$1B still needed to complete Côté Gold project, IAMGOLD reports

2020: Dignitaries gather at Cote Gold mine site Prime Minister Justin Trudeau and Ontario Premier Doug Ford joined by several dignitaries at IAMGOLD's new Cote Gold mine site near Gogama.

While construction of the Côté Gold project is hitting its peak, IAMGOLD is still searching for financing to complete the project.

Côté Gold, located between Timmins and Sudbury, is 64.2 per cent complete, the company told shareholders in an update earlier this month.

“Current manpower on site reached approximately 1,500 workers and is nearing peak capacity levels,” the company said.

“A temporary camp providing an additional 220 rooms capacity to meet anticipated peak camp load was completed in August and is currently in service.”

The mine is expected to begin production in early 2024. But challenges brought on by the COVID-19 pandemic and the recent surge in inflation, the company estimates it needs to raise $1 billion to $1.1 billion to complete the project.

Funds from the recent sale of a mine in South America will be plowed into Côté Gold, the company said. The company raised $360 million by selling its Rosebel Mine to a Chinese company, Zijin Mining Group Co. Ltd.

“The announced sale of Rosebel to Zijin Mining last month represents the first significant step towards addressing the funding commitments to deliver Côté Gold,” Maryse Bélanger, chair and interim president and CEO of IAMGOLD, said in a news release.

“The remaining funding alternatives are well advanced and we expect to be able to provide further updates in the fourth quarter."

While the company said it is confident it can raise the money to complete the project, there are no guarantees and plans are in place to reduce the scope of Côté Gold if necessary.

“The company has developed certain potential alternatives to defer or reduce its capital spending and various other expenditures,” the release said.

“These alternatives may impact future operating and financial performance and/or could extend the Côté Gold project construction timeline and significantly increase project costs, and/or dilute the company's interest in the Côté Gold project.”

Read the full release here.