IAMGold Corporation 2026 Q2 Earnings Call

Thank you, operator. Welcome everyone to our conference call this morning. Joining us on the call are Renaud Adams, President and Chief Executive Officer, Maarten Theunissen, Chief Financial Officer, Bruno Lemelin, Chief Operating Officer, Ankit Shah, Chief Strategy Officer, and Annie Torkia Lagacé, Chief Legal Officer. We are calling today from IAMGOLD's Toronto office, which is located on Treaty 13 territory, on the traditional lands of many nations, including the Mississaugas of the Credit, the Anishinaabe, the Chippewa, Haudenosaunee, and the Wendat peoples. At IAMGOLD, we believe respecting and upholding Indigenous rights is founded upon the relationships that foster trust, transparency, and mutual respect. Please note that our remarks on this call will include forward-looking statements and refer to non-IFRS measures.

We encourage you to refer to the cautionary statements and disclosures on non-IFRS measures, including the presentation and the reconciliations of these measures in our most recent MD&A, each under the heading Non-GAAP Financial Measures. With respect to the technical information to be discussed, please refer to the information in the presentation under the heading Qualified Person and Technical Information. The slides referenced on this call can be viewed on our website. I will now turn the call over to our President and CEO, Renaud Adams.

Thank you, Graeme. Good morning, everyone. Thank you for joining us today. It was another strong and safe quarter for IAMGOLD. We produced 188,100 ounces of gold in the second quarter, bringing our year-to-date production to 371,700 ounces, positioning IAMGOLD firmly on track to meet our full-year guidance of 720,000-820,000 ounces. Our company continues to generate strong cash flow with nearly $900 million of mine-site free cash flow produced year to date. This allows us to invest in our assets, strengthen our balance sheet, and return capital to our shareholders at the same time. Since December, we have repurchased more than half a billion dollars of IAMGOLD shares. These repurchases reflect our confidence in the company's future and our view that our shares represent compelling value. That confidence is built on the growth we have across each of our mines.

Over the coming quarters, we expect updated studies at Côté, Essakane, Westwood, and Nelligan. Our next phase of value creation starts at Côté. The first step is the updated mine plan and the technical report, which remains on track for the end of the year. For the first time, this plan will bring the Côté and Gosselin deposits together, building on the more than 20 million ounces of measured and indicated resources across the combined zone. The updated plan will define a near-term path to increase throughput towards 40,000 tons per day through targeted debottlenecking of the existing plant. This work is expected to be low cost and high return, supported by a larger reserve base and a longer mine life. In parallel, we're advancing trade-off studies on a large expansion of Côté. We have adjusted the scope of this work to reflect the significant size and opportunity at Côté.

We are taking the time to assess the full scale of the asset, evaluating multiple scenarios to ensure that Côté is positioned to deliver value for generations to come. At Essakane, we continue to see strong cash flow generation, which remains a key driver of our share buyback program. In the first half of the year, we plan to release an updated mine plan that is expected to outline a mine life extension to 2035. At Westwood, our Quebec underground mine continues to redefine itself as a stable, cash-generative operation. Next year, we are excited to outline a path to extend mine life and increase underground throughput with the potential to transform Westwood into a larger, higher throughput, lower cost operation.

Of course, at Nelligan, we are advancing one of Canada's largest emerging gold camps toward an initial economic study next year, marking an important step in defining its long-term development potential. In summary, IAMGOLD is performing well, generating strong cash flow, returning capital to shareholders, and building real growth for the years ahead. With that, let's get into the quarter. Starting with health and safety, our total recordable injury frequency rate was 0.70 for the quarter and is tracking at 0.56 year to date. I would like to recognize the Westwood team in particular, whose continuous focus on safe operations set a strong standard. Safety comes first to us, and I want to thank our teams across operations for their ongoing commitment to safe and responsible mining.

Turning to operation, IAMGOLD produced 188,100 ounces to our account in the second quarter. At Côté, attributable production was 67,300 ounces or 96,200 ounces on 100% basis, which was made possible as the plant operated at near full capacity in June following the conveyor belt replacement and the commissioning of the second rock crusher. Essakane West Zone also delivered strong quarters with grades slightly above forecast. Cash costs, including royalty, were $1,289 per ounce for the quarter and $1,244 per ounce year to date. For the full year, cash costs are tracking towards the upper half of our guidance range, with improvement expected in the second half as Côté production increases. All-in Sustaining Costs, including royalty, are likewise tracking towards the upper half of the guided range. As a reminder, both Côté and Essakane have a royalty structure tied directly to the gold price.

With the realized gold price averaging over $4,600 per ounce year-to-date, royalties have added approximately $380 per ounce so far this year, about $55 per ounce above our guidance assumption. We continue to monitor inflation and energy market volatility closely. In the first half of the year, certain input costs increased by approximately 3%, in line with our expectations. In the second quarter, oil prices were approximately 25%-30% per barrel above our guidance assumptions, adding about $35 per ounce above our cost guidance. With that, I will pass the call over to our CFO to walk us through our financial matters.

Maarten? Thank you, Renaud, good morning, everyone.

The combination of strong operating performance and a favorable gold price environment continued to generate significant cash flow during the quarter. Our capital allocation strategy is to deploy funds to sustain and optimize our operations, fund our expansion and mine life extension initiatives, then use remaining funds for strategic opportunities and shareholder returns. Net cash from operating activities totaled $445.1 million during the quarter, an increase of $359.3 million when compared to the $85.8 million of cash from operating activities in Q2 2025. We used the operating cash flow to fund the $115.6 million of capital expenditures, the full repayment of the remaining $100 million outstanding on the credit facility, $74 million paid to the government of Burkina Faso related to the Essakane dividend distribution, and $147.9 million of shares repurchases under our share buyback program.

As Renaud noted, since we initiated the share buyback in December, IAMGOLD has repurchased approximately 28 million shares for $510.4 million, which equates to approximately 45% of our mine-site free cash flow returned to shareholders, a clear signal of our confidence in the value of our shares. In June, we further enhanced our financial flexibility by amending the credit facility, increasing total capacity from $650 million-$850 million, extending the maturity to 2030, improving covenant terms, and lowering overall borrowing costs. The amended facility also includes a further $250 million accordion feature, providing additional liquidity potential. As a result, we ended the quarter with $501.4 million in cash and cash equivalents, no amounts drawn on the revolving facility, and total available liquidity of approximately $1.35 billion. Revenues for the second quarter was $856.9 million on sales of 195,100 ounces at an average realized gold price of $4,384 per ounce.

This was slightly below the quarter average as production was weighted towards the back end of the quarter. Adjusted EBITDA in the second quarter was $507.1 million, adjusted net earnings attributable to equity holders of $241.6 million or $0.42 per share, compared with $77.3 million and $0.13 per share in the prior period. On a trailing 12-month basis, Adjusted EBITDA has increased to approximately $2.2 billion. Cash flow from operating activities, excluding working capital adjustments, was $442 million in the quarter, an increase of $315.6 million year-over-year. Mine-site free cash flow was $368.9 million in the second quarter at $228.4 million, or 169% increase compared to Q2 2025. Year-to-date mine-site free cash flow was $893.5 million, a $613.5 million or 290% increase compared to the same period in 2025. Taken together, these results reflect the fundamental transformation of the company's financial position.

Just over a year ago, IAMGOLD carried more than $800 million of net debt. As of June 30, 2026, the company is in a net cash position with an undrawn and increasing revolving facility and a balancing capacity to fund growth and return capital to shareholders concurrently. With that, I will pass the call to Bruno Lemelin, our Chief Operations Officer, to discuss our operating results and outlook.