Name of the Project
Côté gold project.

Location
Northern Ontario, Canada.

Project Owner/s
Côté is a 70:30 joint venture (JV) between Iamgold and Sumitomo Metal Mining (SMM).

Project Description
It is one of the largest undeveloped gold projects in Canada, with an 18-year mine life and a maximum mining rate of 69-million tonnes a year. Yearly ore feed is estimated at 13.6-million tonnes a year.

Recovered gold is estimated at 6.58-million ounces of gold over the life-of-mine.

Potential Job Creation
The project is expected to create more than 1 000 jobs during construction, 450 jobs during operations, C$5-billion in wages and more than C$10-billion in gross domestic product over its life span.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 5% discount rate, of $1.1-billion and an internal rate of return (IRR) of 13.5%, with a five year payback.

Capital Expenditure
$1.91-billion.

Planned Start/End Date
The first gold pour was completed on March 31, 2024, and commercial production was announced on August 1, 2024. 
Operations are ramping up to a nameplate processing throughput rate of 36 000 t/d by the fourth quarter of 2025.

Latest Developments
Royalty and streaming company Franco-Nevada has struck a $1.05-billion deal to acquire a royalty package on the Côté gold mine.

The package, acquired from a private third party, comprises a 7.5% gross margin royalty on 100% of the mineral production from the Chester 1, 2 and 3 claims. These cover all the mine’s mineral reserves and more than 99.9% of its current mineral resources.

Franco-Nevada partnered with mine owners Iamgold and SMM in the transaction, securing access for in-depth due diligence and the opportunity to enter into a new royalty agreement that will take effect on closing, anticipated at the end of the second quarter.

As part of the new arrangement, Iamgold and SMM will have the option to buy back up to 50% of the royalty in two tranches of 25%. The first tranche is exercisable within two years at Franco-Nevada’s cost of borrowing, and the second within three years at an IRR of 10%, following exercise of the first.

Iamgold has guided 2025 production of 360 000 oz to 400 000 oz at cash costs of $950/oz to $1 100/oz, inclusive of royalty costs.

Based on Iamgold’s midpoint guidance and a gold price of $3 200/oz, Franco-Nevada expects to generate $33.5-million in royalty revenue in the second half of 2025, with full-year revenue of $67-million.

“The value upside of the Côté gold mine is further supported by the rapidly growing Gosselin zone, which we intend to incorporate into an updated mine plan next year that will bring the Côté and Gosselin zones together to outline a Côté gold mine of increased scale and scope for generations to come.” Franco-Nevada has said.

The company sees strong long-term expansion potential at Côté, with the mill expected to reach its nameplate 13-million-tonne-a-year capacity by the end of 2025. The company also sees potential for expansion to 20-million tonnes a year to align with mining capacity of 54-million tonnes a year and a 2:1 strip ratio.

Franco-Nevada will fund the transaction from its existing $2-billion in available capital. The company continues to generate $275-million to $300-million in free cash flow per quarter and remains well positioned to expand its portfolio.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Iamgold, email info@iamgold.com.
SMM, tel +81 3 3436 7705.