IAMGOLD’s New Côté Gold Project to Generate $270M in First Year of Production

IAMGOLD

IAMGOLD (NYSE: IAG), a Canadian gold mining company, is nearing the completion of its Côté Gold project in Canada, with production slated to begin in 2024. Côté Gold mine will be the company’s new flagship operation and is expected to be the third-largest gold mine in Canada. Côté mine operates as a 60/40 joint venture between IAMGOLD and Sumitomo Metal Mining (TSE: 5713), a Japan-based mining company. Currently, IAMGOLD also operates two other mines: Essakane and Westwood.

In 2023, IAMGOLD produced 506,000 ounces of gold from its existing operations, marking a -37% decrease in production from the previous year. However, with the upcoming launch of the Côté Gold mine, analysts anticipate a 16% year-over-year increase in total gold production to 586,000 ounces in 2024.

Estimates from Visible Alpha consensus project the Côté Gold project to generate $270 million in its first year, comprising 21% of the company’s total gold revenue. As production from the company’s Essakane and Westwood mines decline over the years, Côté Gold is estimated to account for 56% of the company’s total gold revenue by 2030. IAMGOLD’s total gold revenue, which grew by +3% year over year in 2023, is estimated to surge +27% in 2024, buoyed by Côté revenues.

Sector: Materials
Industry: Gold and Silver
Ticker: IAG