TORONTO Aug 6, 2015 (Thomson StreetEvents) -- Edited Transcript of IAMGOLD Corp earnings conference call or presentation Thursday, August 6, 2015 at 12:30:00pm GMT TEXT version of Transcript ================================================================================ Corporate Participants ================================================================================ * Bob Tait IAMGOLD, Corp. - VP, IR * Steve Letwin IAMGOLD, Corp. - President, CEO * Carol Banducci IAMGOLD, Corp. - EVP, CFO * Gord Stothart IAMGOLD, Corp. - EVP, COO * Craig MacDougall IAMGOLD, Corp. - SVP, Exploration ================================================================================ Conference Call Participants ================================================================================ * Botir Sharipov HSBC - Analyst * Phil Russo Raymond James - Analyst * David Haughton CIBC - Analyst * Anita Soni Credit Suisse - Analyst * Don MacLean Paradigm Capital - Analyst * Pawel Rajszel Veritas Investment Research - Analyst ================================================================================ Presentation -------------------------------------------------------------------------------- Operator [1] -------------------------------------------------------------------------------- Thank you for standing by. This is the Chorus Call conference operator. And welcome to the IAMGOLD 2015 second-quarter operating and financial results conference call and webcast. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. (Operator Instructions). At this time, I'd like to turn the conference over to Bob Tait, Vice President, Investor Relations for IAMGOLD. Please go ahead, Mr. Tait. -------------------------------------------------------------------------------- Bob Tait, IAMGOLD, Corp. - VP, IR [2] -------------------------------------------------------------------------------- Thank you. And welcome to the IAMGOLD conference call. Joining me on the call today are Steve Letwin, President and CEO of IAMGOLD, Gord Stothart, Executive Vice President and Chief Operating Officer, Carol Banducci, Executive Vice President and Chief Financial Officer, Craig MacDougall, Senior Vice President, Exploration, and Jeff Snow, General Counsel and Senior Vice President, Business Development. Our remarks on this call will include forward-looking statements. Please refer to the cautionary language regarding forward-looking information in our disclosure documents that were released last night. And be advised that the same cautionary language applies to our remarks during the call. During our opening remarks we will refer to slides which can be viewed via our website. I'll now turn the call over to our President and CEO, Steve Letwin. -------------------------------------------------------------------------------- Steve Letwin, IAMGOLD, Corp. - President, CEO [3] -------------------------------------------------------------------------------- Well, good morning, and thank you, Bob. Well, in mid-July, the gold price reached a five-year low. And since our first-quarter conference call three months ago, the price has fallen another $100 an ounce. No one knows how long the gold price will stay depressed. No one knows if it has further to fall. While the price of gold will ebb and flow, we believe that the demand for gold is a store of value, a hedge against uncertainty, and as an alternative reserve currency for central banks will strengthen again and, in time, the gold price will go up. In the meantime, however gold producers have to learn to swim in the deep end of the cycle. In that regard, our Company is very fortunate. We have one of the strongest balance sheets in the industry. We have $836 million U.S. in cash and bullion. We have a successful track record of sustainable cost reductions, having reduced costs by $175 million since 2013. We look at our mine optimization as an ongoing process, not an events. We're seeing sustainable productivity enhancements at Rosebel and Essakane. And Gord will talk more about some of the work that's being done there. We will manage our way through this tough part of the cycle. We've done it before. On slide 6, we talk about our plan. We are revisiting all of our mine plans. We are running cash flow models at $1,000 and $900 gold prices. We are reviewing operating expenditures, working capital, exploration, and G&A discretionary spending, and we will reduce costs further and we will defer costs where we can. With gold prices under pressure, we are reviewing all our capital spending programs, including future development projects. Consequently, negotiations related to the potential acquisition of AngloGold Ashanti's share of Sadiola, have been suspended. And M&A considerations will be very carefully scrutinized. We will do even more to optimize mining and milling performance. And personally, I'll be keeping a very close watch on all of our key performance indicators just like we have been doing over the last four years. At Westwood, we are fortunate that there were no injuries following the seismic event on May 26th. Westwood is still a young mine, and, like any new mine, there is a learning curve. We are committed to Westwood, and will determine the plan that can best optimize its future development. Safety will always come first. This is not about speed. It's about doing the right thing. And we'll keep you posted on our progress. In this environment, we have to do all we can to preserve our financial strength. Fortunately, we have $1.3 billion in liquidity. So when the market recovers, we will be well positioned to capitalize on opportunities. On slide 7, we talk about our operating highlights. And this will be very well covered by Carol and Gord. In the second quarter our all-in sustaining costs were $1,076 an ounce, 3% lower than they were in the first quarter and at the bottom of our guidance range. Capital spending for the first six months of this year was down 33% from the same period in 2014. Mining commenced at our Falagountou deposit in June, one month ahead of schedule. And Westwood had lower quarterly production than expected due to the localized ground fall following the seismic event. And Gord is going to speak to that later. Exploration continues to deliver positive results with high grades at Boto and Pitangui. I'm very pleased with the work Craig and his team are doing. And I know Craig's going to talk more about that a little bit later. With that, I'll call on Carol to talk about our financial results. -------------------------------------------------------------------------------- Carol Banducci, IAMGOLD, Corp. - EVP, CFO [4] -------------------------------------------------------------------------------- Thank you, Steve, and good morning, everyone. We ended the quarter in a very strong financial position. Our financial performance year to date reflects where we are in the gold cycle. Cost reduction, capital discipline, and cash preservation will continue to be critical in this market. Turning to the results for the second quarter, we reported a net loss of $19.7 million. The $16 million net loss in the prior year included net earnings of $6.2 million from the discontinued Niobec business which was sold in the first quarter 2015. Of the items not representative of our underlying business, the most significant adjusting items were the $15 million unrealized derivative gain related to the oil contracts which had a $0.04 per share impact, and a $4.2 million change in the estimate of asset retirement obligations at closed sites. Partially offsetting these items was a $5.4 million adjustment to normalize Westwood's cost following the low quarterly production resulting from the seismic event. In accordance with International Financial Reporting Standards, costs attributed to inventory were reduced by this amount to normalize for the amount of fixed overhead allocated on a per-unit basis. After normalizing earnings for these one-time items, the adjusted net loss is $0.08 per share for the second quarter 2015, compared to earnings of $0.02 per share in the same period last year. The $0.10-per-share variance was mainly due to higher cost of sales and lower revenues due to a lower gold price. Inclusion of Niobec in the 2014 numbers, but not in the 2015 numbers had a $0.02-per-share impact. Revenues from continuing operations in the second quarter 2015 were 2% lower than the previous year. This was due to a 7% or $94 per ounce decrease in the average realized gold price and partially offset by a 7% increase in gold sold. Westwood was the main reason for the increase in gold sales due to the inclusion of its revenues in the operating results after commencing commercial production in the third quarter 2014. Partially offsetting this increase were lower sales at Essakane as a result of lower production and lower sales at Mouska, due to the closure of the operation in the third quarter 2014. Turning to cost of sales, higher depreciation was the main reason for the year-over-year increase, as operating costs were up by less than 3%. As shown in the second column from the right, the nearly $4 million increase in operating cost was due to Westwood, partially offset by lower mining and milling costs at Essakane and Rosebel and the closure of Mouska. Westwood's operating costs were not included in the prior year, as commercial production was not achieved until the third quarter 2014. Westwood also accounted for most of the $20 million increase in depreciation. The balance was due to higher amortization of capitalized stripping, higher production, and lower reserves at Rosebel. Essakane's depreciation declined year over year due to lower amortization of capitalized stripping, partially offset by lower reserves. Net cash from operating activities was $32 million in the second quarter 2015. The decrease in the second quarter 2014 was mainly due to an increase in accounts receivable [and] inventory, the net settlement of derivatives, and the absence of earnings from Niobec, which was sold, again, in the first quarter of 2015 for $500 million. Partially offsetting was a $5 million decrease in income taxes paid. Removing the impact of changes in working capital, net cash from operating activities per share was $0.12 in the second quarter. At the end of the second quarter, cash, cash equivalents, and gold bullion was $836 million. In addition, we have a $500 million unused credit facility. The credit facility is up for renewal in February 2016, and we have initiated renewal discussions. Long-term debt of $645 million is not due until 2020. Net cash is $191 million, which puts net debt to EBITDA at zero, which is a very good position to be, as Steve mentioned earlier, in this market. Attributable gold production in the second quarter was 202,000 ounces, down 4,000 ounces from the same quarter last year. The decrease is mainly due to the closure of Mouska and lower grades at Sadiola. These decreases were partially offset by commercial production at Westwood and higher production at Rosebel due to higher grades and recoveries. Compared to the first quarter of this year, attributable production was lower by 6,000 ounces. This was due to Rosebel, which had lower throughput, and Sadiola, as lower grades were partially offset by higher throughput. Essakane was flat quarter over quarter, as higher throughput was offset by lower grades. Westwood, as well, was flat with the previous quarter, although below expectations due to the seismic event. All-in sustaining costs of $1,076 per ounce in the second quarter were $60 per ounce lower than the same quarter 2014. This represents a 7% reduction in total cash cost. And sustaining capital expenditures were nearly the same in both periods. There are a couple things to note with respect to all-in sustaining costs for the second quarter. First, realized hedge and non-hedged derivative losses increased all-in sustaining costs by $53 per ounce. First quarter 2015 has been similarly impacted by $64 per ounce. The second point relates to the normalization of Westwood's unit cost following the low quarterly production resulting from the seismic event. As explained earlier, in accordance with International Financial Reporting Standards, costs attributed to inventory were reduced by $5. million (sic - see press release $5.4 million) to normalize for the amount of fixed overhead allocated on a per-unit basis. As a result, cash costs and all-in sustaining costs were reduced at Westwood by $244 per ounce produced and $207 per ounce sold, respectively. At the consolidated level, this reduced all-in sustaining costs by $28 an ounce. While all-in sustaining costs for the quarter were at the bottom of our guidance range, our intentions are to do better than that as we weather the downturn in the gold price. Prioritizing expenditures, reviewing our capital programs, maintaining the strength of our balance sheet, that's where our focus will continue going forward. With that, I'll turn it over to Gord, who will provide an update on operations. -------------------------------------------------------------------------------- Gord Stothart, IAMGOLD, Corp. - EVP, COO [5] -------------------------------------------------------------------------------- Thanks, Carol, and good morning to everybody. Operating results in the second quarter were very good at our two largest mines, Rosebel and Essakane, and our joint venture at Sadiola performed well. With the exception of Westwood, the quarter was essentially on plan. As Steve said in the news release and in his opening remarks, we have to do even more in this gold price environment. We continue to optimize our mine plan, evaluating options at reduced gold prices, and improve cost levels resulting from all the great work at the sites over the past few years. We are continuing our efforts to reduce operating costs and capital spend, including revisiting the plans that we created several years ago as to how to cope if the gold price went to $1,100 or $1,000 per ounce or lower. We are ready to do what is necessary, not only to manage the business in this gold price environment, but to generate cash at those levels. Looking at Westwood, as a result of the seismic event that occurred on May 26th of this year, production on the second quarter at Westwood was below expectations. Due to the low quarterly production following the seismic event in accordance with IFRS, as Carol stated, we have reduced the costs attributed to inventory by $5.4 million to normalize costs for the amount of fixed overhead allocated per ounce. We produced 23,000 ounces of gold in the second quarter at a total cash cost of $837 per ounce produced and an all-in sustaining cost of $1,044 per ounce sold. Due to a change in mine sequencing and a near-term focus on mine development, production in the second half of the year is expected to be lower than the 45,000 ounces produced in the first half. In June we adjusted our full-year production guidance for Westwood from 110,000 to 130,000 ounces of gold to a lower range of 60,000 to 75,000 ounces of gold. Due to the lower 2015 production guidance for Westwood, we expect all-in sustaining costs range between $1,300 and $1,400 per ounce sold. We are reviewing ways to reduce costs and do not expect the higher cost guidance for Westwood to have a material impact on unit costs on a consolidated IAMGOLD basis. Rosebel produced 71,000 attributable ounces of gold in the second quarter of 2015. When compared to the second quarter of 2014, the increase in gold production of 6% was mainly due to the impact of favorable grades and higher recovery, partially offset by lower throughput. Gold grades were 8% higher as a result of pit sequencing and better dilution control. Recoveries improved by 1% due to the optimization of the carbon handling and elution circuit implemented earlier this year. Mill throughput, however, was somewhat lower as a proportion of soft rock milled decreased to 28% in the current quarter, compared to 44% in the same period a year ago. Rosebel continues to look for ways to optimize the mill feed blend as a proportion of soft rock milled continues to decrease. Total cash costs per ounce were $864 in the second quarter of 2015. The decrease of 8% compared to the same prior-year period was mainly due to favorable grades, lower mining and power costs driven by lower fuel prices, lower mill consumables, and productivity increases achieved through the cost improvement programs initiated in 2014. All-in sustaining costs per ounce sold were $1,104 in the second quarter 2015. The decrease of 9% compared to the same prior period was mainly due to lower cash costs and lower sustaining capital expenditures. Sustaining capital expenditures in the second quarter 2015 were $15.1 million, a decrease of $3.9 million from the same period a year ago. Rosebel continues to benefit from numerous cost-cutting and operating efficiency initiatives. The priorities continue to be on improving grades and increasing operating efficiency. A new approach to grade control practices is starting to deliver the promise of identifying additional ounces and lowering mining dilution. In addition, rather than waiting until they secure a source of soft rock, the Rosebel team has been working hard to reinvent their business plan. They have made impressive progress so far and please stay tuned for further information. At Essakane, attributable gold production was 89,000 ounces in the second quarter of 2015, consistent with the previous two quarters, but below the 92,000 ounces produced in the second quarter of 2014. This was mainly due to the proportion of soft rock in the mill feed falling from 29% to 18%. The lower proportion of soft rock resulted in a 26% decrease in throughput, which was partially offset by a 28% improvement in head grade. Mill recovery improved by 1% due to the optimization of carbon handling and the elution circuit. Total cash costs per ounce produced were $802 in the second quarter of 2015. The decrease of 5% compared to the same prior period was mainly due to higher grades, favorable fuel prices, lower mill consumables, and lower royalties driven by the lower gold price, partly offset by an increase proportion of waste material mined and harder rock milled. All-in sustaining costs per ounce sold were $1,022 in the second quarter 2015. The increase of 9% compared to the same prior-year period was mainly due to an increase in sustaining capital spending coupled with lower gold sales. Sustaining capital expenditures were $16 million, an increase of $10 million from the same prior-year period. This was due to the timing of capital stripping, the initiation of the Falagountou access red and infrastructure, and the purchase of some additional mining equipment. In June of 2015, mining commenced at the Falagountou pit, nine kilometers east of the Essakane process plant. During the month, 278,000 tonnes were mined from Falagountou, half of which was ore. The favorable strip ratio from the satellite pit helped to offset the higher proportion of waste mined in the Essakane main-zone pit. The Falagountou deposit contains indicated resources of 12.5 million tonnes, averaging 1.52 grams of gold per tonne for 0.61 million ounces of contained gold. Ore milled in the first half of 2015 was nearly 5.3 million tonnes, slightly above the mill main plate capacity rate of 10.4 million tonnes for the expansion which was completed early last year. Essakane continues to further reduce costs and to work collaboratively with our external consultant to improve management systems, maintenance performance, and planning methods. Looking at Sadiola and Mali, attributable gold production was 17,000 ounces in the second quarter of 2015. The increase of 29% compared to the same prior-year period was mainly due -- sorry. The decrease of 29% -- excuse me -- compared to the same prior-year period was mainly due to a reduction in grades and throughput, partially offset by favorable recoveries. Total cash costs per ounce produced were $658 in the second quarter 2015. The decrease of 31% compared to the same prior-year period was mainly due to the realization of lower fuel and consumables prices and a favorable foreign exchange rate. All-in sustaining costs per ounce sold were $706 in the second quarter 2015. The decrease of 33% compared to the same prior-year period was mainly due to lower cash costs. As Steve said, negotiations related to the potential acquisition of AngloGold Ashanti's share of Sadiola and plans for its future expansion have been suspended. We expect that the mining and processing of the oxides will continue well into 2016. As well, the site has initiated a reverse circulation drilling program to evaluate offsite targets which have the potential to add incremental resources. That concludes my comments on operations. Then I'll pass the call over to Craig for an update on exploration. -------------------------------------------------------------------------------- Craig MacDougall, IAMGOLD, Corp. - SVP, Exploration [6] -------------------------------------------------------------------------------- Thank you, Gord, and good morning, everyone. The second quarter continued to deliver encouraging exploration results. Of the $13.6 million spent in the quarter, $8 million was expensed and $5.6 million was capitalized. In the following slides I'll review our advanced exploration projects, highlighting some of the more significant drill intercepts from our recent [drilling] programs. The drilling results from these projects have been previously disclosed in accordance with securities regulations and have been duly signed off by qualified persons within the Company who reported. On slide number 23, we have the Boto Gold project in Senegal. We're very pleased with the achievements to date. The project has an estimated indicated resource averaging 1.7 grams of gold per tonne or 1.2 million contained ounces, and additional inferred resources averaging 1.8 grams, for a total of 635,000 contained ounces. Infill delineation drilling at the Malikoundi deposit, which is the largest deposit on the property, has now been completed. On July 20th, we announced drilling results from the final 26 holes. Highlights include 36 meters at 3.59 grams per tonne gold, which included 7 meters at 9.46 grams. These results confirm the continuity of mineralization with frequent high grades over wide intervals. And most importantly, they indicate that the deposit remains open (inaudible). We will be incorporating these results along with the ones reported in February, into a revised resource estimate expected to be completed by the end of the third quarter this year. We've also completed 1,150 meters of Diamond drilling that will provide geotechnical information in areas of proposed mine infrastructure. Various technical studies to examine the viability of the project are in progress and will continue through 2016. Turning to our Siribaya joint venture project in Mali, we are focused on the Diakha prospect, which is an extension of the same trend that hosts the Boto project deposit. Like Boto, the grades are encouraging, as indicated by the highlights from the 2014 final assay results and the most recent results announced on June 11th, 2015. Highlights from the initial results of the 2015 drilling program include 40 meters at 2.52 grams per tonne gold, which included 9 meters grading 8.83 grams per tonne gold. Results continue to confirm the presence of multiple zones of gold mineralization over a wide area. To date, just under 15,000 meters of reverse circulation and Diamond drilling have been completed to delineate the Diakha discovery and advance towards the completion of an initial resource estimate by the end of 2015, as the results warrant. On slide 25, at our wholly-owned Pitangui project in Brazil, the resource delineation program initiated in 2014, continued through the second quarter with a focus on upgrading resources in the core area of the Sao Sebastio deposit. The current resource estimate for this project comprises an inferred resource of 638,000 contained ounces grading 4.88 grams gold per tonne. Further assay results reported on July 7th this year included 11.9 meters grading 6.8 grams per tonne gold, which included 3.5 meters grading 17 grams. We are very pleased with these results as they confirm the continuity of the targeted zones and have intersected thicker intervals of higher grade mineralization. The infill drilling program was completed in the second quarter and the assay results will be incorporated into an updated resource model once they are received and validated. At the Eastern Borosi project in Northeast Nicaragua, we continue to see positive results on a number of gold and silver vein systems. The 2015 drilling program has been focused on further testing the discoveries from 2014, as well as exploring additional vein systems. Approximately 3,400 meters of Diamond drilling was completed in the second quarter. The assay results reported on May 6, 2015 for the Blag vein system included the highest grade silver intercepts to date and they defined a continuous high-grade gold and silver shoot within the vein system. On June 11th, 2015, drilling updates were provided for both the Guapinol and the Vancouver vein systems, again with very attractive grades for both gold and silver. Results of the 2015 drilling program will be assessed to determine our future program. Lastly, at our joint venture Monster Lake project in Quebec, we completed in the 2015 winter drilling program, we completed 7,800 meters of drilling. Assay results reported on June 25th, included 1.5 meters at 18.8 grams per tonne gold and 10.7 meters at 3.64 grams per tonne gold. The exploration team is now carrying out geologic mapping and geophysical surveys to identify and prioritize further drilling targets. Overall, our exploration projects are advancing at a good pace. Infill drilling programs to upgrade current resources have been completed at Boto and Pitangui, and we hope to declare an initial resource at Diakha by the end of this year. Attractive grades have been reported at some of our other early-stage projects, are very encouraging and may be pointing to the next discoveries. With that, I'll turn you over to Steve. -------------------------------------------------------------------------------- Steve Letwin, IAMGOLD, Corp. - President, CEO [7] -------------------------------------------------------------------------------- Thanks, Craig. So in closing, we expect to meet our guidance as presented on the slide. As announced back in June, production guidance for 2015 was revised to reflect the reduction in Westwood's performance. In total, we're guiding at 780,000 to 815,000 ounces for the year. And despite the increased cost guidance for Westwood, the operation accounts for a small portion of our total production at this time, so we have maintained our overall cash cost and all-in sustaining cost guidance at $1,075 and $1,175 an ounce. While the gold price continues to take its toll in our industry, we have a plan for managing the business in this challenging environment. We have the strength of our balance sheet. We have no bank debt and we have no need to draw on the revolver. We have high-quality assets and we have good people. And on that note, we'll open it up for questions. ================================================================================ Questions and Answers -------------------------------------------------------------------------------- Operator [1] -------------------------------------------------------------------------------- Thank you. We will now begin the question-and-answer session. (Operator Instructions) Botir Sharipov from HSBC. -------------------------------------------------------------------------------- Botir Sharipov, HSBC - Analyst [2] -------------------------------------------------------------------------------- Couple questions from me. First, on Sadiola expansion. With gold price down, [we have seen the] pace of [set] to consolidation and deleveraging pick up recently. You have a strong balance sheet. AngloGold needs to improve theirs. Would now, perhaps, be a good time to buy them out at a potentially attractive price, and if you have to, perhaps, wait for a better environment or a partner to proceed with the expansion with the asset under your control? I guess a bit more detail on your thought process there would be helpful. -------------------------------------------------------------------------------- Steve Letwin, IAMGOLD, Corp. - President, CEO [3] -------------------------------------------------------------------------------- Well, I think logically, you could make a case that you would do that. But the issue with Sadiola, of course, is that it's two to three years from closure. And with Sadiola comes closure costs that right now are split 50/50 with Anglo and ourselves and represent about $100 million of closure costs, which we've accounted for. But for us to take on that kind of liability and not have a very strong sense of the mine expanding and doing that deep sulfide expansion which requires additional capital, we just didn't think was prudent right now. And we've had a lot of our shareholders giving us a lot of feedback about where we would put our money. We have a real, call it split in terms of those who believe that gold prices are going to move up, back up towards $1,500, and we have people that believe gold could go down to $900 and stay there for a few years before it goes up again. So, and no one knows. As you know, there's no algorithm here for gold prices. No one knows where they're going to go. We just, at the end of the day when we saw gold falling precipitously and we see the lack of positive sentiment out there for gold right now, and we sort of have a perfect storm of a rising U.S. dollar and a reduction in gold demand, as a team, we looked at it and said, we just do not want to put the balance sheet in that kind of jeopardy if gold prices stay low for a prolonged period of time. And so it's a tough decision. Sadiola is a great project for us. I think it will be expanded in time. But at this point in time, we just did not want to put ourselves in any kind of a balance sheet stress going forward. And if the gold prices move back up to $1,500, I think we get back at the table with Anglo or perhaps Anglo, at that point, decides they want to participate. Who knows? Right now, they obviously don't want to. And with this current environment, we've made the decision to go to the sidelines and mine the oxides for now. -------------------------------------------------------------------------------- Botir Sharipov, HSBC - Analyst [4] -------------------------------------------------------------------------------- Understood. And the $100 million closure cost, is this just your share or is this a consolidated number? -------------------------------------------------------------------------------- Steve Letwin, IAMGOLD, Corp. - President, CEO [5] -------------------------------------------------------------------------------- That's a consolidated number. -------------------------------------------------------------------------------- Botir Sharipov, HSBC - Analyst [6] -------------------------------------------------------------------------------- Okay. All right. And switching to Falagountou. What sort of mining rates and grade should we expect there going forward? And will you be putting all of that mine ore through the mill? -------------------------------------------------------------------------------- Gord Stothart, IAMGOLD, Corp. - EVP, COO [7] -------------------------------------------------------------------------------- We will be putting all the mine ore through the mill. I mean, the number I quoted was resources. We haven't quoted a reserve number yet. And, in fact, we are continuing to drill at Falagountou, because we do see the deposit is open in a couple directions. Typically, we'd be looking to mill somewhere in the neighborhood of probably 75,000 to 100,000 tonnes of ore from there in any given month. It's not a huge percentage of our total, but the grades have been very good. The quoted grades that I -- or the grades that I quoted at 1.53 (sic - see press release 1.52) grams per tonne, we're realizing them, and, in fact, better. We're seeing positive reconciliation near the top of the deposit as we saw at the top of the Essakane main-zone deposit. I don't want to extrapolate that too deeply because the ore does change as you go down, and I want to see it in hand before I get too excited about that. But it's been very, very positive for us. Not only does the soft rock allow us to up our throughput at Falagountou -- sorry -- at Essakane, but the positive grades and good recoveries are certainly having an impact as well. -------------------------------------------------------------------------------- Botir Sharipov, HSBC - Analyst [8] -------------------------------------------------------------------------------- Great. Thank you so much. That's it for me. -------------------------------------------------------------------------------- Operator [9] -------------------------------------------------------------------------------- Phil Russo with Raymond James. -------------------------------------------------------------------------------- Phil Russo, Raymond James - Analyst [10] -------------------------------------------------------------------------------- Just on Westwood here, the revised guidance there, well, [from the way] I look at it, it looks like it implies pretty notable step down in mining rights and/or grade. Can you just maybe help clarify? Is the mining right sort of heading towards sort of 1,000 tonnes a day? Is grade coming down? What's the combination there? And sort of if I look ahead into 2016, the five-year outlook sort of looks for a pretty notable step up in mining rights to hit next year's sort of production. How are you guys feeling about 2016 as well? -------------------------------------------------------------------------------- Steve Letwin, IAMGOLD, Corp. - President, CEO [11] -------------------------------------------------------------------------------- Let, it's tough to give really firm answers to your questions about where we are for 2016, and forward. We do have some conceptual ideas as to where we're going to go. We're still working very, very hard on the investigation of the seismic incident, working closely with our external consultants, our internal team, and certainly keeping the provincial inspectors on [side] with what's going on there so that everybody's clear and we understand what happened. It was a localized event. It doesn't affect a great proportion of the total tonnes or total ounces at Westwood. Unfortunately, it affected the stuff that was directly in front of us. We'll put together a recovery plan to get back in there and re-access those ounces, and we're in the process of doing that. Until we have that firmly in hand, it's difficult for us to give any sort of strong outlook as to what's going to happen in the next couple of years because that will depend highly on that. Looking beyond that, we are taking the opportunity while we're mining at a reduced cadence in the rest of the mine, to look at our opportunities to push development in other parts of the operation so that we can improve the flexibility and get back on the ramp-up schedule that we had previously talked about. You're right, the issue for the remainder of the year is reduced tonnage and somewhat lower grade. As fate would have it, the area that was affected by the seismic activity was our lower grade -- sorry -- our higher grade source for the remainder of the year. So, yes, it has impacted us directly in that regard. -------------------------------------------------------------------------------- Phil Russo, Raymond James - Analyst [12] -------------------------------------------------------------------------------- Okay. Thanks. Just one more then. The credit facility initiated discussions or the renewal in early next year. Is there anything at this early stage that would lead you to believe that the credit facility as you currently have it is at risk in terms of what the bank's saying to you guys? You expect to get it at the same terms as what you currently have? -------------------------------------------------------------------------------- Carol Banducci, IAMGOLD, Corp. - EVP, CFO [13] -------------------------------------------------------------------------------- In terms of the renewal of the credit facility, I do expect that in this market that we could see some possible changes. And I'm confident that we'll have a renewal. However, the size of the facility and the terms of the facility might change. Our facility that we put in place four years ago is an investment grade facility, where gold prices were substantially higher than where they are today. So although we have a very strong balance sheet, that will factor into the renewal. But very, very confident that we'll be able to get a renewal at acceptable terms. And we've got a number of banks that are very interested in participating, both current and new. -------------------------------------------------------------------------------- Phil Russo, Raymond James - Analyst [14] -------------------------------------------------------------------------------- Okay, great. Thanks. That's all I had. Thanks, guys. -------------------------------------------------------------------------------- Operator [15] -------------------------------------------------------------------------------- David Haughton with CIBC. -------------------------------------------------------------------------------- David Haughton, CIBC - Analyst [16] -------------------------------------------------------------------------------- Thank you for the update. Got questions firstly on Sadiola and then on Essakane. Just returning to Sadiola, when we have a look at the reserves on 100% basis, it's over three million ounces of contained gold. What would that be excluding the deeps? -------------------------------------------------------------------------------- Craig MacDougall, IAMGOLD, Corp. - SVP, Exploration [17] -------------------------------------------------------------------------------- I don't want to give you a hard number, because I don't have it at hand, David. But, I mean, I would -- I have to expect that the number would be in the neighborhood of probably 350,000 to 500,000 ounces remaining oxide reserves. -------------------------------------------------------------------------------- David Haughton, CIBC - Analyst [18] -------------------------------------------------------------------------------- Yes, okay. So I would have guessed something similar, I suppose. And the reason I'm asking is that if the deeps is off the table and all you kind of do is deplete the oxide and whatever happens to be in the stockpiles, then that's really the new mine plan for us to be thinking about instead of going anywhere near the larger contained gold that you had disclosed previously. -------------------------------------------------------------------------------- Steve Letwin, IAMGOLD, Corp. - President, CEO [19] -------------------------------------------------------------------------------- Well, certainly for now, David -- and, by the way, congratulations on your appointment. Good to see you on the screen there. It's a tough one. We're in a business where we're trying to make very significant capital investments in an environment where you have no predictability of where gold's going to go. So for the deeps, which is probably somewhere in the order of a $400 million capital investment, it's one of those things where if you get it wrong and we're looking at all-in costs at Sadiola somewhere between $800 to $850, you've got $1,000 gold price and you're looking at 150 buck margin, you don't get your capital back. And so it's one of these things where until we get some kind of flavor for where gold might be going in the longer term, it's just not prudent to put our cash at risk right now. And Sadiola's not going to go anywhere. It makes it tougher to start it up again, obviously, if we run the oxides out and don't do the expansion. We recognize that. But that's the risk we're going to have to take going forward as opposed to putting our financial position in jeopardy. -------------------------------------------------------------------------------- David Haughton, CIBC - Analyst [20] -------------------------------------------------------------------------------- Yes, I agree. And right now the mindset on site with the partners would have to be this is a cash cow under the current circumstances and we can't really justify the expansion. So that's a very different mining mindset. -------------------------------------------------------------------------------- Steve Letwin, IAMGOLD, Corp. - President, CEO [21] -------------------------------------------------------------------------------- Yes, it is. And I was just there. And my hat is off to Anglo and the leadership there. They are doing an extremely incredible job at maximizing the cash from that operation, as you can see in our result. And I believe they will continue to do that for the next couple of years. And I think there may be some upside to see it for a third year. Well, we'll have to wait and see how the drilling proceeds. But they are doing an extremely good job at Sadiola. -------------------------------------------------------------------------------- David Haughton, CIBC - Analyst [22] -------------------------------------------------------------------------------- And you'd mentioned the closure cost. I presume the offset to part of that would be scrap value, whatever that is, of the existing facility. So it's not entirely $100 million, 100% [Blag vein]. -------------------------------------------------------------------------------- Steve Letwin, IAMGOLD, Corp. - President, CEO [23] -------------------------------------------------------------------------------- Yes, it's probably not a huge number. And don't forget, we do have some new equipment on site that Anglo, when Anglo had decided that they may go ahead with this, we collectively purchased $160 million worth of equipment, which is in storage facilities around the world. And that hasn't even been factored in either. So if we got $0.50 on the dollar for that, that would go a long way to offsetting our closure cost. We haven't factored that in currently. -------------------------------------------------------------------------------- David Haughton, CIBC - Analyst [24] -------------------------------------------------------------------------------- Okay. Over to Essakane. I see that you've got a bit of a gap between sales and production. I presume that would be caught up this quarter and possibly into the next quarter. So it's just a bit of a timing difference there. -------------------------------------------------------------------------------- Gord Stothart, IAMGOLD, Corp. - EVP, COO [25] -------------------------------------------------------------------------------- Yes, we have had a little bit of a build of inventory. We're putting a plan in place to drop that inventory. We hope to see some of that next year -- or sorry -- next quarter or this quarter, Q3, probably a little bit more in Q4 and even into Q1 of next year. However, the site has been put on point to do whatever they can to bring that gold to the sales side. -------------------------------------------------------------------------------- David Haughton, CIBC - Analyst [26] -------------------------------------------------------------------------------- Okay. Kind of moves me to my final question and it might be for Carol. I've noticed on the balance sheet hearing about $250 million tied up in current inventory. That's not unusual. You kind of have that from quarter to quarter. But in this current gold price environment, are you focused on seeing how much you can release out of such a large inventory? -------------------------------------------------------------------------------- Carol Banducci, IAMGOLD, Corp. - EVP, CFO [27] -------------------------------------------------------------------------------- Absolutely. Absolutely. We initiated a working capital review over a year ago and we've made some great strides in reducing our working capital. That's on all sides in terms of our inventory, looking at our stockpiles, looking at our supplies, and managing our accounts payable. And as Gord and you noted earlier, that we did see an increase in both supplies and gold inventory at Essakane. And so we we'll be working toward moving that down through the next couple of quarters. Some of it has to do with carbon finds that we have at Essakane. So there's a process in terms of getting those processed and sold. And so there's a little bit of timing there. But overall, the whole team, the whole organization is really focused on ensuring that we manage our working capital very prudently. We think there's some more opportunity there and we want to do it in a very risk management way in a sense that we don't want to interrupt production. But yet, I think there is some more opportunity there and we are definitely focused on it. -------------------------------------------------------------------------------- David Haughton, CIBC - Analyst [28] -------------------------------------------------------------------------------- All right. Thank you very much. That's it for me. -------------------------------------------------------------------------------- Operator [29] -------------------------------------------------------------------------------- Anita Soni with Credit Suisse. -------------------------------------------------------------------------------- Anita Soni, Credit Suisse - Analyst [30] -------------------------------------------------------------------------------- My first question is the deployment of capital related to the sale of Niobec. What are your plans with that now that you've backed off of Sadiola? -------------------------------------------------------------------------------- Steve Letwin, IAMGOLD, Corp. - President, CEO [31] -------------------------------------------------------------------------------- Let me take a shot at that first, then Carol can talk to it. First of all, want to congratulate Carol and Jeff for making that sale happen a year ago, because if you look at the environment today, obviously, it was a very timely thing for us to do and it has provided a very strong cash position for us to work off of, and we're going to be very careful about how we allocate it. As you know, under the terms of the agreement, the proceeds need to be reinvested into the business or bonds will be repurchased with the amount that's left. Or when you look at the $500 million that we've received if we reinvest $400 million, $100 million would be reinvested in purchasing back the bonds at par. We're not driven, Anita, by that need to reinvest the capital. I will tell you that paying the bonds down isn't a bad thing, from my perspective. Delevering the Company is not a bad thing from my perspective if that's the right decision. [If] we don't have the right capital opportunities that give us rates of return that are well above our cost of capital and add value for shareholders, then we'll reduce our leverage. It's as simple as that. And so we're not driven to invest the capital for fear that we have to pay the bonds down. I can tell you that at the management level and I can tell you that at the board level. So, Carol, do you have any comments as well? -------------------------------------------------------------------------------- Carol Banducci, IAMGOLD, Corp. - EVP, CFO [32] -------------------------------------------------------------------------------- No, I think you covered it, Steve. I would just add that we've got a capital program laid out in our disclosure of just in excess of $200 million, which, obviously, we're reviewing. So that would qualify towards the application of the funds. And then we do have some flexibility to be able to commit to spend money, again related to ongoing, necessary capital required in our business for 2016. So to the extent that we make those commitments by the end of the year and can commit to spend that money in the first six months of 2016, that would also qualify. So there is a little bit of flexibility there. But as Steve said, we're going to spend money, but we're going to spend money in the right way and that's going to be our priority. -------------------------------------------------------------------------------- Anita Soni, Credit Suisse - Analyst [33] -------------------------------------------------------------------------------- Okay. And then with regards to Westwood and the AIC guidance for the year, I think it's a $1,300 to $1,400 for the year. -------------------------------------------------------------------------------- Carol Banducci, IAMGOLD, Corp. - EVP, CFO [34] -------------------------------------------------------------------------------- That's correct. -------------------------------------------------------------------------------- Anita Soni, Credit Suisse - Analyst [35] -------------------------------------------------------------------------------- Does that include a similar fixed-cost reduction for the rest of the year, similar to what you took in Q2? -------------------------------------------------------------------------------- Carol Banducci, IAMGOLD, Corp. - EVP, CFO [36] -------------------------------------------------------------------------------- No, it'll be different for the next two quarters. So we gave specific, obviously, disclosure around what occurred this quarter. You'd have to really back into it when you look at Q3 and Q4. So we would expect that number to be higher as our production's going to be lower as we guided in Q3 and Q4. And so that's how you should be looking at it. -------------------------------------------------------------------------------- Anita Soni, Credit Suisse - Analyst [37] -------------------------------------------------------------------------------- Okay. So I guess my question, though, is, not [necessarily above] the actual amount, it's just that -- -------------------------------------------------------------------------------- Carol Banducci, IAMGOLD, Corp. - EVP, CFO [38] -------------------------------------------------------------------------------- Oh, the -- -------------------------------------------------------------------------------- Anita Soni, Credit Suisse - Analyst [39] -------------------------------------------------------------------------------- Yes. If I was, say I estimated to be $6 million or $7 million for Q3 and Q4, would I, if I was trying to understand from a cash-out-the-door perspective, would I then be adding that to $1,300 to $1,400 per ounce? -------------------------------------------------------------------------------- Carol Banducci, IAMGOLD, Corp. - EVP, CFO [40] -------------------------------------------------------------------------------- Right. I mean, the approach would be very similar. So just to kind of explain a little bit more fully, so what we did was we took a look at our fixed costs in terms of how we've been allocating that prior to the seismic event. And so we've applied that same sort of principle on a per-unit basis. So if you take a look at what we adjusted, which is the $5.4 million adjustment for this quarter, a large component that is going to be labor, obviously. And so you would have to extrapolate that into Q3 and Q4. -------------------------------------------------------------------------------- Anita Soni, Credit Suisse - Analyst [41] -------------------------------------------------------------------------------- Sure. And than just an operational question on Westwood. Would you expect that there would be more of an impact on tonnage and grade in Q3 or just an even spread? This is for Westwood, the question. -------------------------------------------------------------------------------- Craig MacDougall, IAMGOLD, Corp. - SVP, Exploration [42] -------------------------------------------------------------------------------- Right now, what we're looking at, Anita, is fairly equal production for each of the next two quarters. -------------------------------------------------------------------------------- Anita Soni, Credit Suisse - Analyst [43] -------------------------------------------------------------------------------- Okay. All right. And then just, could you remind me what your power rates are right now at Rosebel and at Essakane? -------------------------------------------------------------------------------- Gord Stothart, IAMGOLD, Corp. - EVP, COO [44] -------------------------------------------------------------------------------- At Rosebel, we're running around $0.15 a kilowatt hour. At Essakane, we're running, with the lower oil prices, around $0.21 to $0.23. And then, obviously, at Westwood, we're running in the $0.05 range. -------------------------------------------------------------------------------- Anita Soni, Credit Suisse - Analyst [45] -------------------------------------------------------------------------------- Was there some ore that was associated with the lower power rate at -- was it at Essakane? Was it the Falagountou that was like $0.11 per kilowatt hour? -------------------------------------------------------------------------------- Gord Stothart, IAMGOLD, Corp. - EVP, COO [46] -------------------------------------------------------------------------------- That's Rosebel, and it's related to the UJV agreement with the government. We're not treating any ore under that agreement yet. We're continuing to do exploration. -------------------------------------------------------------------------------- Anita Soni, Credit Suisse - Analyst [47] -------------------------------------------------------------------------------- And then last question. At Rosebel, what do you estimate the mine life there is at this point, considering the cost reductions that you've seen? -------------------------------------------------------------------------------- Gord Stothart, IAMGOLD, Corp. - EVP, COO [48] -------------------------------------------------------------------------------- We're looking at a lot of different mine plans right now. If I apply $1,000 gold, we don't have an extremely long mine life there. If I apply sort of longer-term prices in the neighborhood that we've been looking at in the past years, we're still at eight, nine years there. And we are seeing some very positive indications on the existing deposits. I mean, all of that is obviously net of or excludes the discovery of any additional resources from the exploration that we're doing regionally. There's still an ongoing significant resource there. So that the cost savings are benefiting us. But we're also trying to be prudent on the cash flow standpoint and avoid taking the stripping ratios too high. -------------------------------------------------------------------------------- Steve Letwin, IAMGOLD, Corp. - President, CEO [49] -------------------------------------------------------------------------------- We're looking at holding basically an analyst tour there sometime in the near future. I've been down there, as you probably know, frequently. I'm heading there next week for the president's inauguration and then again at the end of the month. I am extremely pleased with the progress we've made there. And we want to showcase that a bit, because Rosebel has taken a lot of hits and deservedly so because of some of the thumps we've hit in the road. But I can tell you that the management team down there and Gore and his team have done an extraordinary job at improving the operation. We have a new life of mine plan that we want to get out and we're quite excited about it. So we're going to showcase that. And hopefully you can come down and see it, Anita. -------------------------------------------------------------------------------- Anita Soni, Credit Suisse - Analyst [50] -------------------------------------------------------------------------------- Okay. Sounds good. Thank you very much. That's it for my questions. -------------------------------------------------------------------------------- Operator [51] -------------------------------------------------------------------------------- Don MacLean with Paradigm Capital. -------------------------------------------------------------------------------- Don MacLean, Paradigm Capital - Analyst [52] -------------------------------------------------------------------------------- Just wanted to follow up on the closure cost for Sadiola, because that often involves getting the government involved with what sort of trade-offs to make so that they don't impair the optionality that remains with that very large resource out there. Can you give us any kind of a sense of what the spending timing might be and how you'd account for it under the circumstances? -------------------------------------------------------------------------------- Gord Stothart, IAMGOLD, Corp. - EVP, COO [53] -------------------------------------------------------------------------------- Right now, Don, the closure plan's pretty conceptual. For comparison, the closure plan at the Yatela runs out, most of the spending is done sort of in a five-year period. I would expect Sadiola would be sort of a similar prospect. -------------------------------------------------------------------------------- Don MacLean, Paradigm Capital - Analyst [54] -------------------------------------------------------------------------------- Okay. -------------------------------------------------------------------------------- Steve Letwin, IAMGOLD, Corp. - President, CEO [55] -------------------------------------------------------------------------------- And Don just to comment on the relationship. I mean, we have a very strong and, as you know because you were at Bill's retirement party, we go back 20 years with the government there and we've had a long history of positive relationships. And the current Minister of Mines is, I would call him an outstanding individual, very good to deal with. We have a very good relationship with him. We met with the new prime minister and president. And I would just tell you that I think at the end of the day, they're going to work very hard along with us to leave the optionality we need, if we see higher gold prices, to come back into the site and revise the site as a new mine. So I have that confidence level and believe that that optionality will be kept intact. -------------------------------------------------------------------------------- Don MacLean, Paradigm Capital - Analyst [56] -------------------------------------------------------------------------------- Certainly those of us who have been around for a while, when push comes to shove, the governments usually recognize the importance of keeping that optionality open. -------------------------------------------------------------------------------- Steve Letwin, IAMGOLD, Corp. - President, CEO [57] -------------------------------------------------------------------------------- Yes. -------------------------------------------------------------------------------- Don MacLean, Paradigm Capital - Analyst [58] -------------------------------------------------------------------------------- And, Carol, from an accounting standpoint, how will you deal with this? -------------------------------------------------------------------------------- Carol Banducci, IAMGOLD, Corp. - EVP, CFO [59] -------------------------------------------------------------------------------- In terms of what we currently hold Sadiola, [for us] under an equity interest. We'll continue to do that. -------------------------------------------------------------------------------- Don MacLean, Paradigm Capital - Analyst [60] -------------------------------------------------------------------------------- Okay. Is there any write-down that would be required recognizing the new path? -------------------------------------------------------------------------------- Carol Banducci, IAMGOLD, Corp. - EVP, CFO [61] -------------------------------------------------------------------------------- No. No. If you take a look at our financial statements, we're currently carrying Sadiola in our books at $50 million. -------------------------------------------------------------------------------- Don MacLean, Paradigm Capital - Analyst [62] -------------------------------------------------------------------------------- Okay, great. And then maybe just moving on to Westwood. Gord, I know you can't really predict what's going to happen over the next couple of years, as you say. But, I mean, how confident are you at this point or can you give us some sense of how confident you might be under today's depressed gold prices that you'll be able to actually operate above breakeven? Because you do mention you need to try two access other areas. Could you be in a position, given how low the gold price is, to have to make a decision to suspend the actual operating side because it's losing money, to continue to develop and open it up? -------------------------------------------------------------------------------- Gord Stothart, IAMGOLD, Corp. - EVP, COO [63] -------------------------------------------------------------------------------- I'll go back to your first thing. It is sort of tough to make that statement. We are looking at the operating side and trying to understand what we need to do on the operating side to have it generate cash. A lot of the development -- all of the development, almost all of it is capitalized development to get to the ramp up. You get a little bit schizophrenic in that it'd be nice that the operating side can carry the cost of administration, things of that nature. And we want to accelerate the development, try and make a little bit of a silk purse here out the circumstances and find a way to put together a better [ramp]-up schedule in the five-year plan and a more stable operation that allows us to achieve sort of the nameplate capacities as quickly as possible and have them on a sustainable basis. We really are looking at everything here, Don. And, as Steve said and Carol said, we need to find a way to operate in the current price environment as best as possible. -------------------------------------------------------------------------------- Don MacLean, Paradigm Capital - Analyst [64] -------------------------------------------------------------------------------- Great. Understood. And maybe just for Craig and Steve. You've had some great results at Boto, quite encouraging. So you're going to put together an economic analysis on it. Maybe for Steve, considering the circumstances and considering Sadiola, are you able to scale a project at Boto to sort of the economic capacity of IAMGOLD at this point? Do you think that's a possibility? Or where do you sort of stand philosophically about making significant future investments? -------------------------------------------------------------------------------- Steve Letwin, IAMGOLD, Corp. - President, CEO [65] -------------------------------------------------------------------------------- I would say Boto is an extraordinary discovery for us. And kudos to Craig for what he's been able to achieve. And absolutely, it is a project, it has a little longer timeline. As you know, we're looking out three years. But it's got a very strong grade for that particular part of the world. And it's very, very viable, even in today's gold environment, given the capital that would be required and what we believe the operating costs would be, and grade being a big factor, of course, in helping us achieve those objectives. So Boto is something in the pipeline that we're going to keep an eye on. We don't have to commit much capital to it right now. But it definitely is an opportunity for IAMGOLD to bring on stream. -------------------------------------------------------------------------------- Don MacLean, Paradigm Capital - Analyst [66] -------------------------------------------------------------------------------- Great. Thank you very much. -------------------------------------------------------------------------------- Operator [67] -------------------------------------------------------------------------------- Pawel Rajszel with Veritas Investment Research. -------------------------------------------------------------------------------- Pawel Rajszel, Veritas Investment Research - Analyst [68] -------------------------------------------------------------------------------- I noticed that you still have a royalty interest after the Diavik sale. Is there any income coming from that? Can you give us any insight as to the potential value beyond what you have on the books? -------------------------------------------------------------------------------- Steve Letwin, IAMGOLD, Corp. - President, CEO [69] -------------------------------------------------------------------------------- Are you talking about Niobec or Diavik? -------------------------------------------------------------------------------- Pawel Rajszel, Veritas Investment Research - Analyst [70] -------------------------------------------------------------------------------- Diavik. -------------------------------------------------------------------------------- Gord Stothart, IAMGOLD, Corp. - EVP, COO [71] -------------------------------------------------------------------------------- We don't have anything left at Diavik, to my knowledge. But you might be thinking of the fact that we do have a royalty at Niobec. But we do not have anything left at Diavik. -------------------------------------------------------------------------------- Steve Letwin, IAMGOLD, Corp. - President, CEO [72] -------------------------------------------------------------------------------- And there's no revenues -- the royalty stream left at Niobec has to do with the [derivative] resources that exist there. So there's no current revenues from that. That's a future option for us. -------------------------------------------------------------------------------- Pawel Rajszel, Veritas Investment Research - Analyst [73] -------------------------------------------------------------------------------- I see. So what you have on the books is entirely the Niobec royalty? -------------------------------------------------------------------------------- Steve Letwin, IAMGOLD, Corp. - President, CEO [74] -------------------------------------------------------------------------------- That's correct. -------------------------------------------------------------------------------- Pawel Rajszel, Veritas Investment Research - Analyst [75] -------------------------------------------------------------------------------- And with regards to the cash cost reconciliation, I noticed you've got there the $44 per ounce impact as for the realized hedges. I'm just trying to get a better grip on that, because I notice that through the income statement your oil hedges are flowing through interest income and derivatives. Can you help me better understand the $44 per ounce, how you get to that? -------------------------------------------------------------------------------- Carol Banducci, IAMGOLD, Corp. - EVP, CFO [76] -------------------------------------------------------------------------------- Sure. I think it would probably be best to take that off line and I can run through it, because with our hedges, we have hedges that qualify for hedge accounting and others that don't. And so we'd have to go through it in detail to kind of explain how it works and how it works through the income statement in terms of what hits the P&L and what goes through as a comprehensive income. So happy to do that, and why don't we do that right after the call? -------------------------------------------------------------------------------- Gord Stothart, IAMGOLD, Corp. - EVP, COO [77] -------------------------------------------------------------------------------- It's a very exciting discussion. -------------------------------------------------------------------------------- Operator [78] -------------------------------------------------------------------------------- This concludes the time allocated for questions. I'll now turn the call back over to Bob Tait for closing comments. -------------------------------------------------------------------------------- Bob Tait, IAMGOLD, Corp. - VP, IR [79] -------------------------------------------------------------------------------- Thank you, Joe. Thank you, everyone, for dialing in. I know there are other calls today and some of you need to move on to those. So thank you. If you do have further questions today, please call Laura Young or myself. Our numbers are on the news release. So look forward to hearing from you and helping you with those. Thank you very much. -------------------------------------------------------------------------------- Operator [80] -------------------------------------------------------------------------------- This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.
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