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Form 6-K IAMGOLD CORP For: Jun 30

August 3, 2022 5:12 PM EDT

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FORM 6-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
Date: August 3, 2022
Commission File Number 001-31528
IAMGOLD Corporation
(Translation of registrant’s name into English)
401 Bay Street Suite 3200, PO Box 153
Toronto, Ontario, Canada M5H 2Y4
Tel: (416) 360-4710
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F  ¨            Form 40-F  ý
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ¨
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ¨
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.



Description of Exhibit
 
-2-


Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
IAMGOLD CORPORATION
Date: August 3, 2022By: /s/ Tim Bradburn
 Senior Vice President, General Counsel and Corporate Secretary



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MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL POSITION AND RESULTS OF OPERATIONS
Second Quarter Ended June 30, 2022
INDEX
Introduction
About IAMGOLD
Highlights — Second Quarter 2022
Operating and Financial Results
Outlook
Environmental, Social and Governance
Quarterly Updates
Operating and Financial Performance
West Africa
North America
South America
Exploration
Financial Condition
Liquidity and Capital Resources
Cash Flow
Market Trends
Market Risk
Shareholders’ Equity
Quarterly Financial Review
Disclosure Controls and Procedures and Internal Control over Financial Reporting
Critical Judgments, Estimates and Assumptions
New Accounting Standards
Risks and Uncertainties
Non-GAAP Financial Measures
Cautionary Statement on Forward-Looking Information
IAMGOLD CORPORATION
Second Quarter 2022 Management’s Discussion and Analysis
1


INTRODUCTION
The following Management’s Discussion and Analysis (“MD&A”) of IAMGOLD Corporation (“IAMGOLD” or the “Company”), dated August 3, 2022, is intended to supplement and complement the unaudited condensed consolidated interim financial statements and notes thereto as at and for the three and six months ended June 30, 2022 ("consolidated interim financial statements"). This MD&A should be read in conjunction with IAMGOLD's audited annual consolidated financial statements and related notes as at and for the fiscal year ended December 31, 2021 and the related MD&A included in the 2021 annual report. All figures in this MD&A are in U.S. dollars and tabular dollar amounts are in millions, unless stated otherwise. Additional information on IAMGOLD can be found at www.iamgold.com. However, the information on the website is not in any way incorporated in or made a part of this MD&A.
ABOUT IAMGOLD
IAMGOLD is a mid-tier gold mining company operating in North America, South America and West Africa. The Company has three operating mines: Essakane (Burkina Faso), Rosebel (Suriname) and Westwood (Canada) and is building the large-scale, long life Côté Gold project (“Côté Gold”) (Canada) which is expected to start production in the beginning of 2024. In addition, the Company has a robust development and exploration portfolio within high potential mining districts in the Americas and West Africa.
IAMGOLD employs approximately 5,000 people and is committed to maintaining its culture of accountable mining through high standards of Environmental, Social and Governance ("ESG") practices, including its commitment to Zero Harm®, in every aspect of its business. IAMGOLD is listed on the New York Stock Exchange (NYSE:IAG) and the Toronto Stock Exchange (TSX:IMG) and is one of the companies on the JSI index1.
HIGHLIGHTS - SECOND QUARTER 2022
Attributable gold production of 170,000 ounces in the second quarter and 344,000 ounces year-to-date (“YTD”) on continued strong performance from Essakane and improvements at Rosebel; annual production is expected to be in the upper end of the guidance range of 570,000 to 640,000 ounces.
Gold revenues of $334.0 million in the second quarter from sales of 185,000 ounces (170,000 ounces on an attributable basis) at an average realized gold price of $1,799 per ounce and $690.6 million YTD from sales of 381,000 ounces (351,000 ounces on an attributable basis) at an average realized gold price of $1,806 per ounce.
Cost of sales per ounce sold of $1,130 ($1,081 YTD), cash cost2 per ounce sold of $1,119 ($1,066 YTD) and all-in sustaining costs2 ("AISC") per ounce sold of $1,604 ($1,545 YTD); costs guidance for 2022 is unchanged with cash costs2 expected to be between $1,100 and $1,150 per ounce sold and AISC2 expected to be between $1,650 and $1,690 per ounce sold.
Mine-site free cash flow2 of $42.8 million ($130.3 million YTD).
Net earnings (loss) and adjusted net earnings (loss) per share attributable to equity holders2 of $(0.02) and $(0.01), respectively; YTD net earnings and adjusted net earnings per share attributable to equity holders2 of $0.03 and $0.04, respectively.
Earnings before interest, income taxes, depreciation and amortization (“EBITDA”)2 of $101.4 million ($236.3 million YTD) and adjusted EBITDA2 of $110.0 million ($247.5 million YTD).
Cash, cash equivalents and short-term investments of $452.9 million and liquidity2 of $801.6 million at June 30, 2022.
The Company announced the updated costs to complete, an updated life-of-mine (“LOM”) plan and project economics for the Côté Gold project to be included in a new NI 43-101 technical report (see news release dated August 3, 2022). The Company's share of remaining project spend to bring Côté Gold into production is estimated to be between $1.2 and $1.3 billion from July 1, 2022, net of leases and working capital.
The Company is actively pursuing various alternatives to increase its liquidity and capital resources to advance and complete construction of the Côté Gold project on the updated schedule. See “Liquidity and Capital Resources - Liquidity Outlook”. In the second quarter 2022, the Company advanced a strategic review process to evaluate options for its Rosebel/Saramacca mining complex which could include the sale of this complex. In addition, the Company is evaluating strategic alternatives with respect to certain of its development and exploration assets, including those located in South America and West Africa (excluding Essakane), that may include the disposition of all or an interest in one or more of such assets.





______________________________
1.Jantzi Social Index (“JSI”). The JSI is a socially screened market capitalization-weighted common stock index modeled on the S&P/TSX 60. It consists of companies which meet a set of broadly based environmental, social and governance rating criteria.
2.This is a non-GAAP financial measure. See "Non-GAAP Financial Measures".
IAMGOLD CORPORATION
Second Quarter 2022 Management’s Discussion and Analysis
2


OPERATING AND FINANCIAL RESULTS
For more details and the Company's overall outlook for 2022, see "Outlook", and for individual mines and projects performance, see "Quarterly Updates". The following table summarizes certain operating and financial results for the three months ended June 30, 2022 (Q2 2022), March 31, 2022 (Q1 2022) and June 30, 2021 (Q2 2021) and the six months ended June 30 (or YTD), 2022 and 2021 and certain measures of the Company's financial position as at June 30, 2022, March 31, 2022 and December 31, 2021.
Q2 2022Q1 2022Q2 2021YTD 2022YTD 2021
Key Operating Statistics
Gold production – attributable (000s oz)170 174 139 344 295 
Gold sales – attributable (000s oz)170 181 135 351 288 
Average realized gold price1 ($/oz)
$1,799 $1,813 $1,800 $1,806 $1,788 
Cost of sales2 ($/oz sold) – attributable
$1,130 $1,035 $1,150 $1,081 $1,110 
Cash costs1 ($/oz sold) – attributable
$1,119 $1,017 $1,149 $1,066 $1,108 
AISC1 ($/oz sold) – attributable
$1,604 $1,490 $1,422 $1,545 $1,324 
Financial Results ($ millions, except where noted)
Revenues$334.0 $356.6 $265.6 $690.6 $563.0 
Gross profit $49.4 $81.0 $27.9 $130.4 $72.1 
EBITDA1
$101.4 $134.9 $87.0 $236.3 $200.8 
Adjusted EBITDA1
$110.0 $137.5 $84.8 $247.5 $184.9 
Net earnings (loss) attributable to equity holders$(9.6)$23.8 $(4.5)$14.2 $15.0 
Adjusted net earnings (loss) attributable to equity holders1
$(6.3)$26.1 $(3.6)$19.8 $2.6 
Net earnings (loss) per share attributable to equity holders$(0.02)$0.05 $(0.01)$0.03 $0.03 
Adjusted net earnings (loss) per share attributable to equity holders1
$(0.01)$0.05 $(0.01)$0.04 $0.01 
Net cash from operating activities before changes in working capital1
$93.9 $133.9 $54.9 $227.8 $137.4 
Net cash from operating activities$81.9 $142.3 $37.3 $224.2 $139.0 
Mine-site free cash flow1
$42.8 $87.5 $1.9 $130.3 $91.4 
Capital expenditures1,3,4 – sustaining
$67.1 $76.6 $23.9 $143.7 $37.6 
Capital expenditures1,3,4 – expansion
$189.0 $92.1 $128.4 $281.1 $217.2 
June 30March 31December 31June 30December 31
20222022202120222021
Financial Position ($ millions)
Cash, cash equivalents and short-term investments$452.9 $524.4 $552.5 $452.9 $552.5 
Long-term debt$612.0 $463.5 $464.4 $612.0 $464.4 
Net cash (debt)1
$(225.1)$(6.5)$16.3 $(225.1)$16.3 
Available credit facility$348.7 $498.2 $498.3 $348.7 $498.3 
1.Throughout this MD&A, the Company uses the terms average realized gold price per ounce sold, cash costs, cash costs per ounce sold, AISC, AISC per ounce sold, net cash from operating activities before changes in working capital, mine-site free cash flow, liquidity, net cash (debt), EBITDA, adjusted EBITDA, adjusted net earnings (loss) attributable to equity holders and adjusted net earnings (loss) per share attributable to equity holders, sustaining capital expenditures and expansion capital expenditures all of which are non-GAAP financial measures with no standard meaning under International Financial Reporting Standards ("IFRS") and are further discussed in the "Non-GAAP Financial Measures" section. The average realized gold price in the first and second quarter 2022 excluding the impact of the 2019 Prepay Arrangement (as defined below) were $1,884 and $1,873 per ounce sold, respectively.
2.Throughout this MD&A, cost of sales, excluding depreciation, is disclosed in the cost of sales note in the consolidated interim financial statements.
3.Throughout this MD&A, capital expenditures represent cash expenditures for property, plant and equipment and exploration and evaluation assets.
4.Starting in 2022, a higher portion of stripping costs are categorized as sustaining capital versus expansion capital, due to the particular areas that are scheduled to be mined and the stage of the life of mine aligning with World Gold Council guidelines. See "Non-GAAP Financial Measures" section.






_____________________________
1.This is a non-GAAP financial measure. See "Non-GAAP Financial Measures".
IAMGOLD CORPORATION
Second Quarter 2022 Management’s Discussion and Analysis
3


Summary of Financial and Operating Results
Contributors to ChangeQ2 2022 vs. Q1 2022
Financial
Revenuess
$334.0 million, down $22.6 million or 6%, primarily due to lower sales volumes at Essakane and Westwood as a result of lower production ($29.0 million and $3.4 million, respectively) and a lower average realized gold price ($1.8 million or $14 per ounce sold), partially offset by higher sales volume at Rosebel as a result of higher production and timing of sales ($11.8 million). Included in the quarter is the impact of the lower revenues recognized from the 2019 Prepay Arrangement noted below, with a $1,500 per ounce collar ($13.8 million or $74 per ounce sold).
Cost of salesr
$284.6 million, up $9.0 million or 3%. Excluding the non-cash net realizable value (“NRV”) write-down of ore stockpile and finished goods inventories, cost of sales is higher primarily due to higher operating costs, as a result of increased cost pressures during the quarter and higher depreciation (see below). The NRV write-down this quarter was $5.2 million (first quarter 2022 - $5.3 million). The NRV write-down is associated with Westwood, primarily due to higher costs from increased rehabilitation associated with underground development in zones previously impacted by seismic events.
Depreciation expense (included in cost of sales)
r
$78.1 million, up $3.1 million or 4%, primarily due to higher depreciation at Essakane ($4.5 million) and Westwood ($0.9 million), partially offset by lower depreciation at Rosebel ($2.3 million).
General and administrative expensesr
$17.2 million, up $2.1 million or 14%, primarily due to higher severance costs ($1.9 million) and costs associated with activities related to the changes in the Company's board of directors ($1.8 million), partially offset by lower share-based payments ($1.3 million) and directors’ fees ($0.2 million). The Company incurred severance costs of $3.5 million and cost associated with changes in the Company’s board of directors of $2.4 million for the first half of 2022.
Exploration expensesr
$9.3 million, up $1.1 million primarily due to an increase in drilling costs from inflationary cost pressures.
Other expensess
$1.4 million, down $5.5 million.
Income tax expenses
$25.1 million, down $1.5 million, comprised of current income tax expense of $27.7 million (first quarter 2022 - $28.9 million) and deferred income tax recovery of $2.6 million (first quarter 2022 - $2.3 million). The income tax expense for the second quarter 2022 included withholding taxes on the repatriation of funds.
Net cash from operating activities before changes in working capitals
$93.9 million, down $40.0 million, primarily due to the factors noted below.
Net cash from operating activitiess
$81.9 million, down $60.4 million, primarily due to lower net cash earnings ($19.9 million), higher income taxes paid resulting from withholding taxes on repatriation of funds ($26.9 million) and a net outflow in non-cash working capital movements ($20.4 million), partially offset by an increase in cash inflows from the settlement of derivatives ($6.3 million).

Mine-site free cash flows
$42.8 million, down $44.7 million, from the prior quarter, primarily due to lower operating cash flow at Essakane ($54.6 million) and Westwood ($11.1 million), mainly due to higher operating costs, lower sales volume and a lower average realized gold price, and higher capital expenditures at Rosebel ($16.0 million), partially offset by higher operating cash flow from Rosebel ($21.5 million) and lower capital expenditures at Essakane ($17.1 million).
Financial Position
Cash, cash equivalents, short-term investments and restricted cashs
$491.8 million comprised of cash and cash equivalents of $451.1 million, short-term investments of $1.8 million and restricted cash of $38.9 million, down $73.8 million from March 31, 2022 and $102.9 million from December 31, 2021.
Operating
Attributable gold productions
170,000 ounces, down 4,000 ounces or 2%, due to lower production at Essakane (5,000 ounces) as a result of lower throughput, partially offset by higher grade, and lower production at Westwood (2,000 ounces) due to lower grade, partially offset by higher production at Rosebel (3,000 ounces) due to higher grade.
Attributable gold saless
170,000 ounces, down 11,000 ounces or 6%, due to lower production and timing of sales at Essakane (15,000 ounces) and lower production at Westwood (2,000 ounces), partially offset by higher production and timing of sales at Rosebel (6,000 ounces).
IAMGOLD CORPORATION
Second Quarter 2022 Management’s Discussion and Analysis
4


Contributors to ChangeQ2 2022 vs. Q1 2022
Operating
Capital expenditures – capitalized stripping (included in capital expenditures – sustaining and expansion)
s
$35.8 million, down $10.1 million or 22%, due to lower capitalized stripping activities at Essakane ($12.7 million), partially offset by higher capitalized stripping activities at Rosebel ($2.6 million). In the second quarter 2022, $24.5 million of capitalized stripping activities were categorized as sustaining capital (first quarter 2022 - $42.4 million) and $11.3 million were categorized as expansion capital (first quarter 2022 - $3.5 million).
Capital expenditures – sustainings
$67.1 million, down $9.5 million or 12%. Excluding the impact of capitalized stripping activities noted above, sustaining capital expenditures were higher by $8.4 million, primarily due to higher spending at Rosebel ($12.4 million) related to timing of capital projects, partially offset by lower spending at Essakane ($3.9 million).
Capital expenditures – expansionr
$189.0 million, up $96.9 million or 105%. Excluding the impact of capitalized stripping activities noted above, expansion capital expenditures were higher by $89.1 million, primarily due to higher expenditures at Côté Gold ($91.1 million), in line with an increase in construction activities compared with the first quarter 2022 which was negatively impacted by COVID-19 and the batch plant fire.
Cost of sales (excluding depreciation) per ounce sold
r
$1,130, up $95 or 9%, from $1,035 per ounce sold. Excluding depreciation, cost of sales per ounce sold was higher due to higher production costs and lower production volume. Included was a non-cash NRV write-down of ore stockpile and finished goods inventories of $26 per ounce sold (first quarter 2022 - $23 per ounce sold), comprised of $19 per ounce included in cash costs and AISC per ounce sold as short-term and $6 per ounce excluded as long-term. Additionally, included was the positive impact of realized derivative gains of $64 per ounce sold (first quarter 2022 - gains of $44 per ounce sold).
Cash costs per ounce soldr
$1,119, up $102 or 10% from $1,017 per ounce sold. Cash costs per ounce sold was higher due to higher production costs and lower production volume. Included was a non-cash NRV write-down of short-term ore stockpile and finished goods inventories of $19 per ounce sold (first quarter 2022 - $9 per ounce sold).
AISC per ounce soldr
$1,604, up $114 or 8%, from $1,490 per ounce sold, primarily due to the increase in cash costs per ounce sold noted above.
Contributors to changeQ2 2022 vs. Q2 2021
Financial
Revenuesr
$334.0 million, up $68.4 million or 26%, primarily due to higher sales volume at Rosebel ($53.0 million), Westwood ($13.8 million) and Essakane ($1.1 million) as a result of higher production. Included in the second quarter 2022 is the impact of lower revenues recognized as a result of the 2019 Prepay as noted above.
Cost of salesr
$284.6 million, up $46.9 million or 20%. Excluding the non-cash NRV write-down of ore stockpiles and finished goods inventories, cost of sales is higher primarily due to higher operating costs in addition to higher depreciation (see below). The NRV write-down this quarter was $5.2 million noted above (second quarter 2021 - $11.2 million).
Depreciation expense (included in cost of sales)
r
$78.1 million, up $8.4 million or 12%, primarily due to higher depreciation of capitalized stripping assets at Essakane ($4.4 million), and higher depreciation at Westwood as underground operations were under care and maintenance for the majority of the second quarter 2021 ($4.4 million), partially offset by lower depreciation at Rosebel ($0.3 million).
General and administrative expensesr
$17.2 million, up $5.4 million or 46%, primarily due to higher severance costs ($2.5 million), costs associate with activities related to the changes in the Company's board of directors ($2.1 million), salaries and bonus accruals ($1.4 million) and a reduced impact of realized derivative gains ($0.7 million), partially offset by lower share-based payments ($0.9 million), depreciation ($0.2 million), and other administration costs ($0.2 million).
Exploration expensess
$9.3 million, down $2.7 million due to a reduction in planned exploration expenditures during 2022.
Other expensess
$1.4 million, down $20.7 million, primarily due to a decrease in care and maintenance costs ($11.4 million) and COVID-19 related costs being included in cost of sales starting in 2022 ($4.9 million).
IAMGOLD CORPORATION
Second Quarter 2022 Management’s Discussion and Analysis
5


Contributors to changeQ2 2022 vs. Q2 2021
Financial
Income tax expenser
$25.1 million, up $13.9 million, comprised of current income tax expense of $27.7 million (second quarter 2021 - $13.3 million) and deferred income tax recovery of $2.6 million (second quarter 2021 - recovery of $2.1 million). The increase in income tax expense was primarily due to higher taxable income from Essakane and withholding taxes on the repatriation of funds.
Net cash from operating activities before changes in working capitalr
$93.9 million, up $39.0 million, primarily due to the factors noted below.
Net cash from operating activitiesr
$81.9 million, up $44.6 million, primarily due higher net cash earnings ($36.0 million), net proceeds from gold prepay arrangements ($10.3 million) and an increase in cash inflows from the settlement of derivatives ($9.8 million), partially offset by an increase in income tax paid ($15.2 million).
Mine-site free cash flowr
$42.8 million, up $40.9 million, primarily due to higher operating cash flow at Rosebel ($71.3 million) mainly due to higher sales volume and higher average realized gold price, partially offset by higher capital expenditures at Rosebel ($16.4 million) and Westwood ($5.9 million) as production activities continue to ramp up.
Operating
Attributable gold productionr
170,000 ounces, up 31,000 ounces or 22%, due to higher production at Rosebel (24,000 ounces) resulting from higher head grade and recoveries, Westwood (6,000 ounces) as the underground operations were on care and maintenance for most of the second quarter 2021, and Essakane (1,000 ounces) due to higher grade.
Attributable gold salesr
170,000 ounces, up 35,000 ounces or 26%, due to higher production and timing of sales at Rosebel (28,000 ounces) and higher production at Westwood (7,000 ounces).
Capital expenditures – capitalized stripping (included in capital expenditures – sustaining and expansion)
r
$35.8 million, up $15.3 million or 75%, due to higher capitalized stripping activities at Rosebel ($11.0 million) and Essakane ($4.3 million) to support future production plans. In the second quarter 2022, $24.5 million of capitalized stripping activities were categorized as sustaining capital (second quarter 2021 - $nil) and $11.3 million were categorized as expansion capital (second quarter 2021 - $20.5 million).
Capital expenditures – sustainingr
$67.1 million, up $43.2 million or 181%. Excluding the impact of capitalized stripping activities noted above, sustaining capital expenditures were higher by $18.7 million, primarily due to higher spending at Rosebel ($9.9 million) related to timing of capital projects and Westwood ($6.7 million) as underground operations were on care and maintenance for the majority of the second quarter 2021.
Capital expenditures – expansionr
$189.0 million, up $60.6 million or 47%. Excluding the impact of capitalized stripping activities noted above, expansion capital expenditures were higher by $69.8 million, primarily due to higher spending at Côté Gold resulting from an increase in construction activities ($84.9 million), partially offset by lower spending at Essakane ($5.2 million), Boto Gold ($4.7 million), and Rosebel ($4.7 million).
Cost of sales (excluding depreciation) per ounce sold

s
$1,130, down $20 or 2%, from $1,150 per ounce sold. Excluding depreciation, cost of sales per ounce sold was lower by $255 per ounce primarily due to higher sales volume at Rosebel and Westwood and a lower NRV write down of $39 per ounce sold, partially offset by higher production costs of $273 per ounce. Included was a non-cash NRV write-down of ore stockpile and finished goods inventories of $26 per ounce sold (second quarter 2021 - $15 per ounce sold), in addition to the positive impact of realized derivative gains of $64 per ounce sold (second quarter 2021 - gains of $15 per ounce sold).
Cash costs per ounce solds
$1,119, down $30 or 3%, from $1,149 per ounce sold. Cash costs per ounce sold was lower by $252 per ounce primarily due to higher sales volume noted above and a lower NRV adjustment of $39 per ounce sold, partially offset by higher production costs and by-product credits of $270 per ounce sold. Included was a non-cash NRV write-down of short-term ore stockpile and finished goods inventories noted above.
AISC per ounce soldr
$1,604, up $182 or 13%, from $1,422, primarily due to higher sustaining capital expenditures of $202 per ounce sold, partially offset by lower cash costs per ounce sold noted above.


IAMGOLD CORPORATION
Second Quarter 2022 Management’s Discussion and Analysis
6


Global COVID-19 Pandemic
The global COVID-19 pandemic continues to evolve and the management thereof remains a focus for the business. See "Operational Updates" for more information on each site. The Company continues to closely monitor developments and is taking necessary measures to manage the impact of the COVID-19 pandemic on its personnel, operations, construction and development projects and exploration activities. COVID-19 detection and mitigation protocols at our sites are reviewed on an ongoing basis to adapt to the evolving situation.
OUTLOOK
Operating Performance
Actual YTD 2022
Full Year Guidance 20221
Essakane (000s oz)219 360 – 385
Rosebel (000s oz)95 155 – 180
Westwood (000s oz)30 55 – 75
Total attributable production (000s oz)2
344 570 – 640
Cost of sales2 ($/oz sold)
$1,081 $1,100 – $1,150
Cash costs2,3 ($/oz sold)
$1,066 $1,100 – $1,150
AISC2,3 ($/oz sold)
$1,545 $1,650 – $1,690
Depreciation expense ($ millions)$153.8 $280 – $290
Income taxes paid$45.3 $69 – $79
1.The full year guidance is based on the following 2022 full year assumptions: average realized gold price of $1,700 per ounce, USDCAD exchange rate of 1.25, EURUSD exchange rate of 1.20 and average crude oil price of $70 per barrel.
2.Consists of Essakane, Rosebel and Westwood on an attributable basis of 90%, 95% and 100%, respectively.
3.This is a non-GAAP financial measure. See "Non-GAAP Financial Measures".
Production Outlook
Attributable gold production guidance for 2022 is unchanged and is expected to be in the upper end of the range of 570,000 to 640,000 ounces.
Costs Outlook
Costs guidance for 2022 is unchanged with cash costs expected to be between $1,100 and $1,150 per ounce sold and AISC expected to be between $1,650 and $1,690 per ounce sold. These estimates, issued in January 2022, included an inflation assumption of 5% to 7% on key consumables, translating to an increase of 1% to 2% in cash costs and AISC (reflected in the guidance figures). Additional cost pressures continue from systemic inflation, constrained global supply chains and the sanctions on trade with Russia, increasing the average cost of key consumables such as oil, ammonium nitrate, grinding media, lime and cyanide. The Company continues to work with its supply chain and seek alternatives to mitigate ongoing costs pressures, including the sourcing of appropriate alternatives as well as progressing productivity initiatives at its operations through the IAMALLIN operational improvement program. Increases in oil prices have been partially mitigated by the existing oil hedge program, see “Market Risk”. For reference, excluding the impact of the Company’s hedging program, a $10/bbl increase in the oil price would translate to a $15 per ounce increase in cash costs; however with current hedges in place, the same movement would equate to a $6 per ounce increase in cash costs. The Company notes that continued external cost pressures may result in an increase to costs and capital expenditures.
Income Taxes Paid
Income taxes paid guidance has been updated to be between $69 and $79 million ($55 – $65 million previously) to primarily account for withholding taxes on the repatriation of funds from Essakane.










IAMGOLD CORPORATION
Second Quarter 2022 Management’s Discussion and Analysis
7


Capital Expenditures1

Actual YTD 2022Full Year Guidance 2022
($ millions)
Sustaining2
Expansion3
Total
Sustaining2
Expansion3
Total
Essakane$78.8 $1.5 $80.3 $165 $$170 
Rosebel4
48.2 20.7 68.9 105 35 140 
Westwood16.1 1.2 17.3 40 10 50 
143.1 23.4 166.5 310 50 360 
Boto Gold— 9.6 9.6 — 20 20 
Corporate0.6 — 0.6 — — — 
Total5,6,7,8 (±5%)
$143.7 $33.0 $176.7 $310 $70 $380 
1.100% basis, unless otherwise stated. For an update related to Cóté Gold capital expenditures, see "New Côté Gold Technical Report".
2.Sustaining capital includes capitalized stripping of (i) $17.2 million for Essakane and $7.3 million for Rosebel in Q2 2022 (ii) $47.1 million for Essakane and $19.8 million for Rosebel YTD 2022 and (iii) $110 million for Essakane and $45 million for Rosebel for the full year guidance. See "Outlook" sections below.
3.Expansion capital includes capitalized stripping of (i) $nil million for Essakane and $11.3 million for Rosebel in Q2 2022 (ii) $nil for Essakane and $14.8 million for Rosebel YTD 2022 and (iii) $nil for Essakane and $20 million for Rosebel for the full year 2022 guidance. See "Outlook" sections below.
4.Rosebel includes Saramacca at 70%.
5.Includes $10 million of capitalized exploration and evaluation expenditures also included in the Exploration Outlook guidance table.
6.Capitalized borrowing costs are not included.
7.In addition to the above capital expenditures, $24 million in total principal lease payments are expected.
8.See "Costs Outlook" section above.
Exploration
Actual YTD 2022Full Year Guidance 2022
($ millions)CapitalizedExpensedTotalCapitalizedExpensedTotal
Exploration projects – greenfield$— $14.7 $14.7 $— $21 $21 
Exploration projects – brownfield1
3.9 2.6 6.5 10 14 
$3.9 $17.3 $21.2 $10 $25 $35 
1.Exploration projects - brownfield includes planned near-mine exploration and resource development of (i) $3.9 million YTD 2022, and (ii) $10 million for the full
year 2022 guidance.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
The Company is committed to:
Maintaining its culture of accountable mining through high standards of ESG practices; and
The principle of Zero Harm®, in every aspect of its business, with particular emphasis on respecting the natural environment, building strong community partnerships and putting the health and safety of the Company's employees first.
The Company has implemented the Mining Association of Canada's Toward Sustainable Mining framework at all its operations and is working towards the implementation of the World Gold Council’s Responsible Gold Mining Principles with the year two annual report relating to this implementation released by the Company. ESG policies, systems and practices are embedded throughout the business and the Company reports annually on its ESG performance via its Global Reporting Initiative compliant Health, Safety and Sustainability Report. As part of its accountability and reporting framework, the Company has also committed to report in accordance with the Task Force on Climate-Related Financial Disclosures ("TCFD") guidelines, and expects to release its initial TCFD report by the end of 2022.
Environmental
The Company recognizes that mining activities are energy intensive and generate significant greenhouse gas emissions (“GHG”). In September 2021, the Company announced that it had set a global target of reaching net negative GHG emissions by no later than 2050. The Company also announced a target of achieving net positive biodiversity. Medium term targets will be set as part of the Company’s roadmap to achieve these global targets and will be issued by the end of 2022. An external review of the Company’s GHG emissions profile across all sites is in progress. The external review will inform the development of an action plan for the Company’s global commitments.
Social
Health and Safety
Health and safety is core to the Company’s relentless pursuit of its Zero Harm® vision. Through various programs, the Company continuously promotes a safe work environment and a wellness program at all sites. The DARTFR (days away, restricted, transferred duty frequency rate) was 0.31 for the first half of 2022, tracking below the global annual target of 0.42. The TRIFR (total recordable injuries frequency rate) was 0.85 for the first half of 2022, tracking above the global annual target of 0.73. Côté Gold has surpassed over 5.7 million hours with no lost time injuries to date. The operations have been increasing focus on situational awareness and preventative activities related to work tasks.


_____________________________
1.This is a non-GAAP financial measure. See "Non-GAAP Financial Measures".
IAMGOLD CORPORATION
Second Quarter 2022 Management’s Discussion and Analysis
8


Social and Economic Development
The Company is continuously exploring opportunities for investing and partnering with communities impacted by its operations. At both Essakane and Rosebel, the Company has committed to establishing and seeding community funds. The bulk of the Company’s funding for community investment initiatives at these sites will flow through these dedicated community funds to ensure consistent funding on a year-to-year basis.
At Rosebel, the Company has committed to making an annual contribution of 0.25% of annual revenues to the Rosebel Community Fund, in addition to its existing in-kind royalty of 0.25% of gold and silver monthly production it contributes to the Suriname Environmental & Mining Foundation. In 2021, Rosebel contributed $0.9 million to the Rosebel Community Fund complementing the initial endowment of $2.5 million made by the Company in 2020. Current supported projects extend across the fields of water and sanitation, clean energy, community health and sustainable communities. The new local procurement strategy developed to support economic development in the surrounding communities through the implementation of local content strategies to generate employment and procurement opportunities at local level started to be rolled-out.
At Essakane, the Company continued its participation in the Mining Fund for Local Development in Burkina Faso, a program established by the government, pursuant to which the Company committed to contribute 1% of its annual revenues. The contribution for the second quarter 2022 is estimated at $1.1 million and $0.9 million for the first quarter 2022. In parallel, Essakane continued its direct community investment initiatives, focusing on agricultural programs as well as the fight against malaria, tuberculosis and malnutrition, income generating activities supported through the mine’s Iron Fund and small business support through the mine’s local content strategy. The United Nations Development Program of Burkina Faso and the Company, signed a two-year financing agreement for the implementation of a local development initiative in favor of the communities of Falagountou, Markoye, Gorom-Gorom and Dori, fostering youth employment, reducing poverty, strengthening local infrastructure and supporting capacity building in local governance.
The Company has continued to advance work on its previously announced partnership with Giants of Africa, a non-governmental organization founded by Masai Ujiri, President of the Toronto Raptors. After the first phase in 2021, two additional courts are being constructed by Giants of Africa in Burkina Faso and Senegal, which are expected to be completed by the end of 2022.
At Boto Gold, the construction of new houses for the resettlement of the Kouliminde village has started. The Company also continued with its community development projects, focusing on health with the fight against malaria, access to water and income generating activities through agriculture and vegetable production.
Diversity, Equity and Inclusion
The Company unequivocally condemns inequity, discrimination and hatred in all its forms. One of the Company's values is to conduct itself with respect and embrace diversity. The Company has established a Diversity, Equity and Inclusion ("DEI") Steering Committee and Employee Council groups to further enhance the Company's strong commitment to these important values through data collection, education, awareness and action planning at the enterprise level. The Company completed a diagnostic evaluation of its DEI status and the resulting findings and recommendations (global and site specific) are being rolled out across the Company to develop action plans. The Company is a sponsor of the Artemis Project, which aims to promote female business owners and entrepreneurs in the mining sector. Artemis members include innovative and award-winning social and natural scientists with over 500 years of combined practical and global sector experience, 75% of whom are engineers.
Governance
The Board of Directors of IAMGOLD (the “Board”) adopted new diversity and renewal guidelines in 2021, reflecting governance best practices. In terms of diversity, the Board agreed that its membership should comprise, at a minimum, the greater of (i) two and (ii) 30%, female directors. With respect to board membership renewal, it was decided that the average tenure of the Board should not exceed ten years and that no director should serve as the chair of the Board or the chair of any committee for more than ten consecutive years. Currently, women represent approximately 50% of the directors and the average tenure of the Board is less than one year.
Recent Acknowledgments
Corporate Knights released its Best 50 list on June 29, 2022, which identifies the top 50 Canadian corporate citizens across all sectors evaluated based on ESG and economic key performance indicators. From a pool of 332 firms, the Company placed in 37th place, an improvement of seven places over last year.
The Company obtained the ECOLOGO® certification for its mineral exploration activities carried out in Quebec and is the first producing mining company to achieve such certification.
IAMGOLD CORPORATION
Second Quarter 2022 Management’s Discussion and Analysis
9


QUARTERLY UPDATES
West Africa
Essakane District, Burkina Faso
The Essakane District is located in north-eastern Burkina Faso, West Africa approximately 330 km northeast of the capital, Ouagadougou. The Essakane District includes the Essakane Mine and the surrounding mining lease and exploration concessions totaling approximately 1,000 square kilometres. The Company owns a 90% interest in the Essakane mine with the remaining 10% held by the government of Burkina Faso.
Essakane Mine (IAMGOLD interest – 90%)1
Q2 2022Q1 2022Q2 2021YTD 2022YTD 2021
Key Operating Statistics
Ore mined (000s t)3,803 3,832 3,559 7,635 7,994 
Waste mined (000s t)7,602 11,346 11,730 18,948 22,167 
Material mined (000s t) – total11,405 15,178 15,289 26,583 30,161 
Strip ratio2
2.0 3.0 3.3 2.5 2.8 
Ore milled (000s t)2,704 3,162 3,169 5,866 6,358 
Head grade (g/t)1.52 1.39 1.44 1.45 1.40 
Recovery (%)90 88 81 89 81 
Gold production (000s oz) – 100%119 124 118 243 231 
Gold production (000s oz) – attributable 90%107 112 106 219 208 
Gold sales (000s oz) – 100%117 131 115 248 229 
Average realized gold price3 ($/oz)
$1,882 $1,885 $1,801 $1,883 $1,795 
Financial Results ($ millions)1
Revenues4
$218.8 $248.2 $208.2 $467.0 $412.3 
Operating costs(86.4)(90.4)(98.8)(176.8)(202.2)
Royalties(10.6)(12.3)(10.5)(22.9)(20.6)
Cash costs3
$(97.0)$(102.7)$(109.3)$(199.7)$(222.8)
Other mine costs5
(0.3)(0.4)(0.1)(0.7)(0.4)
Cost of sales4
$(97.3)$(103.1)$(109.4)$(200.4)$(223.2)
Sustaining capital expenditures3,6
(31.1)(47.7)(11.3)(78.8)(16.7)
Other costs and adjustments7
(2.0)1.7 (1.7)(0.3)(3.4)
AISC3
$(130.4)$(149.1)$(122.4)$(279.5)$(243.3)
Expansion capital expenditures3,8
$(0.5)$(1.0)$(18.6)$(1.5)$(33.1)
Performance Measures9
Cost of sales excluding depreciation ($/oz sold)$838 $784 $947 $810 $973 
Cash costs3 ($/oz sold)
$836 $781 $946 $807 $971 
AISC3 ($/oz sold)
$1,124 $1,134 $1,060 $1,129 $1,061 
1.100% basis, unless otherwise stated.
2.Strip ratio is calculated as waste mined divided by ore mined.
3.This is a non-GAAP financial measure. See "Non-GAAP Financial Measures".
4.As per note 27 of the consolidated interim financial statements for revenues and cost of sales. Cost of sales is net of depreciation expense.
5.Other mine costs exclude by-product credits.
6.Includes sustaining capitalized stripping for the second quarter 2022 of $17.2 million (first quarter 2022 - $29.9 million; second quarter 2021 - $nil) and YTD 2022 of $47.1 million (YTD 2021 - $nil).
7.Other costs and adjustments include sustaining lease principal payments, environmental rehabilitation accretion and depletion and prior period operating costs, partially offset by by-product credits.
8.Includes expansion capitalized stripping for the second quarter 2022 of $nil (first quarter 2022 - $nil; second quarter 2021 - $12.9 million) and YTD 2022 of $nil (YTD 2021 - $22.1 million).
9.Cost of sales, cash costs and AISC per ounce sold may not be calculated based on amounts presented in this table due to rounding.
Operational Insights
Essakane continued to deliver strong results and achieved attributable gold production of 107,000 ounces in the second quarter, lower by 5,000 ounces compared to the prior quarter and higher by 1,000 ounces compared to the same prior year period. Lower production compared with the prior quarter is attributed to planned maintenance and supply chain challenges (described below), partially offset by higher grades than the reserve block model and continued improvements in recoveries.
IAMGOLD CORPORATION
Second Quarter 2022 Management’s Discussion and Analysis
10


Mining activity of 11.4 million tonnes in the second quarter was lower than the prior quarter, primarily due to lower waste stripping activities due to constraints in consumables from supply chain challenges in country and abroad, and the prioritization of ore mining. The reduction in stripping activities is not expected to materially impact production in 2022 and 2023.
Mill throughput of 2.7 million tonnes, at an average head grade of 1.52 g/t Au and plant availability of 86%, was lower by 14% compared to the prior quarter. While the head grades were higher than the prior quarter, the feed rate and mill availability were lower due to the mill feed consisting of higher hard rock volumes, annual planned maintenance and supply chain challenges. Mill recovery of 90% in the second quarter was 2% higher than the prior quarter due to lower graphitic and sulfur content, combined with increased recovery from the gravity circuit that was optimized in 2021.
The security situation in Burkina Faso has further deteriorated during the second quarter and impacted the in-land supply chain resulting in delays in the delivery of consumables. The Company continues to take proactive measures to ensure the safety and security of in-country personnel and managed to limit the impact on production in the second quarter. The Company continues to adjust its protocols and the activity levels at the site according to the security environment. The Company is furthering certain additional investments in security infrastructure in the region and at the mine site, with the support of the government.
The COVID-19 situation remained stable during the second quarter with a few isolated cases recorded. Certain COVID-19 measures have been lifted across the country and site, while there remains continued emphasis on sanitization as well as vaccinations.
The IAMALLIN improvement project has continued with the execution phase in the second quarter, with the focus on mine equipment availabilities, mill feed optimization and supplies inventory management.
Financial Performance - Q2 2022 Compared to Q1 2022 and Q2 2021
Cost of sales, excluding depreciation, of $97.3 million was (i) lower by $5.8 million or 6% compared with the prior quarter, primarily due to timing of sales and lower operating costs due to lower tonnes mined and milled offset by costs inflation, and (ii) lower by $12.1 million or 11% compared to the same prior year period, primarily due to higher capitalized waste stripping costs and higher realized derivative gains.
Compared to the first quarter 2022, cost of sales, excluding depreciation, and cash costs per ounce sold of $838 and $836 were higher by 7%, primarily due to higher production costs and lower production volume, of $54 per ounce. AISC per ounce sold of $1,124 was in line and included lower sustaining capital expenditures of $94 per ounce.
Compared to the second quarter 2021, cost of sales, excluding depreciation, and cash costs per ounce sold, were lower by 12%, primarily due to lower operating costs of $110 per ounce resulting from higher capitalized waste stripping costs and higher realized derivative gains. AISC per ounce sold was higher by $64 or 6%, compared with the same prior year period and included higher sustaining capital expenditures of $171 per ounce.
Capitalized stripping in the second quarter of $17.2 million was lower by $12.7 million or 42% and higher by $4.3 million or 33% compared to the prior quarter and same prior year period, respectively. Capitalized stripping was lower compared with the prior quarter due to lower activity levels, while higher than the same prior year period as the site remained focused on accessing future production phases.
Sustaining capital expenditures, excluding capitalized stripping, of $13.9 million included capital spares of $4.5 million, tailings management of $2.3 million, mobile and mill equipment of $2.0 million, airstrip extension of $1.6 million and other sustaining projects of $3.5 million. Expansion capital expenditures, excluding capitalized stripping, of $0.5 million primarily included capital projects associated with the community village resettlement project.
Financial Performance – YTD 2022 Compared to YTD 2021
Cost of sales, excluding depreciation, of $200.4 million for YTD 2022, was lower by $22.8 million or 10% compared with the same prior year period, primarily due to higher capitalized stripping costs and the positive impact of realized derivative gains, partially offset by higher milling costs as a result of costs inflation and lower tonnes mined.
Cost of sales, excluding depreciation, per ounce sold of $810 for YTD 2022 was lower by $163 or 17% compared to the same prior year period, primarily due to lower operating costs of $153 per ounce resulting from higher grade and higher recovery.
Cash costs and AISC per ounce sold of $807 and $1,129 for YTD 2022 were lower by $164 or 17% and higher by $68 or 6%, compared to the same prior year period, respectively, primarily due to lower operating costs of $153 per ounce and higher sustaining capital expenditures of $246 per ounce sold when compared to the same prior year period.
Sustaining capital expenditures, excluding capitalized stripping, of $31.7 million for YTD 2022 included capital spares of $10.0 million, mobile and mill equipment of $8.8 million, tailings management of $4.2 million, airstrip extension of $2.8 million, and other sustaining projects of $5.9 million. Expansion capital expenditures, excluding capitalized stripping, of $1.5 million for YTD 2022 included capital projects associated with tailings management, tailings management plant upgrade, community village resettlement and other expansion projects.




IAMGOLD CORPORATION
Second Quarter 2022 Management’s Discussion and Analysis
11


Outlook
Attributable gold production at Essakane in 2022 is expected to approximate the top-end of the guidance range of 360,000 to 385,000 ounces. The Company is investigating whether the updated block model may be underestimating grade as the complexity of mineralization has increased in the lower portions of the pit with higher amounts of coarse gold. The operation continues to execute on targeted operational improvements including improving mill throughput through optimizing blast fragmentation and further optimizing the gravity circuit through the planned addition of a double deck screen.
Cash costs continue to be under pressure due to systemic inflation and constrained global supply chains. The Company continues to actively work with authorities and suppliers to mitigate potential impacts and manage continuity of supply due to the security situation noted above while also investing in additional security infrastructure. Certain input costs at Essakane, including labour, are expected to be lower due to a weakened EURUSD exchange rate.
Brownfield Exploration
During the second quarter 2022, approximately 9,000 metres of diamond drilling were completed as part of a planned 10,000-metre infill program in 2022 to improve resource confidence within selected areas of EMZ and the Lao satellite deposit. Exploration activities on concessions surrounding the mine lease continue to be suspended due to the impacts of regional security constraints.
Bambouk District
The Bambouk District includes the Boto Gold project and the Karita Gold project and the Diakha-Siribaya Gold project located within 15 kilometres of the Boto Gold project in adjacent countries. The Company is undertaking a delineation drilling program to support an initial resource estimate at the Karita discovery in Guinea and the completion of an updated mineral resource estimate aiming to convert mineral resources to a higher confidence level at the Diakha deposit in Mali. The Company is undertaking an evaluation of strategic alternatives with respect to these development and exploration assets in West Africa that may include the disposition of all or an interest in one or more of such assets. See “Liquidity and Capital Resources - Liquidity Outlook”.
Boto Gold Project, Senegal
The Boto Gold project is a shovel ready development project located in southeastern Senegal along the border with Mali. The project is owned 90% by the Company, with the Republic of Senegal owning a 10% free carried interest. The project is located on an exploitation permit granted in late 2019 for an initial 20-year period and is currently undergoing various de-risking activities.
The 2022 scope includes the completion of preliminary works started in 2021. During the second quarter 2022, geotechnical drilling to further de-risk the Malikoundi pit design was competed. In addition, testing to further understand water flow at site will be completed in the third quarter 2022 and the Company is progressing with the work related to the Kouliminde village resettlement action plan. The Company also continues to evaluate the scope of the overall project, associated capital expenditures and timing, as well as potential alternatives to enhance the value of the project in general. Capital expenditures totaled $9.6 million for the first half of 2022.
Karita Gold Project, Guinea
The Karita Gold project is wholly-owned by the Company and was acquired in 2017 as a granted exploration permit that covers approximately 100 square kilometres located in Guinea between the Company's Boto Gold project in Senegal to the north and its Diakha-Siribaya Gold project in Mali to the south. During 2019, a first pass RC drilling program confirmed the discovery of mineralization along this portion of the Senegal-Mali Shear Zone.
In 2022, the Company is completing a 24,000 metres drilling program to support a future initial mineral resource estimate, of which approximately 18,300 metres were completed in the first half of 2022. Subsequent to quarter-end, the Company reported initial assay results with highlights including: 34.0 metres grading 5.81 g/t Au, 25.0 metres grading 5.32 g/t Au and 12.0 metres grading 9.49 g/t Au (see news release dated July 6, 2022).
Diakha-Siribaya Gold Project, Mali
The Diakha-Siribaya project is wholly-owned by the Company and consists of eight contiguous exploration permits which cover a total area of approximately 600 square kilometres, located approximately 10 kilometres south of the Boto Gold project, in the Kédougou-Kéniéba inlier of the West African Craton region of western Mali along the borders with Senegal and Guinea. A revised mineral resource estimate incorporating the drill results from the 2021 drilling program completed at the Diakha deposit is in progress and expected to be completed in the second half of 2022.











IAMGOLD CORPORATION
Second Quarter 2022 Management’s Discussion and Analysis
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North America
Abitibi District, Canada
The Company is developing a “hub-and-spoke" model in the Abitibi District to exploit the available mill capacity at the Westwood complex, located 35 kilometres northeast of Rouyn-Noranda and 80 kilometres west of Val d'Or in southwestern Québec, Canada. In addition to feed from the Westwood underground mine and the Grand Duc open pit mine, the Company is evaluating potential future supplemental feed from assets such as the Fayolle exploration property and the optioned Rouyn Gold project.
Westwood Mine (IAMGOLD interest – 100%)
Q2 2022Q1 2022Q2 2021YTD 2022YTD 2021
Key Operating Statistics
Underground lateral development (metres)1,207 848 1482,055 148 
Ore mined (000s t) – underground53 63 14 116 14 
Ore mined (000s t) – other sources218 159 273 377 519 
Ore mined (000s t) – total271 222 287 493 533 
Ore milled (000s t)284 250264 534 491 
Head grade (g/t) – underground4.01 6.05 4.50 5.06 4.50 
Head grade (g/t) – other sources1.04 0.97 0.74 1.00 0.91 
Head grade (g/t) – total1.62 2.18 0.92 1.88 1.00 
Recovery (%)93 91 93 92 93 
Gold production (000s oz) – 100%14 16 30 15 
Gold sales (000s oz) – 100%14 16 30 15 
Average realized gold price1 ($/oz)
$1,854 $1,872 $1,810 $1,864 $1,795 
Financial Results ($ millions)
Revenues2
$27.1 $30.8 $12.2 $57.9 $26.7 
Cash costs1
$(34.8)$(30.5)$(13.9)$(65.3)$(23.1)
Other mine costs3
(0.6)(0.5)(0.2)(1.1)(0.3)
Cost of sales2
$(35.4)$(31.0)$(14.1)$(66.4)$(23.4)
Sustaining capital expenditures1
(8.8)(7.3)(2.1)(16.1)(2.5)
Other costs and adjustments4
(0.9)(0.1)0.1 (1.0)0.2 
AISC1
$(45.1)$(38.4)$(16.1)$(83.5)$(25.7)
Expansion capital expenditures1
$(0.7)$(0.5)$(1.2)$(1.2)$(1.8)
Performance Measures5
Cost of sales excluding depreciation6 ($/oz sold)
$2,463 $1,922 $2,100 $2,176 $1,580 
Cash costs1 ($/oz sold)
$2,427 $1,886 $2,085 $2,141 $1,566 
AISC1 ($/oz sold)
$3,147 $2,376 $2,412 $2,738 $1,743 
1.This is a non-GAAP financial measure. See "Non-GAAP Financial Measures".
2.As per note 27 of the consolidated interim financial statements for revenues and cost of sales. Cost of sales is net of depreciation expense.
3.Other mine costs exclude by-product credits.
4.Other costs and adjustments include sustaining lease principal payments and environmental rehabilitation accretion and depletion, partially offset by by-product credits.
5.Cost of sales, cash costs and AISC per ounce sold may not be calculated based on amounts presented in this table due to rounding.
6.Includes non-cash ore stockpile and finished goods inventories NRV write-down of $3.3 million for the second quarter 2022 (first quarter 2022 - $1.7 million; second quarter 2021 - $3.0 million) and $5.0 million for YTD 2022 (YTD 2021 - $3.0 million), which had an impact on cost of sales, excluding depreciation, per ounce sold of $232 for second quarter 2022 (first quarter 2022 - $106; second quarter 2021 - $88) and $165 for YTD 2022 (YTD 2021 - $88).
Operational Insights
Westwood achieved gold production of 14,000 ounces in the second quarter, 13% lower than the prior quarter, as a result of lower head grade from the underground mine, partially offset by higher throughput and mill recovery. Underground production was on care and maintenance for the majority of the first half of 2021.
Mining activities totaled 271,000 tonnes in the second quarter, with underground mining activities contributing 53,000 tonnes and the open pit mining at Grand Duc contributing 218,000 tonnes. Mining volumes were 22% higher than the prior quarter due to reduced absenteeism resulting from COVID-19 and supplemental tonnes from Grand Duc.



IAMGOLD CORPORATION
Second Quarter 2022 Management’s Discussion and Analysis
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Underground development continued to improve significantly in the second quarter, with more than 1,200 metres of lateral development completed, over 350 meters higher than in the previous quarter, however, development of raises and bolting productivity continued to be adversely impacted by increasing underground rehabilitation requirements, challenging ground conditions and global supply chain challenges. Mining activities in western and central underground zones recommenced in June 2022. Break-through to the main ramp is completed, connecting the surface with the lower part of the mine, enabling development of some higher grade zones. These new accessible zones are located below the existing production areas and will create additional flexibility in the mining sequence and access to new stopes for exploitation.
Mill throughput was 284,000 tonnes in the second quarter at a head grade of 1.62 g/t Au with average recovery of 93% and plant availability of 92%. Mill throughput was 14% higher than the prior quarter as a result of successfully executing mill maintenance strategies for improved availability as well as reduction in unplanned shutdowns during the quarter.
The COVID-19 situation at site and in the Abitibi District remained stable in the second quarter.
Financial Performance - Q2 2022 Compared to Q1 2022 and Q2 2021
Cost of sales, excluding depreciation, of $35.4 million was (i) higher by $4.4 million or 14% compared with the prior quarter, primarily due to increased rehabilitation costs associated with resuming operations in the western and central underground zones and costs inflation, and (ii) higher by $21.3 million or 151% compared to the same prior year period as underground mining was suspended until June 2021.
Compared to the first quarter 2022, cost of sales, excluding depreciation, cash costs and AISC per ounce sold of $2,463, $2,427, and $3,147, were higher by 28%, 29%, and 32%, respectively, primarily due to higher production costs and lower production volume of $541 per ounce. AISC per ounce sold included higher sustaining capital expenditures of $167 per ounce sold.
Compared to the second quarter 2021, cost of sales, excluding depreciation, cash costs and AISC per ounce sold were higher by 17%, 16% and 30%, respectively, as underground mining was suspended until June 2021. AISC per ounce sold included higher sustaining capital expenditures of $303 per ounce.
Sustaining capital expenditures in the second quarter of $8.8 million included underground development and diamond drilling of $7.6 million and other sustaining projects of $1.2 million. Expansion capital expenditures of $0.7 million primarily related to advancing detailed engineering and permitting for the Fayolle property.
An increase in the estimated long-term price of gold was considered by the Company to be an indicator of impairment reversal for the Doyon cash generating unit. As a result, an impairment test was performed. The carrying value increased by $38.4 million due to a reduction in the asset retirement obligation relating to the closed site within the Doyon CGU and resulted in the carrying amount exceeding the recoverable amount. An impairment charge of the same amount was recognized against the change in asset retirement obligations at closed sites in the consolidated statements of earnings (loss).
Financial Performance – YTD 2022 Compared to YTD 2021
Cost of sales, excluding depreciation, of $66.4 million for YTD 2022, was higher by $43.0 million or 184% compared with the same prior year period, as a result of the operations being in care and maintenance until June 2021.
Cost of sales, excluding depreciation, cash costs and AISC per ounce sold of $2,176, $2,141, and $2,738, for YTD 2022, were higher by 38%, 37% and 57%, respectively, compared to the same prior year period, as a result of the operations being in care and maintenance until June 2021.
Sustaining capital expenditures of $16.1 million for YTD 2022 included underground development and diamond drilling of $14.4 million and other sustaining projects of $1.7 million. Expansion capital expenditures of $1.2 million for YTD 2022 primarily related to advancing Fayolle property activities.
Outlook
Gold production at the Westwood complex in 2022 is expected to be in the range of 55,000 to 75,000 ounces. Production levels are expected to continue to increase each quarter based on the planned ramp-up of the underground mine delivering higher grade ore in the second half of the year, in addition to higher grade ore sourced from the Grand Duc open pit. Development rates are required to continue to increase month-over-month to achieve production guidance.
During the first half of 2022, additional cost pressures emerged as discussed under “Outlook”. Despite these impacts, cash costs per ounce sold are expected to decrease in the second half of 2022 with anticipated increases in production and sales. The current collective bargaining agreement with the Westwood union ends in November, with negotiations scheduled to start in the third quarter.
Brownfield Exploration - Westwood Area
Approximately 34,000 metres of underground and surface diamond drilling are planned in 2022. Surface drilling will focus on evaluating the resource potential between and adjacent to the Grand Duc and Doyon pits, while underground infill drilling will focus on supporting the continued ramp up of underground mining operations. Approximately 16,800 metres were completed in the first half of 2022 including approximately 2,700 metres in geotechnical drilling.
Fayolle Property
The Company is evaluating the potential development of the Fayolle deposit located 29 kilometres northwest of the Westwood complex. Detailed engineering, permitting, and environmental studies are ongoing.
IAMGOLD CORPORATION
Second Quarter 2022 Management’s Discussion and Analysis
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Rouyn Gold Project
The Company holds a purchase option with Yorbeau Resources Inc. (“Yorbeau”) for the Rouyn Gold project, located near Rouyn-Noranda. Approximately 5,700 metres of diamond drilling were completed in the first half of 2022 to further delineate the Lac Gamble zone extensions and other selected targets to evaluate their resource potential and to support a future initial mineral resource estimate.
Côté District, Canada
The Côté District, located 125 kilometres southwest of Timmins and 175 kilometres north of Sudbury, Ontario, Canada includes the Côté Gold construction project and the adjacent Gosselin deposit. The project is being developed by a 70:30 joint venture (the "Côté Gold UJV") between IAMGOLD, as the operator, and Sumitomo Metal Mining Co. Ltd. (“SMM”) with the Company effectively owning a 64.75% interest in the associated land package. In July, 2020, the Company, together with SMM, announced the decision to proceed with the construction of the project.
Updated Technical Report
On August 3, 2022, the Company announced the updated costs to complete, project economics and LOM plan to be included in a new technical report for the Côté Gold project. The update represents the conclusion of the Côté Gold cost, schedule, execution strategy and risk review initiated earlier this year. The updated information will be incorporated in a new technical report titled “Technical Report on the Côté Gold Project, Ontario, Canada” (the “2022 Technical Report”) prepared by SLR Consulting (Canada) Ltd. in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). The 2022 Technical Report supersedes the 2021 Technical Report dated November 26, 2021. The 2022 Technical Report will be filed on SEDAR on or before September 17, 2022 and readers are encouraged to read the 2022 Technical Report in its entirety. Highlights of the updated Côté Gold information include:
After-tax net present value at a 5% discount rate of $1,109 million on a 100% basis and an internal rate of return of 13.5% from May 1, 2022 at a gold price assumption of $1,700 in 2024 and 2025 and $1,600 thereafter and USDCAD exchange rate of 1.25;
Estimated remaining project costs to complete construction and bring Côté Gold into production of $1,908 million ($1,335 million attributable to the Company) including escalation and contingency as of May 1, 2022;
Mine life of 18 years with initial production expected in early 2024;
Average annual production of 495,000 ounces (320,500 ounces attributable) during the first six years following commercial production and 365,000 ounces (236,000 ounces attributable) over the LOM;
LOM average cash costs of $693 per ounce gold sold and AISC of $854 per ounce gold sold;
Cumulative net operating cash flow of $6,086 million and after-tax free cash flow of $1,699 million;
Côté Gold LOM based on Mineral Reserves of 7.2 million ounces in the Côté deposit;
Côté deposit Measured & Indicated Mineral Resources (inclusive of Mineral Reserves) estimate of 10.2 million ounces; Gosselin deposit Measured & Indicated Resources estimate of 3.35 million ounces; and
District scale potential with demonstrated exploration upside in one of the world’s leading mining jurisdictions.
In accordance with the terms of Côté Gold UJV, the updated project costs, schedule and LOM plan will be independently reviewed by SMM.
Supertrend Project Review
The update represented the conclusion of the Côté Gold cost, schedule, execution strategy and risk review (“project review and risk analysis”) initiated earlier this year. The Côté Gold project is being developed with the background of COVID-19, inflation and other global events and their impact including on the global supply chain, labour availability, productivity and rates, costs of materials, commodities and consumables. The estimated remaining attributable spend to completion, excluding contingencies, resulted from additional costs and schedule impacts in the general project cost categories noted below (with percentage cost impact in parentheses) and include the estimated impacts and related delays due to COVID-19, recent labour action in Ontario and inflation:
Earthworks (19%): associated with scope gaps, lower than expected productivity as a result of an overestimation of earth moving equipment efficiencies of overburden based on geotechnical data and scope gaps in dewatering infrastructure;
Processing plant (12%): associated with scope gaps relating to the processing plant, underestimation of winter concrete and steel costs, and bid reconciliation for the SMPEI packages;
Infrastructure (7%): associated with impacts on the underground utility construction and expanded camp capacity;
Indirects (38%): associated with impacts from increased project costs and schedule extension of first gold target date to early 2024, increased labour incentives and wage increases, extension and enlargement of the site support, owner’s team, EPCM and increased site oversight and coordination requirements, and increased operations readiness costs;
Procurement (6%): associated with the escalation of prices on materials, including piping, cables and steel;
Escalation (7%): associated with expected future material escalation including provisions for price increases in certain consumables; and
Contingency (11%).

IAMGOLD CORPORATION
Second Quarter 2022 Management’s Discussion and Analysis
15


Estimate of Impact of COVID-19 on Project
As part of the project review and risk analysis, a study by an independent capital project management service company was commissioned to estimate the “order of magnitude” direct and indirect impacts attributable to the ongoing COVID-19 pandemic on cost and schedule of the Côté Gold project. The study estimated total impact to date, including expected future COVID-19 impacts, attributable to the Company to be in the range of approximately $200 to $400 million (on a 70% basis at USDCAD of 1.30) in the areas of procurement, construction contracts, service and camp contracts, EPCM impacts, and total owners costs (including operational readiness).
Project Review
In the last number of months, the Côté Gold project has seen significant changes in leadership and oversight, both at the project level and corporate level. Since the appointment of a new Executive Project Director at the end of 2021, teams have been strengthened while leveraging knowledge, experience, and team integration between the owners team, EPCM contractor, and the various other project contractors.
The Board retained an independent technical consultant to assist with its review of the results of the project review and risk analysis. This independent review supported the updated estimates presented herein. The Company cautions that potential further disruptions, including, without limitation caused by COVID-19, the Ukraine war, inflation, other global supply chain disturbances, weather, labour disputes and the tight labour market could continue to impact the timing of activities, availability of workforce, productivity and supply chain and logistics and, consequently, could further impact the timing of actual commercial production and, consequently, project costs.
Upcoming Milestones and Schedule Summary
Côté Gold is expected to commence production in early 2024. Construction of the project commenced in the third quarter 2020 and major earthworks commenced in the first quarter 2021. Remaining milestones of note are as follows:
image1.jpg
Second Quarter Activities Update
As of June 30, 2022, overall the project was approximately 57% complete, with detailed engineering nearly complete at approximately 99%. The following provides an update on project activities:
Project ActivityUpdate
Health and safety
The project has surpassed 5.7 million hours of no lost time injuries. Earlier in the year COVID-19 impacted the project significantly. Since this outbreak, COVID-19 impacts continue to affect the project however to a lesser degree. The Company’s monitoring programs have transitioned to a self-monitoring approach all the while having the capacity to revert to full monitoring should it be required. Sewage detection system remains in place. Vaccination on site remains mandatory while PCR/Antigen testing is only required if symptoms are observed.
IAMGOLD CORPORATION
Second Quarter 2022 Management’s Discussion and Analysis
16


Labour and workforce
Certain of the Ontario unions with project workforce membership were on strike throughout most of May resulting in the reduction of the site headcount by approximately 250 people. The absence of these trades during this period adversely impacted construction progress, particularly in the processing and infrastructure areas. New collective bargaining agreements were ratified with the province at the end of May and trades returned to site during June. The labour strikes impacted the project by approximately 8 weeks including longer durations for certain activities due to the shifting of some works to the 2023 winter season.
A temporary camp is being added to provide an additional 220 rooms to meet current projected peak camp load. Current manpower on site is approximately 1,200 workers and continues to ramp up.
Earthworks activities
Earthworks activities continue with several work fronts providing significant progress including haul roads construction, water realignment channels work and dam construction.
New Lake South Dam, New Lake North Dam, North Sedimentation Pond Dam are complete and work on Polishing Pond dam is well advanced.
The 2022 fish relocation program is set to begin to fish out Polishing Pond this summer.
Challenges were encountered this spring with higher amounts of freshet than anticipated. Water treatment systems were installed. This impeded the advancement of overburden material removal from the pit and limited fresh rock access. At the end of June, the water level in the pit has been reduced to pre-freshet levels and access to overburden is no longer limited.
TMF water management infrastructure including coffer dams and pumping stations worked well during freshet aided by the water treatment plant. Starter dam foundation excavations and filling are well underway.
Procurement
Heavy mobile equipment is arriving on site with a CAT 994 loader being erected and the first 793 haul truck already on site and in the process of erection. The autonomous technology agreements with CAT, Toromont and Epiroc have been executed.
Equipment delivery is ongoing with inventory being held on site laydown and off-site at warehouses. Some equipment is being held at North American based suppliers to reduce load onsite and off-site storage facilities. At present there is no material impact on schedule related to supply chain or logistics.
Processing plant
Processing plant civil works have progressed with the continued placement of pre-cast and cast-in-place concrete. Structural steel for the processing plant building is currently erected and architectural elements for the most part complete. At the end of June, the SMPEI contractor had begun erecting the structure around the base of the ball mill foundation. Steel is being sorted off site and delivered as per erection sequence.
Infrastructure
The overhead power line has progressed significantly over the winter months and at end of June all power poles were installed and stringing of power lines was at 86% complete. The 13.8 kV network has advanced to provide power on site for autonomous systems, contractors and other facilities. Hydro One electrical upgrade work continues with the current plan to have the system ready for the fourth quarter 2022.
The truck wash building end walls steel and exterior fabric were installed and interior insulation work is well underway. Installation of containers for the hot/cold storage warehouses and the construction of the project material laydown warehouse building have commenced. Work also commenced for the buried utilities. The administration building control room and offices are on site and being erected.
Permitting and sustainability
Permitting and sustainability work is ongoing with all remaining non-critical path permitting
activities expected to be received during the remainder of the project construction. Community consultations and ongoing implementation of the impact benefit agreements signed with indigenous partners continue. Health, safety and environmental programs and their respective emergency response plans are in development.
Operational readiness
Operational readiness advanced in multiple areas with a continued focus on organizational design and hiring strategy, technology selection, standardization of mine, mill and site maintenance processes and systems, identification and purchase of spare parts for equipment and advancement in contracts for key consumables and training documentation for autonomous haul trucks. Contractors have been selected for the onsite assay laboratory, explosives supply and blasting services as well as for the mobile fleet tire supply and tire maintenance services. An updated LOM plan to be included in the 2022 Technical Report was completed.


IAMGOLD CORPORATION
Second Quarter 2022 Management’s Discussion and Analysis
17


Project Expenditures
The Company had incurred and expended costs of $148.9 million and $172.4 million, respectively, (at an average recorded USDCAD exchange rate of 1.26) in the second quarter 2022 and $765.7 million and $666.5 million, respectively, (at an average recorded USDCAD exchange rate of 1.26) since July 1, 2020, including capital expenditures and non-capital project costs summarized in the table below. The Company's attributable remaining project spend to complete construction and bring Côté Gold into production is $1.2 to $1.3 billion from July 1, 2022, net of leases and working capital.
Q2 2022Q1 2022
Q2 20211
YTD 2022YTD 2021Expenditures to date
Capital expenditures1,2 ($ millions)
$169.6 $78.5 $84.7 $248.1 $133.1 $643.5 
Non-capital costs3
2.8 3.8 5.0 6.6 6.1 23.0 
Expended costs172.4 82.3 89.7 254.7 139.2 666.5 
Working capital adjustment4
(23.5)47.7 12.8 24.2 30.4 99.2 
Incurred costs$148.9 $130.0 $102.5 $278.9 $169.6 $765.7 
1.Capital expenditures prior to July 1, 2020 are not included in the Company’s portion of reported total project costs.
2.Capital expenditures include certain offsets including realized derivative gains of $4.2 million in the second quarter 2022. Capital expenditures exclude the realized gain of $1.5 million on the Target Accrual Redemption Forward ("TARF") and the forward contract with an extendible feature (see “Market Risks – Summary of Hedge Portfolio”).
3.Non-capital costs include ore mined costs recorded as stockpiles which totaled $0.3 million in the second quarter 2022.
4.Working capital adjustment mainly consists of work performed not yet invoiced combined with an increase in the accounts payable balance, offset by an increase in sales taxes receivable.
Gosselin Zone
The Gosselin zone is located immediately to the northeast of the Côté Gold deposit. Approximately 16,000 metres of diamond drilling is planned in 2022 to further delineate and expand the Gosselin mineral resources and test selected targets along an interpreted favourable deposit corridor. Approximately 10,500 metres were completed in the first half of 2022.
During the first quarter 2022, the Company announced remaining assay results from its 2021 delineation diamond drilling program at the Gosselin zone confirming expected grades within the modelled resource, and in some cases, the extension of the mineralization zone outside the resources boundaries of the mineralization model (see news release dated January 27, 2022).
Additional technical studies are planned which will include a sampling program to advance future metallurgical test work and mining and infrastructure studies to review alternatives to optimize the inclusion of the Gosselin deposit resources into a future Côté Gold LOM plan.
Chibougamau District, Canada
The Chibougamau District includes the Nelligan Gold project and the Monster Lake project.
Nelligan Gold Project
The Nelligan Gold project is located approximately 40 kilometres south of the Chapais – Chibougamau area in Québec and is operating as a 75:25 earn-in option to joint venture with Vanstar Mining Resources Inc (“Vanstar”). The Company holds an option to earn an additional 5% interest, for an 80% total interest, by completing a feasibility study on the project. Approximately 4,700 metres of diamond drilling was completed in the first half of 2022 to support the completion of an updated resource estimate expected by the end of 2022.
Subsequent to quarter-end, Vanstar reported assay results from the 2022 drilling program which intersected multiple wide intercepts of gold mineralization, including the following highlights: 69.0 metres grading 2.24 g/t Au, 52.3 metres grading 1.60 g/t Au and 23.8 metres grading 3.21 g/t Au (see Vanstar news release dated July 6, 2022).
IAMGOLD CORPORATION
Second Quarter 2022 Management’s Discussion and Analysis
18


South America
Rosebel District, Suriname
The Rosebel District includes the Rosebel open pit mine located 85 kilometres south of the capital city of Paramaribo, Suriname and the Saramacca open pit satellite mine, a higher grade deposit located 25 kilometres from the Rosebel operations. The Company owns 95% of the gross Rosebel mining concession. Rosebel owns 70% of certain specified concession areas including Saramacca.
Rosebel Mine (IAMGOLD interest – 95%)1
Q2 2022Q1 2022Q2 2021YTD 2022YTD 2021
Key Operating Statistics
Ore mined2 (000s t)
1,500 1,588 1,102 3,088 2,349 
Waste mined2 (000s t)
13,965 11,128 6,956 25,093 15,866 
Material mined2 (000s t) – total
15,465 12,716 8,058 28,181 18,215 
Strip ratio2,3
9.3 7.0 6.3 8.1 6.8 
Ore milled (000s t) – Rosebel1,572 1,555 1,412 3,127 3,052 
Ore milled2 (000s t) – Saramacca
629 757 803 1,386 1,711 
Ore milled2 (000s t) – total
2,203 2,312 2,215 4,515 4,763 
Head grade2,4 (g/t)
0.88 0.81 0.52 0.84 0.68 
Recovery2 (%)
92 91 83 91 86 
Gold production2 (000s oz) – 100%
57 55 31 112 88 
Gold production1 (000s oz) – owner operator
51 49 27 100 76 
Gold production (000s oz) – attributable 95%49 46 25 95 72 
Gold sales1 (000s oz) – owner operator
54 49 25 103 70 
Average realized gold price5 ($/oz)
$1,861 $1,886 $1,793 $1,873 $1,765 
Financial Results ($ millions)1
Revenues8
$101.9 $91.6 $45.2 $193.5 $124.0 
Operating costs(65.9)(58.0)(40.7)(123.9)(91.2)
Royalties(6.8)(5.8)(3.9)(12.6)(9.4)
Cash costs5,6
$(72.7)$(63.8)$(44.6)$(136.5)$(100.6)
Other mine costs7
(1.1)(2.7)0.1 (3.8)— 
Cost of sales8
$(73.8)$(66.5)$(44.5)$(140.3)$(100.6)
Sustaining capital expenditures5,9
(27.7)(20.5)(10.5)(48.2)(18.1)
Other costs and adjustments10
(1.1)0.4 (1.4)(0.7)(3.0)
AISC5
$(102.6)$(86.6)$(56.4)$(189.2)$(121.7)
Expansion capital expenditures5,11
$(14.7)$(6.0)$(15.7)$(20.7)$(26.5)
Performance Measures12
Cost of sales excluding depreciation13 ($/oz sold)
$1,349 $1,369 $1,767 $1,359 $1,432 
Cash costs5 ($/oz sold)
$1,327 $1,315 $1,766 $1,321 $1,431 
AISC5 ($/oz sold)
$1,874 $1,784 $2,237 $1,832 $1,732 
1.Rosebel at 100% and Saramacca at 70%, as included in the consolidated interim financial statements, unless otherwise stated.
2.Includes Saramacca at 100%.
3.Strip ratio is calculated as waste mined divided by ore mined.
4.Includes head grade / tonne for the second quarter 2022 related to the Rosebel concession of 0.85 g/t and the Saramacca concession of 0.94 g/t (first quarter 2022 - 0.78 g/t and 0.86 g/t respectively; second quarter 2021 – 0.48 g/t and 0.58 g/t respectively).
5.This is a non-GAAP financial measure. See "Non-GAAP Financial Measures".
6.Cash costs includes by-product credits.
7.Other mine costs include the add-back of non-cash long-term portion of stockpile inventory NRV write-downs for the second quarter 2022 of $1.1 million (first quarter 2022 - $2.6 million; second quarter 2021 - $nil) and the exclusion of by-product credits.
8.As per note 27 of the consolidated interim financial statements for revenues and cost of sales. Cost of sales is net of depreciation expense.
9.Includes sustaining capitalized stripping for the second quarter 2022 of $7.3 million (first quarter 2022 - $12.5 million; second quarter 2021 - $nil) and YTD 2022 of $19.8 million (YTD 2021 - $nil).
10. Other costs and adjustments include sustaining lease principal payments and environmental rehabilitation accretion and depletion, partially offset by by-product credits.
11. Includes expansion capitalized stripping for the second quarter 2022 of $11.3 million (first quarter 2022 - $3.5 million; second quarter 2021 - $7.6 million) and YTD 2022 of $14.8 million (YTD 2021 - $14.9 million).
12. Cost of sales, cash costs and AISC per ounce sold may not be calculated based on amounts presented in this table due to rounding.
13. Includes non-cash ore stockpile and finished goods inventories NRV write-down of $1.1 million for the second quarter 2022 (first quarter 2022 - $2.6 million; second quarter 2021 - $6.4 million) and $3.7 million for YTD 2022 (YTD 2021 - $6.4 million), which had an impact on cost of sales per ounce sold for second quarter 2022 of $21 (first quarter 2022 - $53 per ounce sold; second quarter 2021 - $41 per ounce sold) and $36 per ounce sold for YTD 2022 (YTD 2021 - $41 per ounce sold).

IAMGOLD CORPORATION
Second Quarter 2022 Management’s Discussion and Analysis
19


Operational Insights
Rosebel achieved attributable gold production in the second quarter of 49,000 ounces, 7% higher than the prior quarter and 96% higher than the same prior year period, continuing to benefit from improved recovery and higher head grades when compared to both prior quarter and the same prior year period, partially offset by lower throughput compared to the prior quarter while throughput was in line when compared to the same prior year period.
Mining activities in the second quarter have returned to pre-pandemic levels with material mined of 15.5 million tonnes being 22% higher compared with the prior quarter and 92% higher compared to the same prior year period. The site focused on advancing waste stripping activities in line with future production plans. The grade mined at Saramacca is improving reflecting the increased mining activity benefitting from an increase in the fleet allocation and upgrades to the haul road to access higher grade phases and improve ore transport to the mill.
Mill throughput was 2.2 million tonnes, 5% lower than the prior quarter at an average head grade of 0.88 g/t. Throughput was impacted by maintenance work required on the SAG feed chute and refurbishment of the apron feeders. In terms of mill feed, Rosebel provided 45% at an average head grade of 0.90 g/t, Saramacca provided 23% at an average head grade of 0.93 g/t and the remaining 32% was sourced from lower grade ore stockpiles with an average head grade of 0.60 g/t.
Mill recovery of 92% for the second quarter was in line with the prior quarter, continuing to benefit from improvements to the carbon adsorption/desorption circuit completed at the end of 2021.
The COVID-19 situation at the site and in Suriname has remained stable during the second quarter. The majority of the COVID-19 measures have been lifted in Suriname while Rosebel continues to require face masks indoor with additional mitigating measures to continue in an effort to minimize the impact of COVID-19 at site.
The impact of illegal miners disrupting the operations, noted during the first quarter 2022, was reduced during the second quarter. The Company is continuing its collaboration efforts with the government task force assigned to manage the security situation at the site as well as with village communities and other stakeholders around the mine site.
The dewatering wells and other earthworks activities, including slope remediation and the East bypass road at Saramacca are now expected to be completed in the third quarter 2022. All permits have been obtained.
Financial Performance - Q2 2022 Compared to Q1 2022 and Q2 2021
Cost of sales, excluding depreciation, of $73.8 million was (i) higher by $7.3 million or 11% compared with the prior quarter, primarily due to higher mining activity, a higher stripping ratio and costs inflation, and (ii) higher by $29.3 million or 66% compared with the same prior year period, as a result of higher production costs and the significant increase in mining activities.
Cost of sales, excluding depreciation, cash costs and AISC per ounce sold in the second quarter of $1,349, $1,327 and $1,874, were in line, in line, and higher by 5%, respectively, compared with the prior quarter, as higher production costs of $93 per ounce partially offset by higher production volume of $81 per ounce. AISC per ounce sold included higher sustaining capital expenditures of $82 per ounce sold compared to the prior quarter.
Compared to the second quarter 2021, cost of sales, excluding depreciation, cash costs and AISC per ounce sold were lower by 24%, 25% and 16%, respectively, primarily due to higher production volume of $1,248 per ounce, partially offset by higher production costs of $809 per ounce. AISC per ounce sold included higher sustaining capital expenditures of $90 per ounce.
Capitalized stripping in the second quarter of $18.6 million was higher by $2.6 million or 16% and $11.0 million or 145%, compared to the prior quarter and the same prior year period, respectively, resulting from higher activity levels to access future production phases.
Sustaining capital expenditures in the second quarter, excluding capitalized stripping, of $20.4 million included capital spares of $10.6 million, mobile equipment of $2.9 million, mill equipment of $2.1 million, tailings management of $2.0 million, and other sustaining projects of $2.8 million. Expansion capital expenditures, excluding capitalized stripping, of $3.4 million included the Saramacca project and other expansion projects.
Financial Performance – YTD 2022 Compared to YTD 2021
Cost of sales, excluding depreciation, of $140.3 million for YTD 2022, was higher by $39.7 million or 39% compared with the same prior year period, primarily as a result of higher production costs and increased mining activities.
Cost of sales, excluding depreciation, cash costs and AISC per ounce sold of $1,359, $1,321, and $1,832, for YTD 2022, were lower by $73 or 5%, lower by $110 or 8%, and higher by $100 or 6%, respectively, compared to the same prior year period, primarily due to higher production volume of $355 per ounce, partially offset by higher production costs of $282 per ounce. AISC per ounce sold included higher sustaining capital expenditures of $209 per ounce sold.
Capitalized stripping of $34.6 million for YTD 2022 was higher by $19.7 million or 132% due to activity levels being adversely impacted by COVID-19 during YTD 2021.
Sustaining capital expenditures, excluding capitalized stripping, of $28.4 million for YTD 2022 included capital spares of $13.6 million, mill equipment of $4.0 million, mobile equipment of $3.2 million, tailings management of $2.9 million, and other sustaining projects of $4.7 million. Expansion capital expenditures, excluding capitalized stripping, of $5.9 million for YTD 2022 primarily included the Saramacca development project.

IAMGOLD CORPORATION
Second Quarter 2022 Management’s Discussion and Analysis
20


Outlook
Attributable gold production at Rosebel in 2022 is expected to be in the range of 155,000 to 180,000 ounces. In the first half of the year, additional cost pressures emerged as discussed under “Outlook”. Rising oil prices continue to be partially mitigated by the existing hedge program. The Company also expects higher power costs, compared to 2021, which have links to the price of gold and oil. The collective labour agreement expires in August 2022 and negotiations for a new agreement have commenced in the third quarter, which have, in the past, been prolonged and, at times, disruptive to the operations.
The Government of Suriname continues to be under pressure to resolve its economic situation and has proposed certain measures which may negatively impact the financial condition of the Company. The Company is following the development of these measures and is engaging with the authorities as necessary in respect of such proposed measures.
In the second quarter 2022, the Company advanced a strategic review process to evaluate options for its Rosebel/Saramacca mining complex which could include the sale of this complex. See “Liquidity and Capital Resources - Liquidity Outlook”.
Brownfield Exploration
Approximately 25,000 metres of diamond and RC drilling is planned in 2022 to improve resource confidence, target resource expansions and continue to explore high priority exploration targets on the mining lease and surrounding exploration concessions, of which approximately 8,200 metres was completed in the first half of 2022.
Exploration
In the second quarter 2022, expenditures for exploration and project studies totaled $11.2 million compared with $10.0 million in the prior quarter and $13.7 million in the same prior year period, of which $9.3 million was expensed and $1.9 million was capitalized. During the first half of 2022, drilling activities on active projects and mine sites totaled approximately 83,000 metres. For additional information regarding the brownfield and greenfield exploration projects, see "Quarterly Updates". The Company's exploration expenditures guidance for 2022 is $35 million.
($ millions)Q2 2022Q1 2022Q2 2021YTD 2022YTD 2021
Exploration projects – greenfield$7.8 $6.9 $9.3 $14.7 $14.8 
Exploration projects – brownfield1
3.4 3.1 4.4 6.5 9.3 
$11.2 $10.0 $13.7 $21.2 $24.1 
1.Exploration projects - brownfield for the second quarter 2022 included near-mine exploration and resource development of $1.9 million (first quarter 2022 - $1.8 million, second quarter 2021 - $2.2 million, YTD 2022 - $3.9 - million, YTD 2021 $5.3 million).
FINANCIAL CONDITION
Liquidity and Capital Resources
As at June 30, 2022, the Company had $451.1 million in cash and cash equivalents, $1.8 million in short-term investments and net debt1 of $225.1 million. Approximately $348.7 million was available under the Company’s secured revolving credit facility (“Credit Facility”) resulting in liquidity1 at June 30, 2022 of approximately $802 million. The Côté Gold UJV required its joint venture partners to fund, in advance, three months of future expenditures. Subsequent to quarter end, the Côté UJV amended this requirement to two months. The Company has funded its portion of the Côté UJV funding cash generated from its operations and the Credit Facility. The Company uses dividends and intercompany loans to repatriate funds from its operations and the timing of dividends may impact the timing and amount of required financing, including the Company's drawdowns under the Credit Facility.
Restricted cash in support of environmental closure costs obligations related to Essakane totaled $38.9 million. The following sets out the changes in cash balance from March 31, 2022 to June 30, 2022 and December 31, 2021 to June 30, 2022:
chart-dd7fc4a9b7f3464bbbf.jpg




_____________________________
1.This is a non-GAAP financial measure. See "Non-GAAP Financial Measures".
IAMGOLD CORPORATION
Second Quarter 2022 Management’s Discussion and Analysis
21


chart-efdd839b1c9343919a7.jpg
Current assets as at June 30, 2022 were $923.2 million, down $27.9 million compared with December 31, 2021. The decrease was due to lower cash and cash equivalents ($93.8 million), inventories ($32.5 million) and short term investments ($5.8 million), offset by higher receivables and other current assets ($39.2 million). Current liabilities as at June 30, 2022 were $522.4 million, down $59.3 million compared with December 31, 2021. The decrease was due to a decrease in the current portion of deferred revenue ($93.7 million) in connection with the Company’s 2019 gold sale prepayment arrangement (the “2019 Prepay Arrangement”) being recognized in revenue as it settles in equal monthly physical gold deliveries of 12,500 ounces in 2022, partially offset by an increases in accounts payable and accrued liabilities ($19.6 million) primarily related to Côté Gold and income taxes payable ($11.0 million).
The following table summarizes the Company's long-term debt:
June 30March 31December 31
($ millions)1
202220222021
Credit Facility$150.0 $— $— 
5.75% senior notes447.4 447.0 445.7 
Equipment loans14.6 16.5 18.7 
$612.0 $463.5 $464.4 
1.Long-term debt does not include leases of $62.0 million as at June 30, 2022 (March 31, 2022 - $62.5 million; December 31, 2021 - $65.6 million).
chart-c0c93561003f49fd842.jpg
1.Includes principal and interest payments for the 5.75% senior notes and equipment loans and does not include the repayment of the 2019 Prepay Arrangement and the 2022 Prepay Arrangements (defined below) which will be physically settled in 2022 and 2024, respectively, and leases.
Credit Facility
The Company has a $500 million Credit Facility, which was entered into in December 2017 and amended including in February 2021, to primarily extend the maturity date from January 31, 2023 to January 31, 2025 for $490 million of the available credit. On April 29, 2022 and June 29, 2022, the Company drew down $100 million and $50 million, respectively, on the Credit Facility. As at June 30, 2022, the Company had letters of credit in the amount of $1.3 million issued under the Credit Facility to guarantee certain environmental indemnities and $348.7 million was available under the Credit Facility. Subsequent to the end of the quarter, the Company drew down $80.0 million to manage the timing of the receipt of a dividend from Essakane and for certain cash collateral posted for surety bonds and issued a letter of credit for $19.3 million as collateral for surety bonds.
The Credit Facility provides for an interest rate margin above London Interbank Offered Rate, banker’s acceptance prime rate and base rate advances which vary, together with fees related thereto, according to the total Net Debt to Earnings Before Interest, Tax, Depreciation and Amortization ("EBITDA") ratio of the Company. The Credit Facility is secured by certain of the Company's real assets, guarantees by certain of the Company’s subsidiaries and pledges of shares of certain of the Company's subsidiaries. The key terms of the Credit Facility include certain limitations on incremental debt, certain restrictions on distributions and financial covenants including Net Debt to EBITDA and Interest Coverage.


IAMGOLD CORPORATION
Second Quarter 2022 Management’s Discussion and Analysis
22


Senior notes
In September 2020, the Company completed the issuance of $450 million of senior notes at face value with an interest rate of 5.75% per annum (the "Notes"). The Notes are denominated in U.S. dollars and mature on October 15, 2028. Interest is payable in arrears in equal semi-annual installments on April 15 and October 15 of each year, beginning on April 15, 2021, in the amount of approximately $12.9 million for each payment. The Notes are guaranteed by certain of the Company's subsidiaries. The Company incurred transaction costs of $7.5 million which have been capitalized and offset against the carrying amount of the Notes within long-term debt in the consolidated balance sheets and are being amortized using the effective interest rate method.
Leases
At June 30, 2022, the Company had lease obligations of $62.0 million at a weighted average borrowing rate of 5.08%.
On April 29, 2022, the Company, on behalf of the Côté Gold UJV, entered into a master lease agreement with Caterpillar Financial Services Limited to lease certain mobile equipment, expected to be delivered over the course of 2022 and 2023, with a value of approximately $125 million. In connection therewith, SMM entered into a guarantee of 30% of the obligations under such agreement, reflecting its pro rata interest in the Côté Gold UJV.
Equipment loans
At June 30, 2022, the Company had equipment loans with a carrying value of $14.6 million secured by certain mobile equipment, with interest rates between 5.23% and 5.95% which mature in 2024. The equipment loans are carried at amortized cost on the consolidated balance sheets. On March 31, 2022, the Company entered into an amendment to increase the equipment loan facility by $6.2 million on similar terms. The equipment loan facility has an availability period of six months and $0.7 million has been drawn as at June 30, 2022.
Prepay arrangements
During 2019, the Company entered into the 2019 Prepay Arrangement with a collar range of $1,300 to $1,500 per ounce at a cost of 5.38% per annum. Pursuant to the 2019 Prepay Arrangement, the Company received a cash prepayment of $169.8 million in December 2019 in exchange for delivering 150,000 gold ounces in 2022. During the six months ended June 30, 2022, 75,000 ounces were delivered into the 2019 Prepay Arrangement and the Company received $15.0 million in cash in relation to the collar.
During 2021, the Company entered into gold sale prepayment arrangements (the "2022 Prepay Arrangements") at a weighted average cost of 4.45% per annum in respect of 150,000 gold ounces. These arrangements have an average forward contract price of $1,753 per ounce on 50,000 gold ounces and a collar range of $1,700 to $2,100 per ounce on 100,000 gold ounces. This will result in a total prepayment to the Company of $236 million over the course of 2022 and the requirement on the part of the Company to physically deliver such ounces over the course of 2024. The 2022 Prepayment Arrangements have the effect of rolling the 2019 Prepay Arrangement from 2022 to 2024 after the completion of the construction of Côté Gold. The Company received $118.0 million during the six months ended June 30, 2022 pursuant to the 2022 Prepay Arrangements.
Surety bonds and performance bonds
As at June 30, 2022, the Company had (i) C$215.8 million ($167.7 million) of uncollateralized surety bonds, issued pursuant to arrangements with insurance companies, in support of environmental closure costs obligations related to the Doyon division and Côté Gold and (ii) C$39.1 million ($31.3 million) of uncollateralized performance bonds in support of certain obligations related to the construction of Côté Gold. The Company expects that the uncollateralized surety bonds in support of the Doyon division will have to be increased to support the updated environmental closure cost obligations in the updated closure plan once such closure plan has been approved by the applicable regulatory authorities. Subsequent to the end of the quarter, the Company posted $30.2 million of security for certain of the surety bonds. $10.9 million was posted as cash collateral and $19.3 million was posted through the issuance of a letter of credit under the Credit Facility.
Derivative contracts
In addition to the gold sale prepayment arrangements noted above, and in order to mitigate volatility during the construction of Côté Gold, the Company entered into certain derivative contracts in respect of certain of its future gold sales and exchange rates. In addition, the Company manages certain other commodities exposure such as oil through derivatives. See "Market Risk – Summary of Hedge Portfolio" for information relating to the Company’s outstanding derivative contracts including the derivative contracts associated with Côté Gold.
Liquidity Outlook
The remaining attributable spend to complete the construction of the Côté Gold project are estimated to be between $1.2 and $1.3 billion from July 1, 2022, net of leases and working capital (see “Côté Gold Project”). The Côté Gold UJV requires its joint venture partners to fund, in advance, previously three and now two months of future expenditures. The Company uses dividends and intercompany loans to repatriate funds from its operations and the timing of dividends may impact the timing and amount of required financing, including the Company's drawdowns under the Credit Facility. Primarily due to the timing of a dividend payment from Essakane, the Company drew down an additional $80 million at the end of July 2022 and issued a $19 million letter of credit under the Credit Facility.



IAMGOLD CORPORATION
Second Quarter 2022 Management’s Discussion and Analysis
23


Based on the recently updated cost estimate and schedule of construction of the Côté Gold project, information currently available and prevailing market prices, which impact operating cash flows, the Company will require additional liquidity to complete construction of the project and continues to seek to implement a fully funded financing plan by the end of the year and prior to the necessity to make any potential adjustments to the timing of the advancement of the project based on the updated schedule.
As such, the Company is actively pursuing various alternatives to increase its liquidity and capital resources including disposition of one or more of the Company’s assets and/or an interest therein and/or joint-venture partnerships, additional secured debt which could be provided by banks, private capital providers and/or institutional investors, additional unsecured debt including unsecured and/or convertible notes, sales of common shares, the extension of the 2022 Prepay Arrangements.
In January 2022, the Company announced that it was commencing a strategic review process to evaluate options for its Rosebel/Saramacca mining complex, including a potential sale of this complex. The Company advanced this process in the second quarter 2022. In addition, the Company is evaluating strategic alternatives with respect to certain of its development and exploration assets in South America and West Africa (excluding Essakane), that may include the disposition of all or an interest in one or more of such assets.
However, there can be no assurance that the Company will be successful in achieving financing solutions in time and/or on terms acceptable to the Company or that the strategic evaluations discussed above will result in a transaction. In this case and in order to execute its plans for the foreseeable future, including financing alternatives, the Company has developed certain potential alternatives to defer or reduce its capital spending and various other expenditures. These alternatives may impact future operating and financial performance and/or could extend the Côté Gold project construction timeline and significantly increase project costs, and/or dilute the Company's interest in the Côté Gold project. Reductions in capital expenditures at the Côté Gold project requires approval from the Côté UJV oversight committee.
The Company’s financial results are highly dependent on the price of gold and future changes in the price of gold will, therefore, impact performance. The Company will be dependent on the cash flows generated from the Côté Gold project to eventually repay its existing and any additional indebtedness that it may incur to fund the remaining construction costs of the Côté Gold project. Readers are encouraged to read the “Caution Regarding Forward Looking Statements” and the “Risk Factors” sections contained in the Company’s 2021 Annual Information Form, which is available on SEDAR at www.sedar.com and the “Caution Regarding Forward Looking Statements” and the “Risk and Uncertainties” sections of the MD&A.
Contractual Obligations
As at June 30, 2022, contractual obligations with various maturities were approximately $1.7 billion, primarily comprising expected future contractual payments of long-term debt including principal and interest, purchase obligations, capital expenditures obligations and lease obligations. Management believes these obligations will be met through available cash resources and net cash from operating activities. The Company entered into derivative contracts for risk management purposes. These derivative contracts are not included in the contractual obligations. Details of these contracts are included in "Market Risk - Summary of Hedge Portfolio".
Cash Flow
($ millions)Q2 2022Q1 2022Q2 2021YTD 2022YTD 2021
Net cash from (used in) per consolidated interim financial statements:
Operating activities$81.9 $142.3 $37.3 $224.2 $139.0 
Investing activities(269.2)(160.5)(161.7)(429.7)(225.0)
Financing activities129.9 (7.5)(16.0)122.4 (30.2)
Effects of exchange rate fluctuation on cash and cash equivalents(11.0)0.3 2.3 (10.7)(0.4)
Decrease in cash and cash equivalents(68.4)(25.4)(138.1)(93.8)(116.6)
Cash and cash equivalents, beginning of the period519.5 544.9 963.0 544.9 941.5 
Cash and cash equivalents, end of the period$451.1 $519.5 $824.9 $451.1 $824.9 
Operating Activities
Net cash from operating activities for the second quarter 2022 was $81.9 million, a decrease of $60.4 million from the prior quarter, primarily due to lower net cash earnings ($19.9 million), higher income taxes paid resulting from withholding taxes on repatriation of funds ($26.9 million) and a net outflow in non-cash working capital movements ($20.4 million), partially offset by an increase in cash inflows from the settlement of derivatives ($6.3 million).
The second quarter 2022 movements in non-cash working capital items and non-current stockpiles resulted in an outflow of $12.0 million and included:
An increase in inventories and non-current ore stockpiles balance ($17.7 million), primarily due to higher cost of production due to cost increases;
An increase in receivables and other current assets ($8.8 million), primarily due to new claims for value added taxes; and
An increase in accounts payable and accrued liabilities balance ($14.6 million), primarily due to timing of payment of suppliers.
IAMGOLD CORPORATION
Second Quarter 2022 Management’s Discussion and Analysis
24


Compared with the second quarter 2021, the increase of $44.6 million in net cash from operating activities was primarily due to higher net cash earnings ($36.0 million), proceeds from the 2022 Prepay Arrangements ($59.0 million) and an increase in cash inflows from the settlement of derivatives ($9.8 million), partially offset by deferred revenue recognized on the 2019 Prepay Arrangement ($48.7 million) and an increase in income taxes paid ($15.2 million).
Net cash from operating activities for YTD 2022 was $224.2 million, an increase of $85.2 million from the same prior year period, primarily due to higher net cash earnings ($73.3 million), proceeds from 2022 Prepay Arrangements ($118.0 million) and an increase of cash inflows from the settlement of derivatives ($15.0 million), partially offset by deferred revenue recognized on the 2019 Prepay Arrangement ($97.5 million) and an increase in income taxes paid ($16.9 million).
Investing Activities
Net cash used in investing activities for the second quarter 2022 was $269.2 million, an increase of $108.7 million from the prior quarter, primarily due to an increase in capital expenditures for property, plant and equipment ($87.4 million) mainly related to the Cóté Gold construction and timing of financing costs paid and capitalized as borrowing costs ($13.1 million).
Compared with the second quarter 2021, net cash used in investing activities increased by $107.5 million, primarily due to an increase in capital expenditures for property, plant and equipment ($103.8 million) mainly related to the Cóté Gold construction and borrowing costs paid ($4.7 million), partially offset by proceeds from the disposal of investments ($2.1 million).
Net cash used in investing activities for YTD 2022 was $429.7 million, an increase of $204.7 million from the same prior year period, primarily due to an increase in capital expenditures for property, plant and equipment ($170.2 million) mainly related to the Cóté Gold construction, partially offset by proceeds from disposal of marketable securities ($9.9 million). The Company also received proceeds from the sale of non-core royalties ($45.9 million) during the same prior year period.
Financing Activities
Net cash from financing activities in the second quarter 2022 was $129.9 million, an increase of $137.4 million from the prior quarter, primarily due to proceeds from the Credit Facility drawdowns ($150.0 million), partially offset by an increase in dividends paid to non-controlling interest ($11.6 million) on the declaration of dividends from subsidiaries.
Compared with the second quarter 2021, net cash from financing activities increased by $145.9 million, primarily due to proceeds from the Credit Facility drawdowns ($150.0 million), partially offset by an increase in dividends paid to the non-controlling interest ($9.7 million).
Net cash from financing activities for YTD 2022 was $122.4 million, an increase of $152.6 million from the same prior year period, primarily due to proceeds from the Credit Facility drawdowns ($150.0 million).
Mine-Site Free Cash Flow1
Second quarter 2022 mine site free cash flow was $42.8 million, down $ $44.7 million from the prior quarter, primarily due to lower operating cash flow at Essakane ($54.6 million) and Westwood ($11.1 million), mainly due to higher operating costs, lower sales volume and a lower average realized gold price, and higher capital expenditures at Rosebel ($16.0 million), partially offset by higher operating cash flow from Rosebel ($21.5 million) and lower capital expenditures at Essakane ($17.1 million).
Second quarter 2022 mine site free cash flow was up $40.9 million from the same prior year period, primarily due to higher operating cash flow at Rosebel ($71.3 million) mainly due to higher sales volume and higher average realized gold price, partially offset by higher capital expenditures at Rosebel ($16.4 million) and Westwood ($5.9 million) due to the continued ramp up in production activities.
chart-17c65d6eea4f46e2b4c.jpgchart-5f4865825a6b42dc9fa.jpg
IAMGOLD CORPORATION
Second Quarter 2022 Management’s Discussion and Analysis
25


Market Trends
Global Financial Market Conditions and Gold Price
The spot price of gold at the end of the second quarter 2022 was $1,817 per ounce and gold traded in a range of $1,807 to $1,979 per ounce during the second quarter 2022. The spot price of gold declined after the end of the second quarter 2022, following the strengthening of the U.S. dollar among a global increase in inflation.
The price of gold is a key driver of the Company’s profitability. The average and closing spot gold price and the Company’s average realized gold price in the second quarter 2022, prior quarter and the same prior year period are set out below. The Company’s hedging strategy is designed to mitigate gold price risk during the Côté Gold construction period. See "Market Risk" for more information.
Q2 2022Q1 2022Q2 2021YTD 2022YTD 2021
Average market gold price ($/oz)$1,871 $1,877 $1,816 $1,874 $1,805 
Average realized gold price1,2 ($/oz)
$1,799 $1,813 $1,800 $1,806 $1,788 
Closing market gold price ($/oz)$1,817 $1,942 $1,763 $1,817 $1,763 
1.This is a non-GAAP financial measure. See "Non-GAAP Financial Measures".
2.Excluding the impact of the 2019 Prepay Arrangement the average realized gold price was $1,873 for the second quarter 2022, $1,884 for the first quarter 2022 and $1,879 for YTD 2022.
Inflation
Inflationary pressures continue to emerge reflecting continued supply-demand imbalances and the impact of rising energy prices across supply chains. The Canadian Consumer Price Index increased 8.1% in June, year-over-year, which is well above the historically targeted inflation rate of 2%. In June, U.S. CPI jumped by 9.1% year-over year. The Canadian CPI is nearing a forty year high, while the U.S. CPI is at the forty-one year high.
In order to combat inflation, central banks and governments have taken and are likely to take more drastic measures in relation to interest rates. On July 13, the Bank of Canada raised the benchmark interest rate by one percentage point to 2.5%. This is the highest one time rate hike in Canada since 1998. In the U.S., the Fed hiked the funds rate by 75 bps during each of its June and July meetings. Other central banks are making similar large rate hikes. These rate hikes are expected to continue and there are market concerns that such increases may bring on a recession.
Currency and Oil Prices
The U.S. dollar is the Company’s functional currency. The Company's revenues are primarily denominated in U.S. dollars. The Company’s main exposures are to the Canadian dollar and oil prices.
The Company's Canadian dollar exposures relate to operational and capital expenditures in Canada. The Company’s hedging strategy was designed to mitigate the risk of exposure to exchange rate volatility of the Canadian dollar. See "Market Risk".
The Company has minimal residual exposure to euro denominated operational and capital expenditures in West Africa as it sells a portion of its gold in euros.
The Company's oil exposures relate primarily to its mining operations in West Africa and South America. The Company’s hedging strategy was designed to mitigate the risk of oil price appreciation given it is a significant input cost in the production of gold. See "Market Risk".
Q2 2022Q1 2022Q2 2021YTD 2022YTD 2021
Average rates
USDCAD1.2767 1.2663 1.2288 1.2717 1.2471 
EURUSD1.0647 1.1217 1.2047 1.0930 1.2051 
Closing rates
USDCAD1.2871 1.2483 1.2405 1.2871 1.2405
EURUSD1.0468 1.1096 1.1851 1.0468 1.1851
Average Brent price ($/barrel)$105 $98 $69 $105 $65 
Closing Brent price ($/barrel)$115 $108 $75 $115 $75 
Average WTI price ($/barrel)$109 $95 $66 $102 $62 
Closing WTI price ($/barrel)$106 $100 $73 $106 $73 






IAMGOLD CORPORATION
Second Quarter 2022 Management’s Discussion and Analysis
26


Sensitivity Impact
The following table provides estimated cost per ounce sensitivities around certain inputs, excluding the impact of the Company’s hedging program which can affect the Company’s operating results, assuming guided 2022 production and costs levels:
Change of
Annualized impact on Cost of Sales $/oz
Annualized impact on Cash Costs1 $/oz
Annualized impact on AISC1 $/oz
Gold price2
$100/oz$6$6$6
Oil price$10/barrel$15$15$18
USDCAD$0.10$20$20$30
EURUSD$0.10$15$15$23
1.This is a non-GAAP financial measure. See "Non-GAAP Financial Measures". Cash costs and AISC per ounce of gold sold consist of Essakane, Rosebel and Westwood on an attributable basis of 90%, 95% and 100%, respectively.
2.Gold price sensitivities include royalties and additional costs with a gold price link, which are included in total cost of sales, cash costs and AISC.

Market Risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. For hedging activities, it is the risk that the fair value of a derivative might be adversely affected by a change in underlying commodity prices or currency exchange rates and that this in turn affects the Company’s financial condition. The Company establishes trading agreements with counterparties under which there is no requirement to post any collateral or make any margin calls on derivatives. Counterparties cannot require settlement solely because of an adverse change in the fair value of a derivative.
Currency Exchange Rate Risk
The Company’s functional currency is the U.S. dollar which creates currency exchange risk exposure primarily associated with its expenditures denominated in Canadian dollars and euros. To manage this risk, the Company uses various hedging strategies, including holding some of its cash and cash equivalents in Canadian dollar or euro denominated bank accounts creating a natural off-set to the exposure and derivative contracts such as forwards or options. Option contracts can be combined through the use of put option contracts and call option contracts (collar structure), within a range of expiry dates and strike prices.
Oil Contracts and Fuel Market Price Risk
Brent and West Texas Intermediate (“WTI”) are components of diesel and fuel oil which are among the key inputs impacting the Company’s costs. To manage the risk associated with the fluctuation in the costs of these commodities, the Company uses various hedging strategies, such as the use of options. Option contracts can be combined through the use of put option contracts and call option contracts (collar structure), within a range of expiry dates and strike prices.
Gold Contracts and Market Price Risk
The Company’s primary source of revenue is gold. The Company’s hedging strategy is designed to mitigate gold price risk during the Côté Gold construction period. To manage such risk, the Company uses various hedging strategies, such as the use of call option contracts. Option contracts can also include put option contracts and call option contracts (collar structure), within a range of expiry dates and strike prices.
Summary of Hedge Portfolio
At June 30, 2022, the Company’s outstanding foreign currency and oil derivative contracts were as follows:
202220232024
Foreign Currency1
Canadian dollar contracts2 (millions of C$)
306188120
Rate range (USDCAD)1.28 — 1.481.30 — 1.461.32
Hedge ratio3
38%13%14%
Commodities4
Brent oil contracts (thousands of barrels)260428270
Contract price range ($/barrel of crude oil)50 — 6541 — 6541 — 55
Hedge ratio3
71%56%36%
WTI oil contracts (thousands of barrels)290473270
Contract price range ($/barrel of crude oil)38 — 6236 — 6038 — 50
Hedge ratio3
80%64%39%
1.2022 Canadian dollar hedges excludes Canadian dollars on hand which functions as a natural hedge for the Company’s 2022 Canadian dollar expenditures.
2.The Company previously executed Canadian dollar collar options, which consist of Canadian dollar call and put options within the given range in 2022 through 2024. The Company will recognize a gain from the difference between a lower market price and the Canadian dollar call strike price. The Company will incur a loss from the difference between a higher market price and the Canadian dollar put strike price. 2022 includes the TARF and forwards with an extension feature discussed below. Includes hedged exposure at Côté Gold in 2022, 2023 and 2024, with a hedge ratio of47%, 16% and 24%, respectively.
3.The Company calculates hedge ratios based on future estimates of operating and capital expenditures (such as its Canadian dollar operating and capital expenditures at Westwood and its corporate office, and Canadian dollar capital expenditures at Côté Gold during the construction period, future estimated uses of commodities and future estimated production. Outstanding derivative contracts are allocated based on a specified allocation methodology.
4. The Company previously executed Brent and WTI collar options, which consist of Brent and WTI put and call options with strike prices within the given range in 2022 through 2024. The Company will incur a loss from the difference between a lower market price and the put strike price. The Company will recognize a gain from the difference between a higher market price and the call strike price. Includes hedged exposure for WTI at Côté Gold in 2022 and 2023, with a hedge ratio of 68% and 30%, respectively
IAMGOLD CORPORATION
Second Quarter 2022 Management’s Discussion and Analysis
27


In connection with the construction of Côté Gold, the Company entered into a TARF structure as part of its strategy to manage exposure to the Canadian dollar. The Company has not designated the TARF financial derivative contract as a hedge for accounting purposes, although the Company does consider this arrangement to be an effective economic hedge. The derivative structure includes a termination feature as well as a leverage component. Contractual terms of the TARF include the following:
There are four underlying contracts with strike prices ranging from 1.300 to 1.3100 and averaging 1.30675.
On any monthly option fixing date, if the USDCAD exchange rate is below the strike price, the Company expects to exercise its option and deliver $7.7 million and receive CAD$10 million.
On any monthly option fixing date, if the USDCAD exchange rate is above the strike price, the Company expects that the counterparty will exercise its option in which case the Company will deliver $15.3 million and receive CAD$20 million.
The term of the arrangement is 30 months from January 2022 to June 2024. If the contract is exercised for a total of 12 times when the USDCAD is below the strike price, the arrangement will terminate. Each of the four contracts were exercised in January, February, March, April, May and July while the USDCAD was below the strike price. Three of the four contracts were exercised in June resulting in three contracts having five knockouts remaining and one contract having six knockouts remaining.
The Company realized a gain for the three and six months ended June 30, 2022 of $0.6 million and $1.6 million, respectively, on the TARF which is included in interest income, derivatives and other investment gains (losses) in the consolidated statements of earnings (loss).
In connection with the construction of Côté Gold, the Company entered into a forward contract with an extendable feature to purchase CAD$10 million per month during 2022 for a total of $120 million at a forward exchange rate of 1.32 USDCAD. The counterparty has an option, at its sole discretion, to extend the contract for twelve months, which would require the Company to purchase CAD$10 million per month during 2024 at the forward exchange rate. The option expires in November 2023. The Company realized a gain for the three and six months ended June 30, 2022 of $0.9 million and $2.1 million, respectively, on this contract which is included in interest income, derivatives and other investment gains (losses) in the consolidated statements of earnings (loss).
At June 30, 2022, the Company’s outstanding gold bullion contracts and gold sale prepayment arrangements were as follows:
PutCall202220232024
Weighted average $/ounceThousands of ounces
Zero cost collars1,7082,3351993
Zero cost collars1,8501,99075
Zero cost collars1,8502,17515
Zero cost collars1,8502,19115
Subtotal gold bullion contracts
2019 Prepay Arrangement1,3001,50075
2022 Prepay Arrangements – collar1,7002,100100
2022 Prepay Arrangements – forward1,75350
Subtotal gold sale prepay arrangements75150
Total1
94198150
1.The Company executed gold collar options, which consist of gold put and call options with strike prices within the given range in 2022 and 2023. The Company will incur a loss from the difference between a higher market price and the call strike price. The Company will recognize a gain from the difference between a lower market price and the put strike price. In the first quarter, the Company executed gold collar options with an average price range of $1,850 to $1,990 for 75,000 ounces. The Company executed additional gold collar options in the second quarter with an average price range of $1,850 to $2,183 for 30,000 ounces.
The Company’s cost metrics were impacted as follows by realized derivative gains and losses:
Q2 2022Q1 2022Q2 2021YTD 2022YTD 2021
Cost of sales per ounce sold before hedging$1,194 $1,080 $1,165 $1,136 $1,120 
Realized derivative gains per ounce sold64 44 15 54 10 
Cost of sales per ounce sold$1,130 $1,035 $1,150 $1,081 $1,110 
Cash cost per ounce sold before hedging$1,183 $1,061 $1,163 $1,120 $1,118 
Realized derivative gains per ounce sold64 44 15 54 10 
Cash cost per ounce sold$1,119 $1,017 $1,149 $1,066 $1,108 
$— 
AISC per ounce sold before hedging$1,670 $1,537 $1,444 $1,601 $1,340 
Realized derivative gains per ounce sold66 47 22 56 16 
AISC per ounce sold$1,604 $1,490 $1,422 $1,545 $1,324 
Figures may not be calculated based on amounts presented in this table due to rounding.

IAMGOLD CORPORATION
Second Quarter 2022 Management’s Discussion and Analysis
28


Shareholders' Equity
Number issued and outstanding (millions)June 30, 2022August 3, 2022
Common shares479.0 479.0 
Options1
5.3 5.2 
1.Refer to note 26 of the consolidated interim financial statements for all outstanding equity awards.
QUARTERLY FINANCIAL REVIEW
202220212020
($ millions, except where noted)Q2Q1Q4Q3Q2Q1Q4Q3
Revenues$334.0 $356.6 $294.6 $294.1 $265.6 $297.4 $347.5 $335.1 
Net earnings (loss) from continuing operations1
$(3.5)$31.8 $(204.0)$(72.5)$(0.3)$21.7 $68.0 $(7.7)
Net earnings from discontinued operations$— $— $— $— $— $— $4.1 $— 
Net earnings (loss) attributable to equity holders$(9.6)$23.8 $(194.1)$(75.3)$(4.5)$19.5 $63.1 $(11.6)
Basic and diluted earnings (loss) per share attributable to equity holders$(0.02)$0.05 $(0.41)$(0.16)$(0.01)$0.04 $0.13 $(0.02)
1.In the fourth quarter 2021, net loss from continuing operations was higher primarily due to an impairment charge recorded in respect of Rosebel.
DISCLOSURE CONTROLS AND PROCEDURES AND INTERNAL CONTROL OVER FINANCIAL REPORTING
Disclosure Controls and Procedures
The Company’s disclosure controls and procedures are designed to provide reasonable assurance that all relevant information is communicated to senior management to allow timely decisions regarding required disclosure. An evaluation of the effectiveness of the Company’s disclosure controls and procedures, as defined under the rules of the Canadian Securities Administration, was conducted as at December 31, 2021 under the supervision of the Company’s Disclosure Committee and with the participation of management. Based on the results of that evaluation, the Interim CEO and the CFO concluded that the Company’s disclosure controls and procedures were effective as at December 31, 2021 providing reasonable assurance that the information required to be disclosed in the Company’s annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported in accordance with securities legislation.
Since the December 31, 2021 evaluation, there have been no material changes to the Company's disclosure controls and procedures and their design remains effective.
Internal Control over Financial Reporting
Internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of the Company’s financial reporting and the preparation of consolidated interim financial statements in compliance with IFRS as issued by the International Accounting Standards Board ("IASB"). The Company’s internal control over financial reporting includes policies and procedures that:
pertain to the maintenance of records that accurately and fairly reflect the transactions of the Company;
provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated interim financial statements in accordance with IFRS as issued by the IASB;
ensure the Company’s receipts and expenditures are made only in accordance with authorization of management and the Company’s directors; and
provide reasonable assurance regarding prevention or timely detection of unauthorized transactions that could have a material effect on the consolidated interim financial statements.
An evaluation of the effectiveness of the Company’s internal control over financial reporting, including an evaluation of material changes that may have materially affected or are reasonably likely to have materially affected the internal controls over financial reporting based on the criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, was conducted as of December 31, 2021 by the Company’s management, including the Interim CEO and the CFO. Based on this evaluation, management, including the Interim CEO and the CFO, has concluded that the Company’s internal control over financial reporting was effective as of December 31, 2021.
There have been no material changes in the Company's internal control over financial reporting or in other factors that could affect internal controls during the first half of 2022 and their design remains effective.
Limitations of Control and Procedures
The Company’s management, including the Interim CEO and the CFO, believe that any disclosure controls and procedures and internal controls over financial reporting, no matter how well designed, can have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance that the objectives of the control system are met.
IAMGOLD CORPORATION
Second Quarter 2022 Management’s Discussion and Analysis
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CRITICAL JUDGMENTS, ESTIMATES AND ASSUMPTIONS
The Company’s management makes judgments in its process of applying the Company’s accounting policies in the preparation of its consolidated interim financial statements. In addition, the preparation of financial data requires that the Company’s management make assumptions and estimates of effects of uncertain future events on the carrying amounts of the Company’s assets and liabilities at the end of the reporting period and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates as the estimation process is inherently uncertain. Estimates are reviewed on an ongoing basis based on historical experience and other factors that are considered to be relevant under the circumstances. Revisions to estimates and the resulting effects on the carrying amounts of the Company’s assets and liabilities are accounted for prospectively.
The Company’s financing plans and certain other potential alternative plans to defer or reduce its capital spending and various other expenditures, in the event it does not achieve its financing plans, and the ability of the Company to execute them involve certain assumptions that represent significant judgment by the Company (see “Liquidity and Capital Resources - Liquidity Outlook”).
The critical judgments, estimates and assumptions applied in the preparation of the Company's consolidated interim financial statements are reflected in note 3 of the Company's audited annual consolidated financial statements for the year ended December 31, 2021.
Qualified Person and Technical Information
The technical and scientific information relating to exploration activities disclosed in this document was prepared under the supervision of and verified and reviewed by Craig MacDougall, P.Geo., Executive Vice President, Growth, IAMGOLD. Mr. MacDougall is a “qualified person” as defined by NI 43-101.
Data verification involves data input and review by senior project geologists at site, scheduled weekly and monthly reporting to senior exploration management and the completion of project site visits by senior exploration management to review the status of ongoing project activities and data underlying reported results. All drilling results for exploration projects or supporting resource and reserve estimates referenced in this MD&A have been previously reported in news release disclosures either by the Company or the project operator as the case may be (see referenced news releases) and have been prepared in accordance with NI 43-101. The sampling and assay data from drilling programs are monitored through the implementation of a quality assurance - quality control (QA-QC) program designed to follow industry best practice. Drill core (HQ and NQ size) samples are selected by the project geologists and sawn in half with a diamond saw at the project site. Half of the core is typically retained at the site for reference purposes. Generally, sample intervals are 1.0 to 1.5 metres in length and reverse circulation holes are sampled at 1.0 metre intervals at the drill rig. Samples are prepared and analyzed at site for the Company's producing mines and at accredited regional laboratories for the Company's exploration projects, using analysis techniques such as standard fire assay with a 50 gram charge; fire assay with gravimetric finish, or LeachWELL rapid cyanide leach with fire assay with a 50 gram charge.
NEW ACCOUNTING STANDARDS
For a discussion of new accounting standards adopted and new accounting standards issued but not yet effective that may impact the Company, refer to note 3 of the Company’s consolidated interim financial statements.
RISKS AND UNCERTAINTIES
The Company is subject to various business, financial, operational and other risks, uncertainties, contingencies and other factors which could materially adversely affect the Company’s future business, operations, and financial condition and could cause such future business, operations and financial condition to differ materially from the forward-looking statements and information contained in this MD&A and as described under the heading "Cautionary Statement Regarding Forward-Looking Information".
Readers of this MD&A should consider the information included or incorporated by reference in this document and the Company’s consolidated interim financial statements and related notes for the three and six months ended June 30, 2022. The nature of the Company’s activities and the locations in which it operates mean that the Company’s business generally is exposed to significant risk factors, known and unknown, many of which are beyond its control. Managing these risks is a key component of the Company’s business strategy and is supported by a risk management culture and an effective enterprise risk management (“ERM”) system. The Company’s view of risks is not static. An important component of the ERM approach is to ensure key risks which are evolving or emerging are appropriately identified, managed and incorporated into existing ERM assessment, measurement, monitoring and reporting processes.
The principal risks and uncertainties to the Company’s business, financial condition, and results of operations that were identified by management as new or elevated in the second quarter 2022 are described above under "Market Risk" and below. Readers are cautioned that no ERM framework or system can ensure that all risks to the Company, at any point in time, are accurately identified, assessed, managed or effectively controlled and mitigated. As such, there may be additional new or elevated risks to the Company in the second quarter 2022 that are not described above under “Market Risk” or below.


IAMGOLD CORPORATION
Second Quarter 2022 Management’s Discussion and Analysis
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For a comprehensive discussion of the risk factors that may affect the Company, its business operations and financial performance, refer to the risk disclosure contained in each of the Company’s annual information form dated February 23, 2022 ("AIF") and supplemented by the consolidated financial statements and the MD&A for the quarter-ended March 31, 2022, as filed with Canadian securities regulatory authorities at www.sedar.com and filed under Form 40-F with the United States Securities Exchange Commission at www.sec.gov, which is hereby incorporated by reference herein.
Security
Based on recent militant activity, the security environment remains volatile in the Sahel region of Burkina Faso, particularly where the Company’s Essakane mine is located. As a result, the Company believes there is an elevated risk to its operations, assets and personnel in the region for the foreseeable future. Supply chains and transit routes on national roads leading to and from the mine site remain particularly exposed to elevated risks of militant attacks. The Company continues to adjust its operating activities in response to the prevailing security situation as the safety and security of the Company’s personnel and physical assets are of paramount concern. An actual, potential or threatened terrorist attack on the Essakane mine and/or personnel and/or supplies on travel routes could have a material adverse effect on the Company’s business, operations, and financial condition.
Liquidity
The Company’s share of remaining costs to complete construction and bring Côté Gold into production increased and will result in the Company requiring additional financing, in addition to its existing Credit Facility to complete the construction of Côté Gold. The availability of capital to the Company and the cost of capital are subject to general economic conditions and lender and investor interest in the Company and its projects. The cost of capital has increased in recent months due to the ongoing conflict in Ukraine and related inflationary and market pressures. There can be no certainty that the Company will be successful in obtaining additional financing arrangements or any extension of or amendments to its current financing arrangements on terms and/or conditions that are favourable to the Company, or at all. Failure to obtain the financing necessary to execute the Company’s capital expenditure plans may result in a delay or indefinite postponement of exploration, development or production at any or all of the Company’s properties including the development of Côté Gold. A significant increase in the level of indebtedness of the Company could potentially have adverse consequences, including on the Company’s ability to repay its obligations and there can be no assurance that it will be able to continue to do so. If an event of default under the Credit Facility occurs, the Company would be unable to draw down further on the Credit Facility and the lenders could elect to declare all principal amounts outstanding thereunder at such time, together with accrued interest, to be immediately due. An event of default under the Credit Facility may also give rise to an event of default under existing and future debt/financing agreements and, in such event, the Company may not have sufficient funds to repay amounts owing under such agreements. The inability of the Company to increase its liquidity and capital resources could have a material adverse effect on its business, financial condition and results of operations.
Asset Valuations
At the end of each reporting period, in accordance with IFRS, the Company reviews the carrying amount of its property, plant and equipment, exploration and evaluation assets and cash generating units ("CGUs") to determine whether there is any indication of impairment or reversal of previously recognized impairment. When an indicator is identified, the Company will perform an impairment test. An impairment test requires the Company to determine the recoverable amount of the CGU. The recoverable amount is determined as the higher of the CGU’s fair value less costs of disposal and value-in-use. If the carrying amount of the CGU exceeds its recoverable amount, an impairment charge is recorded against long-lived assets in the CGU.
Should the Company execute some or all of the potential alternatives to defer or reduce its capital spending and various other expenditures as part of its financing plans (see “Liquidity and Capital resources - Liquidity Outlook”), the Company will have to perform a further assessment to determine if there is an indicator of impairment resulting from these plant.
Management uses various assumptions and estimates to determine the recoverable amount of a CGU which are subject to risks and uncertainties, particularly in market conditions where higher volatility exists, and may be partially or totally outside of the Company’s control. Therefore, it is reasonably possible that changes could occur with evolving economic and market conditions, which may affect the fair value of the Company’s property, plant and equipment, exploration and evaluation assets and CGUs resulting in either an impairment charge or reversal of previously recognized impairment. Certain of management’s assumptions and estimates may be subjective and it is possible that actual future cash flows could be significantly different than those estimated
NON-GAAP1 FINANCIAL MEASURES
The Company uses certain non-GAAP financial measures in its MD&A which are described in the following section. The Company believes that, in addition to conventional financial measures prepared in accordance with IFRS, certain investors use these non-GAAP financial measures to assess the performance of the Company. These non-GAAP financial measures do not have any standardized meaning prescribed by IFRS, may not be comparable to similar measures presented by other companies and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The definitions of these measures, the reconciliation to the amounts presented in the interim consolidated interim financial statements, and the reasons for the presentation of these measures are included below. The non-GAAP financial measures are consistent with those presented previously and there have been no changes to the basis of calculation, except for the change to the presentation of cash cost per ounce sold described in more detail below.

__________________________
1.GAAP - Generally accepted accounting principles.
IAMGOLD CORPORATION
Second Quarter 2022 Management’s Discussion and Analysis
31


Average Realized Gold Price per Ounce Sold
Average realized gold price per ounce sold is intended to enable management to understand the average realized price of gold sold in each reporting period after removing the impact of non-gold revenues and by-product credits, which, in the Company's case, are not significant and to enable investors to understand the Company’s financial performance based on the average realized proceeds of selling gold production in the reporting period.
($ millions, except where noted)Q2 2022Q1 2022Q2 2021YTD 2022YTD 2021
Revenues$334.0 $356.6 $265.6 $690.6 $563.0 
By-product credits and other revenues(0.9)(1.0)(0.2)(1.9)(0.6)
Revenues$333.1 $355.6 $265.4 $688.7 $562.4 
Sales (000s oz) – 100%185 196 147 381 314 
Average realized gold price per ounce1,2,3 ($/oz)
$1,799 $1,813 $1,800 $1,806 $1,788 
1.Average realized gold price per ounce sold may not be calculated based on amounts presented in this table due to rounding.    
2.Average realized gold price per ounce sold is calculated based on sales from the Company's Westwood, Rosebel and Essakane mines.
3.Average realized gold price per ounce sold includes 37,500 ounces at $1,500 per ounce as delivered in accordance with the 2019 Prepay Arrangement.
Cash Costs, Cash Costs per Ounce Sold, AISC and AISC per Ounce Sold
The Company reports cash costs, cash costs per ounce sold, AISC and AISC per ounce sold in order to provide investors with information about key measures used by management to monitor performance of mine sites in commercial production and its ability to generate positive cash flow.
Cash costs include mine site operating costs such as mining, processing, administration, royalties, production taxes and realized derivative gains or losses, exclusive of depreciation, reclamation, capital expenditures and exploration and evaluation costs. AISC include cost of sales exclusive of depreciation expense, sustaining capital expenditures, which are required to maintain existing operations, capitalized exploration, sustaining lease principal payments, environmental rehabilitation accretion and depreciation, by-product credits and corporate general and administrative costs. These costs are then divided by the Company’s attributable gold ounces sold by mine sites in commercial production in the period to arrive at the cash costs per ounce sold and the AISC per ounce sold. The Company reports the AISC measure with and without a deduction for by-product credits and reports the measure for the Essakane, Rosebel and Westwood mines.
Prior to the first quarter 2022, for cash costs, the Company excluded costs related to certain taxes and permits, provisions, prior period operating costs and community development. Commencing with the first quarter 2022, these costs are no longer excluded. These changes have been completed in order to better align with peer companies. All comparative periods have been restated and updated accordingly.
The following table provides a reconciliation of cash costs and cash costs per ounce sold on an attributable basis to cost of sales as per the consolidated interim financial statements.
($ millions, except where noted)Q2 2022Q1 2022Q2 2021YTD 2022YTD 2021
Cost of sales1
$284.6 $275.6 $237.7 $560.2 $490.9 
Depreciation expense1
(78.1)(75.0)(69.7)(153.1)(143.7)
Cost of sales1, excluding depreciation expense
$206.5 $200.6 $168.0 $407.1 $347.2 
Adjust for:
Stockpiles and finished goods adjustment
(1.1)(2.6)— (3.7)— 
Other mining costs2
(0.9)(1.0)(0.3)(1.9)(0.7)
Cost attributed to non-controlling interests2
(13.4)(13.4)(13.1)(26.8)(27.3)
Cash costs – attributable$191.1 $183.6 $154.6 $374.7 $319.2 
Total gold sales3 (000 oz) – attributable
170 181 135 351 288 
Cash costs4 ($/oz sold) – attributable
$1,119 $1,017 $1,149 $1,066 $1,108 
1.As per note 27 of the consolidated interim financial statements for cost of sales and depreciation expense.
2.Adjustments for the consolidation of Essakane (90%) and Rosebel (95%) to their attributable portion of cost of sales.
3.Consists of Essakane, Rosebel and Westwood on an attributable basis of 90%, 95% and 100%, respectively.
4.Cash costs per ounce sold may not be calculated based on amounts presented in this table due to rounding.






IAMGOLD CORPORATION
Second Quarter 2022 Management’s Discussion and Analysis
32


The following table provides a reconciliation of AISC and AISC per ounce sold on an attributable basis to cost of sales as per the consolidated interim financial statements.
($ millions, attributable, except where noted)Q2 2022Q1 2022Q2 2021YTD 2022YTD 2021
Cost of sales1
$284.6 $275.6 $237.7 $560.2 $490.9 
Depreciation expense1
(78.1)(75.0)(69.7)(153.1)(143.7)
Cost of sales1, excluding depreciation expense
$206.5 $200.6 $168.0 $407.1 $347.2 
Adjust for:
Sustaining capital expenditures1
67.1 76.6 23.9 143.7 37.6 
Corporate general and administrative costs2
14.4 12.9 11.3