IAMGOLD swung to a Q2 loss of $0.04 a share as Côté Gold ramp costs offset higher gold sales. CEO says the mine is now cash-flow positive and the company expects free cash flow to turn positive in H2.
Alpha Score of 44 reflects weak overall profile with moderate momentum, poor value, moderate quality, moderate sentiment.
IAMGOLD posted a second-quarter loss from continuing operations of $24.7 million, or $0.04 a share, as costs at the ramp-up at Côté Gold ate into the benefit of higher gold prices. Analysts had expected a profit, according to consensus compiled by the company.
Revenue rose 26% to $468 million from a year earlier, driven by a 24% jump in gold sales volume to 163,000 ounces and a 10% higher average realized gold price of $2,744 an ounce. But cost of sales climbed 25% to $402 million, pushing all-in sustaining costs to $1,971 an ounce from $1,876 in the same quarter last year.
IAMGOLD CEO Renaud Adams called the quarter "transformational" on the call, pointing to the Côté Gold mine in Ontario reaching commercial production in June, three months ahead of schedule. The mine produced 68,000 ounces in the quarter and is on track to hit the upper end of its 2026 guidance of 290,000 to 320,000 ounces, the company said.
"Côté Gold is now a cash-flow-generating asset," Adams said. "The ramp-up phase is behind us."
The company swung to a net loss of $24.7 million from continuing operations, compared with a $30.6 million profit a year ago. The loss included $39 million in non-cash, non-recurring items tied to the Côté ramp and the sale of the Rosebel mine in Suriname last year, CFO Marthinus Theunissen said.
Free cash flow remained negative at negative $32.4 million for the quarter, though that narrowed from negative $79.8 million in the same period last year. The company ended the quarter with $525 million in cash and $750 million in undrawn credit facilities.
At its Essakane mine in Burkina Faso, output rose 4% to 80,000 ounces, with all-in sustaining costs of $1,576 an ounce. The Westwood mine in Quebec produced 15,000 ounces at costs of $1,774 an ounce.
IAMGOLD maintained its 2026 production guidance of 405,000 to 455,000 ounces at all-in sustaining costs of $1,790 to $1,940 an ounce. The company expects to generate positive free cash flow in the second half of the year as Côté ramps to full production, Theunissen said.
Shares of IAMGOLD fell 4.1% to C$6.98 in Toronto trading Thursday. The stock is down 12% this year.
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