IAMGOLD Stock Jumps 6.23% — Planned Royalty Buyback Would Lower Côté Costs
Management expects the approximately $525 million royalty repurchase to close in December and reduce Côté cash costs starting in 2027.
IAMGOLD, a gold mining company, jumped 6.23% to $18.59 in Friday trading, as of 3:46 p.m. ET, adding $622 million in market value. On Friday’s earnings call, management said a planned royalty repurchase would reduce Côté cash costs by approximately $150 per ounce starting in 2027.
A $525 Million Royalty Repurchase
The cost reduction depends on a transaction that is still pending. IAMGOLD expects to close its approximately $525 million repurchase in December, buying back half of Franco-Nevada’s Côté royalty.
Management outlined lower costs at Côté on Friday’s earnings call. The expected savings concern the mine’s cash costs per ounce, with the reduction set to begin in 2027 rather than representing a current operating result.
The call also brought questions about refinery payments and recovering gold from tank sludge. Executives cautioned against counting that material as guaranteed production.
A Recovery Below The Peak
IAMGOLD was on pace for its third straight daily gain in Friday trading. Its market value stood at $10.61 billion in Friday trading, as of 3:46 p.m. ET.
The recent recovery followed a weaker year-to-date performance than the broader market. At Thursday’s close, IAMGOLD shares were up 6% for the year, against an 8% gain for the S&P 500. The stock was still 29% below its highest close of the past year.
Beyond the royalty repurchase, management plans to publish a Côté-Gosselin mine plan this quarter. The combined plan could increase reserves and extend mine life.
December is the expected closing month for the royalty repurchase; management’s projected reduction in Côté cash costs starts in 2027.
Sources
- Iamgold outlines ~$150/oz Côté cash cost reduction starting 2027 as it plans to repurchase 50% of Franco-Nevada royalty for ~$525M (NYSE:IAG) | Seeking Alpha — seekingalpha.com
- Iamgold: Q3 Earnings Snapshot – WTOP News — wtop.com
- Iamgold: Q3 Earnings Snapshot — Associated Press
- Iamgold Q3 2026 Earnings Call Transcript — benzinga.com
- Stock Movers: ASML, Man Group, IAG (Correct) - Bloomberg — Bloomberg
- The company's filing (IAMGOLD) — SEC filing
