Q3 2026 Operating and Financial Results Conference Call - IAMGOLD CORP

Explicit Guidance:

• 2026 Production: Expect to finish the year within the low end of consolidated guidance (approx. 710,000 oz total); requires ~161,000 oz in Q4.
  • Cote: Expected to finish in the lower end of its range (390,000–440,000 oz); current YTD at 262,900 oz.
  • Westwood: Expected to finish at the upper end of its range (110,000–130,000 oz); current YTD at 97,100 oz.
  • Essakan: On track to finish within guidance (340,000–380,000 oz); current YTD at 277,500 oz.
• 2026 Cost Guidance:
  • Consolidated: Full-year All-In Sustaining Costs (AISC) including royalties expected at the top end of the $1,821 range (implied from prior text $1,821 YTD, expecting finish in upper range).
  • Cote: Full-year Cash Costs (excl. royalties) now expected above the top end of $900–$1,050/oz; AISC (incl. royalties) expected at the top end of $1,475–$1,625/oz.
  • Essakan: Full-year Cash Costs (excl. royalties) expected within $1,150–$1,300/oz; AISC (incl. royalties) expected at the top end of $1,550–$1,700/oz.
• Capital Expenditures (CapEx): Full-year total CapEx guidance of $500 million (+/- 5%) remains unchanged, implying a step-up in Q4 spending.
  • Cote: Sustaining CapEx reduced to $130 million (from $160 million) due to deferral of less-critical 2027 projects.
  • Essakan: Sustaining CapEx increased to $105 million (from $165 million) due to mining sequence changes and additional capitalized waste stripping.
• 2027 Cost Inflation: Internal inflation assumptions for 2027 are 3% to 4% (excluding diesel impact); diesel prices estimated to add ~$25/oz if oil rises $10/bbl.
• Reserve Price Assumption: The upcoming Côté mine plan update will utilize a $2,100/oz gold price assumption.

Business-Segment Outlook:

• Cote Gold:
  • 2026 Q4 Operations: Plant expected to average nameplate capacity of 36,000 tons/day with higher grades; target milling costs of $15/ton (down from $15.36) and mining costs trending toward $4/ton (down from $4.77).
  • 2027 Catalysts: Implementation of the consolidated Côté-Gosselin mine plan (single pit) to increase reserves and extend mine life; target to ramp plant to 40,000 tons/day (36k to 40k tons/week) via installation of a third ball mill (early 2027) and crusher improvements.
  • Royalty Impact: Repurchase of 50% of Franco-Nev royalty effective January 1, 2027, reducing effective royalty from 7.5% to 2.14% and lowering cash costs by approx. $150/oz.
• Westwood:
  • 2026 Finish: Expected to conclude at the high end of guidance (130,000 oz).
  • Sludge Recovery: Potential recovery of ~30,000 oz from "gold-bearing sludge" (Mil-Tem), with processing ongoing; proceeds expected in Q4 2026 but excluded from 2026 guidance.
  • 2027 Growth: $12 million invested in eastern zone expansion to support bulk mining studies; updated technical report expected H2 2027 to confirm bulk mining potential for higher throughput and lower costs.
• Essakan:
  • Mine Life: Updated technical report expected mid-2027 to outline potential mine life extension to 2035 via additional phases in the Essakan pit.
  • 2026 CapEx: Increased sustaining capital to $105M; future capital spend to advance Block 3 and life extension (slightly higher spend expected in 2027).
• Nelligan Complex (Quebec):
  • Drilling: 2026 drilling expanded to 30,000m; 2027 program to be "substantially larger."
  • Economics: Preliminary Economic Assessment (PEA) for the combined complex (Nelligan, Monster Lake, Philibert) targeted for mid-2027 to define a single development concept and infrastructure plan.

Market and Competitive Outlook:

• Demand & Pricing: Management notes realized gold prices averaging >$500/oz above guidance assumptions in 2026; royalties average $370/oz (above guidance).
• Operational Efficiency: Transition to owner-only crushing at Cote driving significant cost reductions ($15.36/ton in Sept vs. prior highs); plant throughput exceeding nameplate in September.
• Share Returns: Buyback program continues through December 11, 2026; Board authorized seeking TSX approval for a new 12-month NCIB for up to 10% of shares subsequent to quarter-end 2026.
• Dividends: Contemplating the introduction of a dividend in 2027, funded by cash flows from Canadian operations and Essakan.

Macro / Industry Outlook:

• Regulatory (Burkina Faso): Temporary exemption in place for the government decree requiring local refining; no specific end date, but discussions ongoing. Management anticipates no immediate impact on cash repatriation but monitors potential working capital delays if local ramp-up is slow.
• Energy Prices: Monitoring Middle East conflict; fuel prices up ~3.5% in September, but no material operational impact to date.
• Commodity Inputs: Inflation on commodities inputs at ~3% in H1 2026; labor rates and retention remain priorities.

Strategic Initiatives:

• Royalty Repurchase: Exercised right to repurchase 50% of Franco-Nevada gross margin royalty on Cote for $525 million (fully funded by cash/liquidity); transaction closes December, economic benefit starts Jan 1, 2027.
• Asset Disposal: Completed sale of 35% interest in Bambadji JV (Senegal) for $69.7 million in August.
• Growth Projects:
  • Cote-Gosselin: Consolidation into single pit to unlock long-term growth; third ball mill installation targeted for early 2027.
  • Westwood: Eastern zone development for bulk mining feasibility study (targeting H2 2027).
  • Nelligan: Combined economics study (PEA) for mid-2027 to establish central processing facility fed by multiple ore sources.
• Capital Allocation: Focus on retaining value from largest Canadian assets; cash flows from Essakan funding share buybacks and Cote royalty buyback.

Risks and Headwinds to Outlook:

• Cost Variance: Cote costs remain elevated due to contractor support for pushback and diesel prices; Q4 mining cost targets ($4/ton) are aggressive and subject to execution.
• Regulatory Uncertainty: Burkina Faso local refining decree; while currently exempt, future compliance could impact working capital and logistics timing.
• Exploration/Reserve Conversion: Nelligan and Westwood bulk mining studies rely on successful drilling results and technical reports; no guarantees on reserve conversion rates or cost structures.
• Sludge Recovery: "Gold-bearing sludge" recovery involves significant uncertainty; not included in 2026 guidance and actual yield/timing unconfirmed.
• Commodity/Inflation: Diesel price volatility ($10/bbl move = $12/oz cost impact); potential for higher inflation (3-4%) in 2027 impacting OpEx.
• Supply Chain: Labor retention and fuel supply in Burkina Faso remain priority monitoring areas.

Management Tone on the Future:

• Confidence: High confidence in meeting 2026 production guidance ("on track"); viewing Q3 as a "turning point" for Cote operations.
• Strategic Shift: Emphasis on using a strong balance sheet (net cash position) to acquire assets (royalty buyback) and return capital, signaling a transition from "growth at all costs" to "value retention and shareholder return."
• 2027 Outlook: Describes 2027 as a year where "every asset has a meaningful catalyst" (Cote plan update, Essakan mine life extension, Nelligan PEA).
• Hedging: No change to current hedging strategy; exploring potential additional gold hedges for Cote and Burkina Faso due to price predictability.

Miscellaneous:

• Balance Sheet: Net cash position with ~$1.6 billion liquidity; only debt is $450M senior notes due Oct 2028 (redeemable at par).
• Buyback Performance: Repurchased 32.1 million shares (~$592.6 million) since Dec 2025; average price $18.47/share.
• Cash Flow: Year-to-date Free Cash Flow (FCF) ~$1.3 billion; Essakan FCF contribution ~$735 million YTD.
• Dividend Timing: $500M dividend declared by Essakan in June 2025; ~$225M received to date, with remaining balance expected in late 2026/early 2027.