IAMGOLD Delivers Strong Q2 as Côte Ramps Up, Shares $510M Buyback
The Canadian gold miner produced 188,100 ounces in Q2 while generating nearly $900 million in year-to-date free cash flow, fueling aggressive share repurchases and expansion plans.
Production On Track, Côte Hits Nameplate
IAMGOLD Corporation reported second-quarter gold production of 188,100 ounces, bringing year-to-date output to 371,700 ounces and positioning the company "firmly on track" to meet full-year guidance of 720,000 to 820,000 ounces (earnings call, 2026-08-07). The Toronto-based miner generated $368.9 million in mine site free cash flow during the quarter, contributing to $893.5 million year-to-date—a 29% increase over the prior-year period.
President and CEO Renaud Adams highlighted the June performance at the flagship Côte Gold mine, where the plant "operated at near full capacity" following a conveyor belt replacement and commissioning of a second crusher. Côte produced 96,200 ounces on a 100% basis in Q2, with attributable production of 67,300 ounces. Chief Operating Officer Bruno Lemelin noted the plant processed over 1 million tonnes in June alone after installing a heavier gauge belt on the CV10 conveyor.
Aggressive Capital Returns
The company has repurchased approximately 28 million shares for $510.4 million since initiating its buyback program in December, representing "approximately 45% of our mine site free cash flow returned to shareholders," according to CFO Marthinus Theunissen. During Q2 alone, IAMGOLD deployed $147.9 million toward share repurchases while fully repaying the remaining $100 million on its credit facility.
The company amended its credit facility in June, increasing total capacity from $650 million to $850 million, extending maturity to 2030, and adding a $250 million accordion feature. IAMGOLD ended the quarter with $501.4 million in cash and no amounts drawn on the revolver, providing total available liquidity of approximately $1.35 billion.
Cost Pressures from Royalties and Energy
Cash costs including royalties came in at $1,289 per ounce for the quarter and $1,244 per ounce year-to-date, tracking "towards the upper half of our guidance range," Adams said. The company cited two specific headwinds: royalty structures at Côte and Essakane tied to gold prices added approximately $380 per ounce year-to-date, about $55 per ounce above guidance assumptions at a realized gold price averaging over $4,600 per ounce. Oil prices running $25 to $30 per barrel above assumptions added roughly $35 per ounce to costs.
At Côte, the discontinuation of external contractor crushing by end-June drove processing costs down to $17.72 per tonne in June from an average of $22.50 per tonne over the prior three quarters. Lemelin is targeting mining costs of $4 per tonne and milling costs of $15 per tonne by year-end.
Expansion Pipeline Across Portfolio
Adams outlined a multi-asset growth pipeline, beginning with an updated Côte mine plan and technical report due year-end that will integrate the Gosselin deposit, building on "more than 20 million ounces of measured and indicated resources across the combined zone." The plan will define a path to increase throughput toward 40,000 tonnes per day through "targeted debottlenecking of the existing plant."
At Essakane in Burkina Faso, an updated mine plan expected in the first half of the year is anticipated to outline mine life extension to 2035. For Westwood in Quebec, the company plans to release next year a path to extend mine life and increase underground throughput. At Nelligan, IAMGOLD is advancing toward an initial economic study in 2027.
Revenues for Q2 totaled $856.9 million on sales of 195,100 ounces at an average realized price of $4,384 per ounce. Adjusted EBITDA reached $507.1 million, while adjusted net earnings attributable to equity holders came in at $241.6 million, or $0.42 per share, compared with $77.3 million and $0.13 per share in the prior-year period.
This article was generated by MarginX from the earnings call on 2026-08-07. It is not investment advice.