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Growth Catalysts for IAMGOLD in 2018 and Beyond

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Organic growth opportunities

IAMGOLD (IAG) has many organic growth opportunities. It’s pursuing expansion opportunities at existing deposits and expects initial resource estimates at Monster Lake, Nelligan, and Eastern Borosi.

IAG’s CEO, Steve Letwin, mentioned on the 4Q17 call that the company is looking to grow production to about 1.2 million–1.3 million ounces by 2022 and all-in sustaining costs (or AISC) falling below $850 per ounce.

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Saramacca: PFS results expected in 2018

On September 5, 2017, IAMGOLD (IAG) announced a significant gold discovery at its Saramacca mine in Suriname. This property is close to the Rosebel mine. During its 4Q17 earnings call, the company provided an update on the progress at Saramacca. It’s expecting the preliminary reserve from the site by the second half of 2018. The mine design and infrastructure design are progressing well. IAG has determined that the most cost-effective way of transporting ore to the mill will be road haul trucks. The comprehensive metallurgical test work is underway.

Other opportunities

There are many other growth opportunities available to the company. The key to these opportunities include:

  • The company is doing further exploration at Brokolonko, which should confirm mineralization and advance it to the resource stage.
  • IAG is expecting to complete the heap leach pre-feasibility study at Essakane by 2Q18, which should provide upside potential to Essakane and expand production and reserves.
  • Westwood is ramping up and expected to reach full capacity by 2020.
  • The feasibility study for Côté Gold is expected to be completed by 1H19, and production is expected to start by 2021.

Many of IAG’s peers (JNUG)(GDX) have also hiked their exploration after years of under-investing. Coeur Mining (CDE), Pan American Silver (PAAS), Hecla Mining (HL), and First Majestic Silver (AG) are among the players that have stepped up their exploration games substantially.

Continue to the next and final part of this series for a look at IAG’s valuation.

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