. All monetary amounts are expressed in U.S. dollars, unless otherwise indicated.
. Refer to the annual Management Discussion and Analysis (MD&A) and Audited Consolidated Financial Statements as at December 31, 2017 for more information.

TORONTO, Feb. 21, 2018 /CNW/ - IAMGOLD Corporation ("IAMGOLD" or the "Company") reported its consolidated financial and operating results for the quarter and year ended December 31, 2017.

"It was a year of outstanding accomplishments," said IAMGOLD's President and CEO, Steve Letwin. "Robust operating performance, including record production at Essakane, and continued cost improvements drove gross profit up 50% and we ended the year with $1 billion in liquidity. Exploration results were, and continue to be, exceptional. Gold reserves rose 86% to 14.5 million ounces, as significant increases at Rosebel and Côté Gold were followed by a 1.4 million ounce reserve estimate at our Boto Gold Project. Boto's recent pre-feasibility results indicate the potential for a long-life, low-cost mine. As we deliver on our strategy to increase net asset value per share, our core assets are proving to be significant catalysts for growth. Last month we secured the exploration rights for Brokolonko near Saramacca, another milestone in our consolidation strategy at Rosebel. In 2019, we expect production from Saramacca and potentially heap leaching at Essakane soon after. A ramp-up to full production at Westwood is anticipated in 2020, followed by a potential production start at Côté Gold in 2021."

2017 Highlights
Operating Performance
•Attributable gold production of 882,000 oz at top end of guidance; up 8% from 2016.
•Production from owner-operator sites up 11% from 2016; Record production at Essakane.
•Attributable gold sales of 871,000 oz up 8% from 2016.
•Cost of sales1 of $783/oz sold, down $11/oz from 2016.
•All-in sustaining costs2 of $1,003/oz sold, down $54/oz from 2016.
•Total cash costs2 of $755/oz produced, up $16/oz from 2016.
•Gold margin2 of $506/oz, virtually unchanged from 2016.
•Capital expenditures of $220.5 million within guidance of $225 million ±5%.

Financial Results
•Revenues of $1,094.9 million, up 11% from 2016.
•Gross profit of $152.9 million, up 50% from 2016.
•Net earnings attributable to equity holders of $501.6 million ($1.08 per share), up $449.0 million ($0.95 per share) from 2016 primarily due to impairment reversals at the Côté Gold Project and the Rosebel mine.
•Adjusted net earnings2 attributable to equity holders of $29.3 million ($0.06 per share2), up $25.4 million ($0.05 per share) from 2016.
•Net cash from operating activities of $295.3 million, down $15.8 million from 2016.
•Net cash from operating activities before changes in working capital2 of $294.0 million, up $2.5 million from 2016.
•Cash, cash equivalents, short-term investments in money market instruments, and restricted cash totalling $815.8 million at December 31, 2017, up $53.1 million from December 31, 2016.

Strategic Developments
•As at December 31, 2017 attributable proven and probable gold reserves were 14.5 million ounces; up 86% from the end of 2016. Attributable measured and indicated resources (including reserves) were 24.7 million ounces and attributable inferred resources were 8.8 million ounces; up 6% and 44%, respectively, from the end of 2016.
•Rosebel's attributable reserves increased by 69% from the end of 2016 to 3.3 million ounces as at December 31, 2017, reflecting mine planning optimization and cost reductions enabling access to additional ounces.
•Declared initial resource estimate for the Saramacca gold deposit near the Rosebel mine, comprising 1.0 million indicated ounces grading 2.20 g/t Au and 0.5 million inferred ounces grading 1.18 g/t Au (on a 100% basis). Subsequent infill and expansion drilling results identified additional high-grade intersections. Highlights included; 3.47 g/t Au over 39.0 metres; 4.50 g/t Au over 34.5 metres and 67.39 g/t Au over 6.0 metres. These, together with remaining drill results, will be incorporated into an updated resource model in 2018.
•Completed pre-feasibility study for the Côté Gold Project, with highlights including the conversion of 3.8 million attributable ounces of resources to probable reserves and a 17-year mine life with average annual attributable production of 207,000 ounces and life-of-mine all-in sustaining costs of $689 per ounce sold.
•Completed sale of a 30% interest in the Côté Gold Project to Sumitomo Metal Mining for $195 million and established a (70:30) joint venture.
•Acquired 100% ownership in Merrex Gold Inc., providing us with a 100% interest in the Siribaya Project in Mali.
•Resumed operating at a normal production level at Westwood.
•Amended credit facility, with maturity extended by two years to March 2022 on more favourable terms and the option to add $100 million to the existing fully committed $250 million.
•Refinancing of Senior Notes reduced long-term debt and extended maturity by five-years to 2025.

Subsequent to Year-end
•Granted exploration rights by the Government of Suriname to the Brokolonko property located just northwest of Saramacca, a property believed to be on the same mineralization trend as Saramacca.
•Reported high-grade drilling results from the 2017 drilling program for the Diakha Deposit at the Siribaya Project in Mali. Highlights from infill drilling included 18.0 metres grading 11.06 g/t Au, including 6.0 metres grading 32.45 g/t Au, and from expansion drilling 16.0 metres grading 7.65 g/t Au, including 4.0 metres grading 28.94 g/t Au.
•Announced positive pre-feasibility results for Boto Gold Project in Senegal. As at December 31, 2017, Boto had an estimated 1.4 million ounces of probable reserves grading 1.64 g/t Au. Indicated resources (including reserves) increased by 23% to 1.9 million ounces grading 1.60 g/t Au and inferred resources increased by 375% to 594,000 ounces grading 1.66 g/t Au from the end of 2016. Pre-feasibility highlights include a 13.5-year mine life with life-of-mine average annual production of nearly 100,000 ounces, and all-in sustaining costs of $829 per ounce sold. A feasibility study has been initiated.

Upcoming Growth Catalysts
•Preliminary reserve estimate expected for Saramacca H2/18; integrated scheduling with Rosebel's resources to commence in 2018; production start expected H2/19.
•Completion of pre-feasibility study for Essakane's Heap Leach Project expected Q2/18.
•Commissioning of oxygen plant to improve recoveries at Essakane expected end of 2018.
•Completion of 15 megawatt-peak solar power plant at Essakane expected end of Q1/18.
•Completion of Boto Gold feasibility study expected H2/18.
•Westwood ramp-up to full production expected by 2020.
•Completion of feasibility study at Côté Gold expected H1/19; potential production start 2021.
•Expansion of exploration programs at Saramacca and satellite prospects at Essakane.
•Further exploration at Brokolonko to confirm mineralization and advance to resource stage.

SUMMARY OF FINANCIAL AND OPERATING RESULTS
Three months ended December 31, Years ended December 31,
Financial Results ($ millions, except where noted) 2017 2016 2017 2016
Revenues $ 291.1 $ 252.5 $ 1,094.9 $ 987.1
Cost of sales $ 250.0 $ 233.4 $ 942.0 $ 884.9
Gross profit $ 41.1 $ 19.1 $ 152.9 $ 102.2

Net earnings (loss) attributable to equity holders of IAMGOLD
$ (17.7) $ (5.3) $ 501.6 $ 52.6
Net earnings (loss) attributable to equity holders ($/share)
$ (0.04) $ (0.01) $ 1.08 $ 0.13
Adjusted net earnings (loss) attributable to equity holders of IAMGOLD1
$ (13.8) $ 3.3 $ 29.3 $ 3.9
Adjusted net earnings (loss) attributable to equity holders ($/share)1
$ (0.03) $ 0.01 $ 0.06 $ 0.01
Net cash from operating activities $ 65.2 $ 63.8 $ 295.3 $ 311.1
Net cash from operating activities before changes in working capital1
$ 68.2 $ 62.6 $ 294.0 $ 291.5

Key Operating Statistics
Gold sales – attributable (000s oz) 230 218 871 808
Gold production – attributable (000s oz) 228 215 882 813
Average realized gold price1 ($/oz) $ 1,277 $ 1,190 $ 1,261 $ 1,244
Cost of sales2 ($/oz) $ 802 $ 784 $ 783 $ 794
Total cash costs1 ($/oz) $ 751 $ 740 $ 755 $ 739

All-in sustaining costs1 ($/oz) $ 1,071 $ 995 $ 1,003 $ 1,057
Gold margin1 ($/oz) $ 526 $ 450 $ 506 $ 505

1 This is a non-GAAP measure. Refer to the non-GAAP performance measures section of the MD&A.
2 Cost of sales, excluding depreciation, as disclosed in note 37 of the Company's annual consolidated financial statements is on an attributable ounce sold basis (excluding the non-controlling interests of 10% at Essakane and 5% at Rosebel) and doesn't include Joint Ventures which are accounted for on an equity basis.

FULL YEAR AND FOURTH QUARTER 2017 HIGHLIGHTS

Financial Performance
•Revenues for 2017 were $1,094.9 million, up $107.8 million or 11% from 2016 primarily due to higher sales volume at Westwood ($70.6 million), Essakane ($11.9 million) and Rosebel ($9.6 million), combined with a higher realized gold price ($14.5 million). Revenues for the fourth quarter 2017 were $291.1 million, up $38.6 million or 15% from the same prior year period primarily due to higher sales volume at Westwood ($21.0 million) and Essakane ($4.8 million), and a higher realized gold price ($19.9 million), partially offset by lower sales at Rosebel ($7.6 million).
•Cost of sales for 2017 was $942.0 million, up $57.1 million or 6% from 2016. The increase was due to higher operating costs ($52.1 million), depreciation ($4.1 million) and royalty expense ($0.9 million). Operating costs were higher mainly due to a 73,000 attributable ounce increase in sales at our owner-operator sites, with sales nearly doubling at Westwood and higher sales at both Rosebel and Essakane. Cost of sales for the fourth quarter 2017 was $250.0 million, up $16.6 million or 7% from the same prior year period. The increase was due to higher operating costs ($16.1 million) and royalty expense ($0.5 million) as depreciation remained unchanged. Operating costs were higher primarily due to a 15,000 attributable ounce increase in sales, with Westwood's sales doubling from the same prior year period.
•Depreciation expense for 2017 was $265.4 million, up $4.1 million from 2016, primarily due to higher amortization of capitalized stripping and higher production, partially offset by lower depreciation at Rosebel due to an increase in reserves. Depreciation expense for the fourth quarter 2017 was $68.2 million, unchanged from the same prior year period primarily due to the increase in reserves at Rosebel offset by higher amortization of capitalized stripping.
•Income tax expense for 2017 was $97.6 million, up $64.2 million from 2016. Income tax expense for 2017 comprised current income tax expense of $59.7 million (2016 - $21.7 million) and deferred tax expense of $37.9 million (2016 - $11.7 million). The increase in income tax expense in 2017 was primarily due to differences in the level of taxable income in IAMGOLD's operating jurisdictions from one period to the next and changes in deferred tax assets and liabilities as a result of impairment reversals.
•Net earnings attributable to equity holders for 2017 were $501.6 million ($1.08 per share), up $449.0 million ($0.95 per share) from 2016. The increase was due to impairment reversals relating to the Côté Gold Project and the Rosebel mine ($524.1 million), and higher gross profit ($50.7 million), partially offset by the gain on the sale of gold bullion in 2016 ($72.9 million) and higher income taxes ($64.2 million) in 2017. Net loss attributable to equity holders for the fourth quarter 2017 was $17.7 million ($0.04 per share), up $12.4 million ($0.03 per share) from the same prior year period. The increase was due to higher income tax expense ($31.3 million), partially offset by a higher share of net earnings from investments in associates and joint ventures ($6.2 million), lower foreign exchange loss ($4.7 million), higher interest and other investment income ($3.6 million) and lower finance costs ($2.2 million).
•Adjusted net earnings attributable to equity holders2 for 2017 were $29.3 million ($0.06 per share2), up $25.4 million ($0.05 per share2) from 2016. Adjusted net loss attributable to equity holders for the fourth quarter 2017 was $13.8 million ($0.03 per share2), compared to adjusted net earnings attributable to equity holders of $3.3 million ($0.01 per share2) in the same prior year period.
•Net cash from operating activities for 2017 was $295.3 million, down $15.8 from 2016. The decrease was due to an increase in income tax paid ($33.7 million) and changes in the movement of non-cash working capital items ($18.3 million), partially offset by higher earnings after non-cash adjustments ($36.8 million). Net cash from operating activities for the fourth quarter 2017 was $65.2 million, up $1.4 million from the same prior year period.
•Net cash from operating activities before changes in working capital2 for 2017 was $294.0 million, up $2.5 million from 2016. Net cash from operating activities before changes in working capital2 for the fourth quarter 2017 was $68.2 million, up $5.6 million from the same prior year period.



Financial Position
•We ended the year in a strong financial position with cash, cash equivalents, short-term investments in money market instruments, and restricted cash totalling $815.8 million at December 31, 2017, up $53.1 million from December 31, 2016. The increase was primarily due to net proceeds from the issuance of the 7% Senior Notes ($393.6 million), which extended the term of our debt by five years to 2025. A continued focus on improving costs contributed to the generation of $295.3 million in cash from operating activities. Further, the Company received net proceeds from the sale of a 30% interest in the Côté Gold Project, to form a joint venture with Sumitomo Metal Mining Co., Ltd. ($96.5 million). We also benefited from proceeds from the issuance of flow-through shares ($15.1 million). The increase was partially offset by the redemption of the 6.75% Senior Notes ($505.6 million), and spending on Property, plant and equipment and Exploration and evaluation assets, including capitalized borrowing costs ($234.5 million).



Production and Costs
•Attributable gold production, inclusive of joint venture operations, was 882,000 ounces in 2017, up 69,000 ounces from 2016. The increase was primarily due to the continued ramp-up at Westwood (60,000 ounces), higher throughput at Essakane (12,000 ounces) and Rosebel (6,000 ounces), partially offset by lower grades at Sadiola (7,000 ounces), and the closure of Yatela (2,000 ounces). Attributable gold production, inclusive of joint venture operations, was 228,000 ounces in the fourth quarter 2017, up 13,000 ounces from the same prior year period. The increase was due to the continued ramp-up at Westwood (11,000 ounces) and higher throughput at Essakane (6,000 ounces), partially offset by lower grades at Rosebel (4,000 ounces).
•Attributable gold sales, inclusive of joint venture operations, were 871,000 ounces in 2017, up 63,000 ounces from 2016, primarily due to higher sales at Westwood (57,000 ounces), Essakane (8,000 ounces), and Rosebel (8,000 ounces), partially offset by lower sales at the Joint Ventures (10,000 ounces). Attributable gold sales, inclusive of joint venture operations, were 230,000 ounces for the fourth quarter 2017, up 12,000 ounces from the same prior year period, primarily due to higher sales at Westwood (18,000 ounces) and Essakane (3,000 ounces), partially offset by lower sales at Rosebel (6,000 ounces) and the Joint Ventures (3,000 ounces).
•Cost of sales1 per ounce for 2017 was $783, down 1% from 2016 due to higher sales volume, partially offset by lower capitalized stripping and higher energy costs. Cost of sales per ounce for the fourth quarter 2017 was $802, up 2% from the same prior year period primarily due to higher energy costs, and a weaker U.S. dollar relative to the euro and the Canadian dollar, partially offset by higher sales volume.
•Total cash costs2 per ounce produced for 2017 were $755, up 2% from 2016 primarily due to lower capitalized stripping, and higher energy costs. Total cash costs for the fourth quarter 2017 were $751 per ounce produced, up 2% from the same prior year period primarily due to higher energy costs, and a weaker U.S. dollar relative to the euro and the Canadian dollar.
•The normalization of Westwood's costs was discontinued in the second quarter 2017, and as such, total cash costs for the year ended and fourth quarter 2017 included a reduction of $1 and $nil per ounce, respectively (2016 - $32 and $44 per ounce). Also included in total cash costs for the year ended and fourth quarter 2017 were realized derivative gains from hedging programs of $3 and $7 per ounce, respectively (2016 - losses of $1 and $nil per ounce).
•All-in sustaining costs2 per ounce sold for 2017 were $1,003, down 5% from 2016 primarily as a result of lower sustaining capital expenditures. All-in sustaining costs1 per ounce sold for the fourth quarter 2017 were $1,071, up 8% from the same prior year period primarily as a result of higher sustaining capital expenditures and higher cost of sales.
•As noted above, with the normalization of Westwood's costs discontinued in the second quarter 2017, all-in sustaining costs for the year ended and fourth quarter 2017 included a reduction of $1 and $nil per ounce, respectively (2016 - $33 and $43 per ounce). Also included in all-in sustaining costs for the year ended and fourth quarter 2017 were realized derivative gains from hedging programs of $4 and $9 per ounce, respectively (2016 - losses of $1 and $nil).



Commitment to Zero Harm Continues
•The DART rate3, representing the frequency of all types of serious injuries across IAMGOLD, was 0.52 in 2017, below our target of 0.56. We regret the fatality of an employee at the Westwood mine during the first quarter of 2017.



2018 GUIDANCE

Refer to the January 16, 2018 news release

Attributable Gold Production - 850,000 to 900,000 oz

Costs
Cost of Sales1/oz $765 - $815
Total Cash Costs2/oz produced $750 - $800
All-in Sustaining Costs2/oz sold $990 - $1,070

Attributable gold production in 2018 is expected to trend upwards in the second half of the year. Westwood will continue to focus on underground development, with 125,000 to 135,000 ounces expected for the year. Rosebel's higher grades and improving productivity are expected to drive production higher (295,000 to 310,000 expected) despite lower throughput anticipated with the proportion of hard rock approaching 60%. At Essakane (380,000 to 395,000 ounces expected), grades and recoveries are expected to increase while throughput is expected to be lower than the record throughput in 2017. The Sadiola Joint Venture is expected to produce between 50,000 and 60,000 ounces. With the continued focus on performance optimization and cost reductions across the sites, we expect total cash costs2 and all-in sustaining costs2 per ounce to trend downwards in the second half of the year.

Capital Expenditures - $365 million ± 5%

Capital expenditures in 2018 are expected to be significantly higher than the $220.5 million spent in 2017 as a result of advancing multiple growth projects as outlined below in the non-sustaining capital section.

Sustaining Capital - $140 million - Consistent with 2017 spending.

Sustaining capital guidance of $140 million is similar to 2017. While total capitalized stripping of $45 million is expected to be at a level similar to 2017, an increase is expected at Essakane reflecting higher mining activity at Falagountou, with an offsetting decrease expected at Rosebel as strip ratios decrease as the ore body is reached in active phases. Rosebel's strip ratios are expected to be higher in 2019.

Non-Sustaining Capital (Development/Expansion) - $225 million - Advancing growth projects.

Non-sustaining capital guidance of $225 million includes $85 million at Rosebel, predominantly for initial development work at Saramacca, with a production start expected in the second half of 2019; $75 million at Essakane, which includes an initial $30 million for the Heap Leach Project, with construction expected to commence in the second half of 2018; and $45 million at Westwood primarily for expansion/ramp-up development. The $15 million for corporate and development projects is primarily related to the Côté Gold Project feasibility study targeted for completion in the first half of 2019. The $5 million for Sadiola includes previous commitments related to the Sulphide Project. Capital spending estimates could be updated throughout the year as additional studies are completed.

Depreciation

Depreciation expense in 2018 is expected to be between $275 and $285 million.

Income Taxes

Cash taxes in 2018 are expected to range between $40 and $55 million. Additionally, adjustments to deferred tax assets and/or liabilities may be recorded during the year.

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