Iamgold (NYSE:IAG) said it remains on track to meet its 2026 production guidance after producing 186,900 attributable ounces of gold in the third quarter, with a stronger finish expected from its Côté mine in Ontario.
The company also plans to spend approximately $525 million to repurchase half of Franco-Nevada’s gross margin royalty on Côté, a transaction it expects to lower its cash costs at the mine by about $150 per ounce starting in 2027.
Cash flow supports buybacks and royalty purchase
Third-quarter revenue was $856.5 million, generated from sales of 199,900 ounces at an average realized gold price of $4,277 per ounce. Adjusted EBITDA was $503.9 million, while adjusted net earnings attributable to equity holders were $237 million, or $0.42 per share, compared with $170.9 million, or $0.30 per share, in the prior period.
CFO Maarten Theunissen said mine-site free cash flow was $404.3 million in the quarter and approximately $1.3 billion for the first nine months. Iamgold ended September with $766.6 million in cash and an undrawn $850 million credit facility, giving it approximately $1.6 billion in liquidity.
The company’s remaining debt consisted of $450 million in senior notes due in October 2028. Theunissen said management continues to evaluate how best to use its balance sheet in relation to the notes.
Iamgold repurchased and canceled approximately 7.6 million shares for $134.7 million during the third quarter. Since the buyback program began in December 2025, it has repurchased 32.1 million shares for $592.6 million. The board has authorized the company to seek Toronto Stock Exchange approval for a new 12-month buyback covering up to approximately 10% of outstanding shares.
Under the royalty transaction, Iamgold will pay the full purchase price after its Côté partner, Sumitomo, elected not to participate. Theunissen said the deal is expected to close in December and take economic effect on Jan. 1, 2027. It would reduce the royalty on the asset to 3.75%, with Iamgold’s effective rate falling to 2.14% because it would retain the full benefit of the purchase.
Theunissen said the company expects to fund the transaction with balance-sheet cash, although it could briefly draw on its credit facility if needed. He also said Iamgold is considering initiating a dividend in 2027.
Côté targets stronger fourth quarter
Côté produced 92,000 ounces on a 100% basis in the third quarter, or 64,400 ounces attributable to Iamgold. COO Bruno Lemelin said the operation completed its first full quarter without contractor crushing and that the mill averaged 37,100 tons per day in September, above its 36,000-ton-per-day nameplate capacity.
September milling costs fell to $15.36 per ton, compared with $18.92 per ton for the full quarter. Lemelin said Iamgold aims to sustain nameplate throughput and approximately $15-per-ton milling costs in the fourth quarter.
Côté is expected to finish at the lower end of its full-year production guidance of 390,000 to 440,000 ounces on a 100% basis. The company expects its full-year cash costs excluding royalties at Côté to exceed the top of its $900 to $1,050 per-ounce guidance range, although fourth-quarter costs are expected to decline.
Iamgold plans to release an updated Côté mine plan and mineral reserve estimate during the fourth quarter. The plan will combine Côté and the neighboring Gosselin deposit into one pit for the first time and outline a path toward processing 40,000 tons per day. Adams said the study will use a gold price of $2,100 per ounce for its reserve calculation.
Essakane cash flow and Westwood material
Essakane in Burkina Faso produced 94,000 attributable ounces in the third quarter and generated $271.1 million in mine-site free cash flow on a 100% basis. The mine remains on track for its annual guidance of 340,000 to 380,000 attributable ounces, Lemelin said.
Iamgold has received a temporary exemption from a Burkina Faso requirement to use local refiners. Adams said the exemption has no specified end date. Theunissen said a slower refining process could affect working capital and potentially delay cash repatriation, but would not prevent it.
At Westwood in Quebec, third-quarter production was 28,500 ounces. Iamgold expects the mine to finish near the upper end of its annual guidance range of 110,000 to 130,000 ounces.
Lemelin also discussed gold-bearing material found in a Westwood processing tank. An illustrative calculation suggested it could contain approximately 30,000 ounces, but he cautioned that the company did not have a representative sample and that the figure was not a reliable estimate of recoverable gold. The material is being processed by an external refinery and is not included in 2026 production guidance.
Studies planned for 2027
Iamgold expects to publish a preliminary economic assessment for its Nelligan Mining Complex in Quebec in mid-2027. The study will bring the Nelligan, Monster Lake and Philibert deposits into a single development concept, Adams said.
The company also plans updated technical reports for Essakane in mid-2027 and Westwood in the second half of 2027. The Essakane report is expected to examine the potential to extend the mine’s life to 2035, while the Westwood study will assess potential bulk-mining options.
About Iamgold (NYSE:IAG)
IAMGOLD Corporation is a Canadian mining company focused on the exploration, development and production of gold. Headquartered in Toronto, the company operates primarily in Canada and maintains a portfolio of gold assets at various stages of development.
IAMGOLD’s principal operating asset is the Côté Gold mine in northern Ontario, which it operates in partnership with Sumitomo Metal Mining. The company also owns the Westwood complex in Quebec, which includes underground mining and development activities.
