Q1 2025 IAMGOLD Corp Earnings Call
Thank you for standing by. This is the conference operator.
Speaker Change: Welcome to the Iamgold First Quarter 2025 operating in financial results conference call and webcast. As a reminder today, our participants are in listen only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions.
Speaker Change: To join the question cue, you may press star then one on your telephone keypad. Should you need assistance during the conference call today? You may signal an operator by pressing star then zero.
Speaker Change: 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.
Graeme Jennings: Thank you operator, and welcome everyone to our conference call today.
Renaud Adams: Joining us on the call are Renaud Adams, President, Chief Executive Officer, Marthinus Theunissen, Chief Financial Officer, Bruno Lemelin, Chief Operating Officer, Annie Torkia Lagasse, Chief Legal and Strategy Officer, and Dorena Quinn, Chief People Officer.
Renaud Adams: We are calling today from Iamgold's Toronto Office, which is located on 2013 territory on the traditional lands of many nations, including the Mississaugas of the Credit, Ashnabic, Chippewa, Houtonoshonee, and the Wendat peoples.
Renaud Adams: Iamgold, we believe respecting and upholding indigenous rights and standards upon relationships that foster trust, transparency and mutual respect.
Speaker Change: Please note that our remarks on this call will include four looking statements and referred to non-IFRS measures. We encourage you to refer to the cautionary statements and disclosures on non-IFRS measures, including the presentation and the reconciliation of these measures in our most recent MDNA, each under the heading non-GAAP financial measures.
Speaker Change: 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.
Speaker Change: The slides referenced on this call can be viewed on our website.
Speaker Change: I will now turn the call over to our President and CEO, Renaud Adams.
Renaud Adams: Thank you Graham and good morning everyone and thank you for joining us and I know it's a busy morning with burning results so we'll do our best to move things along.
Renaud Adams: Iamgold began the year with the modest production of 161,000 ounces, with yet to achieve several key milestones that further position the company for a much stronger remainder of the year.
Renaud Adams: We remain very confident in our 2025 Attributal Production Guidance target of 735 to 820,000 ounces.
Renaud Adams: which is stronger, quarterly production expected from each of our operations, James Corridor, remain there in the year.
Renaud Adams: At Cote, we have recently celebrated the best months of operations in March and April .
Renaud Adams: Achieving monthly throughput of 1 million tons process with the plan operating now at the 90% in class of an inflate.
Renaud Adams: This progress positions us well to complete the ramp up to an end-late production of 36,000 tons per day by the end of the year.
Renaud Adams: Meanwhile, we believe we have a significant amount of value yet to uncover.
Renaud Adams: This year, we are conducting a significant drill program in the Coatty and Goslin zones in support of a technical report in 2026, incorporating a mine plan that will bring the zones together into a unifies
Speaker Change: Built off a significant portion of the over 20 million ounces of resources in this town, making go they wanted the largest low-mind in Canada.
Speaker Change: Aris Akami, we will continue to the safe operation of the mines for parsing the ability to maximize cash flow generations and dividend payment out of the country.
Speaker Change: As mining moves deeper into the pit in Q2, we expect to see improvements in great reconciliation and stronger quality gold productions for the remainder of the year.
Speaker Change: And at Westwood, our focus is on expanding our underground mining areas and continuing our strong record of resource to reserve conversion.
Speaker Change: Westwood made significant strike last year to become the positive cash for the inner reading asset.
Speaker Change: And we believe there is a significant potential to improve the value further through the drill bit and are increasing the speed of higher grain materials to the mill.
Speaker Change: Eventually, we are quickly moving working through our goal-propayment arrangement, which is which
and of itself is a form of that retirement.
Speaker Change: Taking together with a pre-paced behind us by Meteor, Iamgold will be an 800,000 ounce figure producer with full exposure to gold price and significant cash low generation from three pre-cash lowing assets.
For the up-trading of the fraction, I'll talk about it yet, and I'll talk about Newt Kierp.
meets her peers on the price to cash low basis.
Speaker Change: Further, with the co-the-expansion scenario and the rapid growth of our nailing-ins in months
Speaker Change: which combined have nearly nine million ounces of global resources. Smith, Iamgold, offer a robust organic growth portfolio with them our own backyard.
Now let's dive into the first floor.
Speaker Change: Operating performance always starts with safety as ensuring all of our employees in contract at their home safely is priority number one. And the first quarter, our total recordable injury frequency rate was 0.6 to 7.
Speaker Change: A slide optic from the prior choir. Medichrana Institute.
Speaker Change: instituted a new safety program in control with a focus on critical risk management and visible leadership to reduce high potential incidents.
Speaker Change: Additionally, yesterday the company released its 2022 Sustainability Report, which mark the 18th year of Iamgold is closing the Sustainability Topics and information that are most material to our stakeholder and our business.
Speaker Change: As an organization and member of the community, we are proud of our dedication to responsible of all mining practices.
Recall in the minute the Iamgold CA Iamgold CA
Thank you for your attention.
Speaker Change: Looking at operation, Iamgold started a year with a tributal production of 161,000 ounces.
Speaker Change: as both goatee and was with production was lighter than the prior court. Personally, I've served by modestly, higher production in a second.
and Marthinus Theunissen.
Speaker Change: The first water was expected to be the lightest water of production this year due to the ramp up and associated maintenance activity of co-tape limiting throughput early in the year and the expectation and the expectation of the transitions to higher grade in the second half of the company.
Speaker Change: Its recent track record of strong performance has still been an open comes and needs to improve flexibility in the mind.
Speaker Change: cash cost average 1,459 per ounce and all in sustaining cost average 1,198 per ounce of the first quarter. Costs are expected to decline, quarter of the quarter as production ramps up and we remain confident in our kind cost guidance for the year.
Speaker Change: While lighter, the first quarter production of 161,000 ounces represents a net increase of 7% year over a year, having increased margin largely driven by the additions of go-to-go
Speaker Change: which moved from Fursdall in March 2024 to 90% plus mid-late in March 2025.
Speaker Change: This resulted in an increase of our line-side free cash flow to 140 million in Q1 compared to 46 million in the same area of the prior year.
Speaker Change: With that, I will pass the call over to our CEO to walk us through our financial
Thank you Renaud, and good morning everyone.
Marthin: In terms of financial position, at the end of the quarter, Iamgold had $316.6 million in cash and cash and net debt of $122.3 million.
Marthin: The company has 210 million grown on the credit facility and approximately 428.5 million
Resulting in liquidity at March 31 of approximately 745.8 million
Marthin: We know that within our cash and cash equivalence, 200 million was held by Sakan Bikina Faso, 46.9 million was held by Dakota Gold and Incorporated Joint Venture, and 60.6 million was held in the corporate treasury.
Marthin: Regarding our excess cash that is a can, this cash is repaid areas through evident payments of which the company will receive it share based on its ownership.
So 90% currently, net of debit and taxes.
Marthin: The size of the dividend is the pinion of cash, and the projected cash narration of this account.
Marthin: Last year, we declared a 180 million dividend in the second quarter with the company receiving its net share in September and October . We expect a similar process this year in which we will be declaring our dividend in the second quarter with disbursement in the second
on the date side of the balance sheet
Marthin: This year, Office of Significant Infliction Point for Anthos with the increase in vote prices of providing us with the ability to accelerate our plan to reduce the amount of costs of our take, the amount and cost of our take.
Marthin: One element of this, that we are making good progress on.
He's our delivery into the gold pre-buy arrangements
Marthin: During the first quarter of this year, the company delivered 3.37.500 ounces into the Golprey Bay Enrangements.
and we are 75% complete.
with the last 87,500 answers deliverable during the second quarter.
Marthin: The cash for impact is delivering into the 37,500 ounces total
Approximately 150 million during the quarter.
to 25,000 answers as of today.
Marthin: Once we have completed delivering into the GOP by arrangements, as part of our plan to reduce our carrying costs of date and date levels
Marthin: The company can start to reprise 400 million term learning at the end of May in 20 million dollar installments at 104% of the face value and 101% of the face value that we paid after [inaudible]
Marthin: The term learned has relatively higher interest in our other days in our capital structure, and responsibly paying down the facility who would achieve our objective to reduce the
Marthin: Looking at the Castro Waterfall for the first quarter at the bottom of slide 7.
Marthin: We can see the impact of delivering into a goal of prepayments has had on our operating cash flow, a cash from operating entities, including the non-cash revenue of $77.7 million before financing charges that was received from the goal of prepay was entered into.
Marthin: and Iamgold will have received the ending $2,000,000, if the $37,500 answers were sold in the market here in the quarter.
Marthin: By July this year, the pre-publications will be completed and Angold will be fully exposed to gold price at a time when we expect to see increases in production.
Revenue titled 277.1 million, from styles of 174,000 gold ounces.
Marthin: had an average rely price of $2,731 per ounce, including the impact of the gold people's arrangement.
Marthin: Excluding the impact of the GOP place, our average real estate price was $2,909 per ounce.
Marthin: The strong gold price translated to an adjusted EBDA of $204.5 million, compared to $252.5 million in the first quarter of 2024.
Marthin: Adjusted earnings were 55.2 million in the first quarter or 10 cents per share.
Marthin: Mindside free cash flow was 57.6 million on Cartray, 65.4 million as it is a can and 16.6 million at Westwood, 139.6 million for the quarter.
Marthin: As we look at it for Iamgold, we are continuously analysing what the appropriate graphical structure is for an organisation of this size with its basic classroom generation.
Marthin: Ultimately, we look forward to discussing the potential of returning value to our shareholders with a through-shave buybacks of dividends.
Marthin: But first, we need to ensure that we achieve our targets and that the business is appropriately funded and we have reduced our date to appropriate levels.
Speaker Change: and with that I will pass the course to Bruno Lemelin.
Bruno Lehmann: Thank you, Martin. Starting with Kotigo, it was a critical first water at Kotigo, with the first winter at full production.
Bruno Lehmann: As it is the case for any ramp up of a large mining project, there's a learning curve for the operations and maintenance fee.
Bruno Lehmann: They learned a stress point in every process and make adjustment to add up to real condition.
Bruno Lehmann: During the first quarter we experienced Alex accelerated maintenance in our grinding area. However, we managed to operate without major interruptions due to weather.
Bruno Lehmann: We also eat new records for stability and visualization in March, with continued improvement through April .
Bruno Lehmann: This is very positive progress for an operation of this site. A year ago, on March 31st,
Bruno Lehmann: Commercial Production was then achieved effectively four months after starting production.
Bruno Lehmann: And now we have hit the 90% monkey milestone about 11 months after putting Persego.
Bruno Lehmann: This is a great achievement and we remain on target towards our goal to achieve full-name plate of 36,000 tons per day Before the end of the year, again within the 20 month estimates as projected initially.
Bruno Lehmann: Looking at the quarter, Co-T produced 73,000 ounces on the 100% basis in the first quarter.
Bruno Lehmann: Production was lower in the quarter due to lower tons process and the revised grade profile of the mine.
Bruno Lehmann: We need to know that the mine moves away from segregated by filing to a more efficient and
Bruno Lehmann: Mining activity total 10.8 million tons in the first quarter essentially flat from Q4 2014.
Bruno Lehmann: Or mine decreased slightly to 3.1 million tons with a necessitated increase in the stripry issue to 2.5 to 1.
Bruno Lehmann: The average grade of mine or was coinciding eight gram per ton in the quarter, which reflects the updated mining schedule, as mining activities extend the fifth.
Thanks.
Potez, transition toward the Bach-Mine model and reduces Rehemi
Bruno Lehmann: Further, we saw an increase in the volume of blasted ore in the pit provide greater flexibility in supporting the Plandale Feet this year.
Bruno Lehmann: The mining process improvements and the start of the transition towards bulk mining saw some immediate benefits as we saw decreased in our mining units cost.
Bruno Lehmann: to $3.49 per ton, down from $4.19 per ton in the prior quarter.
Bruno Lehmann: Cust are expected to continue to decrease over the course of the year. As mining operations continue to ramp up closer to the target of one million times a week, and Renelin is reduced.
Bruno Lehmann: On the processing side, Neil Tripod in the first water total 2.1 million tons has a result of maintenance in repair activities on the HPGR in January and February , as we discussed on our last earning calls.
Bruno Lehmann: The changeover of the HPGR roles was completed in February 2025, and we continue to make improvements to increase the lifespan of the planned equipment.
Bruno Lehmann: For the HPGR, this includes adding some water to reduce the generation of abrasive dots, revising their roller liner material, and ensuring that a replacement set of rollers is always at high and ready to go.
Want the repairs were completed in February ?
Bruno Lehmann: The plant was able to resume its momentum, achieving a record monthly throughput of 1 million tons in March, or 9% of main play.
Bruno Lehmann: This performance continued in April as over the last 30 days, Cote Average 34,500 ton per day or 96 per person of namesake, with the record 14 days in which the plant operated above
Bruno Lehmann: Headgrades in the first quarter average 1.17 gram per tonne which were in line with our guidance of 1.1, 1.2 gram per tonne.
Bruno Lehmann: Which feed material comprise of a combination of Lyrexfeed or N-stuckfire.
Bruno Lehmann: Recovery in the plant has reached 93% in the water, a modest step up as we saw the gravity circuit come online in the water.
Bruno Lehmann: Meringas was $20.18 per tonne meal during the first three months.
Bruno Lehmann: Unicuffs were elevated in the first water due to the lower tons process, higher parts and contactor costs from the increased maintenance activities and cussed associated with the refeed circuit to support the little things during maintenance period.
Bruno Lehmann: Unit curves are expected to decrease over the course of the year as to put increases towards main plate capacity and as operation the maintenance processes stabilize.
For the example, in March, when Pothi processed one million pounds.
Bruno Lehmann: Looking ahead, we remain confident in our Cody Gold production guidance of 360 to 400,000 ounces on the 100th person basis, which is actually a doubling of production from last year to this year.
Bruno Lehmann: The primary focus continues to be the ramp-up of the processing plant toward the goal of achieving the divine capacity of 36,000,000 per day.
by the end of the field.
Bruno Lehmann: The installation of the second cone crusher in Q4 will provide further capacity and redundancy in the dry side of the plan in support of the operation and potential feature expansion.
Bruno Lehmann: The installation will require a new today's shutdown, which is accounted for in the current guidance.
Bruno Lehmann: Of course, achieving nameplate is just a start of our plans for value creation as coity.
Bruno Lehmann: Since initial design, the project has seen considerable resource growth, where the original mine plan called for a 36,000 ton per day plan.
Bruno Lehmann: Targeting just over 7 million ounces of reserves, and yet, Malcohtian Gosling-Don, combined for over 16.2 million ounces of measured and indicated, and 4.2 million ounces of impaired and resources.
are over 20 million ounces together.
Bruno Lehmann: Therefore, our plan this year is to conduct a third real program.
Bruno Lehmann: In the face water, we completed about 12,000 meter of this program prior to spring breakup.
Bruno Lehmann: Operationally, we will continue to look for opportunities to improve including options to increase.
Bruno Lehmann: Processing Plan Capacity, several components of the plant has been designed for 42,000 tons per day, and we have seen many, many days about 40,000 tons per day over the last year.
Bruno Lehmann: Long term of Putin's strategy for mining and weapons is subsequently in the gold environment where we are in, is to maximize and monetize the number of tons of ore mine as they become available for processing.
Speaker Change: As currently designed, Cody as a mining capacity to average an annual or mining rate of approximately 50,000 tons per day, Daphsis, our current main play processing of
36,000 subscribers.
Speaker Change: As part of the 2026 technical report, we will look to find the right balance to increase the scope of processing rates with the mining rates targeting a larger reserve base of the courtee that thanks for perfect.
Speaker Change: We believe the results of this will outline a low capital intensive path forward in forcing Cody Gold's position as one of the largest gold mines in the Parisian.
Speaker Change: Turning to Quebec, the first quarter at which would step down with production of 24,000 ounces, which was about 10,000 ounces less than the quarterly average last year.
Speaker Change: Pundergrown mining volumes were generally in line with 89,000 tons mine or 987 tons per day.
Speaker Change: However, Underground Headgrade came in at 6.28g per thumb compared to 8.78g per thumb in the same pair last year.
Graeme Jennings: Great mind from the underground mind was lower than the prior year due to temporary equipment challenges impacting blasting efficiency.
Graeme Jennings: That required stoke sequencing and increased dilution in certain stokes. We have seen blasting efficiencies.
Graeme Jennings: An improvement in April , and we expect to see strong volumes from underground this year as the number of stoves drilled and loaded is nearly double what they were last year.
Graeme Jennings: Meal throughput in the first water was 282,000 tons at the average blended headgrade of 2.89 grams per tonne and 91 per cent of the coverage.
Graeme Jennings: Nila Divinity, Rich 94% in the quarter, a good achievement and reflective of our team's ongoing maintenance effort.
Graeme Jennings: Kashka and Arden Sustinkas came in above our guidance ranges for the year due to the lower production volumes with Kashka's averaging $1,527 in Arden Sustink averaging $2,124 an ounce.
Graeme Jennings: The cuts are expected to fall within guidance range, same here as volume increase in the remaining nine months of the year.
Graeme Jennings: Looking ahead, we remain confident in Westwood's ability to meet of production guidance with production of 125 to 140,000 announcers.
Graeme Jennings: Open fit activities from Granthic are currently planned to be completed by the court quarter of 2025 though Granthic remain
Graeme Jennings: Bill Granjick's file material will come to you to the new seat in 2020-27. However, should go price remain where they are, there's a strong potential for further extension and extension of the Granjick's fifth, which will be illiterate this year.
Graeme Jennings: Finally, looking at this again, we saw a modest step up in production from the court water last year
with attributable production of 86,000 ounces.
Graeme Jennings: Mining activity totaled 10.9 million tons mined in the quarter, with 2.4 million tons of ore mined, translating to a strip ratio of 3.4 to 1, a decline from prior quarters as stripping activities required to open up Phase 6 and 7 moved into the rear-view mirror.
Graeme Jennings: Mel Triput in the first quarter was 3.1 million pounds, which is in line with a typical quarter at this time, with no constraints on supply chain.
Graeme Jennings: Average head grades were 1.08 gram per tonne in the quarter, which reflects mining in the upper ventures of 37.
Graeme Jennings: Great, great time to reconcile slightly below the reserve model during the earlier stages of mining a new phase.
Graeme Jennings: and conversely to the positive as mining moves deeper into a phase as was experienced in the first half of 2024 when mining activities were on the later stages of phase 5.
Graeme Jennings: On a cost basis, as I can report it cash costs of $1,557 per ounce in all interesting costs of $1,846 [inaudible]
Graeme Jennings: to start the year. Cuff are expected to improve as production improves through the year.
Graeme Jennings: As a whole, SACAM's costs have increased over the last few years due to higher-landed fuel prices in country, as well as higher supply chain and transportation costs impacted by the security situation.
Speaker Change: Thank you for watching. Please subscribe to my channel. I hope to see you again soon.
Speaker Change: Perter has the gold price increases, there's an impact to cost due to rail fees.
Speaker Change: For example, in the first water royalties accounted for $203 per ounce
Speaker Change: Looking ahead, FICAN is on track to achieve its attributable production guidance target of 360 to 400,000 Councils
Speaker Change: At the cost of seeing here, the mill is expected to operate a throughput and headrate in line with the current life of mine, though as mining moved deeper into phase 6 and 7
Speaker Change: In the second half of the year, graves are expected to reconciled for this interview over this period.
Speaker Change: While the cost of operations in the country, as risen over the recent years, the second remains a world-class mine positioned to generate strong free cash loads as waste-prepping expenditures are expected to decrease year-over-year.
Speaker Change: Finally, it is work highlighting the work ongoing at our second largest gold mining camp the net again and monthly project in Shibuya, Munchabat
Speaker Change: The first quarter we completed over 8,000 meter of reading on our 13,000 meter program targeting the extension of the Nilligan deposit.
Speaker Change: Milligan's mineral resources, as Smith was updated earlier this year, which inscated ounces increased to 3.1 million ounces with an average rate of
0.95 gram per ton
Speaker Change: and an additional 5.2 million answers in inferred at similar grades. That, again, mineralization remains open up alongside and as death with some of the most encouraging results as you can see in the diagram here.
Speaker Change: In addition, the greeting program at the Monster Lake Project is also ongoing targeting high-grade underground structures
Speaker Change: With that, I will pass it back to Renaud. Thank you, Bruno. So we look forward to the result of this program. As Maligan has seen, rapid growth from a relatively conservative drill program over the last two years.
Speaker Change: When you combine Nelligan with a high grade satellite monster leg deposit, there are nearing 9 million ounces of resources in this mining camp already.
Speaker Change: Positioning now again at a relatively early stage among the largest gold projects in Canada with significant potential for further growth.
Speaker Change: Taken to get her, there is no question that our Shibugamo asset offers significant organic growth potential in the very mining-friendly jurisdictions in Canada.
Speaker Change: So, thank you all, it is really an exciting time for Iamgold and we're very, very positive about what the rest of 2020 might hold for the company.
Speaker Change: Kote is entering the second quarter at 90% loss throughput rate with further improvements to come, including the second concrusher installation later this year.
Speaker Change: Westwood currently has record on the ground inventory ready to blast to drive off productions for the remainder of the year. The Sakan is moving into higher grade in the second half of the year.
Speaker Change: and there is substantial growth to come through the drill bit at Cote and Meliggum. So stay tuned and thank you for your support. With that, I would like to pass the call back to the operator for the Q&A operator.
Speaker Change: Thank you, we will now begin the question and answer session.
Speaker Change: To join the question cue, you may press star then one on your telephone keypad. You will hear and tone acknowledgement acknowledging your request. If you're using a speakerphone, please pick up your handset before pressing the keys. If you would like to withdraw your question, please press star then two.
We will now pause momentarily to assemble our roster.
Marthinus Theunissen: and the next is the The Uncanny Counter by Alanis Morissette and it's gonna be a look at the the The Uncanny Counter by Marthinus Theunissen and it's gonna be a look at the The Uncanny Counter by Marthinus Theunissen and it's gonna be a look at the
Anita Soni: And today's first question that comes from Anita Soni with CIBC World Markets. Please proceed.
Anita Soni: Secondly, I thought a question on the mining rates in the grades that you were delivering from the pit.
Anita Soni: I think it was .78 which was a little bit lower than what you delivered at the processing head grade. Can you just give me an idea of where your stock pile level stand particularly the high grade and medium grade portions and kind of give me some color on like how that
Anita Soni: One, firstly, how long is that 0.78, the lower grades while you try to open up the pit going to persist?
Anita Soni: And then, like, are you mining higher grades? Like, are you sort of upgrading the direct or seed and supplementing that to the mill while you do that .78? Just trying to get understanding how the grades and the throughput are going to evolve over the course of the year.
Speaker Change: So I'll ask you, Bruno, for more detail, but just as a general comment and he says, I just want to bring this conversation back to when we release you know art.
a guidance for the year.
Speaker Change: and just reminded everyone that for the first six months of the year there was already a plan.
Speaker Change: to be at the lower grade as, you know, Bruno, the teens and the co- they are focused, you know, on reposition in the faces and so forth. So we were already kind of planning that we would be a little bit lower, but we will be using stockpile. We will be using stockpile.
Bruno Lehmann: and then a second. So, I'll pass it to Bruno for more detail on this, but to me...
Bruno Lehmann: There's no real surprises there. Maybe slightly a little lower on the mining side, but because we continue to mail, or we were mining, milling at the lower rate, then the mining so you could still increase your grade to the mail to the one, to the one, to the one, to the one, to the one.
Bruno Lehmann: But no real surprises, and maybe reminded last year was a bit the same too. I hope you could mind that the reserve grade by increase your million grade by nearly 50%.
Bruno Lehmann: But now we're slowing down this, we go more direct feed, we avoid any harm necessary.
A selective mining and so far so Bruno Iamgold CA
Bruno Lehmann: Good morning, Anita, that's exactly right. In the coming quarters, the great mine is going to increase more toward the 1 gram per tonne.
Bruno Lehmann: We're also going to be mining more or great or mine.
Bruno Lehmann: Over time, so there will be some selectivity for sure, but we're trying to minimize that segregation so we can mind closer to a reserve grade. So all in all, we're going to be within 1.1, 1.2.
Bruno Lehmann: We have close to 2,000 tons of grading at over 8.8 gram per tonne and we have 8,000 tons grading at 0.55 gram per tonne. So whenever, sometimes we need to...
Bruno Lehmann: To use a stockpile to feed the stockpile varies in average around 0.8 grams to tonne But for the next water the mine the the grade of the or mine is going to be higher than 0.78 to answer your question.
Okay.
Speaker Change: Thank you. And then just in terms of the grades at Sakaan, I think he said the back half of the year would see positive grade reconciliation. I think I also had a decline in grade profile for the year. So does that mean with positive grade reconciliation that should be more of a flat profile for the year?
Speaker Change: It's going to be quite flat to be honest for the remainder of the year.
Speaker Change: It's going to be a great day, it's going to be above the 1 gram per tonne
Speaker Change: And because we're mining more ore than we are processing, we're going to be slightly selecting our grade materials for the new, but we also expect to see some good or to see the reconciliation to be as good as what we see right now.
Speaker Change: So maybe Anita just to add to this, like if you look at 2004 was a bit of the opposite, right? So we...
Speaker Change: As we move from phase five, you know, to eventually exiting yet entering no places. So, so I wish and hope, you know, that we're going to see very good result, as we transition to the highway. Of course, we need to use what we see and reserve, you know, to plan some part.
Speaker Change: But that's very likely that we see the same phenomenon that we've seen in other cases and there are certain transitions to the better zones that people see here.
Speaker Change: The thing is I can kick him on the headbrake, so we're definitely expecting a stronger than Q1.
Bruno Lehmann: But as we know, we remain conscious of preventing to not overstate what we could potentially see as great, but we should normally see the same phenomenon because we are in front of each other and we present.
Bruno Lehmann: And then, just on the unit cost at S&K, the processing cost came in better than I had expected work.
Speaker Change: I mean, better than any of the quarters we posted last year. So, is there anything, you know, driving that in particular is that currency or, you know, is that something that will persist over, you know, the rest of the year or is that, um, just maybe just sort of a one-time new one.
Speaker Change: No, nothing specific to our go-ahead Martin. One thing that is happening is, I believe, if the can is running at a bit of our throughput rate, which is driving down the sun, so it's a bit absorbing some of the fixed costs.
Speaker Change: Okay, I'll leave it there and get back into the queue. Thanks
Yeah, yeah.
Thank you.
Speaker Change: And the next question comes from Muhammad Sidhida with National Bank. Please proceed.
Mohamed Siddida: I don't know on team thanks for taking my question and maybe just to follow up on Anita's unit cuts improvement at S.A.K. I was just wondering if this was also maybe positively impacted or if you expect to see any positive impact from the lower fuel prices or diesel prices that we're seeing. Any comments on that?
Mohamed Siddida: So the total cost that we spent at ICANN was actually in line with what we expected to spend in line of the prior years as well.
Mohamed Siddida: Fuel cost in Brachina takes a bit longer to adjust to the market prices, so we've not seen the reduction in oil prices coming in there, so it is really because we in our process a bit, it is more a unit, too good impact that is driving it.
Mohamed Siddida: And maybe I could add to this, I mean, when you look at the previous water, I wouldn't necessarily say about the mining costs were necessary at lower, I think it were in line with previous, but we didn't notice that.
Mohamed Siddida: of reductions of the nailing, processing costs, and one water, and Marthin audience, compared to the last water, but in the last year we're worse systematically more like ND.
Speaker Change: 1850 and so far, I achieved an 1850. Yes, some yet good results, but
Speaker Change: We'll see in the next water, sometimes it's just a bit of the timing of certain expenses and so forth, but we're definitely confident that we could repeat at least minimum repeat what's the issue.
and Martin Luther King, Jr. Thank you.
Speaker Change: Great, thank you. And then just my second question would be at Westwood, given the lower grade and the quarter because of the temporary equipment challenges. Could you maybe give us a little bit more color into what the grades may look into Q2? Is Q2 expected to be slightly still impacted by that, or should we see a material improvement into Q2 at Westwood? Thank you.
Renaud Adams: So, as we're not to add some comments to it, so definitely we're going to see, I mean, increase as we add comments to the nation.
Bernaud: So with the change of the mining sequencing, of course we're going to lower grade, you know, the tool, but is there that
Bernaud: The total time, so it's just a matter of re-transitioning back into and there is no reason that you do not see the same as we were reminding last year, you know, as we were approaching the end of the year, we're no
Bruno Lehmann: Yeah, so one of the great for which wood is going to be for the underground mine is going to be the alarm over in between 8 and 12, so depending on the sequencing that's going to be
Bruno Lehmann: We're going to be in. So the goal for us is always to try to be as close to the reserve grade on the round as possible, like 9-10 gram per tonne.
Bruno Lehmann: So this is what we see for the next waters and for the year.
Speaker Change: Great, thank you, and if I could maybe decide in one last question, Jason Burkina on the security situation and maybe the commentary made recently better Prime Minister. Renaud, did you have any additional comments on Caller and Death?
Speaker Change: I think internally we remain extremely confident, like the security situations, you know, we wouldn't see worse than TV others, so we constantly drop rate and not a quarter without innate disruptions, you know, and the supply change and so far.
Speaker Change: To me, and to us, there is really nothing new happening. There's a lot of talking and so far, but you know it's the same information has been repeated, you know, from the last year and so forth.
Hello.
Speaker Change: There is a question a bit on the timing of certain of the aspect, but I think we are a relationship and work with the government and remain very strong. We never even remotely close to think that exactly could be referred to as a common opinion.
Speaker Change: A lot of it is the interpretation, so now we remain very confident to continue to operate.
Speaker Change: Tom Operations, Main Thing The Security, you know, allowing us to, to, to operate at a hundred percent capacity and so forth and so forth, we haven't, we haven't seen anything but the strong support from the government and all matters.
Speaker Change: So now we do not see it as an increased risk.
Great, thank you, and congrats on a good bar equity.
Thank you.
Speaker Change: And the next question comes from Panya Jakusconek with Scotia Bank, please proceed.
Speaker Change: seemed to remember it was a much lower pricing than $3,000 and now that we have the increased royalty rates from the government, it's over $3,000 they get to 8%. Can you remind me if your cash cost guidance?
Reflexat
I'm just right at the camp [inaudible]
Speaker Change: Good morning, Tanya. So our cash cost guidance assumes the dividends and the increases, but our goal price assumption in our guidance was $2,500 an ounce.
Speaker Change: So, if we look at our forecast, even with that increase, we still expect to come within the guidance range.
Thank you.
Okay.
Speaker Change: Okay, I just wanted to make sure because everyone's guys and says that that 25, 2600 and all of these things that are moving up and you just want to make sure that
Speaker Change: That still is reflective and in that guidance. Okay, so thank you so much for that and then just maybe continuing on just again I think when we last spoke we were expecting a week to one and then the strongest would be the Q4
Speaker Change: with a stronger second half. Do we have an ability, too? So we obviously have improvement happening, as it can seem to be flatish?
Speaker Change: We have improvements at Westwood and Co-Tay Court, I think quarter on quarter at Co-Tay and
Speaker Change: Westwood, I don't know if it's even we divided in the sector in the next three quarters, but can we kind of try and break? Are we at that 48-52? We have 45-55? Just to have an idea of how the year shakes out.
Bruno Lehmann: There's a lot of components to this, but I'll let Bruno start and maybe I'll...
Bruno Lehmann: So, at this I can, it's going to be clearly a stronger H2 than the H1 thing, because as you know, as we dig deeper into a phase 6 and a 7, we're going to see the other grade.
in the second half of the year.
For Westwood, we should see like the resume.
Bruno Lehmann: of the average production that we have enjoyed over the last quarters, over 30,000 low-lots per quarter. And, quote, a day that's going to be a continuous ramp up, gradual ramp up, almost linear, toward the end of the year.
So, so clearly this, I didn't have the-
Bruno Lehmann: Tanya, so clearly the second half will be stronger as you combine.
Speaker Change: The three element that Bruno is mentioning, of course we have some tie-in to do with a crosser and so forth, but globally speaking we see the three minds pretty strong in the second half with some sort of a bit of a transition. [inaudible]
Theunissen, Marthinus Theunissen, Marthinus Theunissen, Marthinus
And it's ready, the second half is.
I'm going to highlight that video. Yeah, so maybe Q2, just a bit better than Q1 and then you have the bump up in Q3, Q4. Yeah, okay, that's mine. This is mine should perform well in Q2 compared to Q1. Yeah. Okay.
Speaker Change: And then maybe coming back to what Martin was just saying when he talked about the balance sheet and he said, you know, ultimately looking to return to shareholders, through shared buybacks, dividends, etc. Maybe we can kind of review what do you need to see both from an operational standpoint and a balance sheet standpoint before you would be comfortable in thinking about shareholder returns. Thank you very much.
Speaker Change: Well, I will let Brent Martin describe how we think, but definitely we don't see this confident, you know, like
Speaker Change: and difficult things in ultra-carrier, certain levels of that, but I would definitely see on this year, we want to see a reduction of our netbed cost and volume.
Speaker Change: We don't miss a serious company with the need to go up to look at free cash, free debt, and not that free in the very short term.
Speaker Change: But Michael, maybe you could, you know, you could add to this but for us it's really about bringing the level and cost to be what we call the best in class and then after that rethinking our work at the level of education.
Speaker Change: Yes, thanks for the note. Our focus will remain over the next 12 months to continue to perform [inaudible]
Speaker Change: It depends on how we would look at it. First priority is reducing the level of date and a process of date.
Speaker Change: and then when we get to the back end of that, we're pinning on what the gold price is.
Speaker Change: It will impact the middle of next year or end of next year to see if there are options available but it's art because as you know the gold price has been very volatile so our price would just be to continue to to focus on performing and executing on our our date and then evaluate options when we're ready.
Speaker Change: Do you have a net debt to eat the job target that you want to get to before, and that would capture a gold price? You know, you want to get to before you would start thinking about capital return?
Speaker Change: Our unlimited to emitter ratio at the moment is about 1.1. We would like for it to be at 1 or less than 1.
Speaker Change: But Jakuscone, look at that when the gold price is about 3,000 so you need to look at what that would be.
if the gold price is lower as well.
Speaker Change: And that's why we say we continue to look at that, not just based on what the current Gold Places but also what it would potentially be when we are making those decisions.
Speaker Change: Okay, and I seem to think that you mentioned, you know, within 12 months out. So, it wouldn't be something that we should think about for 2025. It would probably be in mid-26 and thereafter. Would that be a fair statement?
Yes, that would be a fair statement. The gold prepays.
Speaker Change: What was the big repy month, the big impact on cash, we continue doing that and then...
Speaker Change: There's a lot of 200 million going on a creativity and the 400 on the second line so those are our so big plans we have. But I think as you mentioned, Tanya, so as you hit like mid-next year in all, should the gold price remain? And the RSA delivers, I think we're going to be in a pretty good shape in the second half.
Thank you very much.
Speaker Change: And what can I ask an exploration question? I wanted to go back to the Shibubumu camp and that emerging district and maybe just a little
and Marthinus Theunissen.
Speaker Change: How do you see yourself in this camp? Do you think you can do this on your own? Would you bring a partner in for this? Maybe some color on how this camp and your involvement in it?
Speaker Change: Now, thank you for that. So, what I like about this is not like a kind of a one-source of view, if you're looking at the map and sketches, you know.
Speaker Change: It's really a camp, it's not just limited to one, so yes, we're thinking big when it comes to it now again months away.
Speaker Change: We have seen as well the hit ratios of our drilling in the last two years, which is also pretty exceptional and it comes in New Zealand open.
Speaker Change: and there's other area within the camp we haven't really touched, but how do I see it? I see it eventually in large and low resource bays in the camp.com lines will think Peter Ball type of average can be in great width.
Speaker Change: On the ground highway, like two things that we're good at doing and and the combinations of both approach from day one will give you a lot of flexibility. Iamgold, Marthinus Theunissen, Tanya Jakusconek,
Speaker Change: Over the next two years, what I keep reminding everyone internally because everyone is excited about Malvegan is...
Speaker Change: Drill, Drill, like our objective in the next two years, you know, 25-26 Theunissen, David Smith,
Speaker Change: I've benefitted some through a filter we've taken this earlier this year is to build a resource back
Speaker Change: A large open fit-a-ball resource-based combine with a pretty decent
Speaker Change: on the ground highway. So this is the objective of the next two years. I don't like to lock out too much of the mind ability a bit and then in the short term I prefer to think that we don't know yet how big that could be, but I don't see how this scam could not be
Speaker Change: over time. And this is where we're focusing on. So by the time we put the next study at Colby out there, it is our objective to have position already now again to a certain point as we can look at it as the next.
Speaker Change: When it comes to bringing partners, I think the situation has changed significantly. This company will over the last few years. I don't see any Indian at two early.
Speaker Change: I think we have more than the capacity, talent and resources to bring this resource base to the next level. But we would always consider the de-risking aspect when it comes to the next phase and so forth. It's early stage, at this stage we don't have plans to bring. [inaudible]
Speaker Change: But we have an excellent, an excellent experience of partnering with someone in building world class, so we don't necessarily...
Speaker Change: Say that before it happened, but we just don't need to absolutely don't see the need for a partner at this stage yet.
Speaker Change: and preferring to bring this submerged little resource base at the 100% ohm.
Speaker Change: Yeah, I was looking at it far from a talent perspective, right, because it's only so much on it. Yeah, well good luck with the drilling and thank you for the slide look forward to hearing more about it as you drill away over the next two years.
Awesome. Thank you.
Speaker Change: Our next question comes from Mick Carey, Mick Rury with Canacor Genuity, please proceed.
Carrie McRury: Hi, good morning, guys. I'm just a question on Mexican. You know, your reserves are at 1500.
Carrie McRury: I'm just wondering if you can just remind us what the mine life you're assuming there is and you know if your reserves were at 2000 or 2500, you know what's the mine life extension potential there?
I'll pass it to Graham.
Speaker Change: So good morning, Terry. Of course, with the gold price increasing, like close to a thousand dollars over the last six months, we'll have to revisit our gold price assumption when
Speaker Change: Revising our Minoal Resources and Mineral Reserves, so this is a good one.
Speaker Change: A good question. We're going to challenge our current assumption and we will certainly add an impact on our second mind. Right now we have enough material up until 2029.
Speaker Change: We this year we decided to have a more intense reading campaign.
Speaker Change: See what could be the full potential of the SACAN inside the tent, as you know, with the security situation. We're not exploring too much outside the premise of the mind.
Speaker Change: So we're looking at different phases and that will have to be evaluated later.
Speaker Change: with any new Gold Prize assumptions. So I think we'll be able to come up with...
Speaker Change: New information once we have a new mining plan that will dictate how many years we could gain according to those new Gold price assumptions and according to those new Black model coming from exploration.
Speaker Change: So, don't want this company to be depending on the gold price, you know, to the farm or to increase and so forth. So, the gold price helps in a lot of ways, you know, in the debt repayment and so forth in the cash line.
But it's important to measure performance.
Speaker Change: and Financial, you know, by how good we are to execute. And I think we've come in on along to the last two years in that way. So I expect POS to use the gold price, you know, to increase our ad drilling efforts. So this is where I want to see most of the answers coming.
Thank you.
Speaker Change: Hey, great, that's it from me, and I can grab some of the progress I've got there.
Thank you.
Lawson Winder: The next question is from Lawson Winder with Bank of America Securities. Please proceed.
Lawson Winder: Yeah, thank you. I'll be right there in the morning when I went to GM Tech for the update. Can I ask about Westwood and the potential to expand my life at the open pit and add additional resources from Brando? What is it that's being considered there? Is there a conversion of some of that inferred?
Lawson Winder: resource to the planet, and would you be able to give us an idea of what we're talking about in terms of ounces like there's about a 1.8 million ounce in for a resource there. It would be a large piece at the open petival material.
Thank you.
Thank you.
Lawson Winder: Good morning Lawson, so the Gadzik is a what we call the clear swing producer, very low grade, and what it does is it helps stabilizing the middle.
Lawson Winder: We need to evaluate this for further extension would be making sense because it will require.
Lawson Winder: Capital and moving some infrastructure. So there is always like a limit.
Lawson Winder: Which you can expand and that's what we're going to be evaluating otherwise <unk> has been very good for us giving us like.
Lawson Winder: 30, 40000 gold ounces.
Lawson Winder: <unk> thousand gold ounce, a year 20, something.
Lawson Winder: It's a stabilize as we see it as a stabilizer.
Lawson Winder: As the underground.
Lawson Winder: Operation progresses.
Lawson Winder: And they're about the same thing to us.
Lawson Winder: Previous comment I think there I think that there is a <unk>.
Lawson Winder: Unbelievable opportunity at Westwood geared to increase evaporation to crystallizing our reserves.
Lawson Winder: David.
Lawson Winder: Have a resource base of over 3 million ounces.
Lawson Winder: And.
Lawson Winder: Just released last year in the technical report limited amounts.
Lawson Winder: Our confidence of course, and how we'd see Westwood over the next years as Mark.
Lawson Winder: So $4 million. So while there is a good room in our ports in India as well through the drill bit to convert some input can be brought to bear on modernizations and mile bandwidth.
Lawson Winder: Okay.
Lawson Winder: Interesting.
Lawson Winder: That would be the absolute increase reserve evaluation.
Speaker Change: No I agree this is very interesting because it can I ask Scott asked about the underground mine. So you are targeting.
Lawson Winder: <unk> tons per day in terms of our mining rate.
Speaker Change: Okay.
Speaker Change: To put this in two ways. One is what is the underground process improvement that you are actually working on and then thinking of those what is the potential to expand beyond that.
Speaker Change: Per day.
Speaker Change: What's kind of.
Speaker Change: What's the theoretical limit given the ground conditions and other considerations around the geology and Geo Tech.
Speaker Change: Yes.
Speaker Change: So the.
Speaker Change: To answer the question.
Speaker Change: Actually we're aiming at.
Speaker Change: Per day.
Speaker Change: We are seeing good days at 1100, ultimately what we'd like to achieve this 1200 tons per day, and we believe that the limit would be closer to 13 of the tons per day without changing too much input sector. Most of the improvement would come with NIM.
Speaker Change: Improvement in the transplant.
Speaker Change: Underground transportation of your.
Speaker Change: What we did we made some capital investments on their trucks and the scoop friends and colleagues.
Speaker Change: Our bus system.
Speaker Change: And as well.
Speaker Change: In terms of.
Speaker Change: <unk> designs and blasting techniques using uphold upper zones and said all the regular sub level.
Speaker Change: Don.
Speaker Change: Drilling.
Speaker Change: So all in all we are doing a lot of great improvement month after month.
Speaker Change: And we see I would say 30% improvement potential.
Speaker Change: Yet we capture.
Speaker Change: Okay very helpful and.
Christian: Christian you guys, making time here I, just realizing what about two minutes past the hour.
Christian: If I can I'd like to ask one more question just thinking around capital allocation.
Christian:
Christian: And the balance sheet and how it's set to improve quite quite materially here.
Christian: In the context of the recent Canadian asset sales from Newmont and Barrick now having this ongoing process to sell have mall, how does M&A compete with the internal options, including expansions that co pay and the projects that she broke them out.
Christian: Sure.
Christian: Okay.
Christian: The division's margin.
Christian: <unk> done more than one piece would be like if you're really looking at our pork for all you are right.
Christian: Next year, we're going to put them to renew.
Christian: A report out there.
Christian: And a significant increase in the reserve resources.
Christian: I would just talk about the net again, so far so when you're looking at are in organic potential organic growth for the next years to come with truly do not see at this stage of our company that need.
Christian: Tuna.
Christian: In the short term absolutely not we're going to focus on our assets.
Christian: Down the road I mean, we'll see <unk> C, but at this stage.
Christian: Okay.
Christian: For us it's Morgan coffee.
Christian: It creates more value to focus on organic growth.
Christian: Hi.
Christian: And sorry for the background noise here, we're competing with the window cleanest Alloa.
Christian: Perfect.
Christian: Pat on the back.
Christian: Alrighty.
Speaker Change: That's great you're coming through loud and clear. Thank you so much.
Christian: Thank you.
Graeme Jennings: And this does conclude today's question and answer session. At this time I would like to thank you on the call back over to Graeme Jennings for any closing remarks.
Graeme Jennings: Thank you very much operator, and thank you everyone for joining us. This morning as always should you have any additional questions. Please reach out to renewal or myself. Thanks. Thank you.
Graeme Jennings: Be safe and have a great day.
Graeme Jennings: Okay.
Graeme Jennings: Thank you this brings to a close today's conference call. You may now disconnect. Your lines. Thank you for participating and have a pleasant day.
Graeme Jennings: Yeah.
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