Q3 2026 Operating and Financial Results Conference Call - IAMGOLD CORP

Financial Performance:

• Q3 2026 revenue was $856.5 million from 199,900 ounces sold at an average realized price of $4,277/oz.
• Adjusted EBITDA reached $503.9 million; adjusted net earnings were $237 million ($0.42/share), up from $170.9 million ($0.30/share) in the prior period.
• Year-to-date (YTD) mine-site free cash flow totaled $1.3 billion; Q3 operating cash flow before working capital and taxes was $1.7 billion.
• Net debt has been eliminated; the company holds a net cash position with $1.6 billion in total liquidity (comprising $766.6 million cash and an undrawn $850 million credit facility).
• YTD Adjusted AISC (including royalties) was $1,821/oz, and cash costs (including royalties) were $1,251/oz.
• Capital expenditures were $109.7 million in Q3 and $320.3 million YTD; full-year capex guidance remains $500 million (+/- 5%).
• Share repurchases totaled $592.6 million (32.1 million shares) since December 2025; $134.7 million repurchased in Q3 alone.
• Sale of 35% interest in the Bambadji joint venture generated $69.7 million (before taxes/costs).

Guidance and Future Outlook:

• Full-year production guidance is on track, requiring only 161,000 attributable ounces in Q4 to meet the low end of the 559,000 ounce guidance.
• Cote Gold is expected to finish at the lower end of guidance (390,000–440,000 oz on a 100% basis) for the full year.
• Westwood production is trending toward the upper end of guidance (110,000–130,000 oz); Issa Khan (Essakan) remains on track for 340,000–380,000 oz.
• Updated Côté mine plan (combining Côté and Gosselin) expected this quarter; Preliminary Economic Assessment (PEA) for the Nelligan complex expected mid-2027.
• 2027 cost guidance assumes 3–4% inflation excluding diesel; full-year 2026 Cote cash costs expected above guidance range ($900–$1,050/oz ex-royalty) but AISC at the top end of $1,475–$1,625/oz.
• Dividend initiation is being contemplated for 2027, contingent on cash flow and the Franco-Nevada royalty transaction.

Business Segments and Product Lines:

• Cote Gold: Third quarter saw record mill throughput (37,100 tpd in September) with operating costs dropping to $15.36/ton; owner-only crushing is now fully operational.
• Westwood: Produced 28,500 oz; identified "gold-bearing sludge" in the electrowinning circuit estimated to contain ~30,000 oz of gold (not included in guidance), with refining expected in Q4.
• Essakan: Produced 94,000 oz; strong cash flow generation ($271.1 million in Q3); cash costs down 21% YoY to $1,122/oz ex-royalty.
• Nelligan Complex: Drilling expanded to 30,000m (total 70,000m YTD) to upgrade resources and test extensions at Milligan, Monster Lake, and Philibert.
• Royalty Repurchase: Executed right to repurchase 50% of Franco-Nevada's gross margin royalty on Cote for $525 million; effective royalty rate to drop from 7.5% to 2.14%, reducing cash costs by ~$150/oz starting 2027.
• Bambadji: Completed sale of 35% JV interest in Senegal.

Market and Competitive Landscape:

• Gold price environment has been favorable, with realized prices averaging >$500/oz above guidance assumptions.
• Company focuses on a portfolio of long-life Canadian assets (Cote, Westwood, Nelligan) while managing African operations (Essakan, Nelligan).
• Market position strengthened by net cash status and significant capital returns to shareholders.

Risks and Challenges:

• Inflation: Input costs (commodities, labor) rose ~3%; diesel price volatility remains a risk ($10/bbl move impacts costs by ~$12/oz).
• Regulatory: Temporary exemption granted regarding Burkina Faso's requirement for local refining; uncertainty remains on long-term compliance and potential export delays affecting working capital.
• Operational: September processing costs were down, but Q3 annual shutdown and contractor support for mining pushed costs temporarily higher.
• Uncertainty: The value of the Westwood sludge recovery is illustrative and subject to assay refinement; no assurance on quantity or timing.

Management Commentary and Tone:

• Tone was confident and positive, emphasizing a "turning point" at Cote and a "strong balance sheet."
• Management highlighted a strategic shift from debt reduction to capital return (buybacks, royalty buyback) and growth investment.
• CEO Renaud (Rinalds) and COO Bruno Lemelin stressed safety (TRIFR 0.57) and operational efficiency improvements.
• CFO Martin Tennyson detailed strong cash flow generation and the strategic logic behind the royalty repurchase.

Analyst Questions and Answers:

• Cote Costs: Management confirmed September's $15.36/ton cost is the target for Q4 and 2027, driven by volume increases and reduced rehandling.
• Royalty Modeling: Clarified that the effective royalty is 2.14% on gross margin for IAMGOLD's 70% share; Sumitomo's 30% interest remains at 7.5%.
• Westwood Sludge: Confirmed material is being shipped to an external refinery for Q4 processing; modified SOPs will prevent future accumulation.
• Nelligan Economics: PEA will combine Nelligan, Monster Lake, and Philibert into a single development concept by mid-2027.
• Burkina Refining: No specific date on the exemption; focus is on minimizing working capital impact from potential delays.
• Inflation: Assuming 3–4% inflation for 2027, excluding diesel impacts.

Other Key Points:

• Indigenous land acknowledgment was made at the start of the call (Toronto office location).
• Cote's updated mine plan will combine Côté and Gosselin pits, potentially extending mine life and reserves.
• Westwood is investing $12 million in eastern zone expansion to enable bulk mining studies.
• Essakan's royalty rate averaged 11% in Q3 (up from 9% YoY) due to price-linked royalty structures.
• The company plans to seek TSX approval for a new Normal Course Issuer Bid covering 10% of outstanding shares after the current one ends.