Iamgold Corporation Ordinary Shares

Thank you for standing by. This is the conference operator. Welcome to the I Am Gold fourth quarter and year end 2024 operating and financial results conference call and webcast. As a reminder, all participants are in listen only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star, then zero. At this time, I would like to turn the conference over to Graham Jennings, Vice President, Investor Relations and Corporate Communications for IAM Gold. Please go ahead, Mr. Jennings.

Thank you, operator, and welcome everyone to our conference call today. Joining us on the call are Renaud Adams, President and Chief Executive Officer, Barton Venutian, Chief Financial Officer, Bruno Lemelin, Chief Operating Officer, Doreena Quinn, Chief People Officer, and Annie Torquia Lagasse, Chief Legal and Strategy Officer. We're coming today from IAMGOLD's Toronto office in Canada, which is located on Treaty 13 territory on the traditional lands of the many nations, including the Mississaugas of the Credit, the Anishinaabeg, the Chippewa, Haudenosaunee, and the Wendat peoples. At IAMGOLD, we believe respecting and upholding Indigenous rights is founded upon relationships that foster trust, transparency, and mutual respect. Please note that our remarks on this call will include forward-looking statements and refer to non-IRFRS measures. We encourage you to refer to the cautionary statements and disclosures on non-IRFRS measures, including the presentation and the reconciliations of these measures in our most recent MD&A, each under the heading Non-GAAP Financial Measures. With respect to the technical information to be discussed, please refer to the information in the presentation under the heading Qualified Person and Technical Information. The slides referenced on this call can be viewed on our website. I will now turn the call over to our President and CEO, Renaud Adams.

Thank you, Graham, and good morning, everyone, and thank you for joining us. Last year was a monumental year for IAMGOLD as the company achieved critical milestones that have positioned the company as a dynamic, modern, multi-asset mid-tier gold producer with significant potential for free cash flow growth and expansion. IAMGOLD finished 2024 with total attributable gold production of 667,000 gold ounces, a 43% increase from the prior year and in line with our previously raised guidance estimates. This performance was driven by the successful startup of Codigal, as well as exceptional operational and output from ESSACAN and Westwood. Financially, the company took significant steps to improve its financial position and capitalize on the strong operating results and robust gold market. Highlights in the year include a completion of the repurchase agreement to return to the 70% interest level at Coty Gold, the successful net delivery and completion of half the legacy gold prepayment arrangement, all while still generating a total adjusted EBITDA for the year of approximately $781 million. and further strengthening our balance sheet and financial flexibility with the bolster credit facility, resulting in us ending the year with total liquidity of approximately $767 million and the expectation of increasing free cash flow this year. Additionally, last night, alongside our financial results, we disclosed our updated mineral resources and reserve estimates, the highlights of which were a significant increase in ounces and grades at our Nelligan project, located in the Shibugamu region. With the update, Nelligan is now among the top largest gold deposits in Canada and is expected to continue to grow, all while being located in the top tier mining jurisdiction. Another highlight from the mineral resources update was at Isakani, where the teams were able to increase the mineral reserves after accounting for depletion, suggesting another potential year of mine life for the strong cash-lowering asset. Over the last few years, IAMGOLD has seen a rapid growth of value, production, and mineral resources within Canada, where now today approximately 80% of our measured and indicated ounces and 90% of global inferred ounces are located in Canada in well-established mining jurisdiction. In the near term, our goal is clear, to ramp up Cote Gold to a steady, sustainable state operating at the nameplate throughput level of 36,000 tons per day in the fourth quarter of this year, while maximizing our mineral measure and indicated resources at Cote and Gosselin in support of a technical report in 2026 that would outline a unified mine plan based on Cote and Gosselin. Meanwhile, we will continue safe mining activities at Isakane and Westwood to maximize production while managing our cost drivers with a focus on cash flow margin preservation. Should the current gold price environment remain in place, by the middle of this year, we anticipate we will have our gold prepayment facility behind us with Cote, Isakane, and Westwood capable of generating record cash flow and conceptually well-positioning IMGO to begin the process of delivering its balance sheet, starting with our high-cost dense vehicles to further refine our capital structure and moving closer to our goal of becoming a leading modern Canadian gold producer with a strong balance sheet and assets that are poised to generate significant value for our stakeholders, partners, and investors. Looking at the highlights from the year and the fourth quarter, at IMGO, we strive to be among the leaders in health and safety, talent development, and ESG, including tailings management, water stewardship, and community well-being. Looking at last year as a whole, our total recordable injury frequency rate was 0.63, an improvement from the prior year. Ensuring all of our employees and contractors go home safely would always be the primary focus for IMGO, and to succeed every goal produced has to be done safely. On production, in the fourth quarter, the company produced 177,000 ounces, bringing total annual production to 667,000 ounces on an attributable basis. In line with our guidance, which was raised mid-year to 625,000 to 715,000 ounces. Total annual productions in 2024 was 43% higher than 23, driven by a strong first half at Isakane, a near record year at Westwood, and the startup of Codigo, which produced 124,000 ounces to our account in the first nine months of operation. Cash cost per ounce sold, excluding Cote, was $1,176 for the year at the low end of our guidance range of $1,175 to $1,275 and $1,393 per ounce for the first quarter. All in sustaining cost per ounce sold, excluding Cote, was $1,725 for the year. trending towards the low end of our guiding range of $1,700 to $1,825, and $2,071 for the fourth quarter. Cash growth in ASIC increased quarter over quarter through 2024. This was primarily associated to rising waste tripping and lower relative grades at Isakane, as the mine opened up and started mining of new phase as per the mine plan. On the annual basis, while costs are in line with the prior year, they remain relatively high due to continued pressure on supply chains within Burkina Faso, as well as sustained elevated price on certain consumables and labor. With that, I will pass the call over to our CFO to walk us through our financial results and position. Martin?

Thank you, Renaud, and good morning, everyone. In terms of our financial position, at the end of the year, I'm gold at 347.5 million in cash and cash equivalents and net debt of 859.3 million. The company has 220 million drawn on the credit facility and approximately 418.5 million remains available, resulting in liquidity at December 2024 of approximately 767 million. We note that within cash and cash equivalents, 46 million was held by Dakota Gold UJV, 130.2 million was held by SACAN, and 160 million was held in the corporate treasury. As we highlighted last quarter, but worth reiterating, SACAN declared a dividend during the second quarter of 180 million, for which the minority interest portion and withholding taxes were paid during the second quarter and the company received a total dividend of $151.9 million. On November 30, 2024, the company issued a payment of $377.7 million to complete the repurchase of the $9.7 million interest of the Kota gold mine that was transferred to Sumitomo through the Kota Gold Joint Venture Amending and Funding Agreement, returning iron gold to its full 70% interest in Kota. The repurchase payment was funded through available cash balances and amounts available under the credit facility. On December 23, 2024, the company announced that it closed sale of its 100% interest in the Carita Gold Project, associated exploration assets in Guinea for gross proceeds of $35.5 million. The definitive agreement to sell the Diakosuibaya Gold Project in Mali expired on December 31, 2024, and was not extended. The company is pursuing alternative options for the sale of this asset. Finally, as of today, the company has completed over half of its gold prepay obligations, having delivered 75,000 ounces into the 2022 gold prepaid arrangements, of which 37,500 ounces were delivered in the fourth quarter, and a further 12,500 ounces during January 2025. reducing the outstanding balance of all prepaying arrangements to 62,500 ounces as of January 31, 2025. The company received 10 million in cash in the fourth quarter and 38.9 million for the year as part of the delivery of the obligation. Please refer to the liquidity outlook section of the MD&A for further details. Looking at our annual financial results for 2024, we saw the impact of strong gold production at record real gold prices, resulting in the company realizing higher margins and generating higher operating cash flows during critical year for the company. Revenues from operations start with $1.6 billion for the year from sales of 699,000 ounces at a record average gold price of $2,330 per ounce. after accounting for the impact of the gold prepays. The strong operating results and gold price resulted in another year of increased adjusted EBITDA, which totaled $780.6 million in 2024, double the 2023 value while COTA is still in the early stages of ramp-up. Net earnings were $819.6 million for the year and includes a reversal of prior impairment on Westwood of $455.5 million as a result of the improvement of the value of the operation compounded by an update to the long-term gold price assumptions. Adjusted earnings were 296 million. On a per share basis, adjusted earnings per share for the year totaled 55 cents, a notable increase from the prior year of 9 cents. Looking at the cash flow reconciliation for the year offers a good visualization of the major drivers of our available liquidity to the end of 2024. Operating activities fueled by strong operations at the SACAN, Westwood, and the start of the production of Cote were adjusted for the impact of the gold prepaid deferred revenues and prepaid proceeds in the first half of the year. Investing activities in 2024 were primarily driven by the completion of construction of Cote and sustaining capital spent in our projects. Financing activities were bolstered by the share issuance May 2024 at a price of $4.17 US per share, combined with a drawdown on the credit facility to fund the repurchase of the 10% interest in Cote from Sumitomo and working capital requirements. As we look to 2025, we believe we have a good opportunity to further improve the strength of our balance sheet should the gold market remain strong. As we saw on the prior page, the company currently has a $400 million term loan which carries relatively higher interest. This year offers an important milestone, as a term loan can be repaid in 20 million tranches at any time, and after May 2025 at 104% repayment premium, followed by 101% premium if repaid after May 2026, and 100% thereafter. Once the gold prepays are behind us, the strong expected cash flows could well position the company to reduce update carrying costs and labels. And with that, I will pass the call back to you, Renan.

Thank you. Thank you, Martin, and congratulations again on your team's achievement last year. Starting with Cote d'Ivoire, I want to congratulate the team for their commitment and dedication to the safe ramp-up of Cote d'Ivoire. Also, and since first go, the mine has shown a systematic increase quarter over quarter in throughput in gold production. In the first year of operation, Cody Gold produced 199,000 ounces on a 100% basis. Looking at the fourth quarter, Cody produced 96,000 ounces on a 100% basis, which was a 41% increase from the prior quarter. A year ago on this call, we called for an initial gold production in late first quarter. Commercial production achieved in the third quarter of 2024 and set the target for Cody to exit the year at a throughput rate of approximately 90% of name plate. We were able to achieve the first two of this milestone, with the mine achieving among the quickest ramps up new to commercial production for large scales open pit gold mine in Canada. Despite these successes, Cody was unable to sustainably exit the year at 90% throughput and narrowly missed production guidance of 220,000 ounces due to lower tons processed during the fourth quarter as a result of higher than expected downtime in order to conduct unplanned repair. Mining activity totaled 10.8 million tons in the fourth quarter of 2024, modestly higher than the prior quarter in bringing the total tons mined for the year to 39.3 million tons. with an average strip ratio of 2.6 to 1, resulting in R-tons mine for the year of 10.8 million tons. The average grade of mine ore was 0.97 grams a ton, with the reconciliations between the grade control and reserve models in line with expected tolerances. Within the pit, the mine currently has two CAT 6060 electric shovel and 21 CATs 793 autonomous haul truck now commissioned. Utilization rates of the primary mining equipment has been improving, with the mine achieving a weekly average high operating rate of 150,000 tons per day in December. The current mine plan is using multiple stockpiles segregated by grade, as made evident by the head grade of tons process in the fourth quarter of 1.34 grams a ton goal. substantially higher than the mine grid. As we discussed last quarter, this strategy is proving to require higher than expected amounts of rehandling, which are flowing through our mining costs. Last year, mining costs averaged $3.90 per ton. This is higher than expectation due to the rehandling in addition to higher contractor costs to support the ramp-up of the mines. We expect to see unit mining costs decline as we operate with the full haulage fleet for 2025, coupled with the implementation of an optimized bulk mine plan and a reduced need for external support. Mill throughput in the fourth quarter totaled 2.4 million tons. This is a 50% increase from Q3 as the plan continued to see improvement quarter over quarter. As the mine transitions from commissioning to production, at the end of Q1 of last year, our teams took the strategy of first testing the capacity of the main equipment and the plan to handle the diesel and grid loss, followed by building availability and stability as the ramp up progress. From early on, the primary components of the processing circuit primary, secondary crushing, HPGR, conveyors, ball mill, leaching, etc., proved their capability to operate at or above design load when provided with stable conditions. Further, we saw the recoveries of the plant come in line with expectations of ranging 92% for the first year of operation, a critical achievement for a new mine. As COTI continued to ramp up through the year, we were able to deploy key optimizations to stabilize the crushing circuit through the replacement of wear parts with higher brazier-resistant material to reduce the level of wear, and using new type and sizes of screens in the course or screening area. These improvements allow for further improvement in availability and performance of the secondary crusher and screening circuits. allowing for the plan to achieve multi-day performance above 40,000 tons per day in the fourth quarter. As the operating rate of the plan increases over longer periods of time, we require unscheduled, yet not entirely unexpected, equipment maintenance. For example, in December, the plan was operated at an average of 87% of design throughput level over a two-week period, prior to an unscheduled shutdown to split the conveyor belt associated with design issue. Repair were made to the belt and replacement with the modified design was completed in January 2025. Subsequent to the quarter end, the HPGR rollers demonstrated accelerated work, necessitating a changeover ahead of schedule and limiting the secondary crushing capacity in January. The changeover of the HPGR role was completed in February 25 with operating and maintenance procedures adjusted to maximize lifespan and optimize future changeover windows. Inside the plant, the grinding circuit was also impacted early in the quarter due to repair required to one of the vertimales following a faulty start of pulse maintenance. Prevention and mitigation procedures have been put in place, and the second vertical mill is expected to be online later this month. Taken together at a higher level, it is not unusual or uncommon to encounter these types of equipment issues during the first year of the ramp-up of the large-scale mining operations, where the equipment is operating at an inefficient level at varying rates and stresses all while maintenance schedules are being adjusted to real-world conditions. What is important is that we are seeing continuous improvement at Cote, with increasing stability, availability, and operating milestones quarter over quarter. In 2025, we are forecasting production of 360,000 to 400,000 ounces of gall on a 100% basis, which means that Cote gall would essentially double its ounces this year. Cash costs are expected to be between $950 to $1,100 per ounce, and all in sustaining costs to be between $1,350 to $1,500 per ounce. The cash cost guidelines reflect the cost experience in the first year of operations, including higher levels of maintenance, contractor support, and continued improvement consultancy. Costs are expected to lower in the second half of the year as targeted improvements are deployed and as production increases. The operating guidance assumes plant throughput of approximately 12 million tons in 2025, equating to an average of 3 million tons per quarter, comparing well with the Q4 throughput of 2.4 million tons, which was 50% above Q3. So yes, we are confident in the next step. The next step up after the first quarter, which we have advised, will be lower, after which we'll step up into Q4. The end goal for Cody this year is to achieve nameplate throughput of 36,000 a day in the fourth quarter. This target will be aided by the installation of a second corn crusher, which will provide additional capacity and redundancy to the primary crushing circuit, removing the bottleneck from this area. Longer term, we will continue to pursue improvement in mining and processing activities, looking for low capital intensive opportunity to increase processing plant capacity. As we have noted in the past, several components of the plant have been designed for 42,000 tons per day. And we have seen multiple days above 40,000 tons per day early on in the life cycle of the project. The addition of the second concoction later this year is aligned with our strategy of unlocking maximum value by monetizing the maximum number of tons of ore mined as they become available for processing. This strategy includes evaluating the potential to adjust certain aspects of our mining plan at COTE To shift over time from selective blasting and separation to a more bulk mining approach as the mill throughput capacity is unlocked. As currently designed, CODE over the life of mine is expected to average a natural power mining rate of approximately 50,000 tons per day versus our current nameplate processing rate of 36,000 tons per day. So if we are able to find the right balance of increased processing rates and minimize stockpiles, we expect numerous efficiencies advantages, including reduced re-handling, improved bid sequencing, and less reliance on segregation for the mine plan and more on maximizing mill throughput and monetization of gold mine. Optimizing the processing and mining balance at Codigo is even more important as we investigate the potential options to bring into the mine plan the full resource base estimate of the Cote and Gosselin zone, which combine for over 16.2 million ounces of measure and indicator resources and 4.2 million ounces of inferred resources to define Cote goals amongst Canada's largest gold mine in operation. Our exploration program on Côté and Gosselin are ramping up this year, targeting resource conversion at Gosselin in support of our technical report in 2026 that outlined and unified mine plan based on Côté and Gosselin. Turning to Quebec. The transformation of Westwood has been among the best mining success story in 2024. as the last few years of redevelopment and rehabilitation resulted in a successful turnaround of the mine, building safe and stable production, and culminating in a generation of 94.4 million in mine site-free cash flow for the year. Looking at operation, Westwood produced 134,000 ounces in 2024, above the top end of its increased revised production target of 115 to 130,000 ounces. Production in the fourth quarter of 2024 was 35,000 ounces, higher by 7,000 or 25% compared with the same prior year period, primarily due to higher grades and an increased proportion of ore feed from the underground mine. Mining activity for the year total, 1.02 million tons of ore, in line with the prior year, In the fourth quarter, the underground mine averaged 98,000 tons, or just over 1,000 tons per day, a record volume from underground since the mine restart at an average underground mine grade of 9.65 grams a ton. The improved volume from underground are a result of the completion of the Underground Rehabilitation and Development Work Program, which has provided increased operational flexibility with multiple stock sequences available to mine concurrently at different level and sector of the mine. Mill throughput in the fourth quarter of 2024 was 267,000 tons at an average head grade of 4.34 grams a ton and an average recovery of 93% with grades 11% higher than the prior year period due to the higher proportion of underground material. Plant availability in the quarter was 88%, a 10% higher than the same prior year period, with a successful completion of the annual meal shutdown in November. The margins for Westwood continue to improve, with a strong gold prize in stabilizing costs. Cash costs average $1,148 now, and all-in sustaining costs average $1,688. in ounce in the fourth quarter, positioning the mine in the middle of our asset cost curve. Looking ahead to this year, Westwood production is expected to be in the range of 125,000 to 140,000 ounces in 2025. As mining activities continue, the underground ramp up towards achieving 1,000 tons per day at a stable state-to-state while targeting multiple active mining areas and minimizing dilution. Open pit activity from the Grand Duke are currently planned to be completed by the fourth quarter of 2025, though Grand Duke stockpile material would continue to be milled into 2027. However, should the gold price remain where they are, I believe there is a strong potential for further expansion and extension of the Grand Duke pit, which will be investigated this year. Costs this year are expected to be generally flat, with cash cost guidance for Westwood of $1,175 to $1,325 per ounce. So, an ASIC of $1,675 to $1,825 per ounce. So, capital expenditure guidance is for approximately $70 million, mainly consisting of underground development and rehabilitation in support of the 2020 plan. the continued renewal of the mobile fleet and equipment overhauls, and certain asset integrity projects at the Westwood mill. Finally, looking at Esakani. It was a lighter quarter at the mine with production of 80,000 ounces in Q4. Yet, Esakani still achieved the top end of its guidance range, which was increased mid-year. with the mine producing total annual productions of 409,000 ounces versus guidance of 380,000 to 410,000 ounces. Mining activities total 12.4 million tons in a quarter with 2.2 million tons of ore mine, resulting in a strip ratio of 4.7, which is relatively high versus recent history as the mine fleet targeted capital stripping activity intended to secure access to ore on deeper benches of Phase 7 in support of the 2025 and 2026 mine plan. Mill throughput in the quarter was 2.9 million tons at an average head grade of 1.07 grams a ton. Throughput was slightly lower in Q4 due to the scheduled maintenance during December. Average head grade decreased in the fourth quarter compared to the first half of the year, in line with the mine plan as mining activity characterized waste stripping sequence resulting in increased supplementation of the meal feed from available or stockpiled. On a cost basis, it's a kind of reported relatively high Q4 costs with cash costs of 1,501 per ounce and ASIC of 2,118 per ounce. These came in relatively high due to the planned lower quarterly production, annual scheduled maintenance activity higher realized fuel price, and higher supply chain and transportation costs impacted by the security situation. Despite this, total annual cash costs were $1,179 and ASIC were $1,625, both within guidance range of $1,175 to $1,275 per ounce. and 1,575 to 1,675 per ounce, which were lowered in the mid-year. Looking ahead, this account is expected to produce 360,000 to 400,000 ounces on an attributable basis at a cash cost of 1,400 to 1,550 per ounce and an ASIC of 1,675 to $1,825 per ounce. Mining activities are expected to complete mining in Phase 5 in the first half of the year, with the bulk of the mine material coming from Phase 6 and Phase 7. With mining moving into the primary zones of Phase 6 and 7, capitalized waste stripping is expected to be relatively lower in 2025, with a total capital expenditure guidance this year of $115 million. The plant is expected to operate at throughput and head rate in line with the current life of mine plant as per the December 2023-43-101 technical report. While the cost of operations in-country have risen over the last two years, Ithaca is positioned to generate strong cash flow with an expected decrease in waste-tripping expenditure year over year. I also want to congratulate the exploration team as we announced an updated mineral reserve and resources estimate yesterday in which a sacana more than replaced is reserve depletion with current estimated reserve of 2.3 million ounces and managed to grow major and indicated ounces by 15% to nearly 100 million tons grading 1.24 grams a ton for a total of nearly 4 million ounces taken together This strong result from the drill bit suggests the potential for further mine life extension within the secure perimeter of our operation at ISACAN. Finally, and on the topic of notable mineral resources change, yesterday we also announced an updated mineral resources estimate for our 100% on Nelligan project, located approximately 45 kilometers southwest of Chibougamo, Quebec. The update estimated mineral resource of 3.1 million indicated gold ounces in 103 million tons, rating 0.5 grams per ton, and 5.2 million inferred ounces within 166 million tons, rating 0.6 grams per ton. This represents a 56% increase in indicated resources, or 1.1 million ounces, with an increase in grade of 13%, as well as a 13% increase in inferred resources, or 1.3 million ounces, but a similar 14% increase. This update demonstrates a remarkable prospectivity of this asset. demonstrating rapid growth in ounces and an improvement in grade from a relatively conservative drill program that totaled only 23,400 meters over the last two years. When combining Nelligan with a high-grade satellite monster lake deposit, they are nearing 9 million ounces of resources in this mining camp already, positioning Nelligan at a relatively early stage among the largest gold projects in Canada with significant potential for further growth. This year, we are increasing the scope of our Chibuga Mold Drill Program with a plan for 30,000 meter of diamond drilling, testing the extension of mineralization at Nelligan as mineralization remains open to long strike and at depths. Further, a drill program will be conducted targeting high-grade structures underground at Monster Lake, which has seen minimal modern exploration in the last few years. It is definitely early stage, but there is no question the value that Milligan can offer as a growing large-scale gold asset in a very mining-friendly jurisdiction in Canada. So thank you all, and I look forward to an exciting year ahead. With that, I would like to pass the call back to the operators for the Q&A portion. Operator?

We will now begin the question and answer session. To join the question queue, you may press star then 1 on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then 2. We will pause for a moment as callers join the queue. The first question comes from Anita Soni with CIBC World Markets. Please go ahead.

Good morning, Renaud and team. A question on some of the challenges that you've had in January with the HPGR and some of the other crushers. You did issue guidance in January. Can you let us know whether or not your January guidance would have encompassed some of the issues you were encountering? I'm just trying to understand the timing of these issues and whether or not we should be a little bit more conservative than what you had previously put out.

No, I mean, like, when we issued our guidance, you know, we were absolutely in possession of all the information. We knew that, you know, about the repair on the belt. We knew the repair of the inverter mill, so that was all accounted for. We knew that we will change. It was already planned anyway to do a changeover of the rolls on the HPGR, so it was just advanced, but it's the same. So as a result, and as I just mentioned, you know, we see Q1 a little lower than the rest, but we're going to pick up and increase with more tons of process in the second half. But no change. and we remain very confident about our guidance.

Okay, that's good to hear. I did have the Q1 lower with the changeovers happening. Yeah. Yeah, and then in terms of the, sorry, the, oh, what was my question? Oh, sorry, the mining rates. How do you see that evolving over the course of the year?

We're actually very, very pleased. As I mentioned, you know, we were roughly, you know, in the $40 million mark, you know, for the 2024. It's the first year successfully commissioned through the three additional. We've already seen, you know, a pickup, you know, in the tonne mines. Had a wonderful week in December at $150,000. And so... To achieve $48 million this year, like moving from the previous average, it's about $10 million to about $12 million per quarter. We absolutely see this achievable. So we'll see in the Q1 because it's still like a wrap-up in the commissioning of the full commissioning of the extractory truck. But definitely we see we have the capacity and the equipment, of course, to achieve our $48 million this year.

Okay. That's it for my questions. Thank you.

The next question comes from Tanya with Scotiabank. Please go ahead.

Good morning, everybody. Thank you for taking my questions. And I'm just going to follow up from Anita's question on Cote. So I just wanted to circle back, Renaud, just as we think about and maybe just a bit more detail as we go through the quarter. So Q1 is weaker because of these changeovers that happened at the mill. Was anything else planned or is planned for downtime in Q2, Q3, Q4 as you do some additional repairs and or turnovers? I think there was something being coming in later in the year as well that may have some downtime. So Just trying to understand, should I be thinking, you had mentioned 3 million tons per quarter, but how should I be thinking of each quarter and some of the critical aspects that we move in this ramp up during the year?

Yeah, I'll ask you, Bruno, to add a bit of color to this, but obviously, you know, like as for the HPGR per se, that was an advanced maintenance from Q2 to Q1, so no real difference, but Bruno, you could add to

Thank you, Renaud. Good morning, Tania. Good morning. Exactly what Renaud just mentioned, the hose replacement for the HPJR was scheduled to be taking place in May. It's been advanced, like now we are understanding the wear pattern better. The other major shutdown is going to be the one in August, the annual shutdown. But with the wear pattern that we're seeing at the ball mill, it's very likely it's going to be shorter than expected also because we're seeing a wear pattern that is less abrasive than expected. So this is where we are right now, Tania, like we are understanding and learning the wear patterns at all our primary components. So the HPGR was a little bit faster and the ball mill seems to be holding very well right now.

Other than that... So if you were to think about the quarters, so Q1 is the weakest, Q4 is going to be the strongest, and do we see a progression upward, or is Q3 and Q2 equal? I'm just trying to understand with this downtime in August.

Yeah, because in Q2, you won't have to do the HPGR rolls replacement, so definitely Q2 is going to be higher than Q2, and And after Q1 and after that Q3 will also pick up in speed.

Okay, so you will, despite all of these changes and things, you will see quarter over quarter improvements is what you're saying? That's correct.

Probably Q2, Q3 closer to each other for different, but definitely Q1 the lowest and Q4 the best. And as you say, like Q2, Q3, hopefully Q3 a little bit more than Q2. We'll be starting installations of the second crusher, you know, by mid Q3, late Q2, early Q3. So should be minimal disruptions, but there is always some time to be done. So on that basis, you could argue that Q2, Q3 should be very similar or close to, but Q4 definitely should be our strong.

Okay. And anything else on the critical path? that we need to be aware of as we go through the year, besides these, you know, changes that you've mentioned? Anything else? I mean, the mining, you know, we've got the three new trucks that are about coming in. That's going to help on the mining front. But anything else that we should be aware of?

It's really all about the stability, Tanya, and I appreciate, you know, like during the commissioning, you know, every quarter, you know, unfortunately this happened and so forth. But as Bruno mentioned, I think we've learned it. enormously you know from this and and basically it's all about okay of course you you have a design criteria of how many hours you should do you know and so far and the wear pattern and so and you need to adjust some equipment of course may be less familiar with some operators and more training but globally i think we've gone through the whole cycle from the crushing to the to the grinding, to the leaching, you know, and regrind. I think we've gone through the whole cycle. We have a much better understanding of each of the equipment. So it's all about stability. So to answer your questions, we feel strong about the 48 million tons. We're already seeing, you know, improvement in the pit. And as I've discussed, we'll be left cute and and super segregations and allow for more performance and productivity in the pit. So we feel very strong with the mining. And when it comes to the mill, it's really all about stability at this stage. And so we're really looking forward now with the last repair of the vertical mill to really push the gas. and crank up the tonnage and go for more stability and higher availability. And with that, you know the capacity is there. So as you approach a 90% plus availability, you will be there. There is no capacity issue. It's just the stability matters. So it's quite a long answer, but I thought I would clarify.

Okay, no, thank you for that. And then I'm just wondering on the SACAN as well, as you mentioned, moved from this phase five into six and seven this year. And, and yet there's less stripping. How does the profile look for the year there? I'm just trying to understand overall for the company, how does the year progress? Is it that we start with, you know, a lower Q1 overall for the company and get to a higher Q4? I'm just trying to get an understanding if there's any variability in Essex, Cannon, Westwood as well.

Yeah. Thanks for that questions. And, uh, and the opportunity to clarify a bit because absolutely. So unfortunately, you know, at the same time, Q1 is a bit of the quarter for COTI, you know, a bit of repair to first half and so forth. At the same time, we're entering phase six and seven, and we have more than one discussed, you know, The performance on the grade reconciliation has you enter new phases at the very early stage versus when you're well established. And we've seen that in 23, 24 with the phase five. We still have phase five until probably mid-year, but we're entering phase six, phase seven with a little bit slower, you know, and less productive and great. So as a result, We see a saccane potentially on target, but because of the 6-7, it could be that saccane is slightly lower in the Q1 and they pick up after that for the rest of the year. But originally, we were saying about same, but it could be possible that Q1 is slightly lower than the rest of the year.

Okay. That's helpful as well. it kind of looks that, you know, you probably are seeing that quarter-over-quarter improvement for the company overall in 2025.

I think it's a fair comment. Okay.

And if I could just squeeze one more in, and it just is more a strategic question for you. You know, you mentioned, you know, over 90% of your M&I and inferred resources all sitting in Canada. And as we get, you know, Gosselin drill program study, and then a better understanding of the mine plan for the whole Cote complex. Do you think it makes sense to keep Essacan within IAM Gold? You know, you then have your cash flow coming. And do you think that by selling Essacan

remaining a totally canadian company you'd get a better valuation i think you're talking about something that belongs to the more like looking forward type of thing and you know we're very pleased second that the truth is that we you know we've discussed numerous time you know the the strategic uh approach with uh is akane and and uh you know they're we're looking at delivering in our balance sheet and 25 26 a strong free cash flow. Well, it's all about, you know, the stability, right? And we had a very strong 2024. We had no interruptions in our productions, and we've delivered on all metrics. To be very frank, you could argue, you know, that we've seen more stability, you know, than a lot of North American mines, if you want my take of it. So I won't really comment on the details of our plan. What I know is that we have strong belief that the Sakane will be a strong free cash, low production generators and will make a huge difference for us for 25 and 26 as we significantly improve our balance sheet. The rest belongs to stability, how things evolve, and so forth. So there is a lot at stake here, but we feel very confident to deliver it not as soon as possible.

Okay, that's a fair comment. Thank you very much for taking my question.

Thanks.

There are no further questions. I will now hand the call back over to Graham Jennings for closing remarks.

Thank you very much, Operator, and thanks to everyone for joining us this morning. As always, should you have any additional questions, please reach out to Manoa or myself. Thank you all. Be safe and have a great day.

This brings to a close today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.