FORM 6-K
UNITED STATES
SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C. 20549
Report of Foreign Private
Issuer
Pursuant to Rule 13a-16
or 15d-16
of the Securities Exchange
Act of 1934
Date: January 16, 2017
Commission File Number 001-31528
IAMGOLD
Corporation
(Translation of registrant's name into English) |
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401 Bay Street Suite 3200, PO Box 153 |
Toronto, Ontario, Canada M5H 2Y4 |
Tel: (416) 360-4710
(Address of principal executive offices) |
Indicate by check mark whether the registrant
files or will file annual reports under cover Form 20-F or Form 40-F.
Indicate by check mark if the
registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____
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Note: Regulation
S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report
to security holders. |
Indicate by check mark if the
registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____
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Note: Regulation
S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that
the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant
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discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR. |
Indicate by check mark whether
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pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
If
"Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ________
Description of Exhibit
Exhibit |
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Description of Exhibit |
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99.1 |
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News Release Dated January 16, 2017 - IAMGOLD Exceeds Production Target and Expects To Achieve Cost Guidance for 2016; Planned Production to Increase in 2017 with
Lower All-In Sustaining Costs |
Signatures
Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
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IAMGOLD CORPORATION |
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Date:
January 16, 2017 |
By: |
/s/ Tim Bradburn |
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Tim Bradburn |
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Vice President, Legal and Corporate Secretary |
Exhibit 99.1
IAMGOLD Exceeds Production Target and Expects To Achieve Cost
Guidance for 2016; Planned Production to Increase in 2017 with Lower All-In Sustaining Costs
All 2016 numbers are preliminary and
unaudited and subject to final adjustment.
All amounts are expressed in US dollars, unless otherwise indicated.
TORONTO, Jan. 16, 2017 /CNW/ - IAMGOLD Corporation
("IAMGOLD" or the "Company") announces preliminary operating results for 2016 and guidance for 2017.
IAMGOLD's President and CEO, Steve Letwin, said, "With
gold production increasing in each consecutive quarter of 2016, we had a strong finish to the year. Strong operating performance
drove production above guidance to 813,000 ounces. Production at all sites exceeded the top end of the guidance ranges and
Westwood's achievement of ambitious underground development targets was outstanding, which well positions them to nearly double
production in 2017. We expect cash costs and all-in sustaining costs to be within guidance, reflecting continued success optimizing
mine performance and improving productivity.
"The year 2016 was pivotal for IAMGOLD," continued
Mr. Letwin, "as strong operating performance and the achievement of critical milestones have well positioned us for growth.
With strategies to capitalize on organic growth opportunities at all of our mines and a balance sheet that enables us to internally
fund this growth, we're confident that by 2020 we can take production to one million ounces and reduce all-in sustaining costs
by 15%. We expect production in 2017 to increase by 4-9% from last year with all-in sustaining costs ranging between $1,000 and
$1,080 an ounce."
Performance Highlights for 2016
| · | Attributable gold production of 813,000 ounces; above
guidance of 770,000 to 800,000 ounces; fourth quarter production 215,000 ounces. |
| · | Total cash costs1 expected to be within
guidance of $740 to $770 per ounce. |
| · | All-in sustaining costs1 expected to be
within guidance of $1,050 to $1,100 per ounce. |
| · | Capital expenditures of approximately $280 million
were relatively in line with guidance of $275 million. |
| · | Approximately $750 million in cash, cash equivalents
and restricted cash as at December 31, 2016. |
Guidance Highlights for 2017
| · | Attributable gold production expected to be between
845,000 and 885,000 ounces. |
| · | Total cash costs expected to be between $740 and $780
per ounce. |
| · | All-in sustaining costs expected to be between $1,000
and $1,080 per ounce. |
| · | Capital expenditures guidance of $250 million ±5%. |
1 This is a non-GAAP measure. |
2016 PRELIMINARY OPERATING RESULTS
Full year attributable production of 813,000 ounces was higher
than guidance of 770,000 to 800,000 ounces. All of our operating mines exceeded the top end of their guidance. Attributable
gold production for the fourth quarter 2016 was 215,000 ounces.
The following table presents attributable production by operating
site:
(000s oz) |
Q1 2016 |
Q2 2016 |
Q3 2016 |
Q4 2016 |
2016 |
Guidance |
Owner-Operator |
|
|
|
|
|
|
Essakane (90%) |
88 |
89 |
104 |
96 |
377 |
365 – 375 |
Rosebel (95%) |
68 |
73 |
72 |
83 |
296 |
285 – 295 |
Westwood (100%) |
15 |
16 |
16 |
18 |
65 |
50 – 60 |
Total Owner-Operator |
171 |
178 |
192 |
197 |
738 |
700 – 730 |
Joint Ventures |
|
|
|
|
|
|
Sadiola (41%) |
19 |
18 |
17 |
16 |
70 |
|
Yatela (40%) |
1 |
1 |
1 |
2 |
5 |
|
Total Joint Ventures |
20 |
19 |
18 |
18 |
75 |
70 |
TOTAL |
191 |
197 |
210 |
215 |
813 |
770 – 800 |
Both total cash costs and all-in sustaining costs for 2016
are expected to be within guidance ranges of $740 to $770 per ounce and $1,050 to $1,100 per ounce, respectively.
2017 PRODUCTION AND COST GUIDANCE
|
|
Full Year Guidance1 |
2017 |
Essakane (000s oz) |
370 – 380 |
Rosebel (000s oz) |
295 – 305 |
Westwood (000s oz) |
115 – 125 |
Total owner-operator production (000s oz) |
780 – 810 |
Joint ventures (000s oz) |
65 – 75 |
Total attributable production (000s oz) |
845 – 885 |
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Total cash costs2,3 – owner-operator ($/oz) |
$740 – $780 |
Total cash costs2,4 ($/oz) |
$740 – $780 |
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All-in sustaining costs2,3 – owner-operator ($/oz) |
$1,000 – $1,080 |
All-in sustaining costs2,4 ($/oz) |
$1,000 – $1,080 |
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1 Guidance
for 2017 is based on the following assumptions:
·
Average gold price per ounce of $1,250;
·
Average crude oil price per barrel of $48;
·
U.S. dollar value of the Euro of $1.08; and
·
Canadian dollar value of the U.S. dollar of $1.35. |
2 This is a non-GAAP measure. |
3 Consists of Rosebel, Essakane, Westwood on an attributable basis. |
4 Consists of Rosebel, Essakane, Westwood, and joint ventures Sadiola and Yatela on an attributable basis. |
In 2017, we expect gold production to increase to 845,000
to 885,000 ounces, compared to 813,000 ounces in 2016. Westwood will continue to focus on underground development, with expected
production of 115,000 to 125,000 ounces, nearly double that of 2016. The higher production at Westwood reflects commercial levels
of production from three mining blocks, including the zone where remedial work was completed last year. At Rosebel, we expect higher
grades and improving productivity will drive production higher despite the lower throughput anticipated with the proportion of
hard rock approaching 70%. At Essakane, throughput and recoveries are expected to increase while grades are expected to be lower.
The joint ventures are expected to produce between 65,000 and 75,000 ounces.
We have lowered our all-in sustaining cost guidance to a range
of $1,000 to $1,080 per ounce, as we have continued to realize significant benefits from performance optimization initiatives across
the sites.
2017 CAPITAL EXPENDITURE GUIDANCE ±5%
|
|
|
|
($ millions) |
Sustaining |
Development/
Expansion
(Non-sustaining) |
Total3 |
|
Essakane |
$ |
85 |
$ |
5 |
90 |
|
Rosebel |
65 |
5 |
70 |
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Westwood |
20 |
45 |
65 |
Owner-operator |
170 |
55 |
225 |
Corporate and Development Projects |
- |
10 |
10 |
Total owner-operator |
170 |
65 |
235 |
Sadiola (Joint Venture)1 |
5 |
10 |
15 |
Total2 (±5%) |
$ |
175 |
$ |
75 |
$ |
250 |
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1 Expansionary capital expenditures excludes the new construction for Sadiola. |
2 Capitalized borrowing costs are not included. |
3 Includes $20 million of capitalized exploration expenditures. See Exploration Plan 2017 table in the following section. |
In 2017, we expect capital spending to be $250 million ±
5%. Of the $170 million allocated to sustaining capital for owner-operated mines, 39% is for capitalized stripping at Essakane
($39 million) and Rosebel ($28 million) and another 30% is related to spending on capital spares and equipment at these sites.
Westwood's non-sustaining capital of $45 million is mainly for expansion/ramp-up development. At Sadiola, the $10 million in non-sustaining
capital is for advancing the Sadiola Sulphide Project in 2017, including completing an optimization study to refine project economics.
Spend for new construction is not included in the guidance provided at this time. As previously communicated, our intention
is to move ahead with the project with our partner conditional upon the Government of Mali renewing construction and operating
permits, the power agreement and fiscal terms related to the project. Once these have been achieved and the timing of project commencement
known, guidance will be adjusted accordingly.
The $10 million spend on Corporate and Development Projects
includes spending at Côté Gold and Boto Gold. At Côté Gold the focus continues to be on de-risking the
project, with the completion of a pre-feasibility study expected by the end of the second quarter 2017.
2017 EXPLORATION PLAN
An active exploration program is critical to replenishing
reserves and resources. Our exploration program is focused on the discovery of new ounces through our wholly-owned and joint venture
projects in South and Central America, West Africa and Canada, as well as through targeting of soft rock resources near our existing
mines. We have been very selective as to the projects we continue to advance and are focusing on highly prospective projects. In
2017, we increased our budget for exploration projects to $47 million to reflect exploration programs at our Saramacca project,
the saddle zones at Rosebel and highly prospective targets at Essakane. This year we are targeting initial resource estimates for
our Saramacca project near Rosebel in Suriname, our Monster Lake project in Quebec and our Eastern Borosi joint venture project
in Nicaragua. The increase in planned expenditures for feasibility and other studies is largely due to the continuation of
technical studies for the Boto Gold project and Côté Gold.
|
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|
2016 Actual |
2017 Plan |
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|
|
($ millions) |
Capitalized |
Expensed |
Total |
Capitalized |
Expensed |
Total |
Exploration projects - greenfield |
$ |
2 |
$ |
17 |
$ |
19 |
$ |
- |
$ |
25 |
$ |
25 |
Exploration projects - brownfield1 |
9 |
11 |
20 |
11 |
11 |
22 |
Exploration Projects |
11 |
28 |
39 |
11 |
36 |
47 |
Feasibility and other studies |
2 |
3 |
5 |
9 |
6 |
15 |
|
|
|
|
|
|
|
Total Exploration |
$ |
13 |
$ |
31 |
$ |
44 |
$ |
202 |
$ |
42 |
$ |
62 |
|
1 Excludes expenditures related to Joint Ventures of $1 million for 2016 Actual and $2 million for 2017 Plan, and includes near mine and resource exploration of $9 million for 2016 Actual and $11 million for 2017 Plan. |
2 The capitalized portion of the 2017 Plan of $20 million is included in our capital spending guidance of $250 million ± 5%. |
CONFERENCE CALL
A conference call will be held on Thursday, February 23, 2017 at 8:30 a.m. (Eastern Standard Time) for a discussion
with management regarding IAMGOLD`s 2016 fourth quarter and full-year operating performance and financial results. A webcast
of the conference call will be available through IAMGOLD`s website - www.iamgold.com.
Conference Call Information: North America Toll-Free:
1-800-319-4610 or International Number: 1-604-638-5340.
A replay of this conference call will be accessible for one
month following the call by dialing: North America toll-free: 1-800-319-6413 or International Number: 1-604-638-9010,
passcode: 1091#.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
All information included in this news release, including any information as to the Company's future financial or operating performance,
and other statements that express management's expectations or estimates of future performance, other than statements of historical
fact, constitute forward looking information or forward-looking statements and are based on expectations, estimates and projections
as of the date of this news release. For example, forward-looking statements contained in this news release are found under,
but are not limited to being included under, the heading "2017 Production and Cost Guidance, 2017 Capital Expenditure Guidance
and 2017 Exploration Plan", and include, without limitation, statements with respect to: the Company's guidance for production,
total cash costs, all-in sustaining costs, depreciation expense, effective tax rate, capital expenditures, operations outlook,
cost management initiatives, development and expansion projects, exploration, the future price of gold, the estimation of mineral
reserves and mineral resources, the realization of mineral reserve and mineral resource estimates, the timing and amount of estimated
future production, costs of production, permitting timelines, currency fluctuations, requirements for additional capital, government
regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations
on insurance coverage. Forward-looking statements are provided for the purpose of providing information about management's
current expectations and plans relating to the future. Forward-looking statements are generally identifiable by, but are not limited
to the use of the words "may", "will", "should", "continue", "expect", "estimate",
"plan", "guidance", "outlook", "potential", "targets", "strategy"
or "project" or the negative of these words or other variations on these words or comparable terminology. Forward-looking
statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are
inherently subject to significant business, economic and competitive uncertainties and contingencies. The Company cautions the
reader that reliance on such forward-looking statements involve risks, uncertainties and other factors that may cause the actual
financial results, performance or achievements of IAMGOLD to be materially different from the Company's estimated future results,
performance or achievements expressed or implied by those forward-looking statements, and the forward-looking statements are not
guarantees of future performance. These risks, uncertainties and other factors include, but are not limited to, changes in the
global prices for gold, copper, silver or certain other commodities (such as diesel, and electricity); changes in U.S. dollar and
other currency exchange rates, interest rates or gold lease rates; risks arising from holding derivative instruments; the level
of liquidity and capital resources; access to capital markets, and financing; mining tax regimes; ability to successfully integrate
acquired assets; legislative, political or economic developments in the jurisdictions in which the Company carries on business;
operating or technical difficulties in connection with mining or development activities; laws and regulations governing the protection
of the environment; employee relations; availability and increasing costs associated with mining inputs and labour; the speculative
nature of exploration and development, including the risks of diminishing quantities or grades of reserves; adverse changes in
the Company's credit rating; contests over title to properties, particularly title to undeveloped properties; and the risks involved
in the exploration, development and mining business. With respect to development projects, IAMGOLD's ability to sustain or increase
its present levels of gold production is dependent in part on the success of its projects. Risks and unknowns inherent in all projects
include the inaccuracy of estimated reserves and resources, metallurgical recoveries, capital and operating costs of such projects,
and the future prices for the relevant minerals. Development projects have no operating history upon which to base estimates of
future cash flows. The capital expenditures and time required to develop new mines or other projects are considerable, and changes
in the price of gold, costs or construction schedules can affect project economics. Actual costs and economic returns may differ
materially from IAMGOLD's estimates or IAMGOLD could fail to obtain the governmental approvals necessary for the operation of a
project; in either case, the project may not proceed, either on its original timing or at all.
For a more comprehensive discussion of the risks faced by
the Company, and which may cause the actual financial results, performance or achievements of IAMGOLD to be materially different
from the company's estimated future results, performance or achievements expressed or implied by forward-looking information or
forward-looking statements, please refer to the Company's latest Annual Information Form, filed with Canadian securities regulatory
authorities at www.sedar.com, and filed under Form 40-F with the United States Securities Exchange Commission at www.sec.gov/edgar.shtml.
The risks described in the Annual Information Form (filed and viewable on www.sedar.com and www.sec.gov/edgar.shtml, and available
upon request from the Company) are hereby incorporated by reference into this news release.
The Company disclaims any intention or obligation to update
or revise any forward-looking statements whether as a result of new information, future events or otherwise except as required
by applicable law.
Qualified Person Information
The technical information relating to exploration activities disclosed in this news release was prepared under the supervision
of, and reviewed and verified by, Craig MacDougall, P.Geo., Senior Vice President, Exploration, IAMGOLD. Mr. MacDougall is
a Qualified Person as defined by National Instrument 43-101.
About IAMGOLD
IAMGOLD (www.iamgold.com) is a mid-tier mining company with four operating gold mines on three continents. A solid base of strategic
assets in North and South America and West Africa is complemented by development and exploration projects and continued assessment
of accretive acquisition opportunities. IAMGOLD is in a strong financial position with extensive management and operational
expertise.
Please note:
This entire news release may be accessed via fax, e-mail,
IAMGOLD's website at www.iamgold.com and through CNW Group's website at www.newswire.ca. All material information on IAMGOLD
can be found at www.sedar.com or at www.sec.gov.
Si vous désirez obtenir la version française
de ce communiqué, veuillez consulter le http://www.iamgold.com/French/accueil/default.aspx.
SOURCE IAMGOLD Corporation
%CIK: 0001203464
For further information: Bob Tait, VP Investor Relations,
IAMGOLD Corporation, Tel: (416) 360-4743, Mobile: (647) 403-5520; Laura Young, Director, Investor Relations, IAMGOLD Corporation,
Tel: (416) 933-4952, Mobile: (416) 670-3815; Shae Frosst, Investor Relations Associate, Tel: (416) 933-4738, Mobile: (647) 967-9942,
Toll-free: 1-888-464-9999 info@iamgold.com
CO: IAMGOLD Corporation
CNW 20:06e 16-JAN-17
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