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IAMGOLD Announces Gold Prepay Arrangements to Defer Gold Deliveries from the First Quarter of 2024
All monetary amounts are expressed in U.S. dollars, unless otherwise indicated. Toronto, Ontari...
About this update from Iamgold Corporation
[{"type":"text","content":"IAMGOLD Announces Gold Prepay Arrangements to Defer Gold Deliveries from the First Quarter of 2024All monetary amounts are expressed in U.S. dollars, unless otherwise indicated.Toronto, Ontario--(Newsfile Corp. - December 18, 2023) - IAMGOLD Corporation (NYSE: IAG) (TSX: IMG) (\"IAMGOLD\" or the \"Company\") is pleased to announce that it has entered into a forward gold sale arrangement (\"2025 Q1 Prepay Arrangement\") and a partial amendment to one of its existing gold prepay arrangements (\"Deferral Prepay Arrangement\", together the \"Arrangements\"). The net result of these Arrangements is the effective transition of current gold delivery obligations out of the first quarter of 2024 into the following year, increasing cashflow in Q1 2024 by approximately $72.5 million assuming current gold prices.\"These arrangements take advantage of positive market rates while ensuring the prudent management of IAMGOLD's balance sheet during a key juncture for the Company,\" said Renaud Adams, President and CEO of IAMGOLD. \"The Côté Gold project is advancing rapidly towards initial production in March 2024 followed by the ramp up of operations through the year. Under the terms of the prior prepay arrangements, IAMGOLD was contracted to deliver 37,500 ounces of gold in the first quarter of 2024 at a time when Côté Gold is starting up, thereby weighing the deliveries heavily on Essakane and Westwood. Pushing these deliveries into the first quarter of 2025 improves the flexibility for the Company for a reasonable cost at favourable forward gold prices. Our primary goal and focus continues to be on managing the steady ramp up of Côté Gold towards its design capacity by the end of the year - at which point the mine will be the third largest gold mine in Canada.\"Under the 2025 Q1 Prepay Arrangement, the Company will receive a prepayment amount of $59.9 million during Q1 2024 in exchange for delivering 31,250 ounces in the first quarter of 2025. The Deferral Prepay Arrangement allows for the deferral of 6,250 ounces that were previously scheduled for delivery in Q1 2024 under the existing gold prepay arrangements entered into in 2022 (the \"2022 Prepay Arrangements\") to now be delivered in Q1 2025. The Arrangements are supported by the Company's syndicate of banks under its revolving credit facility.Key terms of t...