IAMGOLD (TSX:IMG,NYSE:IAG) announced that the Côté gold mine, which it operates as a joint venture with Sumitomo Metal Mining (TSE:5713), has achieved commercial production.
The mine, located in Northern Ontario, Canada, is expected to have a life of around 18 years, with average annual gold production of 365,000 ounces during that time. Years one to six will be higher at an average of 495,000 ounces.
Renaud Adams, president and CEO of IAMGOLD, acknowledged the achievement and praised the teams involved for their dedication since the first gold pour at the site on March 31 of this year.
“Our teams have spent the last four months methodically and iteratively testing and ramping up all facets of the mine. This process has required remarkable commitment, ingenuity and teamwork to bring all the systems online together to achieve this milestone,” he said in an August 2 press release from the company.
Adams also highlighted that with the commercial production milestone achieved, focus will now shift to improving plant availability and having Côté operate at 90 percent of its nameplate throughput by the end of the year.
Commercial production is defined as a minimum of 30 days in a row at 60 percent of nameplate throughput.
While the primary components of the plant performed well after the first gold pour, the dry-side processing facilities, particularly the crushing and screening circuits, experienced limited availability.
To address these issues, the company is planning a multi-day shutdown in September to mitigate the impact of wear and tear, supporting the goal of ramping up nameplate throughput to 90 percent by the end of 2024.
In May, IAMGOLD completed an equity financing that positions the company to repurchase a 9.7 percent interest in Côté from Sumitomo in November; that will return IAMGOLD’s ownership to 70 percent.
IAMGOLD will report its second quarter operating and financial results after market hours on Thursday (August 8). A conference call with senior management to discuss these results will follow on Friday (August 9).
As the plant’s ramp-up continues to progress with all major equipment demonstrating the capability to operate at or above design levels, IAMGOLD believes Côté is positioned to become one of Canada’s largest gold mines.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.