Iamgold Corp (IAG) Q3 2026 Earnings Call Highlights: Record Cash Generation, Net Cash Position ... GuruFocus News Sat, November 7, 2026 at 3:02 AM EST 11 min read GC=F -0.94% IAG +6.80% IAG.L +1.52% IAG +6.80% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Revenue: Q3 revenue of $856.5 million from sales of 199,900 ounces at an average realized gold price of $4,277 per ounce.
Adjusted EBITDA: $503.9 million in Q3; $2.4 billion generated over the trailing 12 months.
Adjusted Net Earnings: $237 million, or $0.42 per share, versus $170.9 million, or $0.30 per share, in the prior period.
Attributable Production: 186,900 ounces in Q3; 558,600 ounces year to date.
Cash Costs (incl. royalties): $1,251 per ounce year to date; expected to finish in upper range of annual guidance.
All-in Sustaining Costs (incl. royalties): $1,821 per ounce year to date; expected to finish in upper range of annual guidance.
Mine-Site Free Cash Flow: $404.3 million in Q3; $1.3 billion year to date.
Operating Cash Flow: $1.7 billion before working capital and taxes for the first nine months.
Capital Expenditures: $109.7 million incurred in Q3; $339.4 million year to date; full-year guidance of $500 million (5%) unchanged.
Cash and Liquidity: $766.6 million in cash and cash equivalents at September 30; $850 million credit facility undrawn; total liquidity of approximately $1.6 billion; net cash position.
Debt: Only remaining debt is $450 million of senior notes due October 2028.
Share Repurchases: 7.6 million shares repurchased in Q3 for $134.7 million at an average price of $17.58; 32.1 million shares for $592.6 million at an average price of $18.47 since program began in December 2025.
Cote Production: 92,000 ounces (100% basis) / 64,400 attributable ounces in Q3; 262,900 ounces (100% basis) year to date; expected to finish at lower end of 390,000440,000 ounce guidance.
Cote Costs: Q3 cash costs excluding royalties of $1,243/oz; cash costs of $1,544/oz; AISC of $2,056/oz; royalties of $301/oz (19% of cash costs); milling costs of $18.92/t, down from $20.85/t in Q2, with September averaging $15.36/t.
Westwood Production: 28,500 ounces in Q3; 97,100 ounces year to date; expected to finish at upper end of 110,000130,000 ounce guidance.
Westwood Costs: Q3 cash costs of $1,794/oz and AISC of $2,118/oz; year-to-date cash costs of $1,529/oz and AISC of $1,980/oz.
Westwood Cash Flow: $51.7 million mine-site free cash flow in Q3; $218.2 million year to date.
Essakane Production: 94,000 attributable ounces (110,500 ounces on 100% basis) in Q3; 277,500 attributable ounces year to date; on track for 340,000380,000 ounce guidance.
Essakane Costs: Q3 cash costs excluding royalties of $1,122/oz (21% lower year over year); cash costs of $1,603/oz; AISC of $2,063/oz; royalties of $481/oz (30% of cash costs); mining costs of $5.44/t versus $7.13/t a year ago.
Essakane Cash Flow: $271.1 million mine-site free cash flow in Q3; $735 million year to date (100% basis).
Franco-Nevada Royalty Repurchase: Repurchasing 50% of the 7.5% gross margin royalty on Cote for approximately $525 million; expected to lower Cote cash costs by roughly $150/oz starting 2027; effective gross margin royalty reduced to 2.14%.
Bambadji Divestiture: Sold 35% interest in the Bambadji joint venture for $69.7 million, or $48 million net of taxes and transaction costs.
Essakane Dividend: Approximately $500 million declared from 2025 earnings; IAMGOLD's portion approximately $400 million net of government share and withholding taxes, with approximately $225 million received since June.
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For the complete transcript of the earnings call, please refer to the full earnings call transcript.
IAMGOLD Corp (NYSE:IAG) achieved a net cash position with $1.6 billion in liquidity, a significant improvement from over $800 million in net debt a year ago.
The company generated $2.4 billion in adjusted EBITDA over the last 12 months and $1.3 billion in mine-site free cash flow year to date, demonstrating strong cash generation.
IAMGOLD Corp (NYSE:IAG) repurchased over 32 million shares for nearly $600 million since December 2025, returning significant capital to shareholders.
The company exercised its right to repurchase half of the Franco-Nevada gross margin royalty on Cote for approximately $525 million, which will lower Cote's cash costs by about $150 per ounce starting in 2027.
Cote's plant averaged 37,100 tonnes per day in September, above nameplate capacity, with processing costs falling to $15.36 per tonne, showing operational improvements.
Westwood is tracking toward the upper end of its guidance, with mine-site free cash flow of $51.7 million in Q3 and $218.2 million year to date.
Essakane continues to generate strong cash flows, with mine-site free cash flow of $271.1 million in Q3 and $735 million year to date, and cash costs excluding royalties 21% lower than the prior year period.
The Nelligan Mining Complex holds 4.3 million ounces of indicated and 7.5 million ounces of inferred resources, with ongoing drilling expected to support a preliminary economic assessment in mid-2027.
Cote's cash costs excluding royalties for the full year are now expected to be above the top end of the guidance range of $900 to $1,050 per ounce, and all-in sustaining costs excluding royalties at the top end of the $1,475 to $1,625 range.
Mining costs at Cote remained above target at $4.77 per tonne due to contractor support for pioneering work, higher explosive costs, and diesel prices.
Westwood's cash costs increased to $1,794 per ounce in Q3 and all-in sustaining costs to $2,118 per ounce, reflecting fewer ounces sold and more drilling and stope preparation.
Essakane's royalties were $481 per ounce, or 30% of cash costs, with an average royalty rate of 11% compared to 9% a year ago, impacting overall costs.
The company faces inflation of about 3-4% on certain commodities and labor rates, particularly in Canada, which could pressure costs.
A $10 per barrel move in oil prices represents about $12 per ounce on consolidated costs, equating to an approximate $25 per ounce cost increase above guidance.
The government decree requiring companies to use local refiners in Burkina Faso poses a potential risk, although IAMGOLD Corp (NYSE:IAG) has received a temporary exemption with no set date.
Cote's production is expected to finish at the lower end of its guidance range of 390,000 to 440,000 ounces on a 100% basis, requiring a strong fourth quarter to meet the low end of consolidated guidance.
Q: On the Cote royalty buyback, can you confirm you're using cash on the balance sheet to fund the $525 million and not adding debt? Any thoughts on the payback period or IRR?A: CFO Maarten Theunissen confirmed IAMGOLD will use cash from the balance sheet, supplemented by ongoing Essakane cash inflows, with only a possible short-term draw on the credit facility if needed. He noted the timing makes sense as the transaction is effective January 1, 2027, and the company is effectively buying at the same valuation Franco-Nevada paid a third party a year and a half agodespite a much higher gold price environment. The roughly $150/oz cost reduction is a major contributor to the decision and offers a good return, with the upcoming Cote study expected to clarify the economics further.
Q: Can you walk through how the reduced Franco-Nevada royalty should be modeled, and confirm the effective rate?A: CFO Maarten Theunissen explained the royalty applies to gross margin (revenue less cash cost), not revenue. For IAMGOLD's 70% attributable share, the effective gross margin royalty drops from 3.75% to 2.14% because the company is funding the full repurchase after Sumitomo elected not to participatecapturing the 30% Sumitomo previously held. On a 100% asset basis, the rate is 3.75%.
Q: At Cote, processing costs fell to about $15/ton in September. Is that sustainable into Q4 and 2027, and what is the mining cost trajectory?A: COO Bruno Lemelin said the plan is to sustain the September momentum and run at nameplate capacity (~36,000 tpd) through Q4 with no major shutdowns expected for the rest of the year. On mining costs, Q4 will rely less on re-handling and low-grade stockpile refeed, maximizing direct ex-pit ore to the mill, with better blast fragmentation and loading efficiency as the pit expands. The target remains about $4/ton, with mid-$3s possible later.
Q: What reserve price will the updated Cote-Gosselin study use, and will it show only the 40,000 tpd base case or also an expansion upside case?A: CEO Renaud Adams said the study will use a $2,100/oz reserve price and represents an updated base case moving the asset from 36,000 toward 42,000 tpd with additional equipment being installed. It will combine Cote and Gosselin into reserves for the first time and highlight the full resource potential, but will not model a larger expansionthough it will lay out a production profile that preserves optionality to pursue an extension later without losing the profile.
Q: On the Burkina Faso decree requiring in-country refining, how long does the temporary exemption last, and does it affect cash repatriation or settlement timing?A: CEO Renaud Adams said there is no date on the exemptionthe refinery was only recently inaugurated and is still ramping upso it is business as usual for now, with shipments continuing. CFO Maarten Theunissen added the main risk is working capital if gold sales are delayed, but there is strong government alignment since exports trigger royalty payments. Any slowdown would not affect the ability to repatriate cash, only potentially slow it slightly.
Q: On the Westwood gold-bearing sludge material, what are the refining and assay timelines, and what payabilities might you receive?A: CFO Maarten Theunissen said the material is being shipped in batches to an external refiner, with processing starting this week and expected to finish over November and the first half of December, allowing assays and conversion to sales by year-end. He declined to give an exact payability rate as commercially sensitive but said it is comparable to carbon fines or mill liner materialin the mid-to-very-high 90% range.
Q: Is there an opportunity to recover this sludge-type material on a go-forward basis, and was gold lost over the years?A: COO Bruno Lemelin said the standard operating procedure has been modified so this type of accumulation does not recur, with future particles captured and accounted for monthly. CEO Renaud Adams emphasized there was no loss of gold over the yearsthe processing facility recovers at a high ratebut gold had accumulated in one specific area not previously noticed. Moving forward, no adjustment should be expected.
Q: Based on year-to-date results, Q4 needs to be stronger on production. Any directional color on unit costs?A: CEO Renaud Adams said the team remains very confident in hitting guidance, which by definition requires a strong Q4. Milling costs reached $15.36/ton in September and the objective is toward $15/ton in Q4. Mining costs remain somewhat elevated, but improvement is expected in Q4, positioning the company well entering 2027.
Q: What inflation assumptions should we use for 2027 versus 2026?A: CFO Maarten Theunissen said, based on current inputs and excluding diesel, inflation is running about 3% to 4% depending on the operation. Diesel and energy represent roughly 12% of total operating costs, mainly at Cote and Essakane, and the company continues to evaluate additional fuel hedges.
Q: On the Nelligan PEA coming in mid-2027, what is the drilling cut-off date, and will it incorporate combined economics of Nelligan, Monster Lake, and Philibert?A: CEO Renaud Adams confirmed the drilling cut-off is year-end 2026. COO Bruno Lemelin said the PEA will provide a preliminary view of Nelligan's economics and examine combining Monster Lake as an underground operation, the Nelligan pit, and Philibert into one development concept, including infrastructure layout and preliminary costs.
Q: With 2026 sustaining capital at Essakane increased to around $200 million, should stripping expenditures remain at similar levels in 2027?A: CFO Maarten Theunissen said the company is working through its budgeting process and expects to spend additional capital at Essakane in 2027 to advance Block 3 and the mine life extension, so capital would be slightly higher, with exact numbers still being finalized.
QFor the complete transcript of the earnings call, please refer to the full earnings call transcript.
