Iamgold generated $445M in operating cash flow in Q2, up 5x from a year earlier. Côté Gold mine costs are running near the top of guidance, pressuring margins. The miner has returned $510M to shareholders via buybacks since December.
Alpha Score of 44 reflects weak overall profile with moderate momentum, poor value, moderate quality, moderate sentiment.
IAMGOLD generated $445.1 million in net cash from operations in the second quarter, more than five times the $85.8 million a year earlier. The company produced 188,100 attributable ounces of gold in the quarter, bringing first-half output to 371,700 ounces and keeping it within the 2026 guidance range of 720,000 to 820,000 ounces.
CEO Renaud Adams said the company generated nearly $900 million in mine-site free cash flow during the first half. That cash supported investment in operating assets, balance-sheet improvements and shareholder returns. Since December, IAMGOLD has repurchased more than $500 million of its shares, or about 28 million shares, CFO Maarten Theunissen said on the quarterly call. The buyback represents roughly 45% of mine-site free cash flow returned to shareholders.
Second-quarter revenue reached $856.9 million on sales of 195,100 ounces at an average realized gold price of $4,384 an ounce. Adjusted EBITDA came in at $507.1 million. Adjusted net earnings attributable to equity holders were $241.6 million, or $0.42 per share, up from $77.3 million, or $0.13 a year earlier.
The strongest cash generator was the Côté Gold mine in Ontario, which produced 67,300 attributable ounces in the quarter on a 100% basis of 96,200 ounces. Côté's costs, however, are running above initial guidance. Second-quarter cash costs excluding royalties were $1,245 an ounce, and all-in sustaining costs excluding royalties were $2,082 an ounce. IAMGOLD now expects full-year cash costs excluding royalties to finish near the top end of its $900 to $1,050 per-ounce range, and AISC to land at the upper boundary of $1,475 to $1,625.
Chief Operating Officer Bruno Lemelin said the mine replaced a conveyor belt in May and commissioned a second cone crusher earlier in the year. The plant processed more than 1 million tonnes in June after ramping back to its 36,000-tonne-per-day nameplate rate. Processing costs in June averaged $17.72 per tonne, down from the $22.50 average of the prior three quarters. Lemelin said Côté discontinued external contractor crushing by the end of June and is targeting mining costs of $4 per tonne and milling costs of $15 per tonne by year-end. The operation continued to perform well into July and August, aside from a planned five-day annual shutdown in August.
Côté's longer-term potential hinges on an updated technical report and life-of-mine plan due by the end of 2026. The report will combine the Côté and Gosselin deposits into a single block model and is expected to outline a larger reserve base, longer mine life, and a path toward sustained processing of about 40,000 tonnes per day through debottlenecking and targeted plant upgrades. Adams said the company is also assessing scenarios beyond 40,000 tonnes per day. He emphasized that taking extra time reflects capital discipline and multiple development opportunities, not technical problems.
The Essakane mine in Burkina Faso delivered a 15% year-over-year production increase to 88,400 ounces. It generated $162.1 million in mine-site free cash flow during the quarter and $464.8 million year to date, including a $60.2 million tax payment. Cash costs excluding royalties fell 22% from the prior-year period to $1,214 an ounce. Royalties accounted for $510 an ounce during the quarter, reflecting higher gold prices and a higher average royalty rate. IAMGOLD expects to release an updated Essakane technical report in the first half of 2027 that could show potential to extend the mine's life through 2035, supported by additional phases in the Essakane pit and adjacent open pits.
Westwood, the Quebec underground mine, produced 32,400 ounces in the quarter and generated $56.5 million in mine-site free cash flow. The company is spending about $30 million this year on exploration and development of the mine's eastern extension. An updated technical report is expected in the second half of 2027 and will evaluate a mine-life extension, higher underground throughput and potential bulk-mining methods.
Beyond its operating mines, IAMGOLD is advancing the Nelligan mining complex in Quebec, which holds 4.3 million ounces of indicated resources and 7.5 million ounces of inferred resources. The company has budgeted about $24 million for drilling in 2026 across Nelligan, Philibert and Monster Lake. Approximately 45,000 metres of a planned nearly 70,000-metre drilling program had been completed, and IAMGOLD expanded drilling at Nelligan to 24,000 metres from 18,000 metres after positive early results. An inaugural technical report for the complex is expected in the first half of 2027.
Theunissen said the company used operating cash flow to fund $115.6 million of capital expenditures, repay the remaining $100 million on its credit facility, make a $74 million payment to the Burkina Faso government related to Essakane dividends, and repurchase shares. The credit facility was amended in June, increasing capacity to $850 million from $650 million, extending its maturity to 2030, and adding a $250 million accordion feature. IAMGOLD ended June with $501.4 million in cash and cash equivalents, no borrowings on its revolving facility, and about $1.35 billion in available liquidity.
For broader context on the gold market, see the gold profile. IAMGOLD's stock page is available here: IAG stock page.
Prepared with AlphaScala editorial tooling from the source reporting linked above. Indexable analysis may include a cited Alpha Score value. Publishing checks screen each story before release. Educational coverage, not personalized advice.