change: Flattish semiconductor snap like do you have a higher gold price for the royalties.

Speaker Change: Hi, Chris.

Nevertheless permission for year over year.

Speaker Change: Range.

Speaker Change: 25 to 24.

Speaker Change: Yes.

Maarten Theunissen: Tanya, there's lots of other price inputs as well. We need to look at oil, and that's been changing, so energy costs. We will be providing our guidance early next year, and we're still working through our budgets and plans as well. It's hard to confirm that number at this point.

Speaker Change: Okay.

Speaker Change: There's lots of other price price inputs as well like we need to look at oil and that's been changing.

Speaker Change: Energy costs, so we will be providing our guidance early next year and we are still working through our budgets and plans as well. So it's hard to put that number at this point.

Renaud Adams: Yeah. The thing is that you may have some, like Côté, for instance. Côté is a good example. The first year is a ramp-up, so you're looking at your consumptions that are not optimized. You may face some increase in some unit price paid, but.

Speaker Change: And they think is that you may have some like co pay for instance, right like coffee is a good examples the first years of ramp up so you're looking at your comp assumptions that are not optimized. So you may face I mean trees in Europe and some in some unit price.

Speaker Change: <unk>, but but.

Maarten Theunissen: You have further possibilities. I think 2024, 2025, we'll do anything possible to offset any possible increase. As Martin highlighted, so we'll be more specific at the start of the year, I definitely do not, because Côté has so much of improvement and opportunities, I think we still can target to offset most of the increase other than the labor.

Speaker Change: But do you have further possibility so I think in 'twenty four 'twenty five.

Speaker Change: We will do anything possible to offset you know any any possible to increase but as Martin highlighted and also we'll be more specific at the start of the year, but I definitely do not because they have so much of the improvement in all parts of these days I think we still can target to offset most of that.

Speaker Change: Most of the increase.

Speaker Change: Other than the labor.

Tanya Jakusconek: Yeah, got it. Okay, really appreciate that. Thank you for taking my question.

Speaker Change: Got it okay.

Speaker Change: Appreciate that thank you Mikael.

Speaker Change: Thank you.

Maarten Theunissen: Thank you.

Speaker Change: Our next question comes from Simon Wild Smith of Canaccord Genuity. Please go ahead.

Operator: Our next question comes from Simon Wildsmith of Canaccord Genuity. Please go ahead.

Simon Wildsmith: Hey, guys. Morning. Thanks for taking my question and congratulations on the quarter. Maybe for Martin, with strong gold prices and what seems to be an improving balance sheet, is there an opportunity to refinance the relatively high-cost term loan early?

Speaker Change: Hey, guys. Good morning, Thanks for taking my question and congratulations on the quarter.

For Martin with.

Speaker Change: With stronger prices in what seems to be an improving balance sheet is there an opportunity to refinance the relatively high cost term loan early.

Maarten Theunissen: Good morning, Simon. That loan becomes callable, or we can start repaying it now, but there is a prepayment penalty that's quite large at the moment. In May of next year, that reduces to 104%. To do anything before then, if you look at the cost of new debt and all of those costs, we don't believe that that is the best way to increase value and reduce our debt carrying cost. By middle of next year, that's when there would be an opportunity to do that.

Speaker Change: Good morning Simon.

Speaker Change: But that line becomes callable.

Speaker Change: We can start repaying it now, but there is a prepayment penalty that that's quite large at the moment. So in may of next year that reduces dropping 4%.

Speaker Change: So to do anything before then if you look at the cost of new date and all of those thoughts. We don't believe that that is the based way to to increase value and reduce our debt carrying costs, but but by middle of next year. That's when they would be an opportunity to do that.

Simon Wildsmith: Okay.

Speaker Change: Okay, and we are still delivering into the Gulf pre buy now as well.

Maarten Theunissen: We are still delivering into the gold prefund now as well. That is using a lot of the extra free cash flow at high gold price.

Speaker Change: So that is that is using a lot of the extra free cash flow at a high gold price.

Simon Wildsmith: Okay. Sounds good. Those are my only questions. Thanks, guys, and congratulations again.

Speaker Change: Okay, Okay sounds good.

Speaker Change: The question, Thanks, guys and congratulations again.

Speaker Change: Yes.

Maarten Theunissen: Thanks. Thank you.

Speaker Change: Thank you.

Operator: This concludes our time allocated for questions on today's call. I will now hand the call back over to Graeme Jennings for closing remarks.

This concludes our time allocated for questions on today's call I will now hand, the call back over to Graeme Jennings for closing remarks.

Graeme Jennings: Thank you very much, operator, and thank you, everyone, for joining us this morning. As always, if you should have any questions, please reach out to Renaud or myself. Thank you all. Be safe, and we will see you next quarter in 2025.

Graeme Jennings: Thank you very much operator, and thank you everyone for joining us. This morning as always any questions. Please reach out to renewal or myself. Thank you all of you and we will see you next quarter in 2025.

Operator: This brings to a close today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.

Speaker Change: This brings to a close today's conference call. You may disconnect. Your lines. Thank you for participating and have a pleasant day.

Speaker Change: Yeah.

Speaker Change: [music].