IMG:CC - Iamgold says Côté mining project needs another $1.9B to complete

Iamgold ( NYSE: IAG ) -4.4% in Thursday's trading after providing a new cost to completion, economics and life-of-mine plan for its Côté gold project in Ontario, which will require an additional $1.9B to bring to production .

Iamgold ( IAG ) reported a cost blowout at Côté, saying preliminary cost estimates from an ongoing risk analysis indicate the project would require $1.2B-$1.3B from the company to complete.

The miner already had suspended its 2022 and 2023 cost guidance for Côté when it became clear that the project would require substantially more than initial estimates in the $875M-$925M range; it also brought in Chair Maryse Belanger as interim president to address cost and liquidity issues.

Belanger believes Côté is "transformational" for Iamgold ( IAG ); once in production, the project is forecast to average 365K oz/year in production at an all-in sustaining cost of $854/oz for 18 years, based on 7.2M oz currently estimated in mineral reserves.

The project is 75% complete and should enter production in early 2024.

Iamgold ( IAG ) reported a Q2 adjusted loss of $0.01/share on revenues of $333M .

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