Earnings Call: Q1 2021

May 4, 2021

Thank you for standing by. This is the conference operator. Welcome to the IAMGOLD First Quarter 2021 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 At this time, I would like to turn the conference over to Indi Gilpinathan, Vice President, Investor Relations and Corporate Communications for IAMGOLD. Please go ahead. Thank you very much, Ariel, and welcome everyone to the IAMGOLD First 2021 Operating and Financial Results Conference Call. Joining me today on the call are Gordon Stothert, President and Chief Executive Officer Daniela Dimitrop, Executive Vice President and Chief Financial Officer Craig McDougall, Executive Vice President, Growth Bruno Lemelin, Senior Vice President, Operations and Projects and Tim Bradburn, Senior Vice President, General Counsel and Corporate Secretary. Our remarks on this call will include forward looking statements. Please refer to the cautionary language regarding forward looking information in our disclosure documents and be advised that the same cautionary language applies to our remarks during the call. During the call, non GAAP measures will be referenced and we will direct you to review the reconciliations in our disclosures relating to these measures. With respect to the technical information to be discussed, Please refer to the technical information and qualified person slide. The slides referenced on this call can be viewed on our website. I will now turn the call over to our President and CEO, Gordon Stothart. Well, thank you, Indi. Good morning, everyone, and thanks for joining us. I hope everyone is happy and healthy in these fun times. I'd like to start by saying how pleased I am to introduce Daniela Dimitrov as our new CFO. Daniela joined us at the end of March upon the retirement of Carol Carol Banducci, who had been with IAMGOLD for almost 15 years. I'm sure that Daniella is well known to many of you having been involved in our sector as a seasoned executive in the investment, corporate and banking components of the mining industry at various times through her career. I'm very happy that she's agreed to join us bringing her wide skill set to further enhance our strong executive and finance teams as we move forward through this exciting growth phase we're in. Now let's get into our overview of our Q1 of 2021. So at the corporate and strategic level, IAMGOLD generated $89,500,000 in mine site free cash flow during the period with adjusted earnings of $6,000,000 or $0.01 per share. On our balance sheet at quarter end, we have $968,000,000 in cash and Approximately $1,500,000,000 in total liquidity, which fully funds our construction plans. For each of our sites, We have continued our proactive management of COVID-nineteen with rapid response and strict protocols, some of which I will expand on in a moment. We continue our comprehensive community engagement programs, including funding the infrastructure improvement projects through the Roosevelt Community Fund in Suriname and starting the planning for Phase 2 of the Burkina Faso Trianglado project to bring much needed potable water to the communities around Essakane in Northeastern Burkina. The Board has amended its renewal and diversity policies targeting the average tenure of Board to be 10 years or less and 30% or better female representation. As well, the policy has been adjusted to limit the Board Chair and each committee chair to a maximum tenure of 10 years in their respective roles. From an operations and growth perspective, We continue to execute on our growth plan with Cote construction well underway and advancing rapidly and the project achieving 18% overall completion at quarter end. Overall completion is a composite metric taking into account progress on all aspects of the project, including engineering, procurement, Fabrication, Construction and Commissioning. At Essakane, we delivered strong operating performance and we have completed the CIL upgrade project. At Rosebel. Our Q1 of the year was impacted by heavy rain and camp capacity restrictions. However, we are expecting a much stronger second half with the completion of the camp expansion in Q2 and as we move past the rainy season. At Westwood, we continue to take a cautious approach, targeting a safe restart of the underground operations in the second half of the year following a decision point this quarter. In addition, we continue to advance our development pipeline by derisking the Boto Gold project, continuing delineation drilling at the Gos land target near Cote and advancing exploration work targets, including at Nelligan and in the Bambuque District. Bruno and Craig will provide some additional color on all of this activity in a few minutes. IAMGOLD is committed to achieving high standards environmental, social and governance practices, which reflect our long held Zero Harm vision. In the Q1, we committed to investing $950,000 in a 4 year Giants of Africa program aimed at encouraging the development of youth through sports in Burkitt Faso, Senegal and Mali. We also joined a few of our like minded peer companies in sponsorship of the Artemis project, which aims to promote Female Business Owners and Entrepreneurs in the Mining Sector, including innovative and award winning social and natural scientists. As mentioned earlier, we applied $400,000 in funding from the Rosebel Community Fund towards solar LED streetlights for public Security, Electrification and Portable Water Supply in the communities around Rosebel and Saramacca. And we continue our public private partnership with Canada's government, the 1 Drop Foundation and Coldwater on the Trianguloduo project by completing Phase 1, which provides Portable Water to 60,000 people near Essakane and Advancing Phase 2, which aims to bring portable water to an additional 75,000 people. We are humbled to receive recognition for our efforts, and we were recognized in the prestigious Corporate Knights 2021 Global 100 Sustainability Scorecard, where we have been ranked out of 116 we've been ranked 10th out of 116 Global Mining and among 8,000 global companies spanning various industries. IAMGOLD was recognized for a 3rd consecutive year as part of Bloomberg's 2021 Gender Equality Index among 380 Global Companies across various industries that foster a more inclusive and Equitable Workplace. And we received the Mining Association of Canada's prestigious Toward Sustainable Mining or TSM Excellent Award in the Environmental category for innovative recycling of plastic at Essakane. Essakane recognized in 2010 that there was a need to enhance its public plastic waste management, particularly as there were no recycling facilities in the region, which meant public waste had to be public and plastic waste had to be buried. Working with local entrepreneurs, Essakane has been able to recycle rather than bury plastic, while supporting local businesses and creating jobs with over 65 tons recycled to date. On behalf of the whole company, I offer our congratulations to the Essakane team on their well deserved recognition. COVID-nineteen health and safety protocols are embedded in our operations and projects. These protocols are continuously adapted and enhanced. And in the quarter Essakane implemented additional measures, including thermal screening of all personnel and visitors entering the mine site and the Ouagadougou office. The 20 bed field hospital and medical confinement house established in Ouagadougou in 2020 remains available to accommodate any future COVID-nineteen cases. At Westwood, in addition to existing protocols, random antigen testing was implemented on-site to further protect the workforce against COVID-nineteen. And at Rosebel, Following the increase of COVID-nineteen cases in country, there was a temporary suspension of daily commuting by employees during the quarter with off-site employees required to main at site during their shift cycle. To enable mining capacity to increase the full site complement While respecting COVID-nineteen protocols and accommodating the workforce, Rosebel added 150 beds to the camp in the Q1, with an additional 210 beds expected to be completed in the Q2. And at Cote, in addition to existing protocols, A combination of PCR and antigen testing for all personnel and visitors entering the site has been established. Further, mandatory antigen testing at the Sudbury and Timmins Bus Terminals has been implemented to detect COVID-nineteen cases before there is an opportunity for contact as personnel board the bus. COVID-nineteen related community activities include financing the new Suriname Bureau of Public Health cooling system of the Central Laboratory, which provides critical testing capacity for HIV, malaria, influenza, Tuberculosis and more recently COVID-nineteen. Funding was provided through the Rosebel Community Fund and the Suriname Environmental and Mining Foundation, also known as SEMIF, and both of these entities are funded wholly or partly by Rosebel. In West Africa. Now looking at our operating results. In the Q1 on a global basis, attributable production was 100 and 6,000 ounces. Total cash costs were $10.52 per ounce produced and all in sustaining costs were $12.38 Sprouts Sold. In addition, capital expenditures, including both sustaining and expansion expenditures at our operating sites as well as capital spent at our construction and development projects was just over $102,000,000 in the quarter. We've included a few bar charts to provide a comparison of results over time. Attributable gold production was low compared to recent quarters due to the heavy rains and COVID-nineteen restrictions impacting Rosebel as well as Westwood's reliance on open pit feed following the cessation and suspension of underground activities. Total cash costs have increased in the quarter due to the lower production base. All in sustaining costs were a bit lower in the quarter, primarily reflecting lower sustaining capital spend and operating capital expenditures were also relatively lower in quarter due to lower capitalized stripping at Essakane and impact of rainy season and COVID restrictions at Rosebel. In the quarter, we made good progress in a number of areas while experienced some setbacks in others. At Essakane, the mill optimization project was completed with expected improvement in hard rock ore processing capacity over the balance of the year. The site is working on optimization following the upgrade. At Rosebel, we achieved approximately 85% of mining capacity by the end of the quarter with Saramacca non critical path infrastructure work ongoing. At Westwood, we announced a couple of weeks ago that we have started recalling our underground employees for rehabilitation work underground and training in April. And we expect to make a decision this quarter on a second half restart of the mine. At the Cote construction project, We have commenced major earthworks ahead of our target schedule and continue to expand the construction camp. Bruno and I had an opportunity for a quick COVID safe visit to Cote a couple of weeks ago, and I'm very excited about the progress that I saw. We have continued to progress the access road construction and project infrastructure derisking work at the Boto project and in exploration, resource delineation work continues Goscelin where we are targeting a maiden resource later this year. Finally, we have ongoing resource delineation work Nelligan, the Rouam project in the Fayle property in Quebec, at Diaka in Mali and the Carita discovery in Guinea. I will now pass it over to Daniella to review our financial results. Thank you, Gord, and good morning, everyone. I'm very pleased to be joining IAMGOLD at such a transformational stage of the company. With my diverse background and experiences, I am confident I will add value. I look forward to working alongside the entire team to successfully drive the company to its next major milestone, 1,000,000 plus ounce producer at all in sustaining cost of less than $1,000 per ounce by 2024. The following are key highlights of our Q1 financial results. We generated revenues of $297,400,000 down from the previous quarter due to lower sales and lower realized average oil price of $17.81 per ounce. Earnings were $19,500,000 or $0.04 per share and adjusted earnings were $6,200,000 or $0.01 per share. We generated $89,500,000 in mine site free cash flow, reflecting lower operating CapEx this quarter. In terms of our financial position, we ended the quarter with cash and equivalents of 967,000,000 benefiting from net VAT inflows of $36,000,000 at Essakane and net proceeds of $36,000,000 from our non core royalty portfolio sale. We maintain a largely undrawn credit facility of $500,000,000 resulting in total available liquidity of approximately $1,500,000,000 at quarter end. In the quarter, we extended the term of $490,000,000 available under the credit facility to January 31, 2025. Subsequent to quarter end, we entered into a new gold sale prepay arrangement for 50,000 ounces at $17.53 per ounce at a cost of 4.44 percent per annum. We will receive a prepayment of $80,300,000 in equal monthly payments in 2022 with the obligation to physically deliver such 50,000 ounces in equal monthly installments in 2024. This transaction effectively rolls 1 third of our obligation to physically deliver 150,000 ounces under the 2019 prepay from 2022 to 2024 after Cote is in production. Looking forward, sales are expected to improve on stronger expected production in the second half of the year at Rosebel and Westwood. Unit costs are expected to trend down in the second half of the year, driven by higher production and sales, Potentially Offset by some cost pressures on energy and supplies along with continued strength in the Canadian dollar and euro. CapEx is expected to trend up for the balance of 2021, reflecting increased activity at our operating sites, Cote Construction and Boto Derisking. Taking a closer look at our cash flows in the quarter, Cash inflows from operating activities reflect earnings after adjustments and before changes in non cash working capital of $87,300,000 partially offset by $7,500,000 in income tax paid. The inflow from working capital of $19,200,000 benefited from cash received from the Essakane VAT refund, partially offset by the timing of payments of approximately $13,000,000 Net cash used in investing activities of $63,000,000 reflects $102,000,000 CapEx spend, partially offset by the cash and Exchange Commission received from the royalty sale. Please note that an additional $10,500,000 was received from the sale in April as the final payment. Net cash used in leases and loans as well as dividends to minority interests. Our cash position was $970,000,000 at quarter end with net cash at $436,000,000 and total available liquidity of almost 1,500,000,000 our senior notes mature in 2028. Our financial position combined with mine site free cash flow, continuous improvement at our operations and the disciplined management of our growth pipeline supports the transformation of IAMGOLD into a lower cost, Higher Margin 1,000,000 ounce producer in a few years' time. I will now pass the call to Bruno to discuss the operations. Thank you, Daniela. I'm happy to report that we started the Q1 of the year with our safety performance metrics tracking better than target levels. Our DART and preferred rates were 0.46 and 0.67 respectively per 200,000 hours worked. We continue to implement several initiatives, including IAMSAFE, the revamped health and safety management program to promote a safe work environment. I will now review operating performance at each site in turn. At Essakane, attributable gold production was 102,000 ounces for the quarter. Production reflected above plant grades due to complex ore, partially offset by lower gold recoveries on the same material. We have completed the mill optimization project with an anticipated 10% improvement in hard rock processing over the course of the year from an annualized 10,800,000 tons 11,700,000 tons. This improvement in capacity is important as this mature site moves greater volumes of transition in hard rock versus softer ore in the coming years. All in sustaining costs for the quarter was 10.61 dollars per ounce sold reflecting lower sustaining capital. Looking forward to the balance of the year, production remains on track relative to guidance and We expect higher capital in the second half of the year due to the initiation of strategic pushbacks. At Rosebel, attributable gold production for the Q1 was 47,000 ounces impacted by lower grade stockpile feed and lower throughput caused by unusually heavy rains. At the Saramacca pit, we still experienced lower grade due to mining at the edges of the top of the deposit in some areas. The community bypass road, part of the Saramacca infrastructure program was completed in the quarter. All in sustaining costs at Roseville were $14.50 reflecting lower sales on this lower production. With the ramp up of accommodation, which Gord mentioned earlier, we expect to reach normal capacity in the second half of the year. Business Improvement Project. At Ceramica, completion of the non critical infrastructure work has been rescheduled and the project is now planned for completion in the 4th quarter due to the lodging restrictions. Finally, we have been progressing negotiation on the collective labor agreement and these efforts continue into the 2nd quarter. Westwood produced 7,000 ounces in the Q1 2021, with the mill processing grounds equipped in Score while the underground remains on care and maintenance. The business continuity assessment is ongoing, including geotechnical engineering work. All in sustaining costs for the quarter were $11.87 per ounce sold, lower quarter over quarter due to lower sustaining capital level. In April, we announced the recall of underground employees for rehab work and training. Decision to restart the underground operations is under consideration in the second quarter, after which we would anticipate a restart at Westwood in the second half of twenty twenty one. The restart would target lower seismicity Extraction Zones, starting with the A Zone. We are advancing the Fayo study to assess the potential of the asset in the Westwood's hub and spoke concept. Work on Fayeo includes further engineering and permitting. I will now provide an update on our construction Project Cote Gold. This slide highlights the key metrics that we believe make the Cote Gold Project a Tier 1 asset. Cote has 18 year mine life under the extended case, almost 500,000 ounces per year of production in the 1st 5 years, 2nd quarter of total cash All in sustaining cost of $7.70 per ounce sold and Cote is located in mining friendly Ontario with access to experienced Labor in Close Proximity to Cote Infrastructure. The Q1 was a busy one at Cote. I will start with a few key metrics. As of March 31, detail engineering for Cote has advanced to approximately 83% complete. We are at 18% project completion. Procurement and expediting of major equipment contracts are progressing with the contract for the mining fleet being awarded in the Q1. Securing pricing of major items as part of early works has helped Mitsgate pricing pressure. However, we remain cautious given recent copper and steel price movement. The project incurred $67,000,000 in the quarter $143,000,000 since July 1, 2020. In the Q1, the team started major earthworks ahead of the milestone schedule and focused on hold Widening and Overburden Stripping. We commenced water management infrastructure for the tailings management facility and we set up temporary camps with the construction of permanent camp underway. From a health and safety perspective to date, we have not experienced and the impact to schedule due to COVID-nineteen. For the balance of the year, we will focus on earthworks construction, whole road construction, initial open pit pre stripping and water management infrastructure around the pit. We aim to commission a portion of the permanent camp in the Q2 and fully commission the final camp in the Q3. Civil works are also underway at the plant site with concrete activities expected to start in the Q2 as planned. This slide summarizes our progress to date. We remain on track and we are working steadily to meet our time and cost targets. We look forward to providing you with our quarterly updates as we progress the project. I will now turn the call over to Craig to discuss development and exploration. Thank you. Thanks, Bruno, and good morning, everyone. Before I begin, please note that the results I talk about today have been previously disclosed in accordance with securities regulations and signed off by qualified persons within the company reporting them. In the quarter, our brownfield exploration work included at Essakane, an AirCore drilling and sampling program to help screen a large sand covered area, which we refer to as JEM, for potential targets located northwest of the Essakane operation and within trucking distance. Results will be used to guide the planned follow-up drilling program expected to commence in the second half of the year. At Rosebel, the team completed approximately 13,300 meters Diamond and RC Drilling with a focus on resource development and conversion at our known deposits as well as targeting selected high priority targets within our exploration concession. At Westwood, surface drilling focused on operating inferred resources at the Grand Duke Satellite pit with underground drilling focused on supporting the and Potential Restart of Underground Mining Operations. Greenfield Exploration in the quarter included the reporting of assay results from the Gosselin zone at the Cote gold project from an ongoing delineation drilling program, which will support an initial resource estimate expected in the second half of the year. The commencement of a further round of drilling at the Lac Gamba zone at the Rouen gold project in Quebec to also support a future maiden resource estimate as well as the reporting of assay results from the drilling program completed at the Astoria zone. And we initiated infill drilling at the Diakka deposit in Mali, which is located south of the Boto Gold Development Project. Exploration spend in the quarter was $10,400,000 split roughly evenly between brownfield and greenfield programs. On this slide, you can see a few assay results During the quarter at the Gosselin zone, where drilling continues to intersect wide zones of mineralization with locally high grades. Over the balance of the year, the greenfield exploration budget for the Cote District is $2,800,000 reflecting approximately 13,000 to 16,000 meters of planned diamond drilling, which includes 12,000 to 14,000 meters of delineation drilling on the Gosselin zone itself. As noted earlier, we are targeting a maiden resource for Gosselin in the second half of the year. At the Boto Gold Development Project in Senegal, We continue to make progress in de risking the project. We have advanced the construction of year round access road and permanent camp construction with the award of a camp contract during the Q2. Geotechnical and hydrogeologic assessments are underway to refine the mine facilities and pit design, and plant detailed engineering has advanced to 75%. COVID-nineteen restrictions have eased somewhat since the Q1, allowing work on-site to progress with appropriate protocols in place. Our development capital guidance for the year reflects the early works package, which includes completion of the year round access road and an airstrip Engineering for Critical Plant Equipment and the Implementation of Local Sustainability Programs. We've included a few pictures here of the access road, Cast Life and Bridge Work on this slide. The Boto Gold project anchors the Bamboo District where our exploration efforts have led to several additional discoveries building on the resource potential of this part of the Senegal Mali Shear zone. Infill drilling has commenced at the Diakka deposit in Mali with 2 diamond and 1 RC break currently operating. Program is designed to upgrade additional inferred ounces, while at Carita in Guinea, a diamond drill rig is on-site and will commence an initial delineation drilling program to support a future maiden resource estimate. We've updated this slide to show not only reserve trends over the past few years, but also measured and indicated resource trends. The story unsurprisingly is the same. Our industry has been on a steady decline since 2012, which represents a significant challenge to maintain future production levels. Finally, as a bit of a recap, I will finish with our project pipeline. As I have said many times previously, Competition for and access to quality exploration projects at acceptable entry costs remains challenging for the industry and especially in the face of the current environment of bullish gold prices. At IAMGOLD, we believe that a balanced project pipeline strategically advanced is a fundamental asset for the future growth and viability of any mining company. As such, IAMGOLD has developed and continues to invest and a healthy pipeline of early to advanced greenfield exploration projects to support future growth as well as support near mine brownfield exploration programs with a view to extend the mine life and leverage our existing infrastructure. I will now pass the call over to Gord to conclude. Well, thank you, Craig. So in the Q1 2021, The IAMGOLD team made good progress towards our operating and development goals. With the normalization of operations and continuous improvement. We expect to see better production levels and costs over the balance of the year and to continue to steadily advance our development projects and pipeline. We look forward to continuing our quarterly conversations with you on performance and cash generation from IAMGOLD's operating mines, on construction progress at Cote and derisking progress at Boto as we realize our transformational growth strategy and our exploration and development pipeline news as we set the business up for the long run. On an editorial note, I'd encourage everyone to get your vaccines as soon as you can if you haven't already done so. It's important for the safety of us all as we get the world restarted. So thank you to everyone for joining our call today. I will now pass the call back over to the operator and we'll be happy to answer a few questions. Conference Call. Thank you. We will now begin the question and answer session. Our first question comes from Fahad Tariq of Credit Suisse. Please go ahead. Hi, good morning. Thanks for taking my two questions. Maybe first on Cote Gold and the spend for the rest of the year. You mentioned, I think you used the word cautious on some of the cost pressures you're seeing on copper and steel, maybe even timber. Can you talk a little bit about the potential risk to the CapEx spend this year, like how much higher could it be? How much has already been locked in contracts already? Any color there would be helpful. Thanks. Thanks very much. So Look, we're having a good hard look at all of our costs right now. We don't see a significant vulnerability for this year or for the rest of the project. However, steel prices have moved up, concrete prices as well concrete supply prices. And there's some general inflation pressures on labor costs for Construction. So we are over currently over 50% of the total spend is already locked up in firm contracts. Some of those are unit price contracts or cost plus contracts. So there is still some exposure to inflation, but not huge. I think as we move towards the end of this year, we're going to have a very, very clear picture of where the total cost spend is going to go. And we're comfortable that there's nothing coming at us that provides too much concern for us in terms of cost other than Some minor aspects of what we're looking at. I guess the other thing I would add is, 85% of the total cost at Cote Our Canadian dollar based. We have done quite a bit of hedging and we do have a lot of Canadian dollars in the bank To support that, I think we're covered over 70% of our Canadian dollar exposure for 2021. However, the Canadian dollar does continue to strengthen. We look at it on a regular basis and we continue to monitor where it's at. And our expectation is that it's going to move a little bit More back in our favor as we head towards the end of the year and the economy start to shake out. Okay, great. Okay, that's helpful. And then maybe just switching gears on the labor agreement negotiations at both Rosebel and Essakane. Any updates on how, Maybe it's too early for us to can, but maybe how Rosabella is proceeding, any potential hurdles there? Look, Rosabella is very near the end of the process. We have a presentation into the Board. They are looking for ratification in the coming couple of weeks here. So we do hope that the Rosebel situation is it will clear up here very, very shortly. Essakane is just entering into their process. I think they've been it's 2 or 3 years since they last negotiated. So that one is still ahead of us. We start with all of these projects, we start that work very early and start the discussions to make sure that we get alignment on But I'm certainly hoping that Rosebel shakes out sooner rather than later. Okay. Thank you. Our next question comes from Anita Soni of CIBC World Markets. Please go ahead. Good morning, everyone. My first question comes on Cote. Could you just give me an idea of when you're measuring the 18% completion. What basis are you using? Is it dollars or units of production? So the 18% of total project completion is a composite measure. So it incorporates a weighted average score between engineering, Procurement, Construction, Commissioning I'm sorry, and fabrication. I missed fabrication. So each of those components is weighted. Construction is by far the biggest component, but it's not the only component. And Each of the metrics is measured under a different KPI. So construction is based on construction Spend. Procurement is based on advancement towards the schedule. Procurement is a weighted average based on the value of contracts, but sort of tied to the number of contracts that get negotiated and signed off. Engineering is based on ours. So Each of the components has a different weighting to it. When we get into construction, like I said, it will tie quite closely to spend. That being said, I don't want to give anybody the impression that where we're at with the spend versus advancement I guess what's a little different with Cote compared to some other projects is the fact that because Engineering and procurement was so far advanced compared to traditional project execution models. We are Right now seeing a lot of a lot perhaps of additional value in that 18% metric because of that advancement in construction sorry, in engineering and procurement versus a traditional project, which Mike, follow a little more closely with the spend timeline. Thanks. Switching to some of the operations. So on West I noticed you guys said you were focused on remediation and training. So does that mean that maybe there's not as much focus on pulling ore and putting it through the mill in Q2. Well, with respect to Westwood, what we said, we want to get underground. There's some rehabilitation. There's some training. There's some new development protocols that we want to put in place. Right now, we're working internally to reach a decision on when to starts pulling ore and our guidance estimate contemplates that that ore production from underground will start relatively early in the second half. So we're not pulling ore right yet, but it shouldn't be too, too long before we get there, Assuming we reach that go ahead decision internally. So Grand Duca would be similar grades for Q2? Bruno, could you help with that? Yes. Granzuk is going to be similar around 1 gram per tonne. Also what is interesting with Granitek is that we have increased the amount of reserve. We have more than 50,000 ounces Additional than what when we first started the project. So Granswick is going to be helping Westwood To complement its production feed over the next 2 years. Easy. Okay. And then my last question, and I'll leave it for Others to ask is Rosebelle. So a little bit more detail on that one. So you had some rain in Q1. I'm looking at your one of my weather maps and stuff. And Q2 is your traditional rainy season. So are we could we expect similar types of sort of softness in the throughput levels and in the grades. And I noticed the mill did well. It seems like there was some stockpiles that you were pulling from and so could you give us an idea of what the stockpile level is so that we can get an idea of where Q2 will shake out? Bruno? Yes. So Anita, you're right. Rosebel has experienced unusual amount of It starts in Q2, but you have a smaller season in Q1. This year, we had twice the volume as in the same period in 2020, so twice as much as what we usually get. So what happened is we were limited in terms of rock oil and capacity, so we were impacted also In terms of production, also the material was at a greater content in humidity. So we had to rely on lower grade materials from the stockpiles, as you mentioned. And these stockpiles are at elevated numbers still for the moment. I don't have the precise number, but it's certain that as we are going to go through H2, the raining season is going to subside. Also, we will have additional rooms to have the mining to increase the mining capacity. Right now with the COVID restriction, we have to limit the number of people on-site to favor social distancing. So With the additional of room and the seasonal rains that will subside in H2, we forecasted we target an increase in production and also to have a better grade mainly in Q4 with Saramacca coming strong as we will be The other areas of the deposit where we expect to revert back toward the average reserve grade. Okay. Thank you. Our next question comes from Tanya Jakusconek of Scotiabank. Please go ahead. Yes. Good morning, everyone. Thank you for taking my question. Just following off Anita's question is just on the performance of some of these mines. Just exacam, I mean, that was very high costs in Q1. Maybe Bruno, can you talk us through what you're expecting cost wise as we go through the rest of the year? Certainly, Tania. Yes, we had some cost increase due to the higher consumption of region due to the complexity of the material that we have in the Phase 3. The Phase 3 is a wonderful material, very high grade, higher than what we forecasted. Although that the recovery on some of that Complex ore requires more consumption of region. We also we were a bit impacted by higher energy cost and also higher royalties due to the higher realized gold price, as you know. So for the remaining of the year, We expect to remain within the guidance. And also we had some maintenance activity to done in Q1 and those maintenance are going to be since they are done, they're not going to be repeated in the coming quarters. We expect to have a cost profile that will revert back to our targeted planning. Okay. So just on Essakane on its own, is it safe to assume then because of the some of these maintenance and so forth that we would see a bit of relief and the cost structure for Essakane going into the rest of the year. Yes. Look, again, it's It depends on many parameters as you know, Daniel, like on how it's going to be the fuel price is going to be. Also if we continue to hit the higher grade material in Phase 3, which will also have some impact on our region. So we expect to have again a very good strong production for Essakane in 2021 and overall a good performance in terms of cost. But again, that depends Okay. Maybe just then overall as a company, What I'm getting from the presentation and maybe correct me if I'm wrong is that Q2 overall It appears as though it's going to be similar to Q1 from a production standpoint and then better second half of the year with a stronger Q4 because of Saramacca. Is that a correct way of looking at it? I think that's a pretty safe way of looking at it, Tanya. We will see some rebound in Q2 from a couple of things, but overall, I think your assessment is pretty fair. Okay. And then maybe, Gordon, now that I have you on, just a couple of things wanted to touch base on. Partly was the comments you made on inflationary pressures. You talked about the copper, the steel, concrete, but you also mentioned labor. And labor is a big portion of the cost structure. Should we expect then from these labor agreements that your costs should go higher in the next few years. Should we be factoring in and maybe you can share with us what your wage inflation that you're seeing looks like? Is it 3% to 5% or am I all? I mean, your numbers aren't bad. They're more or less certainly in U. S. Dollars, they may even be a I really can't share the exact numbers with you right now because we don't have everything signed up. But I will say that when we've done our cost estimates and our cost guidance, it's based on an assumption of an increase and we're within those assumptions currently. So the cost guidance you see for this year is already incorporating the higher labor costs. When I said that earlier, I was specifically relating to construction labor costs for Cote. So it's an area we're keeping an eye on. There seems to be a little bit of COVID premium in some of the estimates we're seeing. So we're working hard to bring those down. But the remainder of the costs, As we move forward, you're going to see better production at Westwood and at Rosebel in future years, which will more than over dominate any sort of cost inflation that we're seeing on labor side for sure. Okay. That's good to hear. And then just lastly, I looked at on the slide of the catalyst and I didn't see Westwood's new mine plan. I thought we were supposed to get one this year. Where do we stand on that? Yes. I mean, we Assuming we get a positive decision to move ahead, our expectation is later this year we'll certainly be putting out a mine plan for the next couple of years. We want to get a little bit of empirical information from the underground restart on some of the new development design we're putting in place. We want to see what that looks like. We're also looking at some little bit more higher use of remote equipment. But later this year, our expectation is towards the end of the year, we'll be able to put out a multi At least a short term plan for the coming 3 to 5 years and then revisit the overall long after that. Okay, perfect. I'll leave it there to have someone else ask questions. Thank you. Thanks, Our next question comes from Don MacLean of Paradigm Capital. Please go ahead. Good morning, everyone, and thanks for taking my questions. I just wanted to start with Cote. Usually, the civil side of things is The part that's hardest to gauge, how is that coming along Gord and Bruno? Is your earthworks and your construction civil coming along as expected so far? Yes, generally, the civils are coming along as expected. We have encountered Less overburden and more rock in a few areas, which has sort of changed the mix But in terms of actual progress, things are looking really good. I mean, it's as I said, Bruno and I were up at site a couple of weeks ago and had a good look around. It's quite amazing. I mean, with COVID, I hadn't been there in about 7 months, so which is a little weird for me, but it is what it is. Yes, overall, we're not getting really any surprises that The project is more or less following the recipe that we laid out for ourselves, and we're pretty excited about how it's moving forward. Good. So you're not finding situations where The mill footings have 30 feet of extra loon shit or better you're into rock. It's actually the other way around. The overburden was shallower in most places than we had anticipated. And then can you just touch on you or Bruno touched on this lease cost of $120,000,000 versus $80,000,000 Give us some color on that? So when we originally set the project, Our anticipation on what was available for lease was just around the mining fleet. As we've gotten into the project and as we went out to look for leasing support, We saw that there is opportunity to do some additional leasing, specifically with respect to camp and some other pieces of equipment. And obviously, from a payback point of view, given how this project develops, It's much better if we can lease things and have those costs occur commensurate with when that work is happening rather than having all the cost upfront. So we are looking at leasing. It gives us we have some pretty aggressive opportunities to do some additional leasing. So we continue to look at it and that's what's buried into the current estimate. And how does the mining fleet cost for the lease compare to what you'd expected? The total cost of the mining fleet, we haven't ordered it all yet, but we've certainly put the biggest order in here last month. And the costs are I think they're about 1% or 2% below what our capital estimate was on the mining fleet. So it's come in pretty much dead on plan. That's great. Good to hear. Saramacca, the grade wasn't particularly stellar at all. And it was said because of the mine sequencing. Can we get a little bit more color on how the grades can improve over the year? Sure. I'll let Bruno answer that. Yes. Hello, Don. So right now, because we are at the very beginning of this project, We're mining at the very edge of the deposit on top of the deposit in some areas. And once we're going to get more at the heart of the deposit. You'll see the grade to improve nicely and getting toward the average grade that we have in our block model. So right now, we see that grade to be lower than the average grade for the whole project. But in H2, that grade is going to improve nicely above the 1 gram per tonne easy and then will help Rosebel to increase its production even further for the Second half of the year and mainly also in Q4. So it's an average for the block model. Some areas you will hit 0.8 gram per ton, other area you will hit 2 gram per ton. That's just the mine sequencing that we are right now to get access to the richest part of the zone of the Saramacca as we speak to. Yes. I think the other thing I'd add, Don, is With respect to Saramacca, we are still we're seeing positive reconciliation versus the block model. So it really is, It is a sequencing issue in that the highest elevation wise areas of Saramacca that we were accessing first as we mine top down or more towards the southeast But as we mine down more to the northwest and extend the benches to the northwest, you are going to see those higher grades coming at us. So that's encouraging to hear that you've got we know it's only a snapshot at the very beginning that at least it's starting off positive, the reconciliation. Then Bruno, maybe you could just touch on Security at Essakam. Yes. Security for Q1, we have no event that impacted our production. For us, The mine, we are good. The region also there are some activities done by some stakeholders from country that G5, the Barkan forces and they are always they keep Having a focus in the region increasing security details and protocols. And also for us, that's what we do. We continue to monitor Our next question comes from Mike Parkin of National Bank. Please go ahead. Hi, guys. Thanks for taking my question. Just with Cote, can you give us an idea for the steel work in terms of the mill framing and cladding? Has that been ordered? And is there any of it at risk of price adjusting for The inflationary pressures you're hearing and reading about on steel prices or are those prices largely locked in at this point? Most of the steel contract for the building has been locked in, but there are for the main mill building. For some of the other structures, they haven't been locked in yet. Okay. And then I guess same for like steel going into all the heavy equipment like mills and stuff, those are under fabrication already? Yes, the stuff for the mills and the mining equipment, the steel, most of that has been resolved. Most of the manufacturers of that larger stuff, they'll hedge their supply costs at the time we placed the order so that they're not exposed to changes in the steel price. So a lot of that Is there where we're still outstanding is there's steel, obviously, there's rebar in concrete. There's a number of other buildings And there's timber for scaffolding and framing and forming. And so There are some other bits yet that we're waiting to come in. We're working through them now. We would expect to have almost everything locked up here certainly by the time we get into Q4 this year. Okay, super. All right. Everything else for me has been answered. Thanks very much guys. Thanks Mike. This concludes time allocated for questions on today's call. I'll now hand the call back over to Indi Gopinathan for any closing remarks. Thank you very much, Ariel, and thanks to everyone for joining us this morning and for your continued interest in IAMGOLD. We look forward to having you join us again for our and Quarter 2021 Conference Call in August. Goodbye. This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.