IAMGOLD Revenue Reaches $856.5 Million — Higher Gold Prices Also Push Up Royalties
The gold producer kept its production forecast but expects sustaining costs including royalties to exceed its guidance.
IAMGOLD, a Canada-based gold producer, increased third-quarter revenue 21% to $856.5 million as higher gold prices outweighed lower sales volumes, the company said in its Thursday statement. The same price gains increased its royalty payments, and management now expects all-in sustaining costs including royalties to exceed its full-year guidance.
Gold Prices Lift Earnings And Costs
IAMGOLD sold 199,900 ounces during the quarter, compared with 202,500 a year earlier. Its average realized price rose to $4,277.00 an ounce from $3,492.00, lifting revenue from $706.7 million.
Net earnings attributable to equity holders reached $297.0 million, against $139.4 million a year earlier. Adjusted earnings attributable to equity holders were $237.0 million, compared with $170.9 million; adjusted earnings per share rose to $0.42 from $0.30.
Operating cash flow totaled $461.1 million, up from $280.8 million. Mine-site free cash flow — the company's measure of cash left at operating mines after their capital spending — reached $404.3 million, versus $292.3 million. For the first nine months, that measure totaled $1,297.8 million.
The cost outlook carries the trade-off. IAMGOLD based its royalty-inclusive guidance on gold at $4,000.00 an ounce, but its realized price averaged $4,514.00 during the first nine months. Royalties over that period cost $370.00 per ounce, $45.00 above the guidance assumption.
All-in sustaining costs, a broader measure of the expense of keeping mines producing, averaged $2,191.00 per ounce including royalties over the first nine months. Management expects the full-year figure to exceed its $2,000.00–$2,150.00 guidance range. Excluding royalties, it expects costs in the upper range of $1,675.00–$1,825.00.
Côté Improvement Meets Lower Production
Attributable production was 186,900 ounces, compared with 189,500 a year earlier, bringing the first-nine-month total to 558,600 ounces. IAMGOLD retained its 2026 forecast of 720,000–820,000 ounces.
Côté in Ontario produced 64,400 attributable ounces, down from 74,600. An extended August shutdown and the switch to company-operated crushing reduced processing volumes; lower grades and recoveries also affected output. September processing averaged 37,100 tonnes a day, above the plant's 36,000-tonne design capacity.
“We remain on track to achieve our full-year guidance of 720,000 to 820,000 ounces,” said Renaud Adams, president and chief executive officer of IAMGOLD, in the results statement.
Management expects Côté's highest production of the year in the fourth quarter, although full-year output is expected at the lower end of its 270,000–310,000-ounce attributable range. Westwood in Quebec produced 28,500 ounces, up from 22,700, and is expected at the upper end of its annual guidance. Essakane in Burkina Faso contributed 94,000 attributable ounces, versus 92,200.
$525 Million For Less Côté Royalty
IAMGOLD exercised its option Thursday to buy back half of Franco-Nevada's Côté gross-margin royalty for an estimated approximately $525 million. Completion is expected in December 2026, with the economic benefit starting January 1, 2027.
The purchase would reduce the mine's royalty from 7.5% to 3.75%. Partner Sumitomo Metal Mining elected not to participate, so IAMGOLD will pay the full price and keep the full economic benefit. Under their arrangements, IAMGOLD expects the effective royalty burden on its 70% mine interest to fall to 2.14%.
Quarter-end liquidity totaled $1,613.4 million, including $766.6 million in cash and $845.8 million of available revolving credit. Net cash excluding leases and letters of credit was $317.6 million.
Shareholders also received cash through repurchases: IAMGOLD bought and canceled approximately 7.6 million shares for $134.7 million during the quarter. Repurchases since December 2025 totaled approximately 32.1 million shares for $592.6 million. The company intends to keep funding buybacks with cash received from Essakane, subject to Toronto Stock Exchange approval, and is considering introducing a dividend in 2027.
IAMGOLD plans to publish an updated Côté mine plan and mineral reserve estimate in the fourth quarter of 2026, incorporating the combined Côté and Gosselin resources.
Sources
- Form 6-K — All monetary amounts are expressed in U.S. dollars, unless otherwise indicated. — SEC EDGAR
- Iamgold: Q3 Earnings Snapshot — Associated Press
- Drillers Report Higher Rig Use as a 10,000-Metre Abitibi — globenewswire.com
