Q3 2025 IAMGOLD Corp Earnings Call
Speaker #5: Thank you for standing by . This is your conference operator . Welcome to the I am goal . Third quarter 2025 . Operating and Financial Results conference Call and Webcast .
Speaker #5: As a reminder , all participants are in a listen only mode and the conference call is being recorded . After the presentation , there will be an opportunity to ask questions .
Speaker #5: To join the question queue , you may press star , then one on your telephone keypad . Should you need assistance during the conference , you may signal an operator by pressing star .
Speaker #5: Then zero . At this time , I would like to turn the conference over to Graeme Jennings Vice President of Investor Relations for IAMGOLD CORP .
Speaker #5: Please go ahead . Mr. Jennings .
Speaker #6: Thank you . Operator and welcome everyone to our conference call today . Joining us on the call are Renaud Adams President and Chief Executive Officer , Martin Sonnichsen , chief Financial officer , Bruno Lemelin chief Operating officer Annie , chief legal and strategy officer .
Speaker #6: And chief people officer . We are calling today from IAMGOLD CORP Toronto office , which is located on treaty 13 territory on the traditional lands of many nations , including the Mississaugas of the credit , the Anishinaabeg , the Chippewa , Shawnee and the Wendat peoples .
Speaker #6: I am glad we believe respecting and upholding indigenous rights is founded 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 .
Speaker #6: We encourage you to refer to the cautionary statements and disclosures on non-IFRS measures included in the presentation and reconciliations of these measures in our most recent NDA , each under the heading non-GAAP Financial Measures .
Speaker #6: 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 #6: The slides reference on this call can be viewed on our website . I'll now turn the call over to our president and CEO , Renaud Adams .
Speaker #7: Thank you . Graham , and good morning , everyone , and thank you for joining us today . This is an exciting time for IAMGOLD CORP with another quarter of production led by strong performance at Eagle in the mind , helping to fuel record cash flow generation for the company .
Speaker #7: The current strong gold market has been very well timed for IAMGOLD CORP , coinciding with the advancement of our assets , allowing the company to advance our strategic plans ahead of schedule .
Speaker #7: We are proud of this transformation and also to introduce today our new logo and refreshment , which we believe reflect who we are today .
Speaker #7: We are extremely proud of our roots and history , but now our name stands for Innovative , accountable Mining . Iron . Gold , a modern gold mining company that is proudly Canadian , with strong cash flow and significant long term growth opportunities ahead .
Speaker #7: We mine with a mining redefined purpose in mind , putting safety , responsibility and people first . We hold ourselves accountable and embrace change and drive innovations at every level , from smarter systems and technology to better ways of working .
Speaker #7: There are many highlights to discuss for Iamgold today from our operations , financials , achievement and an improved share buyback program , which remains subject to TSX approval .
Speaker #7: We will also discuss our forward looking plans , including the expansion scenario for Codigo , which is expected to demonstrate significant upside to the current mine plan at Coté .
Speaker #7: Finally , we will cover the recent announcement of acquisitions to consolidate the Chibougamau region in Quebec to create an elegant complex . This transactions further positions Iamgold as a leading modern Canadian focused multi-asset gold mining company .
Speaker #7: I am proud of our team's achievement and remain confident in our ability to deliver enduring values for our investors and partners . While maintaining a steadfast commitment to safety and accountability .
Speaker #7: Turning to the quarter , and we're now on slide five at iamgold . The safety of our people and communities remains our top priority .
Speaker #7: And the third quarter , our total recordable injury rate was 0.56 , a 15% improvement year over year on a 12 month rolling average and covering well with our industry peers .
Speaker #7: We are focused on advancing our critical risk management program , including an important integration of contractor into the IAMGOLD CORP of safety management , with the goal to reduce high potential incidents .
Speaker #7: Looking at operations on an attributable basis , I am produced 190,000oz of gold in the third quarter . The quarterly performance was led by strong results at Cote , which produced a record 106,000oz on 100% basis , followed by an improved quarter over quarter attributable production at Isakson .
Speaker #7: As the mine saw grace bound back while mining deeper into phase seven of the pit . Year to date , Iamgold has reported 524,000oz of attributable production .
Speaker #7: As we will walk through in a moment , production , production is expected to be the highest in the fourth quarter . Positioning the company well to achieve our guidance target of 735,000 to 825,000oz of gold this year , on a cost basis .
Speaker #7: I am reported third quarter cash costs of $1,588 an ounce , and an all in sustaining cost of $1,956 an ounce . Costs remained higher year to date as a record gold prices directly and translate into higher , higher royalty compounds .
Speaker #7: With the new royalty regime in Burkina Faso , as well as higher unit costs at Cote from an increased proportion of supplementary contracted crushing to stabilize operations during our first full shutdown and until the second cone crusher is installed in the fourth quarter .
Speaker #7: Cash costs and all in sustaining costs for the year are expected to be at the top end of the guidance range , though we expect to see a strong end to the year with higher expected cash flow in the fourth quarter .
Speaker #7: On an improved production and higher margins . With that , I will pass the call over to our CFO to walk us through our financial highlights .
Speaker #7: Martin . Thank you . Renaud , and .
Speaker #8: Good morning , everyone . It was indeed an important quarter for IAMGOLD CORP as we were able to use the strong financial results to take significant steps towards our goal of delivering the company and advancing our plans to reward shareholders mindset free cash flow was 292.5 million in the third quarter , a record achieved of angles production levels following the ramp up of Kodak , increasing the company's exposure to the gold price during a record high gold price environment .
Speaker #8: The record mine site free cash flow improved our financial position and the company's net debt was reduced by 210.7 million to 813.2 million at the end of the third quarter .
Speaker #8: IAMGOLD CORP 314.3 million in cash and cash equivalents . And approximately 391.9 million available on the credit facility , resulting in total liquidity .
Speaker #8: At the end of the third quarter of approximately 707.2 million . As we noted last quarter , Canada created a a significant dividend in June of approximately 855 million , representing all of the profits of up to and including the 2024 financial year .
Speaker #8: IAMGOLD CORP 85% , 85% portion of the dividend , net of taxes , was approximately 680 million and is expected to be paid over the next 12 months through a revised framework that enables payments to be made at any time of the year based on the cash generated in excess of working capital requirements by Isa can at September 30th , 180 million of IAMGOLD CORP consolidated cash and cash equivalents was held by Isa Can in Burkina Faso , which was used to pay armed gold .
Speaker #8: A of 98 million . In early October . The remaining portion of the company's dividend receivable was converted into a shareholder account , with the first payment against a shareholder account of 56 million .
Speaker #8: Also received . In October , the company expects to receive monthly payments going forward . These funds were used to make additional payments of 170 million against the company .
Speaker #8: Second line notes , with 130 million of the original 400 million remaining outstanding . On the 4th of November , holistically , when we consider our liquidity outlook under high gold price environment , we are in a fortunate position to continue to repay debt and commence in the not too distant future .
Speaker #8: On another of our strategic initiatives , which is to reward our shareholders accordingly . Subsequent to quarter end , our Board of Directors approved a share buyback program to be put in place through an NCIB program allowing for the purchase of up to approximately 10% of IAMGOLD CORP outstanding common shares .
Speaker #8: All common shares purchased under the NCIB will be either cancelled or placed under trust to satisfy future obligations under the company's share incentive plan .
Speaker #8: Iron gold will file a Notice of Intention to implement the NCIB with the TSX and which is subject to TSX approval . Following the approval , Iamgold will be allowed to purchase these common shares over a 12 month period in the open market .
Speaker #8: This initiative reflects management confidence in the company's long term value and its commitment to disciplined capital allocation . The actual number of common shares that may be purchased , if any , and the timing of such purchases will be determined by the company based on a number of factors , including the company's financial performance , the availability of cash flows , and the consideration of other uses of cash , including capital investment opportunities and debt reduction .
Speaker #8: Turning to our financial results , revenues from continuing operations totaled 706.7 million from sales of 203,000oz on a 100% basis at a record average realised realized price of $3,492 per ounce .
Speaker #8: Cost of sales . Excluding depreciation , was 324.2 million , an adjusted EBITDA was a record 359.5 million , compared to 221.7 million in the third quarter last year .
Speaker #8: At the bottom line , adjusted earnings per share in the third quarter was $0.30 . Looking at the cash flow waterfall on the left side of site seven , we can see the year to date impact on our operating cash flow of the all prepaid deliveries , which we completed in June , as well as the impact of the second lien term payment and the dividend payment to the government of Burkina Faso .
Speaker #8: Following its declaration on a mine site , free cash flow basis , Iamgold generated 292.3 million in the third quarter , including 135.6 million from coat and 150.5 million from Eskom , driven by higher revenues due to the higher price partially offset by higher production costs .
Speaker #8: And with that , I will pass the call to Bruno Lemelin , our chief operations officer , to discuss our operating results . Bruno ,
Speaker #9: Thank you . Martin . Starting with Kotagal , it was a strong quarter with Coty reaching New milestones while maintaining stable performance at the processing plant .
Speaker #9: Notably , the plant underwear underwent its first full shutdown in August , which was executed successfully . I'm very proud of our team that Coty , it's important to remember that it's still the first full year of operation at the mine , with nameplate throughput achieved at the end of Q2 .
Speaker #9: Our teams are learning every day how to better prediction for success , including the refinement of the mine plan of the maintenance schedules and identifying efficiencies to drive continuous improvement .
Speaker #9: Now , looking at the third quarter , Coty produced 106,000oz on a 100% basis , which is a record quarter of production for the mine .
Speaker #9: Mining activity totaled 11.5 million tons in the quarter , with 3.8 million tonnes mined , equating to a strip ratio of 2 to 1 .
Speaker #9: The average grade mine was 0.96g per tonne , in line with Plan and demonstrating good reconciliation with our reserve and grade control models .
Speaker #9: Looking ahead , mining activities will continue to work on expanding the perimeter to support efficient bulk mining and also in preparation for the future expansion of Coty on processing mill throughput totaled 3 million tonnes in the quarter , averaging near nameplate in July and in September .
Speaker #9: The first annual maintenance shutdown in August was successful , with the comprehensive maintenance , maintenance cycle completed and including the replacement of the high pressure grinding roll tires .
Speaker #9: Relining of the ball mill . Changes to the primary crusher , outer shell , and additional maintenance work on the electrical infrastructure at grades average 1.8g per ton with feed material comprised of a combination of direct feed ore and stockpiles .
Speaker #9: In early recoveries averaged 94% in the quarter , which continued to be above design rates . Turning to cost , a major driver of costs this year has been associated with the temporary aggregate crusher , which is being contracted to support the processing plant .
Speaker #9: The plant was built with a single secondary cone crusher as part of the crushing circuit , and through day to day operation . We learned that this is a bottom line .
Speaker #9: This has been addressed with the addition of a second cone crusher to sustainably achieve the nameplate throughput rate and provide redundancy during shutdowns .
Speaker #9: We accelerated the push to achieve nameplate to mid-year from our original target of Q4 , in part because we found a way to maximize throughput and offset the bottleneck by incorporating an additional refit system using a contractor aggregate plant .
Speaker #9: Moving ahead nameplate . By 5 to 6 months allows for maximizing terms mill today versus waiting for the second cone crusher to provide the additional flexibility .
Speaker #9: This may account for an extra $4 per tonne mill , yet brings the opportunity to monetize tonnes already mine through the end of the year .
Speaker #9: In the third quarter , the aggregate crusher processed a higher proportion of oil due to the shutdown in August , the use of the aggregate crusher is expected to be reduced following the installation of the secondary crusher in Q4 and eventually eliminated .
Speaker #9: Looking at mining costs , we averaged $4.51 per tonne in the quarter . In the third quarter , mining costs are higher than planned due to higher , higher wear and were also impacted by the operation of the aggregate crusher and the food system .
Speaker #9: The aggregate crusher requires the utilization of mining equipment to feed it , including haul trucks and a shovel , resulting in higher amounts of handling that is accounted to mine .
Speaker #9: These costs will decrease into 2026 as further improvements are made , and the elimination of the contracted aggregate plant , meaning unit costs also increased in the quarter , averaging $22 per tonne .
Speaker #9: Mill with temporary aggregate crusher system . As a direct impact operational on our processing unit costs . As it is more costly to operate , and in the third quarter we rely on it more due to the August shutdown .
Speaker #9: Overall , we estimate around $6 per tonne was associated with the cost of the aggregate crusher in the third quarter . Maintenance costs to replace the tire and wear components accounted for one dollar $0.87 per tonne during the quarter .
Speaker #9: Unit costs are expected to decline over the course of 2026 , following the installation of the additional crusher in the fourth quarter of this year .
Speaker #9: Looking ahead , we remain confident in our gold production guidance of 360 to 400,000oz and a 100% basis , which is essentially a doubling of production from last year .
Speaker #9: As noted here , we expect expect cash costs to exceed the top end of our updated guidance range of 11 to $1200 per ounce .
Speaker #9: Old , primarily due to a combination of higher royalties impacted by a significant increase in gold price , an increase in the expected usage of the supplementary crushing during the year .
Speaker #9: To support the new feed and the expensing of certain parts and supplies that were previously expected to be capitalized . Taking to take in .
Speaker #9: Together , Coty's performing very well for an operation of the size less than 20 months after pouring its first goal , we are looking forward to seeing the impact of the installation of the second crusher in Q4 on availability and throughput , paving the way for future expansion options , which leads us to what is the most exciting slide the advancement of the Coty Superpit scenario , as we have discussed previously , we are working towards announcing an 2026 , an updated mine plan that envisioned the Coty operating as a higher throughput , targeting a significantly larger order base for from both Coty and Gosselin .
Speaker #9: The first step is reading out the superpit of Coty and Gaslight to provide the resource foundation for the mine plan . Our drills are busy at work with over 50,000m drilled so far this year , with the goal to infill an gosling and bring the bulk of mineralisation there into measured and indicated as currently designed , Coty .
Speaker #9: As the mining capacity to average an annual ore mining rate of 50,000 tonnes per day versus our current nameplate processing rate of 36,000 tonnes per day .
Speaker #9: As part of the 2026 Technical report , we will look to find the right balance between an increased processing rate with mining rates targeting the combined coating of my superb in this scenario , we anticipate a mining plan that prioritizes the extension of the plant , which could be implemented years before other major capital items that would be part of the Superpit scenario , including tailings capacity expansion and ore Gaffney Earthworks .
Speaker #9: The updated mine plan and technical report is expected to be completed by the end of next year , and in the interim , we will continue to focus on optimizing Coty , reducing our cost profile and capturing low opportunities for operational improvements and capacity expansion .
Speaker #9: Turning to Quebec in the third quarter , Westwood produced 23,000oz , bringing the year to date production to 76,000oz . Tracking below the bottom end of the guidance range of 125 to 1 40,000oz , the third quarter at Westwood saw similar results as prior quarter this year , as mining activities on the ground upgraded to lower grade stones , encountering areas of challenging ground conditions resulted in higher than expected dilution and lower mining recoveries .
Speaker #9: The teams are implementing mitigation measures that include changes in blasting techniques and refinement , scope , design and sequencing . We are already seeing improvements from these efforts .
Speaker #9: In October , with the average grade so far this month from from underground averaging over nine grams per tonne in the month . The open pit added another quarter of decent ore volume , with a reported of 315,000 tonnes mined .
Speaker #9: Open pit activities from Brunswick are currently being evaluated for an expansion in expansion of the pit . The outline scenario would push the pit into phase four , which would allow for mining until 2027 .
Speaker #9: Mill throughput in the third quarter was 250,000 tonnes , which was below the average throughput rate over the previous quarter . Due to a 14 day shutdown of the plant in July .
Speaker #9: For the replacement of a critical gear in the grinding circuit , resulting in plant availability in the quarter of 25% versus 99% in the same period prior year period .
Speaker #9: We expect to see mill throughput return to near 90% ability in the fourth quarter . As a result of the lower availability and lower time , we saw an increase in milling unit costs in the quarter .
Speaker #9: Likewise , mining costs also remained elevated due to an increase in the number of stopes prepared underground to set up the mine for the remainder of the year .
Speaker #9: Combined with an increase in mining costs , labor costs and explosives , and power consumption . Together , cash costs were $1,924 an ounce in the quarter .
Speaker #9: Looking at this year , as noted , Westwood production is expected to be below the bottom end of the range of 125 one 40,000oz .
Speaker #9: Accordingly, and despite unit cost improvements expected in the fourth quarter, annual average cash costs are expected to be above the guided range of $1,675 to $1,375 per ounce, and are expected to exceed the range of $1,800 to $1,900 per ounce.
Speaker #9: The turnaround in October is the turnaround in October is expected to be sustainable as we continue to refine stock design in the varying underground conditions at Westwood , despite the challenges in the first nine months of this year , I'm very proud of the team there as they have demonstrated their innovative and accountable mindset to operation , safety and environmental care .
Speaker #9: Turning to scan , it was a strong quarter for the mine , with production of 108,000 gold downs on a 100% basis , or 92,000oz , based on our 85% interest production rebounded on higher grades as mining activities were deeper into phase seven mining activity totaled 8.7 million tonnes , with four tonnes mine of 3.2 million tonnes equating to a strip ratio of 1.7 to 1 total turns .
Speaker #9: Mine was lower than prior periods as the mining fleet did not operate at full capacity . In August due to a fuel shortage in the country .
Speaker #9: The situation improved in September and the mining fleet was able to operate at capacity to end the quarter and into October . Mill throughput was 3.1 million tonnes at an average grade of 1.8g per tonne .
Speaker #9: The transition to the higher grade benches in phase seven was initially expected earlier in the year , but was realized in the third quarter .
Speaker #9: Grades are continued to reconcile positively to the reserve model . In October , positioning the mine for a strong fourth quarter on a cost basis .
Speaker #9: As I can reported cash costs of $1,737 per ounce and ASIC at $1,914 an ounce in the quarter , an improvement on the prior quarter .
Speaker #9: Despite the production improvement , costs remained elevated in the quarter . Over the same period last year . Royalty costs have increased 61% on a per ounce basis due to the strong gold market and the new royalty decree royalties accounted for $283 an ounce in the third quarter .
Speaker #9: Additional drivers include a higher proportion of mining costs being expensed , as well as higher maintenance activity and an increase in consumable costs , including diesel and grinding media USD equivalent labor contractor and facility costs also increased due to the appreciation of the local currency , which is pegged to the euro .
Speaker #9: Looking ahead , we estimate that will be at the midpoint of the 100% basis estimate of 400 to 440,000oz , which equates to the lower end of the attributable production guidance target based on 85% of 360 to 400,000oz .
Speaker #9: Production is expected to be higher in the first quarter due to the higher grade, as the mining sequence moved in the primary zone of phase seven. Cash costs are expected to be at the end of the guidance target of $1,600 to $1,700 per ounce sold and are expected to be at $1,800, $1,850 to $1,950 per ounce.
Speaker #9: Sold . Looking beyond next year , we are initiating conversations with the government , undermining lease renewal when hours expires in 2028 . While the cost of operations in-country has risen as account continues to be a world class mine in an important member of the Burkinabé community , the mine has over 2,000,000oz in reserves and is positioned to generate significant free cash flows , moving forward .
Speaker #9: With that , I will pass it back to Renaud to discuss our latest exciting news coming from Chibougamau .
Speaker #7: Thank you . Bruno , I really want to take a moment here to talk about our news from the two weeks ago , when I am gold announced the proposed acquisitions of Norton Superior in our mines for total consideration of approximately 267 million in shares of Iamgold and approximately 13 million in cash .
Speaker #7: The strategic rationale for this transactions are clear when you look at this map here . Her goal was to consolidate Iamgold lens position and gold resources into Sheboygan District , where Iamgold and elegant and Monster Lake assets are located , creating the next great Canadian mining camp .
Speaker #7: Our Nelligan deposit has 3.1 million ounces of indicated and another 5.2 million ounces of inferred with rapid growth from minimal drilling in recent years .
Speaker #7: Nelligan is a large scale open pit style of deposit with average grades around 0.95g a ton . Monster Lake , located approximately 15km north of Nelligan , is a high grade underground style project .
Speaker #7: Prior to the acquisition announcement , we were looking at putting out economics on elegant and Monster Lake and visioning a project that would take most of the ore .
Speaker #7: Feed from Nelligan with a high grade kicker from the lake . The potential additions of Philibert may result in a revised timeline of technical study and proposed mining scenario .
Speaker #7: Norton superiors primary asset , Philibert is an open pit style deposit located eight kilometres northeast of Nelligan . Philibert has estimated mineral resources of 2,000,000oz at an average of 1.1g , a goal making it at this time smaller yet higher grade than elegant .
Speaker #7: In the consolidated scenario . In a conceptual multi pit and underground complex mine plan , we envision Philibert as having the potential to beat initial deposit due to the higher grade infrastructure advantage , providing important synergies versus a standalone Nelligan .
Speaker #7: This year we have drilled over 16,016,000m at Nelligan and over 17,000m at Monster Lake , with both projects having seen the programs upsized and continued success at the Drill Pit .
Speaker #7: Upon completion of the transaction , we look forward next year to putting together a comprehensive program at Philibert to extend and expand mineralization .
Speaker #7: As we look to bring all these assets together . As of today , the combination of Nelligan and Monster Lake with Norton Superior's assets and Orbex property , which are now referred as the Nelligan Mining Complex , will rank as the fourth largest pre-production gold camp in Canada , with its maiden resources of over 3.8 million ounces in indicated and 8.7 million ounces inferred .
Speaker #7: The closing of this proposed transactions , subject to shareholder votes for from both North Superior and Orsbeck shareholders , as well as other customary closing conditions for transactions of that nature .
Speaker #7: Together , these asset has a bright future , and we look forward to welcoming the Northern Superior and shareholders to the Im gold team .
Speaker #7: It will be an exciting year for us with significant value growth opportunity ahead and many catalysts starting with the upside scenario for gold .
Speaker #7: But also including the advancement of the Nelligan Mining Complex as well as the valuable contribution of Westwood in this account . So thank you for your support .
Speaker #7: With that , I would like to pass the call back to the operator for the Q&A operator .
Speaker #5: Thank you . We will now begin the question and answer session . To join the question queue , you may press star , then one on your telephone keypad .
Speaker #5: You will hear a tone acknowledging your request . If you are using a speakerphone , please pick up your handset before pressing any keys .
Speaker #5: And withdraw your question . Please press star then two . We will pause for a moment as callers join the queue . And the first question will come from Satish Casey Nathan with Bank of America .
Speaker #5: Please go ahead .
Speaker #10: Yeah . Hi . Good morning . Thanks for taking my questions . Congrats on a strong quarter and addition to initiate share buybacks .
Speaker #10: My first question is on gold . So once the secondary crusher is installed , can you give us a sense of like what the anticipated cost improvements could be .
Speaker #10: Maybe talk about see the exit rate of cost as you as you exit 2025 .
Speaker #7: Yeah , it's an excellent question . As as we mentioned , we appreciate , you know , the the very high record free cash flow at Coty .
Speaker #7: And everywhere . But you know , that doesn't take away our focus on on cost . We made a conscious choice in the Q2 to maintain the aggregate plant functioning , maximizing throughput , maximizing grade by allowing you know more , more and maximizing grade and productions and free cash flow .
Speaker #7: It has worked just perfectly now , as you mentioned , moving forward . So as Bruno mentioned in his note , or Martin , both , there's about $6 a tonne right from the start on a per ton of or .
Speaker #7: By using and operating aggregate plant . And we think that with the second crusher that we'll be capable to generate our own stockpile internally .
Speaker #7: So that's one of the focuses. So right from the start down the road, and I'm not saying that's going to be a walk in the park.
Speaker #7: And a one quarter . But on the milling side definitely our objective remains to stabilize eventually down the road towards rehandling the $12 .
Speaker #7: We appreciate that our , you know , other assets may that could do slightly better , but for us , at $12 , we believe with the kind of design and configuration that's probably achievable , there will be some some transitions .
Speaker #7: Of course . Q1 probably at transitions . And as we enter Q2 on the mining side , yes , we appreciate , you know , the again , there is Rehandling has been a big component of that .
Speaker #7: Could we could we stabilize in the short term more towards the 350 . So we're working on our plan as we as we speak .
Speaker #7: But we believe that the big component here is to being capable to operate without the aggregate plan , which will have a big effect .
Speaker #7: There's other aspects we need to improve . You know , we need to improve significantly . Higher consumptions . Life on it . There's probably room to improve .
Speaker #7: You know , significantly 50 , 60% consumption . So all that will have an impact on it . Our objective remain down the road to be as close as the $3 per ton mine .
Speaker #7: I know there's been inflation all over the place and everyone is facing the same , but this is an objective not going to be there at the start of the year .
Speaker #7: But as we advance in a year three and 12 remains our strategic , strategic target . And that's the rest become pure math .
Speaker #7: You know , you mind that the reserve grade , as we're doing , you try to uplift your grade . You know , as you separate the lower grade and with the 400,000oz plus and with the better unit cost and a very low strip ratio at Coty , we definitely see this asset performing amongst the best .
Speaker #7: The best , you know , leading on the cost side . That's what we see . You do you want to add anything .
Speaker #7: ?
Speaker #9: That's exactly right . No . The mining costs will have a better performance once we stop using the aggregate crusher , reducing much more .
Speaker #9: The Rehandling . There's also many projects in terms of improving performance as we drive up in the pit with less fracture terrain . So we expect improving quarter after quarter .
Speaker #10: Okay , thanks for the color . Sorry .
Speaker #7: No , no , that's I said that's that's what we could say at this stage as we complete our plan for next year .
Speaker #10: Yeah . Thank you . That's helpful . Maybe one follow up on the share buybacks . So understand that you will begin share repurchases after you pay down the 130 million in in debt .
Speaker #10: But is there like a minimum target in mind maybe tied to a certain percentage of free cash flow that we should look at in terms of the potential for buybacks going forward , like .
Speaker #8: Good morning Satish . So once we have the program in plan , by the end of the year , it gives us that flexibility to start allocating capital to the different parts of the business .
Speaker #8: And we're kind of looking at it in thirds . We would look at internal growth and opportunities as well as we still want to repay the amount drawn on a credit facility .
Speaker #8: 250 million . And then the third part is buying back shares . We don't have to do this sequentially . We can do all of this at the same time .
Speaker #8: So so we would kind of breaking it down into thirds and starting next year we'll look at the cash being generated . And then do it that way .
Speaker #8: So that's kind of as close as percentage I guess a third that we can give at this point .
Speaker #10: Okay . Thank you . That's helpful .
Speaker #5: Okay . Next question will come from Tanya Jakusconek , Scotiabank . Please go ahead .
Speaker #11: Great . Good morning everybody . Congrats on , you know , the balance sheet really was impressed on your getting your net debt to EBITDA down so low versus Q2 I'm sorry .
Speaker #11: There's four calls going on at the same time . So I've missed a lot of yours . I just want to clarification . If I could slide 11 .
Speaker #11: You have a new technical report in mind . Plan to be released in the second half of 25 . I thought that was coming in the second half of 26 .
Speaker #11: Has that been moved forward ?
Speaker #7: No . If there was any mention to 25 , that would be a typo or mistake . Tanya . But now we remain .
Speaker #7: We remain with disclosure of our next expansions late 26 .
Speaker #11: Okay . All right .
Speaker #7: Sorry about and thank you for for for catching up . We'll fix it . Thanks .
Speaker #11: No , no , I , I just I joined when you talked about Westwood and so it was a slide before and I noticed that and I said oh my God they've moved it .
Speaker #11: I wasn't aware of it . Okay . No worries . And just maybe still on coat . If I could . Were you talked about bringing the processing costs down to that 12 , the mining cost down to three , we had talked on the previous conference call that you thought you would get there by mid 2026 .
Speaker #11: Should it be fair to say that we're still looking for that second half of 26 where we should see these costs get into that range ?
Speaker #11: Is that a fair assumption ?
Speaker #7: Well , there is one thing that we don't control and is some external factors . So let's start with that . You know , like if there's any inflation .
Speaker #7: So I'm looking at our peers , I'm looking at what we could eventually do . And this is our objective . I think the parking , the aggregate plan you would start you know like transitioning in Q1 and starting in Q2 , you must see the effect of much less rehandling , more direct feed , you know , to to final destinations , a little bit of you're going to continue to rehandle around the hg0 and if your mind your grade is lower for a period of time , you would you know , you would swap in an NGO , but but yes , starting Q2 , this is where we start seeing effect of it .
Speaker #7: And and continue to work very hard towards achieving the lowest . But we need to control our consumption mostly around of course mentioned tires and rehandling and so forth .
Speaker #7: I think we're competitive when it comes to to the procurement and so forth . So it's really on on consumptions and better control of our maintenance .
Speaker #7: We believe that the should be running better at two , allowing to feed it , you know , at a at a smaller size .
Speaker #7: And so forth . And increases like so it's not just like a one ticket type of item , but the big impact would start with the parking and the cost will be what it would be in the sense that , you know , we cannot control some external factor , but what we can control this is our intention .
Speaker #7: In 26 to get it done .
Speaker #11: Okay . So I should be sort of mid 26 that we should hopefully be there .
Speaker #7: Yeah . You should start .
Speaker #11: Yeah . Okay . And can I just come back ? I wanted to one , one more technical . If I could on just on your reserves and resources , I'm asking all companies what do you thinking about in terms of pricing as you get your mind plans in place and start thinking about your pit shells and so forth , what pricing assumptions are you looking at for 20 year end 2025 and 2026 and sort of inflation and costs ?
Speaker #12: Yeah .
Speaker #7: The most important aspects are the reserve . And as we're relooking at coat and and so forth , you know , we're very comfortable , you know , to remain at the 1700 or so for reserve at and we're going to we will look at as well what the industry is aligning and so forth .
Speaker #7: So there is no real rush there . Sarkhan is a longer short term life of mine . So there's an ability here to increase a bit and maximize maximize cash flow down there .
Speaker #7: But typically for our main asset , like Kota , we're we're not saying more than 1700 at this stage for the year ending exercise .
Speaker #7: And we're also testing the long term resource deposit , like the Nelligan and so forth . You know , we'll be testing it probably up to 2500 as a resource exercise .
Speaker #7: But but we'll be disciplined . We're not intending to use the full gold price in the short term , and like to see how the industry eventually , of course , we're going to pick the price for the study and so forth .
Speaker #7: But it is not our intention to to transform our asset and low grade using the full gold price .
Speaker #11: Okay . Thank you for that . And if I can ask a financial question , I just , you know , I saw your debt target your net debt to EBITDA down to 0.74 .
Speaker #11: And I think I heard that we still have another 250,000,000 in 2026 that we want to reduce our debt by . So I'm just wondering , one , is that correct ?
Speaker #11: I should think about another $250 million for 2026. Do we have a net debt to EBITDA target you're comfortable with? So that I can calculate the minimum cash balance on the balance sheet.
Speaker #11: So I can then sort of look at my share buyback .
Speaker #8: Good morning Tanya . So that is that is correct . We have 250 million drawn on the credit facility . And we would like to pay that down in 2025 or 2026 .
Speaker #8: But we also have 130 million left on our second lien that we plan to do this year . So that then leads us to next year .
Speaker #8: We think 200 to 250 million is a good minimum cash balance for our company . Over time . As I mentioned earlier , we'll probably build that up as a third of the capital allocation would go to that .
Speaker #8: But that's kind of the the main benchmarks , 200 to 250 minimum cash and then pay down that 250 . So from a net debt to EBITDA ratio , that would bring us down to 0.5 or maybe even less .
Speaker #8: We are comfortable with one and lower , but we also understand it's a very high gold price environment . So we don't put all of our targets for net debt to EBITDA using a high gold price .
Speaker #8: So we kind of looking at it , what would it be at lower gold prices as well ? So we don't want it to be much higher than one in a lower gold price environment .
Speaker #11: Okay . That's great . And if I could squeeze in an exploration question , I would really like to talk a little bit about the Nelligan camp and maybe Renaud .
Speaker #11: I'm keen to... You said there's synergy in that entire camp. It's never going to be called an elegant camp once this is done.
Speaker #11: Can you talk about like is it going to be are you envisioning like one central mill to to sort of treat all of these ores ?
Speaker #11: Like , how are you envisioning this camp ?
Speaker #7: Well , the I had the pleasure to be to be leading the Roosevelt gold mines at the very early days of Iamgold following the creation , the takeover of Cambier and at the very early days when I rejoined this company and I was looking at this camp , there was like a kind of an obvious type of look alike , if you will .
Speaker #7: And I'm sure you're very familiar as well with the the Roosevelt concept back in time , where we started with two and eventually had six mining areas .
Speaker #7: And so forth . I like that one even further . So because because of the high grade underground component as well , that comes at play .
Speaker #7: So the kind of the closest for us and we we've operated this place for many years . So we have a pretty good understanding and , and and mining experience of but but think of it as a bit of a kind of a Roosevelt concept back in time .
Speaker #7: Definitely a central processing facilities kind of , you know , gravity center and , and fed and , and hopefully multiple mining sources that eventually comes and go as you advance in time .
Speaker #7: So that's that's the closest example I could take . I could .
Speaker #12: Think of .
Speaker #11: And what tailings facility or should I think of it as that as well .
Speaker #7: Sorry . Yeah . Yeah yeah . No , definitely . Yeah . Yeah . One tailing but again with the new concept and minimizing footprints and the importance of protecting , you know , and minimizing environmental footprint , I could see over time a kind of a use as well of depleted pit to be incorporated in the scenario of how you minimize tailings .
Speaker #7: Purpose . So early stage . But this is our concept here . So the priority will be Philip Burnell again , Monster Lake , and eventually hopefully , you know , as we continue to drill , maybe incorporating more areas .
Speaker #12: Well .
Speaker #11: Look forward to hearing more about it next year .
Speaker #7: Thank you .
Speaker #5: Again . If you have a question , please press star then one . Our next question will come from Anita Soni with CIBC World Markets .
Speaker #5: Please go ahead .
Speaker #13: Hi . Thanks for taking my questions . Similar position to Tanya with a number of competing conference calls . So apologize if I missed anything , but I just wanted to follow up on on Tanya's questions around costs going into next year .
Speaker #13: I guess I was just trying to understand if you know , as we look at coat and sort of push towards higher tonnage , you know , where do dueling sort of things that you're thinking about , like , what are the inflationary factors that you're facing on the mining cost front ?
Speaker #13: And where do you see some offsets in terms of maybe pushing higher tonnes ?
Speaker #7: You were breaking up a bit . Sorry , I'm not .
Speaker #12: We're we're .
Speaker #7: Maybe on the mining .
Speaker #12: Yeah .
Speaker #13: No . Go ahead .
Speaker #12: Yeah .
Speaker #7: Well on if , if , if we got your your your questions and on different inflationary aspects on the cost and so .
Speaker #12: Forth .
Speaker #7: Yes we did , we did see we did see some , you know , pressure . But it's more around . We don't see necessarily , you know , like on the pressure on the on the procurement side .
Speaker #7: And Martin , you can add to this , I think it's really around the productivity and creating moving more towards bulk mining . As Bruno said , as we open the pit even further and creating more faces , minimizing the movement of equipment during blast , this is all productivity .
Speaker #7: This is all like same equipment , more movement , less rehandling and and the tire and improving on drilling , blasting . This is like the most important aspect of 26 .
Speaker #7: That would probably get us to a significant improvement . There is there is no reason for Cote , you not to lag his peers when it comes to the best mining we could do , but we've been very restricted where we haven't allowed the the group to really mine within , you know , the perfect setting and force a lot of rehandling and so forth .
Speaker #7: So we need to be patient here and give a chance to the winner here to to run the race . Bruno .
Speaker #9: Anita , like just to give you an example , the Mills side in maintenance we've done like the numerous iterations to try to find the right liners for a secondary cone crusher like more than one .
Speaker #12: Like like .
Speaker #9: Probably five , six , five different type of liners were tested out . And now we very glad to see that we have one that is performing very well .
Speaker #9: That's going to double the life lifetime of liners . So we expect to improve productivity , improve production and lower cost on the ton basis .
Speaker #9: But when you start an operation , like at the size of , you need to do some research , you need to have an iterative process on some areas to define the best parts that will trigger your cost .
Speaker #9: And that's what we do . It takes some time , but we know where we have to work .
Speaker #12: On .
Speaker #13: Okay . Thank you . I know these operations take some time to ramp . Yes . And you've done a good job .
Speaker #12: Yeah .
Speaker #7: Exactly . And and you've mentioned that Anita , more than once . And this is the thing . And maybe we sound like .
Speaker #12: We .
Speaker #7: You know , not not direct to the questions , but the reality thing .
Speaker #12: Is .
Speaker #7: From the commissioning , you're building , you know , of the 23 to the full commissioning in 24 , and you're looking at this year , our first year was .
Speaker #12: To .
Speaker #7: Really eliminate . any red flags and all remaining and so forth . 90% recovery at the mail . Perfect . Reconciliation's mining at the the mining grade proving our concept of minimizing on segregations and make it more like work .
Speaker #7: And as you could see, three quarters in a row where you actually been capable to uplift at the.
Speaker #12: Mill .
Speaker #7: So those are all like significant milestones for us at the very early .
Speaker #12: Days .
Speaker #7: To say that we enter 26 and that what we want is an average for full years of the 36 , with the full focus on the cost and you turn back and you look at what this group has , has achieved to date .
Speaker #7: And now the mission is on the cost and we're going to have the same focus and the same discipline . And you know , and attacking this , I have all reason to believe that we're going to do like great , great , great improvement on this .
Speaker #7: And that would be the first time really where we're going to be focusing on it . So from it's kind of the , the next logical step for us .
Speaker #7: After focusing this year on , on , on throughput and free cash flow analysis and so forth . So I have all reason to believe , Anita , that you're going to see great things coming out of Coty as we as we we make it our priority next year .
Speaker #13: Yeah . So that , you know , for most of the operations that are doing well , year three is definitely the the optimization year .
Speaker #13: And for years 2026 . Absolutely . So can I , can I , can I just ask just one more question in terms of sorry grades , the the grades that you're mining .
Speaker #13: So the mill , the mill plant feed has been above the mined grade . Right . So you have created some significant stockpiles previously , but now the mining , like the grades are of in the 0.9 level this quarter .
Speaker #13: Like what should we be expecting ? Like what grade profile looks like going into next year ? Is it going to be more a reserve grade or will we still have a couple of quarters of mill feed that's above ?
Speaker #7: I'll pass it to .
Speaker #12: Bruno .
Speaker #9: This is Bruno . Good morning . We have already like a good inventory of high grade at the end of Q3 . But the question is , if we -0.96 .
Speaker #9: Like , how long are we going to be able to mill at ? At a grade above that for ? We're currently looking at our 2026 budget and the the intent is still to mine higher proportion of ore that will have a grade above the the average grade .
Speaker #9: So the goal for for for quarter is is ultimately to be averaging the mining at average grade . But the first three years is going to be a little bit above that .
Speaker #9: So we're talking about 1.11.2 , which will give us like a good a good path toward the £400,000 per .
Speaker #12: Annum .
Speaker #9: So and while we are increasing capacity at the .
Speaker #12: Mill ,
Speaker #9: The grade will be reduced . But still protecting that for 450 .
Speaker #12: Level .
Speaker #7: Yeah . If I may just add something to it , it has a lot to do as well with the volume you mined .
Speaker #7: Correct .
Speaker #12: So .
Speaker #7: Like if you look at this year , how do you move from 0.96 mine to uplifting above 1.1 at the mill has a lot to do with not super segregation .
Speaker #7: but at least remove the lower grades glass from from your inventory and just talk about it a long term . So that so that practice could continue a little bit down the road .
Speaker #7: So I'm confident that by mining the the reserve grade will be capable to continue to uplift along the line of what we're seeing .
Speaker #14: Is .
Speaker #13: Thank you for taking my questions.
Speaker #14: Thanks .
Speaker #5: The next question will come from Mohamed Tabib with National Bank Capital Markets . Please go ahead .
Speaker #15: Good morning and thanks for taking my questions and apologies . I missed the start of the conference call due to conflicts there , but on the grade front , but not but maybe at Westwood , you know , given the challenging ground conditions , I think you've seen improvement in October in terms of the underground grade there .
Speaker #15: How should we think about Q4 and maybe next year, 2026, as we think about the Westwood grades and the mining rate there?
Speaker #15: Thank you .
Speaker #9: Good morning . Mohamed . So the the the plan or if I can explain Westwood on the east side as areas with less challenging ground conditions but with lower grading on the central zone in western zone , it's has the ability to give better grades , but with more challenging ground conditions .
Speaker #9: So what when you started facing those those challenging ground conditions , we just shifted our strategy and we sequenced the production of mine terms toward the east side .
Speaker #9: So that's the reason why you see the lower grade for since the beginning of this year , since then , we have readjusted the way that we do our blasting patterns , grading patterns , stroke design , stope parameters to take into account the these ground conditions .
Speaker #9: And very pleased to say that we've been very successful in October in those zones . And the average grade that we collected was above nine grams per ton .
Speaker #9: And right now what we have is we have an inventory of almost one month and a half in front of us that are accessible .
Speaker #9: So I think the the algorithm that we have developed over the past few years is working very fine , but we just need to refine it further .
Speaker #9: At the top level so we can expect safely and profitably each stope that we have in the sequence . So we just had to make some readjustments .
Speaker #9: So for the Q4 , we expect a very strong Q4 and for 2026 , it's going to be a balancing act between how much we're going to be scheduling in the East Side and the Central Zone , and so it's a risk adjusted type of planning .
Speaker #9: And again , Westwood is a mine that needs to . Deliver 10,000 gold ounces a month to be to be on X on its x .
Speaker #9: So very, very confident about the rest of the year and 2026. We're both very well.
Speaker #7: The in I may just add to this and thank you Bruno , for this to be very frank . You know like the the mine like we did a extremely well in 24 rehabilitated all the zone .
Speaker #7: There is maybe some aspect of it that maybe we , we try to run a little bit before walking . But the , the plan is I , I really have all the confidence that , you know , its pure engineering and we already seeing quite a bit of a turnaround and back on our feet .
Speaker #7: But the way we look at the mine is like we'll be absolutely happy , you know , as Bruno says , you know , an average of 10,000 a month .
Speaker #7: A mine capable to operate up to 1000 , bringing like significant free cash flow and longevity . So that's how we think of this mine for the next 2 or 3 years .
Speaker #7: The future could be very exciting, depending on what happens in uncovering all the resources to the East and so forth. So, more to come on that one.
Speaker #7: But but for the time being , when I look at the next two , three years , we'll be absolutely happy with the mine .
Speaker #7: Predictable , capable to deliver its 10,000 a month sub 2000 with that will be very happy and it would do . It would do very well for us .
Speaker #15: Thanks a lot Bruno and Renault for that . That's a very helpful . And if I could maybe shift to skin , I think you noted again , maybe you already commented on this , but you noted that you had in August a fuel shortage in the country .
Speaker #15: As you're looking at , you know , your operations . Now , we've heard kind of neighboring countries having issues and know that some of the Ivory Coast energy being provided to Burkina may have had some challenges there as well .
Speaker #15: But are you seeing any impact from fuel pressures at operation at currently , or what is the latest that you can provide on us on that front ?
Speaker #15: Thank you .
Speaker #9: So we are not using the same route as Mali does . So we have our very specific supply routes for for fuel . So that's for one .
Speaker #9: The second thing is that we have more than 48 days of inventory at the site. So, it gives us enough time to rearrange our logistics.
Speaker #9: Should we have like some acres , we have enough to maintain the operation uninterrupted . So it requires a good logistical efforts . And we have continuous support from the government allowing us to bring the convoys of fuels at sites at the appropriate time .
Speaker #9: But the main strategy was to make sure that we have enough fuel depots at the second , so we can withstand a long period of time without without supplies arriving to , to a second .
Speaker #9: So in a sense , we're not using the same roads . We don't see the same type of pressures as Mali . And so far I see the other strategy that we have is increased inventory outside .
Speaker #15: It's great to hear . Thanks a lot , Bruno . And our final question , maybe on the complex and greater consolidation of the complex , there , what should we look at in terms of next key steps for this complex ?
Speaker #15: I know that you're advancing , you know , an exploration campaign there . We potentially resource update in early 2026 . But how could we look at this beyond what are the next steps for the zone ?
Speaker #15: Thank you .
Speaker #7: So just quickly on that . So expect us you know like focusing on resource growth in 26 . You know the incorporation of the .
Speaker #7: So we need to answer one question . That is really key . How big could that be and how does it fit in the mine plan .
Speaker #7: Right . So this is the the very very key focus of 26 increased drilling program will be aggressive . But smart about proven proven record .
Speaker #7: You know from the team I'm not concerned at all there. And I think we could do a very good use of money deployed there.
Speaker #7: But that's the very short term . And as I mentioned , you know , we were hoping of maybe putting some sort of a study in 26 , but I think it's worthwhile , you know , like getting great answers , you know , from objective , you know , with almost 12 million already .
Speaker #7: So we could only shoot for the 15 , 20 million camp . And and this is what we're going to be doing . We're going to drill , drill , drill and hopefully having a very good update resource update .
Speaker #7: The late 26 , having said that , Nelligan and Monster Lake will be somewhat , you know , up at year end with the drilling of 25 in it .
Speaker #7: But but look at it as resource growth . The next year or two and then we'll start putting study out there . And anything we could advance and start putting in on place will do it .
Speaker #7: But but we have a high , high level of confidence that this is going to be a mining camp . Bruno , if you want to add anything to this .
Speaker #15: Well , thanks a lot for that answer , and congrats on a great financial performance . Thank you .
Speaker #7: Thanks .
Speaker #5: This concludes the question and answer session . I would like to turn the conference back over to Mr. Graeme Jennings for any closing remarks .
Speaker #5: Please go ahead .
Speaker #6: Thank you very much . Operator . And as always , thank you , everyone for joining . If you have any questions , please reach out to Bruno or myself .
Speaker #6: Thank you all . Be safe and have a great day .
Speaker #5: This brings to a close today's conference call . You may disconnect your lines . Thank you for your participation and have a pleasant day .