IAMGOLD Corporation (IMG) Earnings Call Transcript & Summary

Thank you for standing by. This is the conference operator. Welcome to the IAMGOLD Fourth Quarter and Year-End 2024 Operating and Financial Results Conference Call and Webcast. [Operator Instructions] At this time, I would like to turn the conference over to Graeme Jennings, Vice President, Investor Relations and Corporate Communications for IAMGOLD. Please go ahead, Mr. Jennings.

Thank you, operator, and welcome, everyone, to our conference call today. Joining us on the call are Renaud Adams, President and Chief Executive Officer; Maarten Theunissen, Chief Financial Officer; Bruno Lemelin, Chief Operating Officer; Dorena Quinn, Chief People Office Officer; and Annie Torkia Lagacé, Chief Legal and Strategy Officer. We are covering today from IAMGOLD's Toronto office in Canada which is located on Treaty 13 territory on the traditional lands of the many nations, including the Mississauga of the Credit, the Anishinaabe, the Chippewa, Haudenosaunee and the Wendat peoples. At IAMGOLD, we respect in upholding digits rights is founded upon relationships, to foster trust, transparency and mutual respect. Please note that our remarks on this call will include forward-looking statements and refer to non-IFRS measures. We encourage you to refer to the cautionary statements and disclosures on non-IFRS measures, including the presentation and the reconciliations of these measures in our most recent MD&A, each under the heading non-GAAP financial measures. With respect to the technical information to be discussed, please refer to the information and the presentation under the heading qualified person and technical information. The slides referenced on this call can be viewed on our website. I will now turn the call over to our President and CEO, Renaud Adams.

Thank you, Graeme, and good morning, everyone, and thank you for joining us. Last year was a monumental year for IAMGOLD, as the company achieved critical milestones that have positioned the company as a dynamic, modern, multi-asset, mid-tier gold producer with significant potential for free cash flow growth and expansion. IAMGOLD finished 2024 with total attributable gold production of 667,000 gold ounces, a 43% increase from the prior year and in line with our previously raised guidance estimates. This performance was driven by the successful start-up of Côté Gold, as well as exceptional operational and output from Essakane and Westwood. Financially, the company took a significant step to improve its financial position and capitalize on the strong operating results and robust gold market. Highlights in the year include the completion of the repurchase agreement to return to the 70% interest level at Côté Gold, the successful net delivery and completion of half the legacy gold prepayment arrangement, all while still generating a total adjusted EBITDA for the year of approximately $781 million, and further strengthening our balance sheet and financial flexibility with the bolster credit facility resulting in us ending the year with total liquidity of approximately $767 million and the expectation of increasing free cash flow this year. Additionally, last night, alongside our financial results, we disclose our updated mineral resources and reserve estimates. The highlights of which were a significant increase in ounces and grades at our Nelligan project located in the Chibougamau. With the update, Nelligan is now among the top largest gold deposits in Canada and is expected to continue to grow, all while being located in the top-tier mining jurisdiction. Another highlight from the Mineral Resources update was at Essakane, where the teams were able to increase the mineral reserve after accounting for depletion, suggesting another potential year of mine life for the strong cash flowing asset. Over the last few years, IAMGOLD has seen a rapid growth of value production and mineral resources within Canada. We're now today, approximately 80% of our measured and indicated ounces and 90% of global inferred ounces are located in Canada in well-established mining jurisdiction. In the near term, our goal is clear: to ramp up Côté Gold to a steady sustainable state operating at the nameplate throughput level of 36,000 tonnes per day in the fourth quarter of this year, while maximizing our mineral, measured and indicated resources at Côté and Gosselin in support of a technical report in 2026 that would outline our mine plan based on Côté and Gosselin. Meanwhile, we will continue safe mining activities at Essakane and Westwood to maximize production, while managing our cost drivers with a focus on cash flow margin preservation. Should the current gold price environment remain in place, by the middle of this year, we anticipate we will have our gold prepayment facility behind us with Côté, Essakane, and Westwood, capable of generating record cash flow and conceptually well positioning IAMGOLD to begin the process of delevering its balance sheet, starting with our high-cost debt vehicles to further refine our capital structure and moving closer to our goal of becoming a leading modern Canadian gold producer with a strong balance sheet, an asset that are poised to generate significant value for our stakeholders, partner and investor. Looking at highlights from the year and the fourth quarter. At IAMGOLD, we strive to be among the leaders in health and safety, talent development and ESG, including tailings management, water stewardship, and community well-being. Looking at last year as a whole. Our total recordable injury frequency rate was 0.63, an improvement from the prior year ensuring all of our employees and contractors go home safely, would always be the primary focus for IAMGOLD and to succeed every gold ounce produced has to be done safely. On production, in the fourth quarter, the company produced 177,000 ounces, bringing total annual production to 667,000 ounces on an attributable basis in line with our guidance, which was raised midyear to 625,000 to 715,000 ounces. Total annual production in 2024 was 43% higher than '23, driven by a strong first half at Essakane, a near record year at Westwood, and the start-up of Côté Gold, which produced 124,000 ounces to account in the first 9 months of operation. Cash cost per ounce sold, excluding Côté, was $1,176 for the year, at the low end of our guidance range of $1,175 to $1,275, and $1,393 per ounce for the first quarter. All-in sustaining cost per ounce sold, excluding Côté was $1,725 for the year, trending towards the low end of our guidance range of $1,700 to $1,825 million, and $2,071 for the fourth quarter. Cash cost in AISC increased quarter-over-quarter through 2024. This was primarily associated to rising waste stripping and lower relative grades at Essakane as the mine opened up and started mining of new phase as per the mine plan. On an annual basis, costs are in line with the prior year. They remain relatively high due to continued pressure on supply chains within Burkina Faso as well as sustained elevated price on certain consumables and labor. With that, I will pass the call over to our CFO, to walk us through our financial results and position. Maarten?

Thank you, Renaud, and good morning, everyone. In terms of our financial position, at the end of the year, IAMGOLD had $347.5 million in cash and cash equivalents, and net debt of $859.3 million. The company has $220 million drawn on the credit facility and approximately $418.5 million remains available resulting in liquidity at December 2024 of approximately $767 million. We note that within cash and cash equivalents, $46 million was held by the Côté Gold UJV, $130.2 million was held by Essakane, and $160 million was held in the corporate treasury. As we highlighted last quarter, but worth reiterating, Essakane declared a dividend during the second quarter of $180 million, for which the minority interest portion and withholding taxes were paid during the second quarter, and the company received a total dividend of $151.9 million. On November 30, 2024, the company issued a payment of $377.7 million to complete the repurchase of the 9.7% interest of the Côté Gold mine that was transferred to Sumitomo through the Côté Gold joint venture amending and funding agreement, returning IAMGOLD through its full 70% interest in Côté. The repurchase payment was funded through available cash balances and amounts available under the credit facility. On December 23, 2024, the company announced that it closed the sale of its 100% interest in the Karita gold project associated exploration assets in Guinea for gross proceeds of $35.5 million. The definitive agreement to sell the Diakha-Siribaya Gold Project in Mali expired on December 31, 2024, and was not extended. The company is pursuing alternative options for the sale of this asset. Finally, as of today, the company has completed over half of its gold prepay obligations, having delivered 75,000 ounces into the 2022 gold prepay arrangement of which 37,500 ounces were delivered in the fourth quarter, and a further 12,500 ounces during January 2025, reducing the outstanding balance of all prepay arrangements to 62,500 ounces as of January 31, 2025. The company received $10 million in cash in the fourth quarter and $38.9 million for the year as part of the delivery of the obligation. Please refer to the liquidity outlook section of the MD&A for further details. Looking at our annual financial results for 2024, we saw the impact of strong gold production at record realized gold prices, resulting in the company realizing higher margins and generating higher operating cash flows during a critical year for the company. Revenues from operations stood at $1.6 billion for the year, from sales of 699,000 ounces at a record average gold price of 230 -- $2,330 per ounce after accounting for the impact of the gold prepays. The strong operating results and gold price resulted in another year of increased adjusted EBITDA, which totaled $780.6 million in 2024, double the 2023 value, while Côté is still in the early stages of ramp-up. Net earnings were $819.6 million for the year and includes a reversal of prior impairment on Westwood of $455.5 million as a result of the improvement of the value of the operation, compounded by an update to the long-term gold price assumptions. Adjusted earnings were $296 million. On a per share basis, adjusted earnings per share for the year totaled $0.55, a notable increase from the prior year of $0.09. Looking at the cash flow reconciliation for the year offers a good visualization of the major drivers of our available liquidity to the end of 2024. Operating activities, fueled by strong operations at Essakane Westwood and the start of the production of Côté were adjusted for the impact of the gold prepay deferred revenues and prepay proceeds in the first half of the year. Investing activities in 2024, were primarily driven by the completion of construction of Côté and sustaining capital spend in our projects. Financing activities were bolstered by the share issuance in May 2024 at a price of USD 4.17 per share combined with a drawdown on the credit facility to fund the repurchase of the 10% interest in Côté from Sumitomo and working capital requirements. As we look to 2025, we believe we have a good opportunity to further improve the strength of our balance sheet should the gold market remains strong. As we saw on the prior page, the current -- company currently has a $400 million term loan, which carries relatively higher interest. This year offers an important milestone as the term loan can be repaid in $20 million tranches at any time. And after May 2025, at 104% repayment premium followed by 101% premium if repaid after May 2026 and 100% thereafter. Once the gold prepays are behind us, the strong expected cash flows could well position the company to reduce our debt carrying costs and levels. And with that, I will pass the call back to you, Renaud. Thank you.

Thank you, Maarten. And congratulations again on your team's achievement last year. Starting with Côté Gold, I want to congratulate the team for their commitment and dedication to the safe ramp-up of Côté Gold. Also, and since first go, the mine has shown a systematic increase quarter-over-quarter in throughput and gold production. In the first year of operation, Côté Gold produced 199,000 ounces on a 100% basis. Looking at the fourth quarter, Cote produced 96,000 ounces on a 100% basis, which was a 41% increase from the prior quarter. A year ago on this call, we call for an initial gold production in late first quarter. Commercial production achieved in the third quarter 2024, and set the target for Côté to exit the year at a throughput rate of approximately 90% of nameplate. We were able to achieve the first 2 of this milestone, with the mine achieving amongst the quickest ramp-ups up new to commercial production for large scale open pit gold mine in Canada. Despite these successes, Côté was unable to sustainably exit the year at 90% throughput and narrowly missed production guidance of 220,000 ounces due to lower tonnes processed during the fourth quarter as a result of higher-than-expected downtime in order to conduct unplanned repair. Mining activity totaled 10.8 million tonnes in the fourth quarter of 2024, modestly higher than the prior quarter and bringing the total tonnes mined for the year to 39.3 million tonnes with an average strip ratio of 2.6:1, resulting in ore tonnes mined for the year of 10.8 million tonnes. The average grade of mined ore was 0.97 grams a tonne with the reconciliation between the grade control and reserve models in line with expected tolerances. Within the pit, the mine currently has 2 Cat 6060 electric shovel and 21 Cat 793 autonomous haul truck now commissioned. Utilization rates of the primary mining equipment has been improving with the mine achieving a weekly average high operating rate of 150,000 tonnes per day in December. The current mine plan is using multiple stockpile segregated by grade as made evidenced by the head grade of tonnes processed in the fourth quarter of 1.34 grams a tonne gold, substantially higher than the mine grade. As we discussed last quarter, this strategy is proving to require higher-than-expected amounts of rehandling, which are flowing through our mining cost. Last year, mining costs averaged $3.90 per tonne. This is higher than expectation due to the rehandling in addition to higher contractor cost to support the ramp-up of the mine. We expect to see unit mining costs decline as we operate with the full haulage fleet for 2025, coupled with the implementation of an optimized bulk mining plan and a reduced need for external support. Mill throughput in the fourth quarter totaled 2.4 million tonnes. This is a 50% increase from Q3 as the plant continued to see improvement quarter-over-quarter. As the mine transitions from commissioning to production, at the end of Q1 of last year, our teams took the strategy of first testing the capacity of the main equipment in the plant to handle the diesel great load followed by building availability and stability as the ramp-up progress. From early on, the primary components of the processing circuit, primary, secondary crushing, HPGR conveyors, ball mill leaching, et cetera, prove their capability to operate at or above design loan when provided with stable condition. Further, we saw the recoveries of the plan come in line with expectation of ranging 92% for the first year of operation, a critical achievement for our new mines. As Côté continued to ramp up through the year, we were able to deploy key optimizations to stabilize a crushing circuit to the replacement of wear parts with higher abrasive-resistant material to reduce the level of wear and using new types and sizes of screens in the coarse ore screening area. These improvements allow for further improvement in availability and performance of the secondary crusher and screening circuit, allowing for the plant to achieve multi-day performance above 40,000 tonnes per day in the fourth quarter. As the operating rate of the plant increases over longer periods of time, we require unscheduled yet not entirely unexpected equipment maintenance. For example, in December, the plan was operated at an average of 87% of design throughput level over a 2-weeks period prior to an unscheduled shutdown to split conveyor belt associated with design issue. Repair were made to the belt and replacement with the modified design was completed in January 2025. Subsequent to the quarter end, the HPGR roller demonstrated accelerated work necessitating a changeover ahead of schedule and limiting the crushing -- the secondary crushing capacity in January. The changeover of the HPGR rolls was completed in February '25 with operating and maintenance procedures adjusted to maximize lifespan and optimize future changeover windows. Inside the plant, the grinding circuit was also impacted in the -- early in the quarter, due to repair required to one of the Vertimill following a faulty start-up post-maintenance. Prevention and mitigation procedures have been put in place and the second Vertimill is expected to be online later this month. Taken together, at a higher level, it is not unusual or uncommon to encounter these types of equipment issues during the first year of a ramp-up of the large-scale mining operations where the equipment is operating at an efficient level at varying rates and stress, all while maintenance schedules are being adjusted to real world conditioned. What is important is that we are seeing continuous improvement at Côté with increasing stability, availability, and operating milestones quarter-over-quarter. In 2025, we are forecasting production of 360,000 to 400,000 ounces of gold on 100% basis, which means that Côté Gold would essentially double its ounces this year. Cash costs are expected to be between $950 to $1,100 per ounce, and all-in sustaining costs to be between $1,350 to $1,500 per ounce. The cash cost guidance reflect the cost experience in the first year of operations, including higher levels of maintenance, contractor support and continued to improve in consulting. Costs are expected to lower in the second half of the year as targeted improvements are deployed and as production increases. The operating guidance assumes planned throughput of approximately 12 million tonnes in 2025, equating to an average of 3 million tonnes per quarter comparing well with the Q4 throughput of 2.4 million tons, which was 50% above Q3. So yes, we are confident in the next step, and the next step-up after the first quarter, which we have advised will be lower after which we'll step up into Q4. The end goal for Côté this year is to achieve nameplate throughput of 36,000 tonnes per day in the fourth quarter. This target will be paid by the installation of the second cone crusher, which will provide additional capacity and redundancy to the primary crushing circuit, removing the bottleneck from this area. Longer term, we will continue to pursue improvement in mining and processing activities, looking for low capital-intensive opportunity to increase processing plant capacity. As we have noted in the past, several components of the plant have been designed for 42,000 tonnes per day, and we have seen multiple days above 40,000 tonnes per day early on in the life cycle of the project. The addition of the second cone crusher later this year is aligned with our strategy of unlocking maximum value by monetizing the maximum number of tonnes of ore mined as they become available for processing. This strategy includes evaluating the potential to adjust certain aspect of our mining plan at Côté to shift over time from selective blasting and separation to a more bulk mining approach as the mill throughput capacity is unlocked. As currently designed, Côté over the life of mine is expected to average an annual ore mining rate of approximately 50,000 tonnes per day versus our current nameplate processing rate of 36,000 tonnes per day. So if we are able to find the right balance of increased processing rates and minimize stockpiles, we expect numerous efficiencies advantages, including reduced rehandling, improved pit sequencing, and less reliance on the aggregation for the mine plan and more on maximizing mill throughput and monetization of gold mine. Optimizing the processing and mining balance at Côté Gold is even more important as we investigate the potential options to bring into the mine plan to full resource base estimate of the Côté and Gosselin zone, which combined for over 16.2 million ounces of measured and indicated resources and 4.2 million ounces of inferred resources to define Côté Gold amongst Canada's largest gold mine in operation. Our exploration program on Côté and Gosselin are ramping up this year, targeting resource conversion at Gosselin in support of our technical report in 2026, that outline and unified mine plan based in Côté and Gosselin. Turning to Quebec. The transformation of Westwood has been among the best mining success story in 2024, as the last few years of redevelopment and rehabilitation resulted in a successful turnaround of the mine, building safe and stable production and culminating in a generation of $94.4 million in mine site free cash flow for the year. Looking at operations. Westwood produced 134,000 ounces in 2024, above the top end of this increased revised production target of 115,000 to 130,000 ounces. Production in the fourth quarter of 2024, was 35,000 ounces, higher by 7,000 or 25% compared with the same prior year period, primarily due to higher grades and an increased proportion of ore feed from the underground mine. Mining activity for the year totaled 1.02 million tonnes of ore, in line with the prior year. In the fourth quarter, the underground mine averaged 98,000 tonnes or just over 1,000 tonnes per day, a record volume from underground since the mine restart at an average underground mine grade of 9.65 grams a tonne. The improved volume from underground are a result of the completion of the underground rehabilitation and development work program, which has provided increased operational flexibility with multiple stope sequences available to mine from currently at different level and sectors of the mine. Mill throughput in the fourth quarter 2024 was 267,000 tonnes at an average head grade of 4.34 grams a tonne and an average recovery of 93%, with grades 11% higher than the prior year period due to the higher proportion of underground material. Plant availability in the quarter was 88%, a 10% higher than the same prior year period with the successful completion of the annual mill shutdown in November. The margins for Westwood continue to improve with a strong gold price and stabilizing costs. Cash costs averaged $1,148 an ounce, and all-in sustaining costs averaged $1,688 an ounce in the fourth quarter, positioning the mine in the middle of our asset cost curve. Looking ahead to this year, Westwood production is expected to be in the range of 125,000 to 140,000 ounces in '25, as mining activities continue the underground ramp-up towards achieving 1,000 tonnes per day at a stable, steady state while targeting multiple active mining areas and minimizing dilution. Open pit activity from the Grand Duc are currently planned to be completed by the fourth quarter of 2024 -- '25, though Grand Duc stockpile material would continue to be mill feed into 2027. However, should the gold price remain where they are, I believe there is a strong potential for further expansion and extension of the Grand Duc pit, which will be investigated this year. Costs this year are expected to be generally flat with cash cost guidance for Westwood of $1,175 to $1,325 per ounce. So an AISC of $1,675 to $1,825 per ounce sold. Capital expenditure guidance is for approximately $70 million, mainly consisting of underground development and rehabilitation in support of the 2025 mine plan, the continued renewal of the mobile fleet and equipment overhauls, and certain asset integrity project at the Westwood mill. Finally, looking at Essakane. It was a lighter quarter at the mine with production of 80,000 ounces in Q4. Yet Essakane still achieved the top end of its guidance range, which was increased midyear. With the mine producing total annual production of 409,000 ounces versus a guidance of 380,000 to 410,000 ounces. Mining activities totaled 12.4 million tonnes in the quarter with 2.2 million tonnes of ore mined, resulting in a strip ratio of 4.7. which is relatively high versus recent history as the mine fleet targeted capital stripping activity intended to secure access to ore on deeper benches of Phase 7 in support of the 2025 and 2026 mining plan. Mill throughput in the quarter was 2.9 million tons at an average head grade of 1.07 grams a tonne. Throughput was slightly lower in Q4 due to the scheduled maintenance during December, average head grade decreased in the fourth quarter compared to the first half of the year, in line with the mine plan as mining activity prioritized waste stripping sequence, resulting in increased supplementation of the mill feed from available ore stockpiles. On a cost basis, Essakane reported relatively high Q4 costs with cash costs of $1,501 per ounce, an AISC of $2,118 per ounce. This came in relatively high due to the planned lower quarterly production, annual scheduled maintenance activity, higher realized fuel price, and higher supply chain and transportation costs impacted by the security situation. Despite this, total annual cash costs were $1,179 in AISC were $1,625, both within guidance range of $1,175 to $1,275 per ounce and $1,575 to $1,675 per ounce, which were lowered in the midyear. Looking ahead, Essakane is expected to produce 360,000 to 400,000 ounces on an attributable basis at a cash cost of $1,400 to $1,550 per ounce and an AISC of $1,675 to $1,825 per ounce. Mining activities are expected to complete mining in Phase 5 in the first half of the year, with the bulk of the mine material coming from Phase 6 and Phase 7 with mining moving into the primary zones of Phase 6 and 7, capitalized waste stripping is expected to be relatively lower in 2025 with a total capital expenditure guidance this year of $115 million. The plant is expected to operate at throughput and head grade in line with the current life of mine plan as per the December 2023, 43-101 technical report. While the cost of operations in country have risen over the last 2 years, Essakane is positioned to generate strong cash flow with an expected decrease in waste stripping expenditure year-over-year. I also want to congratulate the exploration team as we announced an updated Mineral Reserve and Resources estimate yesterday, in which Essakane more than replaced its reserve depletion with current estimated reserve of 2.3 million ounces and managed to grow measured and indicated ounces by 15% to nearly 100 million tonnes grading 1.24 grams a tonne for a total of nearly 4 million ounces. Taken together, this strong result from the drill bit suggests the potential for further mine life extension within the secure parameter of our operation at Essakane. Finally, and on the topic of notable Mineral Resources change, yesterday, we also announced an updated Mineral Resources estimate for our 100% on Nelligan project located approximately 45 kilometers Southwest of Chibougamau, Quebec. The update estimated Mineral Resource of 3.1 million indicated gold ounces in 103 million tonnes, grading 0.5 grams per tonne, and 5.2 million inferred ounces with 166 million tonnes, grading 0.6 grams per tonne. This represents a 56% increase in indicated resources or 1.1 million ounces with an increase in grade of 13%, as well as a 13% increase in inferred resources or 1.3 million ounces with a similar 14% increase. This update demonstrate a remarkable prospectivity of this asset, demonstrating rapid growth in ounces, and an improvement in grade from a relatively conservative drill program that total only 23,400 meter over the last 2 years. When combining Nelligan with a high-grade satellite Monster Lake deposit, they are nearing 9 million ounces of resources in this mining camp already, positioning Nelligan at a relatively early stage among the largest gold projects in Canada with significant potential for further growth. This year, we are increasing the scope of our Chibougamau program with a plan for 30,000 meters of diamond drilling, testing the extension of mineralization at Nelligan as mineralization remains open along strike and at depth. Further, a drill program will be conducted, targeting high-grade structure underground at Monster Lake, which has seen minimal modern exploration in the last few years. It is definitely early stage, but there is no question the value that Nelligan can offer as a growing large-scale gold asset in a very mining-friendly jurisdiction in Canada. So thank you all, and I look forward to an exciting year ahead. With that, I would like to pass the call back to the operator for the Q&A portion call. Operator?

[Operator Instructions] The first question comes from Anita Soni with CIBC World Markets.

A question on the -- some of the challenges that you've had in January with the HPGR and some of the other crushers. You did issue guidance in January. Can you let us know whether or not your January guidance would have encompassed some of the issues you're encountering? I'm just trying to understand the timing of these issues and whether or not we should be a little bit more conservative than what you had previously put out.

No. I mean like when we issued our guidance, we were absolutely in possession of all the information. We knew that about the repair on the belt. When you on the repair of the Vertimill, so that was all accounted for, we knew that we will change. It was already planned and a way to do a changeover of the rolls on the HPGR. So it was just advanced, but it's the same. So as a result and as I just mentioned, we see Q1 a little bit lower than the rest, but we're going to pick up and increase with more tonnes processed in the second half. But no change, and we remain very confident about our guidance.

Okay. That's good to hear. I just have the Q1 lower with the changeovers happening. Yes. And then in terms of the -- sorry, the -- what was my question? Oh, sorry, the mining rates. How do you see that evolving over the course of the year?

We're actually very pleased. As I mentioned, we were roughly in the 40 million mark for the 2024, it's the first year, successfully commissioned through the 3 additional. We've already seen a pickup in the tonne mines, had a well week in December at 150,000 tonnes. And so to achieve 48 million tonnes this year, like moving from the previous average, it's about 10 million to about 12 million per quarter. We absolutely see this achievable. So we'll see in the Q1 because it's still like a ramp-up in the commissioning of the -- full commissioning of the extra 3 truck. But definitely, we see -- we have the capacity and the equipment, of course, to achieve our 48 million tonnes this year.

The next question comes from Tanya Jakusconek with Scotiabank.

I'm just going to follow up from Anita's question on Côté. So I just wanted to circle back, Renaud. Just as we think about -- and maybe just a bit more detail as we go through the quarter. So Q1 is weaker because of these changeovers that happened at the mill. Was anything else planned or is planned for downtime in Q2, Q3, Q4 as you do some additional repairs and/or turnovers. I think there was something being coming in later in the year as well. It may have some downtime. So I'm just trying to understand, should I be thinking you had mentioned 3 million tonnes per quarter, but how would I be thinking of each quarter and some of the critical aspects that we move in this ramp up during the year?

Yes. I'll ask Bruno to add a bit of color to this. But obviously, like as per the HPGR per se, that was an advanced maintenance from Q2 to Q1. So no real difference, but Bruno, you could to this.

Thank you, Renaud. Tanya, exactly what Renaud just mentioned, the rolls replacement for the HPGR were scheduled to be taken place in May, [indiscernible] like now we are understanding they wear pattern better. The other major shutdown is going to the one in August, the annual shutdown, but with the wear pattern that we're seeing at the ball mill, it's very likely it's going to be shorter than expected also because we have -- we're seeing a wear pattern that is less abrasive than expected. So this is where we are right now, Tanya, like we are understanding and learning the wear patterns at all our primary components. So the HPGR was a little bit faster and the ball mill seems to be holding very well right now. Other than that...

So if you were to think about the quarter, would -- so Q1 is the weakest, Q4 is going to be the strongest. And do we see a progression upward or is Q3 and Q2 equal? I'm just trying to understand with this downtime in August.

Yes, because in Q2, you won't have to do the HPGR rolls replacement. So definitely, Q2 is going to be higher than Q2 -- Q1. And after that, Q3 will also pick up in speed.

Okay. So you will -- are going -- despite all of these changes and things, you will see quarter-over-quarter improvements is what you're saying.

That's correct.

Probably Q2, Q3 closer to each dollar for different, but definitely, Q1, the lowest and Q4, the best. And as you say, like Q2, Q3, hopefully, Q3 a little bit more than Q2. We'll be starting installations of the second crusher by mid Q3 -- mid -- late Q2, early Q3. So should be minimal disruptions, but there is always some time to be done. So on that basis, you could argue that Q2, Q3 should be very similar or close to, but Q4 definitely should be strong.

Okay. And anything else on the critical path that we need to be aware of as we go through the year besides these changes that you've mentioned, anything else? I mean, the mining -- we've got the 3 new trucks or thereabout coming in, that's going to help on the mining front, but anything else that we should be aware of?

It's really all about the stability, Tanya, and I appreciate like during the commissioning, every quarter, unfortunately, this happened and so forth. But as Bruno mentioned, I think we've learned enormously from this. And basically, it's all about, okay, of course, you have a design criteria of how many hours you should do and so forth and the wear pattern and so -- and you need to adjust some equipment, of course, may be less familiar with some operators and more training. But locally, I think we've gone through the whole cycle from the crushing to the grinding, to the leaching and regrind, I think we've gone through the whole cycle. We have a much better understanding of each of the equipment. So it's all about stability. So to answer your questions, we feel strong about the 48 million tons. We're already seeing improvement in the pit. And as I've discussed, we'll be less acute and super segregations and allow for more performance and productivity in the pit. So we feel very strong with the mining. And when it comes to the mill, it's really all about stability at this stage. And so we're really looking forward now with the last repair of the Vertimill to really push the gas and crank up the tonnage and go for more stability and higher availability. And with that, you know the capacity is there. So as you approach a 90% plus availability, you will be there, there is no capacity issue. It's just a stability matter. So sorry for the long answer, but I thought I would clarify.

Okay. No, thank you for that. And then I'm just wondering on Essakane as well as you moved from this Phase 5 into 6 and 7 this year, and yet there's less stripping. How does the profile look for the year there. I'm just trying to understand overall for the company, how does the year progress? Is it that we start with a lower Q1 overall for the company and get to a higher Q4, I'm just trying to get an understanding if there's any variability in Essakane and Westwood as well?

Yes. Thanks for that question. and the opportunity to clarify a bit because absolutely. So unfortunately, at the same time, Q1 is a bit of the quarter for Côté, a bit of repair in the first half and so forth. At the same time, we're entering Phase 6 and 7. And we have more than once discuss the performance on the grade reconciliation as you enter new phases at a very early stage versus when you're well established. And we've seen that in '23, '24 with the Phase 5. We still have Phase 5 until probably midyear, but we're entering Phase 6, Phase 7 was a little bit slower and less productive and grade. So as a result, we see Essakane potentially on target, but because of the 6, 7, it could be that Essakane is slightly lower in the Q1 and the pick up after that for the rest of the year. But originally, we were saying about same, but it could be possible that Q1 is slightly lower than the rest of the year.

Okay. That's helpful as well. So it kind of looks that you probably are seeing that quarter-over-quarter improvement for the company overall in 2025.

Okay. It's a fair comment.

Okay. And if I could just squeeze one more in, and it just is more a strategic question for you. Just you mentioned over 90% of your M&I and inferred resources all sitting in Canada. And as we get Gosselin mine drill program study and then a better understanding of the mine plan for the whole Côté complex. How -- do you think it makes set to keep Essakane within IAMGOLD? You then have your cash flow coming? And do you think that by selling Essakane remaining a totally Canadian company, you'd get a better valuation?

I think you're talking about something that belongs to the more like looking forward type of thing. And we're very pleased with Essakane, the truth is that we've discussed numerous times the strategic approach with Essakane and we're looking at delivering in our balance sheet in '25, '26, the strong free cash flow. Well, it's all about the stability, right? And we had a very strong 2024. We had no interruption in our productions and we've delivered on all metrics. To be very frank, you could argue that we've seen more stability than a lot of North American mines, if you want my take of it. So I won't really comment on the details of our plan. What I know is that we have strong belief that Essakane will be a strong free cash flow generators and will make a huge difference for us for '25 and '26 as we significantly improve our balance sheet. The rest belongs to stability, how things evolve and so forth. So there is a lot at stake here, but we feel very confident to deliver another strong '25.

There are no further questions. I will now hand the call back over to Graeme Jennings for closing remarks.

Thank you very much, operator, and thanks, everyone, for joining us this morning. As always, should you have any additional questions, please reach out to Renaud or myself. Thank you all. Be safe, and have a great day.

This brings to a close today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.