Côté completion costs could be as high as $1B: IAMGOLD
The cost to finish construction of the Côté gold mine in Northern Ontario could be as much as $1 billion.
Mine owner IAMGOLD issued its third quarter earnings report in early November. The data shows that construction of the project was about 64% complete at the end of September. IAMGOLD, however, indicated that its share of remaining spend to bring the mine into production was estimated to be between $1.0 and $1.1 billion.
"IAMGOLD has continued to build upon its recent successes, reporting attributable gold production of 184,000 ounces, which represents the highest quarterly production for the company in over 2.5 years," said Maryse Bélanger, Chair and Interim President and CEO of IAMGOLD. "On behalf of the board and the executive team, we applaud the tireless efforts of the IAMGOLD team for this achievement and their continued commitment to operating safely and responsibly.
Cash flow appears to be a concern for IAMGOLD, which announced in October that it had sold its interests in a mine in Suriname for approximately $360 million to help finance the cost of the Côté project.
"With approximately 1,500 workers on site, the project is nearing peak capacity and has seen significant progress in the third quarter towards the target of production in early 2024,” Bélanger added. “The announced sale of Rosebel to Zijin Mining last month represents the first significant step towards addressing the funding commitments to deliver Côté Gold. The remaining funding alternatives are well advanced and we expect to be able to provide further updates in the fourth quarter."
IAMGOLD also reported that the project has surpassed 6.9 million hours worth of work with no lost-time injuries.
The mine is expected to begin production in early 2024.