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Senegal approves mining permit for Iamgold's Boto

Canada-based Iamgold (TSX: IMG) says Senegal has approved its mining permit application for the Boto gold project for an initial 20 years, paving the way towards developing one of the company’s “most advanced growth projects”.
Senegal approves mining permit for Iamgold's Boto Senegal approves mining permit for Iamgold's Boto Senegal approves mining permit for Iamgold's Boto Senegal approves mining permit for Iamgold's Boto Senegal approves mining permit for Iamgold's Boto

Iamgold is moving towards a construction decision for Boto in Senegal

Staff reporter

"Work is already underway to obtain approvals for the next steps, supporting either a decision to proceed to full construction or further de-risk prior to construction approval," president and COO Gord Stothard said.

A 2019 optimisation on Boto's 2018 feasibility study put initial capex at US$271 million, on a 100% basis, using a $1,350 an ounce gold price.

The Senegal government owns 10% of Boto.

The optimisation study envisaged production at 160,000oz annually over the first six years of an 11-year mine, with an after-tax NPV (6% discount) of $219 million and IRR of 22.6%.

Stothart was appointed president in November as Iamgold wrapped up a challenging year which included a production guidance downgrade following security issues at Rosebel in Suriname and the impact of seismic issues at Westwood in Canada.  

Miner sells founding asset

The company agreed to sell its founding asset, the Sadiola gold mine in Mali, just prior to Christmas.

Iamgold said it had agreed with joint venture partner AngloGold Ashanti to sell their 41% interests to Allied Gold for US$105 million in cash.

The government holds the remaining 18% of Sadiola.

Iamgold shares have ranged between C$3.08-$5.56 over the past year and closed down 4.2% yesterday as the gold price softened to $4.31.

At that price, it is capitalised just over $2 billion (US$1.5 billion).