IAMGOLD Corporation (IAG): PESTLE Analysis [Nov-2025 Updated]

You're looking for a clear, actionable breakdown of the forces shaping IAMGOLD Corporation (IAG) right now, and honestly, it's a tale of two companies: stable Canada and volatile West Africa. The near-term focus is squarely on de-risking the massive Côté Gold ramp-up while managing political instability at Essakane. This analysis cuts through the noise, showing you exactly how Political, Economic, Sociological, Technological, Legal, and Environmental factors-the PESTLE framework-are dictating IAMGOLD's path to achieving its updated 2025 production guidance of 735,000 to 820,000 attributable ounces.

Political Factors

The political landscape for IAMGOLD is a study in contrasts. On one hand, you have the stable, predictable regulatory environment in Ontario, Canada, which is the bedrock for the Côté Gold project. This stability is crucial for securing long-term financing and permits.

But then you have Burkina Faso, home to the Essakane mine, where high security risk and geopolitical tensions are a constant operational drag. This isn't theoretical risk; it's a tangible cost. The government's move to increase its stake in the mine is a clear signal of rising sovereign risk premiums for non-Canadian assets. You have to price that risk into your valuation models. The political instability here is defintely the single biggest threat to Essakane's cash flow.

Action: Factor a higher political risk discount rate specifically against the Essakane asset cash flows.

Economic Factors

The biggest economic tailwind is the gold price. The company realized an average price of $3,182 per ounce in Q2 2025, and they are assuming an average realized price of $3,300 per ounce for the remainder of the year, which is a massive margin booster. However, this strength is offset by cost inflation. The consolidated All-in Sustaining Costs (AISC)-which is the true cost of getting an ounce out of the ground-has been revised up to a range of $1,830 to $1,930 per ounce sold for 2025.

Here's the quick math: that cost increase is due to inflationary pressure on fuel and labor, plus higher royalties driven by the rising gold price. Plus, the high capital expenditure (CapEx) for Côté Gold, which is still guiding to about $150 million (IAMGOLD's attributable share) for the full year 2025, continues to strain near-term cash flow. What this estimate hides is the operational drag from currency fluctuations, especially how the stronger Canadian Dollar (CAD) against the US Dollar (USD) can quietly erode reported earnings.

Action: Model a sensitivity analysis showing EBITDA impact for every 5% move in the USD:CAD exchange rate.

Sociological Factors

Social license to operate is no longer a soft factor; it's a hard financial risk. Managing community relations and local employment expectations in remote operating areas, especially in West Africa, is critical for avoiding costly operational stoppages. Investors are also demanding transparent Environmental, Social, and Governance (ESG) reporting, which IAMGOLD must deliver to maintain institutional support.

In Northern Ontario, the Côté Gold operation is highly technical, and labor availability and skill shortages are a real concern. If IAMGOLD can't staff the mine efficiently, the ramp-up stalls, and AISC rises. Social unrest in developing nations, particularly concerning land use, remains a constant threat that can halt production overnight, turning a profitable quarter into a loss.

Action: Track local employment metrics and community investment spend as leading indicators for operational stability.

Technological Factors

Technology is IAMGOLD's opportunity to de-risk its cost structure, especially at the new Côté Gold mine. The adoption of autonomous haulage and drilling systems there is a direct move to lower long-term labor costs and optimize productivity. This is how you get a long-life mine to operate efficiently.

For the older assets like Essakane, the focus shifts to advanced data analytics for predictive maintenance. Minimizing costly downtime at aging assets is paramount, so using data to predict a failure before it happens is a must-have, not a nice-to-have. Also, with more automation, the need for continuous investment in digital security to protect operational technology (OT) systems from cyber threats becomes a new, non-negotiable cost.

Action: Monitor Côté Gold's autonomous fleet utilization rates as a key performance indicator for cost-cutting success.

Legal Factors

Legal risks are directly translating into higher costs. The most concrete example is the evolving tax and royalty regimes in West Africa. IAMGOLD's ownership interest in Essakane decreased from 90% to 85% effective June 20, 2025, which is a direct reduction in the company's take. Plus, the revised royalty structure at Essakane, combined with higher gold prices, contributed to a cost increase of approximately $60 to $70 per ounce on a consolidated basis.

In Canada, the legal framework is stricter but more stable, requiring strict adherence to federal and provincial permitting requirements for the Côté Gold mine. Compliance with international anti-corruption and anti-bribery laws across all jurisdictions is a non-negotiable baseline. Any misstep here can result in massive fines and reputational damage.

Action: Quantify the full-year impact of the Essakane ownership and royalty change on net earnings.

Environmental Factors

Environmental management is a major capital and operational expense. The industry-wide focus on the safe management and long-term stability of tailings storage facilities (TSFs) post-failure events elsewhere means IAMGOLD must allocate significant capital to robust TSF management and financial assurance for mine closure plans.

Climate change is already impacting water availability and management, particularly at the Essakane operation in a water-stressed region. This risk can lead to production cuts if water permits are restricted or if drought conditions are more frequently occuring. There is also increasing pressure to reduce greenhouse gas (GHG) emissions from large-scale mining equipment, which means higher costs for electrification or new, more efficient equipment over time.

Action: Review the financial assurance provisions for mine closure plans to ensure they fully cover future rehabilitation costs.

IAMGOLD Corporation (IAG) - PESTLE Analysis: Political factors

High security risk in Burkina Faso impacting the Essakane mine operations

The political instability and high security risk in Burkina Faso remain the single largest operational headwind for IAMGOLD's Essakane mine. This is not a theoretical risk; it translates directly into higher costs and operational complexity. Essakane is located near the volatile Tri-border region (Burkina Faso, Mali, Niger), a hotspot for terrorist activity, making logistics and personnel movement critically difficult.

The escalating insecurity has dramatically inflated the mine's operating expenses. Here's the quick math: the All-in Sustaining Cost (AISC) for Essakane is projected to be between $1,675 and $1,825 per ounce for the 2025 fiscal year, up from $1,625 in 2024. This cost increase is largely driven by necessary security measures, including the deployment of government security forces to escort fuel and equipment convoys.

While the mine continues to operate, this political environment introduces significant uncertainty. IAMGOLD expects Essakane's attributable gold production for 2025 to be in the range of 360,000 to 400,000 ounces.

Stable, predictable regulatory environment in Ontario, Canada, supporting the Côté Gold project

The contrast between IAMGOLD's West African and Canadian operations is stark, offering a natural hedge against political risk. The Côté Gold mine in Ontario, Canada, benefits from a mature and predictable political and regulatory framework. The project achieved commercial production in August 2024, marking a major shift in the company's risk profile toward a stable jurisdiction.

Ontario is Canada's leading gold-producing province, accounting for 43% of the country's total gold production in 2023. The provincial government actively supports the mining sector, with initiatives like the 'One Project, One Process' aimed at streamlining the mine approval and permitting process. This stability allows for long-term planning and capital investment with confidence. The Côté Gold project, a joint venture where IAMGOLD holds a 70% interest, has a long history of regulatory compliance, including a Federal Decision Statement issued in 2019 and a Provincial Notice of Approval from 2016.

Government-imposed restrictions on gold exports or currency repatriation in West African nations

Resource nationalism is a clear and present danger in West Africa, and Burkina Faso's military-led government has taken concrete steps to increase state control over the gold sector. This directly impacts the repatriation of profits and the overall business model for foreign operators like IAMGOLD.

Key political actions impacting the Essakane mine include:

• The new Mining Code, adopted in August 2024, which increased the government's mandatory free-carried interest in mining projects from 10% to 15%.
• A ban on all raw gold exports, announced in May 2025, as part of a strategy to regulate the sector, nationalize the gold supply chain, and potentially back a new sovereign currency.
• The declaration of a record Essakane dividend of approximately $855 million in 2025, with IAMGOLD's net portion being about $680 million. This payment is being made through a revised framework, which, while unlocking significant cash for IAMGOLD, underscores the government's direct involvement in cash flow management.

This is a defintely material change to the operating environment.

Geopolitical tensions increasing sovereign risk premiums for non-Canadian assets

The convergence of political instability and resource nationalism across the Sahel region has significantly increased the sovereign risk premium applied to IAMGOLD's non-Canadian assets. The military-led governments in the Alliance of Sahel States (AES)-Burkina Faso, Mali, and Niger-are actively pursuing monetary sovereignty, including exploring a single regional currency to replace the CFA franc, a move that signals a deeper political and economic divergence from traditional Western partners.

Investors are now reallocating capital toward politically stable jurisdictions. The resolution of the Barrick Gold Corporation dispute with Mali's government in November 2025, which involved a $1 billion revenue write-off for Barrick, serves as a recent, concrete example of how sovereign risk materializes into financial costs in the region. Burkina Faso's elevated risk profile is clear, as the country was responsible for approximately a fifth of all terrorism deaths globally in 2025.

This geopolitical backdrop necessitates a higher discount rate for Essakane in any Discounted Cash Flow (DCF) valuation model. Here is a summary of the political risk contrast:

The clear action here is to fully fund the Canadian growth pipeline, especially Côté Gold, to rebalance the portfolio away from this elevated West African political risk.

IAMGOLD Corporation (IAG) - PESTLE Analysis: Economic factors

The economic landscape for IAMGOLD Corporation in 2025 is a story of two powerful, offsetting forces: a surging gold price environment that is delivering record revenue, but also persistent, upward-creeping inflationary pressure on operating costs. You need to focus on margin protection and capital discipline now that the major growth project is complete.

Gold price volatility directly impacts revenue; every $100/oz change is significant.

Gold's role as a safe-haven asset has been a major tailwind this year. IAMGOLD's average realized gold price for the third quarter of 2025 was a strong $3,492 per ounce, significantly above the initial 2025 guidance assumption of $2,500 per ounce. This high price environment is the primary driver of the company's financial strength. Here's the quick math: with the full-year attributable production guidance set between 735,000 and 820,000 ounces, a sustained $100 per ounce change in the gold price can swing annual revenue by approximately $77.75 million (based on the midpoint of the guidance). That's a massive impact on your bottom line. You defintely need to keep a close eye on geopolitical stability and central bank buying trends, which are the main drivers right now.

High capital expenditure (CapEx) for the Côté Gold project completion, straining near-term cash flow.

The capital strain from building the flagship Côté Gold Mine is finally easing, shifting the focus from expansion CapEx to sustaining CapEx. The project successfully reached full nameplate production capacity in June 2025. The total 2025 capital expenditure guidance was recently updated to approximately $335 million, with the majority now classified as sustaining capital (92%). This is a good sign, as capital is now being spent to maintain production, not build it. The payoff is clear: IAMGOLD generated a record mine-site free cash flow of $292.3 million in the third quarter of 2025, which helped reduce net debt to $813.2 million.

The CapEx breakdown for the year shows where the money is going:

• Total 2025 Capital Expenditure Guidance: $335 million
• Sustaining Capital at Côté Gold (Attributable): Approximately $110 million
• Expansion Capital (Non-recurring plant improvements): Includes a $20 million increase for Côté

Inflationary pressure on operating costs (All-in Sustaining Costs, or AISC) for fuel and labor.

Inflation is hitting the mining sector hard, pushing up the All-in Sustaining Costs (AISC), which is the true cost of production. The full-year 2025 consolidated AISC guidance was revised upwards to the top end of $1,830 to $1,930 per ounce sold. This is a notable jump from the original guidance range of $1,625 to $1,800 per ounce.

The increase stems from a few key areas:

• Higher royalties paid due to the record realized gold prices.
• A revised royalty structure at the Essakane mine.
• Higher unit costs at Côté Gold during its ramp-up, including contracted crushing and maintenance.

This means your operating margin is being squeezed, even with high gold prices. You must focus on operational efficiencies to counter this cost creep.

Currency fluctuations, especially the Canadian Dollar (CAD) versus the US Dollar (USD), affect reporting.

As a Canadian-based company reporting in US Dollars, the USD:CAD exchange rate is a critical factor. The initial 2025 guidance was based on an assumed USD:CAD rate of 1.35. However, the actual rate in late November 2025 is around 1.41 CAD per 1 USD.

A weaker Canadian Dollar (higher USD:CAD rate) is a net benefit for IAMGOLD's Canadian operations (Côté and Westwood). It means that local operating costs, like Canadian labor and supplies, are cheaper when translated back into the company's reporting currency (USD). This favorable currency movement helps to partially offset the inflationary pressures seen in local costs.

The table below summarizes the key economic metrics for 2025, showing the clear benefit of the realized gold price against the rising cost structure.

IAMGOLD Corporation (IAG) - PESTLE Analysis: Social factors

Managing community relations and local employment expectations in remote operating areas is critical.

IAMGOLD Corporation's ability to maintain its license to operate hinges on successful community engagement, especially at the large-scale Côté Gold mine in Northern Ontario and the Essakane mine in Burkina Faso. This isn't just a compliance issue; it's a core operational risk. In Canada, the Côté Gold operation has established Impacts and Benefits Agreements (IBAs) with the Mattagami First Nation and Flying Post First Nation, plus the Métis Nation of Ontario, Region 3. These agreements ensure a formal mechanism for employment, training, and, crucially, resource revenue sharing, which directly addresses local expectations for economic participation.

For instance, a key contractor and the Mattagami First Nation finalized an agreement in March 2025 that includes a revenue-sharing plan and a direct contribution of $481,000 for community initiatives. This type of concrete, local investment is what builds trust and defintely reduces the risk of operational disruption.

Increased demand from investors for transparent Environmental, Social, and Governance (ESG) reporting.

The market's focus on non-financial performance is intense, and investors are demanding granular data to assess long-term risk. IAMGOLD responded by releasing its 2024 Sustainability Report on May 6, 2025, aligning its disclosures with major frameworks like the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB). This transparency is non-negotiable for attracting institutional capital.

The company tracks key social metrics that directly influence its risk profile and investor sentiment. Here's the quick math on recent performance as of Q3 2025:

Labor availability and skill shortages, particularly for the highly technical Côté Gold operation in Northern Ontario.

The Côté Gold mine is a technological marvel, utilizing autonomous haul trucks and drills, but this advanced technology requires a highly specialized workforce. Securing and retaining this talent in the remote Northern Ontario region is a major challenge, especially given the broader skilled labor shortage in the North American mining sector.

To combat the talent crunch, IAMGOLD is investing directly into the pipeline. In Q1 2025, the company renewed a partnership with Laurentian University, committing C$2.5 million over five years to the IAMGOLD President's Fund for Innovation. This fund is designed to foster education and research, effectively helping to train the next generation of technical staff needed for operations like Côté. Still, the pressure from labor costs is real, so the company's 2025 cost guidance was revised upward partly due to higher local spending, which includes community programs and labor incentives.

Social unrest and local opposition to mining activities, especially concerning land use in developing nations.

Operating in developing nations exposes the company to elevated political and social risks, which can translate into direct financial impacts. The Essakane mine in Burkina Faso, a region facing a decade-long Islamist insurgency, is a prime example where more than 40% of the country is outside government control. This instability creates a constant threat of supply chain disruption and requires increased security expenditures.

Moreover, the government of Burkina Faso increased its interest in the Essakane mine from 10% to 15% in 2025, which is a form of equity dilution that impacts IAMGOLD's attributable production and cash flow. To be fair, the company successfully repatriated $154 million of cash up to November 4, 2025, following the declaration of a record Essakane dividend of approximately $855 million in June 2025, demonstrating that a constructive, albeit high-risk, relationship is being maintained.

• Maintain security protocols at Essakane to counter regional instability.
• Manage the financial impact of the 5% government interest increase at Essakane.
• Continue dialogue with Indigenous partners in Canada to uphold IBA commitments and prevent land-use opposition.

IAMGOLD Corporation (IAG) - PESTLE Analysis: Technological factors

Adoption of autonomous haulage and drilling systems at Côté Gold to optimize productivity and lower long-term labor costs.

You can't talk about IAMGOLD Corporation's future without starting with the Côté Gold mine's technological backbone. This project is a game-changer, designed to be Canada's first fully autonomous haulage and drilling mine, which is defintely a huge step forward for the company.

The core strategy here is to trade high, variable labor costs and human-error risk for predictable, continuous equipment productivity. As of 2025, the autonomous fleet is fully commissioned, featuring a total of 21 Caterpillar 793F autonomous haul trucks and a fleet of Epiroc Pit Viper rigs, all controlled from an Integrated Operations Centre (IOC) on-site. The ramp-up has been successful, with the processing plant reaching its nameplate throughput capacity of 36,000 tonnes per day (tpd) on average over 30 consecutive days in June 2025. This consistent, high throughput is a direct result of the autonomous systems running 24/7 within optimal operating parameters.

Here's the quick math: predictable machine operation means less unscheduled downtime and reduced truck maintenance, which directly lowers the All-in Sustaining Costs (AISC) in the long run. For 2025, the Côté Gold mine's attributable production is expected to be in the range of 250,000 to 280,000 ounces (IAMGOLD's 70% share), with cash costs projected between $1,100 and $1,200 per ounce sold. This low-cost, high-volume production profile is only possible because of this automation technology.

Use of advanced data analytics for predictive maintenance to minimize costly downtime at aging assets like Essakane.

While Côté Gold is the shiny new asset, the older, high-volume Essakane mine in Burkina Faso still needs continuous operational efficiency gains. Essakane faces higher operating costs-its 2025 cash costs are expected to be in the range of $1,600 to $1,700 per ounce sold, a significant jump from Côté Gold. This is where advanced data analytics and predictive maintenance (PdM) become mission-critical.

The industry is moving fast: over 60% of gold mining firms planned to implement AI-driven predictive maintenance by 2025. The goal is simple: use sensors and machine learning to forecast equipment failure, not just react to it. This shift to PdM can reduce mining equipment downtime by up to 30% and cut overall maintenance costs by up to 20% across the sector. Applying this aggressively at Essakane, especially on crushers, conveyors, and haulage equipment, is a clear action to stabilize and lower those high unit costs.

Need for continuous investment in digital security to protect operational technology (OT) systems from cyber threats.

The reliance on autonomous fleets and Integrated Operations Centres (IOCs) at Côté Gold creates a new, serious risk: cyber vulnerability for Operational Technology (OT) systems. These are the systems that physically control the drills, trucks, and mill. Cyberattacks against critical infrastructure surged by 30% in 2024, so this isn't a theoretical risk anymore.

IAMGOLD must ensure a significant portion of its capital expenditure (capex) is ring-fenced for digital security. The company's total 2025 capital expenditure is estimated in the mid-$300 million area, with $150 million allocated to Côté Gold (IAMGOLD share), and a portion of this must go to robust OT cybersecurity. The regulatory environment is tightening, too; the US CISA is expected to issue the final rule of the Cyber Incident Reporting for Critical Infrastructure Act (CIRCIA) in October 2025, which will set a precedent for critical infrastructure reporting globally.

The action here is clear: invest in a separate, secure network for the OT systems, not just the IT systems.

Innovations in processing technology to improve gold recovery rates from complex ore bodies.

The processing plant's technology is the final determinant of how much gold you actually sell. IAMGOLD's Côté Gold is already demonstrating strong performance, with the recovery rate reaching 93% in the third quarter of 2024, a solid improvement from 80% earlier in the year as the plant ramped up. This is a great sign.

The new generation of processing technology, like High-Pressure Grinding Rolls (HPGR), is proving its worth globally. When paired with flotation and ultrafine grinding, HPGR technology can enhance gold recovery rates by an average of 12% and reduce energy consumption by up to 10% compared to traditional mechanical methods. Continuous process optimization and the planned installation of an additional secondary crusher in the fourth quarter of 2025 at Côté Gold are steps to stabilize operations and potentially reduce processing costs further.

Here is a snapshot of key technological performance metrics for 2025:

IAMGOLD Corporation (IAG) - PESTLE Analysis: Legal factors

Strict adherence to Canadian federal and provincial permitting requirements for the Côté Gold mine expansion

You need to appreciate that operating a major new mine in Canada means navigating a constantly scrutinized legal landscape. Côté Gold, a joint venture where IAMGOLD holds a 70% interest, achieved commercial production in August 2024 and reached its nameplate processing capacity of 36,000 tonnes per day by June 2025.

The core legal challenge now is maintaining and adapting the extensive permit portfolio for ongoing operations and planned expansion. For instance, the Closure Plan under the Mining Act has seen multiple amendments, with the latest update noted in June 2024, demonstrating the continuous regulatory oversight. Any future expansion into the large Gosselin zone will require a new round of environmental and construction approvals, a process that is defintely not fast and carries inherent schedule risk.

Here is a snapshot of key Canadian permits that underpin the mine's legal right to operate, with recent activity:

Evolving tax and royalty regimes in West Africa, potentially increasing the government's take from the Essakane mine

The legal and fiscal environment in West Africa, particularly Burkina Faso where the Essakane mine operates, is a major financial risk right now. The government's push to secure a larger share of the resource wealth is clear and already impacting IAMGOLD's bottom line in 2025.

Effective June 20, 2025, the Government of Burkina Faso increased its direct ownership interest in Essakane from 10% to 15%, which consequently reduced IAMGOLD's interest from 90% to 85%. This legally mandated change immediately cuts IAMGOLD's attributable production and cash flow from the asset.

The royalty structure is also tightening significantly. Based on a March 2025 decree, Burkina Faso's progressive royalty scale now includes an additional 1% for every $500 increase in the gold price above the $2,000 per ounce threshold. With gold trading around $3,800 per ounce in late 2025, this progressive structure is a substantial headwind. The impact is visible in the revised 2025 guidance, where Essakane's attributable All-in Sustaining Costs (AISC) were increased to a range of $1,850 to $1,950 per ounce sold, up from the previous range of $1,675 to $1,825 per ounce.

Compliance with international anti-corruption and anti-bribery laws across all jurisdictions

Operating in high-risk jurisdictions like West Africa means IAMGOLD must maintain an iron-clad legal defense against corruption charges. The company's Code of Business Conduct and Ethics, updated in February 2025, explicitly mandates compliance with the U.S. Foreign Corrupt Practices Act (FCPA) and the Canadian Corruption of Foreign Public Officials Act (CFPOA).

This isn't just a paper exercise; it requires continuous, resource-intensive training and auditing. The policy extends to all directors, employees, contractors, and representatives, including those involved in joint ventures. The focus is on preventing even the perception of improper conduct, especially when dealing with foreign public officials.

• Prohibit all forms of bribery and corruption globally.
• Require compliance with CFPOA and FCPA in all government dealings.
• Restrict gifts, meals, and entertainment to nominal value to avoid influence.
• Prohibit the use of Company funds for political contributions.

The cost of compliance is baked into the corporate overhead, but the cost of a single violation-fines, reputational damage, and operational disruption-would dwarf that. It is a non-negotiable legal requirement for a company listed on the NYSE and TSX.

Water usage regulations and permitting are becoming stricter, especially in water-stressed regions

Water is a critical, and increasingly regulated, resource for mining, and the legal requirements are tightening in all operating regions. In water-stressed areas like Burkina Faso, permitting for water extraction and discharge is a major operational constraint.

The industry trend in 2025 is toward more stringent environmental laws, requiring mines to demonstrate responsible water usage, treatment, and transparent reporting. Failure to comply can lead to operational stoppages. IAMGOLD is actively developing a formal Water Management Standard, which signals a corporate response to this increased regulatory pressure and stakeholder expectation.

Even in Canada, which is water-rich, the permitting process is meticulous. A September 2025 application for an exploration permit in Ontario, for instance, specifically details the need to follow provincial standards to minimize environmental impacts from activities like pumping water from nearby lakes and streams for drilling. This shows that the legal focus on water is pervasive, from exploration to full-scale operation.

IAMGOLD Corporation (IAG) - PESTLE Analysis: Environmental factors

Significant focus on the safe management and long-term stability of tailings storage facilities (TSFs) post-failure events across the industry.

The industry-wide catastrophic failures of tailings storage facilities (TSFs) in recent years have fundamentally shifted the environmental risk profile for all miners, including IAMGOLD Corporation. The pressure is intense, and it's not just regulatory; it's a social license to operate issue. To address this, IAMGOLD has adopted a life-of-mine approach to TSF management, covering everything from initial planning and design through to post-closure.

This commitment is formalized through a dedicated TSF governance structure. The Chief Operating Officer (COO) is designated as the Accountable Executive Officer for tailings, which is a clear sign that TSF risk management is a C-suite priority, not just a site-level concern. As of the end of 2023, the Company reported managing a total of seven TSFs, which included:

• Four active TSFs across its operations.
• One inactive TSF.
• Two closed TSFs.

Plus, the first phase of the new TSF at the flagship Côté Gold Mine was completed and ready for use by March 31, 2024. This focus on new, modern facilities like Côté is defintely a risk mitigator, but the long-term stability of all seven facilities remains a critical, ongoing environmental and financial liability.

Pressure to reduce greenhouse gas (GHG) emissions from large-scale mining equipment and power generation.

The transition risk associated with carbon pricing and stakeholder demand for decarbonization is a major factor in 2025. IAMGOLD has responded with clear, measurable targets. They are working to embed an energy and emissions strategy into life-of-mine planning at all operations throughout 2025, aiming for short and medium-term reductions in energy use and costs.

The company has set an ambitious interim goal: an absolute reduction of 30% in Scope 1 (direct) and Scope 2 (indirect from purchased energy) greenhouse gas (GHG) emissions by 2030, using a 2021 baseline. To put this into perspective, their 2023 Scope 1 and 2 emissions totaled 453,038 tonnes of CO2 equivalent (tCO2e). Achieving the 2030 target will require significant capital investment in electrifying mobile equipment and transitioning power sources, especially at the Essakane and Westwood operations.

Here's the quick math on the 2023 emissions breakdown:

Climate change impacting water availability and management, particularly at the Essakane operation.

Water stewardship is a material risk, particularly in West Africa. Unlike the Canadian operations, Côté Gold and Westwood, which are in water-rich regions, the Essakane Gold Mine in Burkina Faso operates in a water-stressed region (the Sahel). This geographical reality makes the mine highly vulnerable to climate change impacts like prolonged droughts and unpredictable rainfall.

IAMGOLD completed a physical climate change risk assessment for Essakane in 2024 to map out these specific hazards. The operational response centers on maximizing water recycling and minimizing freshwater withdrawal. For the 2024 fiscal year, the company's total water consumption across all sites was 36,322 megaliters (ML), but crucially, they recycled 19,993 ML of water. That's a recycling rate of over 55%, which is necessary to maintain social license and operational continuity in arid areas. Essakane also plays a direct community role, having helped provide clean drinking water to over 60,000 people in the region.

Need for robust mine closure and rehabilitation plans with adequate financial assurance.

Regulators and investors are increasingly demanding full financial assurance (collateral) for mine closure and reclamation costs to prevent taxpayers from footing the bill for abandoned sites. This is a significant balance sheet item.

IAMGOLD's closure approach requires providing adequate financial resources for these plans. A recent, concrete example of this liability is the Yatela mine, where the Company funded its portion of the estimated rehabilitation and closure costs with a payment of $18.2 million in 2025. This shows a commitment to closing out legacy liabilities.

For its current operations, the financial assurance requirement is substantial. As of September 30, 2025, the total surety and performance bond requirement for mine closure and rehabilitation is approximately $220.2 million. However, only a small fraction of this is collateralized, which presents a financial risk that could require future cash outlays or restricted capital.

Here is the breakdown of the financial assurance position as of Q3 2025:

The need to increase collateral for these bonds will continue to be a drain on liquidity; the company is already required to increase bonds by C$19.0 million (approximately $13.6 million) cumulatively during the second and third quarters of 2026.