Iamgold NYSE: IAG reported a strong start to 2026, with first-quarter gold production, cash flow and shareholder returns supported by high gold prices and improved performance at several operations.
President and Chief Executive Officer Renaud Adams said the company produced 183,600 attributable ounces of gold in the quarter, keeping it on track for full-year guidance of 720,000 to 820,000 ounces. Revenue exceeded CAD 1 billion, while mine site free cash flow totaled CAD 525 million.
“The cash flow we are generating is allowing us to execute on all fronts,” Adams said, noting that the company returned CAD 260 million to shareholders through share repurchases and repaid CAD 100 million of debt on its credit facility during the quarter while increasing its cash position.
Cash Flow Supports Buybacks and Balance Sheet Improvement
Chief Financial Officer Maarten Theunissen said Iamgold generated CAD 524.6 million of mine site free cash flow, defined as operating cash flow minus capital expenditures from each operation. Of that, CAD 228.4 million was used to strengthen the balance sheet, including CAD 100 million to repay the credit facility and CAD 128.3 million added to cash.
The company purchased 12.9 million shares for CAD 260 million in the quarter under its buyback program. After quarter-end, it bought an additional 2.1 million shares for CAD 40 million, bringing total repurchases since the start of the program in December to CAD 350 million, or 18 million shares.
Theunissen said Iamgold has also completed the debt repayment portion of its plan by paying down the remaining CAD 100 million balance on the credit facility, making the full facility available. He said the company is now in a net cash position, compared with more than CAD 800 million of net debt a year earlier.
At quarter-end, Iamgold held CAD 550.2 million in cash and cash equivalents, with CAD 100 million drawn on the credit facility, for liquidity of about CAD 1.1 billion. Adjusted EBITDA was CAD 666 million in the first quarter, bringing trailing 12-month EBITDA to approximately CAD 2 billion. Adjusted earnings per share were CAD 0.67.
Theunissen said the company intends to continue using cash flow from Essakane to fund share buybacks at roughly the pace cash is generated and repatriated from the mine. He also said management is evaluating an appropriate time to introduce a dividend, likely at the end of the year or early next year.
Côté Gold Throughput Affected by Conveyor Downtime
At Côté Gold, attributable production was 52,300 ounces, while production on a 100% basis was 74,700 ounces. Chief Operating Officer Bruno Lemelin said mill throughput was limited by downtime on the CV10 conveyor, which feeds material from the primary and secondary crushers to the screening building.
Lemelin said the issue was tied to increased load on the conveyor after installation of the secondary crusher, which added stress to areas of the belt that had prior wear. He described the matter as “not structural in nature” and “an isolated, non-recurring early life item.” A heavier gauge belt is scheduled to be installed in May, after which the circuit is expected to resume full operation.
Adams said the conveyor will be replaced in May and that the company expects to operate at full capacity afterward, with an improving cost profile as the secondary crusher allows Iamgold to phase out use of a contracted aggregate crusher.
Côté remains on track for 2026 production guidance of 390,000 to 440,000 ounces, Lemelin said. Head grades in the first quarter were 1.07 grams per tonne, in line with annual guidance of 1.0 to 1.1 grams per tonne, with recoveries of 93%. Production is expected to increase quarter over quarter as throughput improves in the second quarter and grades rise in the second half.
During the question-and-answer session, Lemelin said that after the May shutdown, which includes replacement of the conveyor belt and HPGR tires, Iamgold expects “a sharp improvement” in gold production quarter over quarter. Graeme Jennings, vice president of business development and investor relations, noted that Côté throughput guidance had been refined to 12 million to 13 million tonnes for the year.
Westwood and Essakane Deliver Strong Quarters
Westwood produced 36,300 ounces in the quarter, supported by strong underground performance. Lemelin said underground mining totaled 106,000 tonnes at an average head grade of 9.85 grams per tonne. The mine generated CAD 110 million of mine site free cash flow in the first quarter, bringing cash flow over the past 12 months to CAD 242 million.
Westwood’s cash costs averaged CAD 1,230 per ounce, and all-in sustaining costs averaged CAD 1,733 per ounce, below the company’s full-year guidance ranges. Lemelin said the company is spending about CAD 30 million this year on expansion capital, including work on the eastern extension of the mine. Iamgold plans to publish an updated technical report for Westwood in the second half of 2027, which is expected to extend mine life and assess the potential for additional underground mining.
Essakane reported record production of 111,900 ounces on a 100% basis, benefiting from positive grade reconciliation as mining progresses deeper into phase VII. The mine generated CAD 302.7 million of mine site free cash flow in the quarter, bringing its total over the last 12 months to CAD 803.6 million.
Essakane’s cash costs excluding royalties were CAD 1,083 per ounce, while all-in sustaining costs were CAD 2,125 per ounce. Lemelin said royalties accounted for CAD 597 per ounce, or 35% of cash costs, because of the strong gold price. He also said Essakane has significant exposure to oil and diesel, estimating that a CAD 10 increase in oil prices per barrel would increase cash costs and all-in sustaining costs by about CAD 20 per ounce.
Energy Costs and Supply Risks Monitored
Management said higher energy prices remain a risk, particularly at Essakane. In response to an analyst question, Theunissen said the mine has five to six weeks of fuel supply on site and has secured sufficient additional fuel for the next two to three months. He said Iamgold has not seen broader inflationary pressure at its mines, though energy and consumables are areas that could be affected.
At Côté, Lemelin said the plant and shovels are connected to low-cost hydro power, leaving mainly the mining fleet directly exposed to fuel prices. Theunissen added that Iamgold has put price protection in place for 90% of Côté’s oil needs for June and the third quarter at about CAD 80 per barrel.
Technical Reports and Growth Catalysts Ahead
Adams said Iamgold expects a “catalyst-rich” period over the next 12 to 18 months, with updated technical reports planned across Côté Gold, Westwood, Essakane and the Nelligan Mining Complex.
At Côté, an updated mineral resource estimate combining Côté and Gosselin into a single block model is expected this quarter, followed by an expansion study in the fourth quarter. Adams said the company’s objective remains 20 million ounces of measured and indicated resources, which would form the basis for future reserves.
At Essakane, Iamgold expects to release an updated plan in the first half of 2027 targeting a possible mine life extension to 2033. At Nelligan, the company is drilling more than 60,000 meters this year and expects to release an initial preliminary economic assessment in the first half of next year.
“We believe these attributes position Nelligan as a premium asset in our portfolio,” Adams said, citing district-scale consolidation, access, the potential for both underground and open-pit mining, and its location in Quebec.
About Iamgold NYSE: IAG
IAMGOLD Corporation, founded in 1990 and headquartered in Toronto, is a mid-tier gold producer engaged in the exploration, development and operation of gold mining assets. The company’s primary focus is on the discovery and extraction of gold, with a portfolio that spans both operating mines and advanced development projects. IAMGOLD combines in-house technical expertise with strategic partnerships to advance projects from exploration through to production.
The company’s principal producing assets include the Essakane gold mine in Burkina Faso, which began commercial production in 2010, and the Westwood underground gold mine in Quebec’s Abitibi region.
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