Given their recent operating challenges, high costs and significant closure liabilities, these assets may be difficult to sell.
2022 has started in difficult circumstances for IAMGOLD, the Canadian firm that operates the Essakane mine in Burkina Faso. Amid perilous balance sheet challenges over the next three years and poor mine life extension results that may eventually result in asset sales, the company parted ways with CEO Gordon Stothart, 15 years at the company. He is replaced on an interim basis by CFO Daniella Dimitrov, who was handed the additional responsibility last year of strategy and corporate development. The company has only $545m in cash against a $1bn capex budget this year.
It therefore will require additional liquidity, either from its $500m revolving credit facility or possibly asset sales, or other sources. In addition to Essakane, which comprises 63% (360,000 – 388,000 ounces) of IAMGOLD’s 2022’s 570,000 to 640,000 oz in production guidance, IAMGOLD also produces gold from Boto Gold in Senegal, a Canadian mine, Westwood and Rosebel in Suriname. The latter produced a disappointing life-of-mine result. A strategic review has been called at the mine along with earlier reviews of Westwood and Boto. “Given their recent operating challenges, high costs and significant closure liabilities (especially at Westwood), these assets may be difficult to sell,” said Scotiabank in a recent note. So much turns on the viability of IAMGOLD’s Côté Project, situated in Ontario, which is scheduled to start production in the second half of 2023.
LIFE OF DANIELLA
Qualified in law from the University of Windsor in Ontario, Dimitrov was chosen as one of the Top 100 global inspirational women in mining for 2016. She has wide experience in the mining sector, working for companies in iron ore and precious metals production as well as investment experience in wealth management, capital markets and financial services companies. Prior to IAMGOLD, Dimitrov was partner, investment banking at Sprott Capital Markets. She is a member of Ontario’s Mining Advisory Group and has an MBA from the Kellogg School of Management.