Aiming to be one of Canada’s largest gold mines, Cote Gold reaches maximum production

IAMGOLD process plant at Cote Gold Mine in Gogama. IAMGOLD is the majority owner of Côté Gold, which is on track to become one of the largest gold mines in Canada.(Supplied)

Côté Gold Mine, located on Highway 144 between Timmins and Greater Sudbury, reached a major milestone this month, producing at a peak capacity of 36,000 tonnes a day on average for 30 straight days.

The milestone, known as ‘nameplate throughput,’ took place at the mine’s processing plant June 21.

“I would like to congratulate our Côté Gold teams, who demonstrated remarkable determination and commitment to bring Côté Gold online and advance it to nameplate throughput rate within 15 months,” Renaud Adams, president & CEO of IAMGOLD, said in a news release.

IAMGOLD is the majority owner of Côté Gold, which is on track to become one of the largest gold mines in Canada.

“To bring a gold project from first gold to the design nameplate rate within this timeframe, while ensuring a safe workplace for all, exemplifies the commitment to excellence and accountability that is at the core of IAMGOLD today.”

Aims for 400,000 ounces a year

Adams said the mine reached 90 per cent capacity in March, and 96 per cent for 30 days in April.

“The achievement confirms our confidence in the Côté Gold production guidance of 360,000 to 400,000 ounces on a 100 per cent basis, with costs expected to decline through the year,” he said.

“Further, we are excited at the opportunities the installation of the second cone crusher will bring, including improving plant availability and maintenance cycles, while providing potential for further throughput increases.”

In addition to the production milestone, IAMGOLD said it has delivered 150,000 ounces of gold to pay off a loan, a process known as a gold prepay arrangement.

The arrangement was made to help fund the construction of Côté Gold and the repayment allows the company to save a considerable amount in interest payments.

“Today marks a significant cash flow inflection point for IAMGOLD as we successfully conclude our gold prepay arrangements,” Adams said in a June 23 news release.

Equivalent to $200M-$250M

“In the first half of this year, the Company delivered the remaining 75,000 ounces of gold under the arrangements of which only a portion had some exposure to the gold price. This is equivalent to approximately $200 to $225 million of cashflow that the company would have received … if the gold prepay arrangements were not in place.”

Combined with the mine reaching full capacity, Adams said Côté Gold expects improved operating results for the second half of the year.

“With the current favourable gold price environment, the company is well-positioned to generate stronger free cash flows and commence a disciplined deleveraging strategy,” he said.

IAMGOLD is an intermediate gold producer and developer based in Canada with operating mines in North America and West Africa, including Côté Gold, Westwood (Canada) and Essakane (Burkina Faso).

On March 31, 2024, the company commenced production at Côté Gold, in partnership with Sumitomo Metal Mining Co. Ltd., a mine that has the potential to be among the largest gold mines in Canada.