Stock Markets April 9, 2026 03:06 PM

Moody's Raises IAMGOLD Rating After Debt Cuts and Cote Gold Reaches Full Production

Upgrade reflects debt reduction, stronger cash flow from Cote Gold and improved liquidity; outlook moved to stable

By Sofia Navarro IMG
Moody's Raises IAMGOLD Rating After Debt Cuts and Cote Gold Reaches Full Production
IMG

Moody's elevated IAMGOLD Corporation's corporate family rating to B1 from B2, citing roughly $515 million of net debt reduction in 2025, full repayment of a $400 million second-lien term loan, and the successful ramp-up of the 70%-owned Cote Gold mine to commercial production. The move accompanies upgrades to probability of default and senior unsecured notes, an improved Speculative Grade Liquidity Rating, and a shift in outlook to stable.

Key Points

  • Moody's upgraded IAMGOLD's ratings and moved outlook to stable.
  • Cote Gold's full production and 2025 debt reduction underpinned the upgrade.
  • IAMGOLD has roughly $1.57 billion in liquidity and expects significant free cash flow through December 2026.

Moody's Ratings announced an upgrade to IAMGOLD Corporation's credit profile on Thursday, moving the corporate family rating to B1 from B2. The agency also raised the probability of default rating to B1-PD from B2-PD and upgraded senior unsecured notes to B2 from B3. Speculative Grade Liquidity was improved to SGL-1 from SGL-2, and the outlook was revised to stable from positive.

Moody's cited two principal drivers behind the rating actions: a material reduction in the company's debt position and the transition of Cote Gold to full production. The Toronto-based miner reduced net debt by approximately $515 million in 2025 and repaid in full a $400 million second-lien term loan, moves the agency highlighted as evidence of improved balance-sheet resilience.

Cote Gold, in which IAMGOLD holds a 70% stake, reached commercial production and delivered a significant portion of the group-wide output in its first full year of operation. In 2025 the mine produced 279,900 attributable ounces of gold, equivalent to 37% of IAMGOLD's total production for the year. Management expects the mine to produce between 270,000 and 310,000 attributable ounces in 2026.

During the 2025 ramp-up period, Cote's cash costs were around $1,200 per ounce, a level Moody's noted as below costs at IAMGOLD's other operations. For 2026 the company projects cash costs for Cote Gold in the range of $900 to $1,050 per ounce, excluding royalties. The mine carries a projected life of more than 15 years.

Moody's report indicates the rating benefit is supported by modest financial leverage, which is expected to remain below 1x, and by the increased exposure to Canada following Cote Gold's contribution to production and cash flow. At the same time the agency flagged several constraints.

Those constraints include IAMGOLD's moderate scale - operating three mines with 720,000 to 820,000 thousand attributable gold ounces expected in 2026 - geopolitical risk tied to its Essakane mine in Burkina Faso, and the relatively short remaining life at Essakane, which is indicated to extend to 2029. Governance factors were also referenced by Moody's, with the agency noting management's recent debt-reduction actions and capital allocation policy as relevant to the upgrade.

Liquidity is another element Moody's assessed. IAMGOLD had roughly $1.57 billion of liquidity against minimal scheduled uses through December 2026. That liquidity package comprises about $423 million in cash at December 2025, roughly $445 million available under a $650 million committed facility that matures in December 2028, and expected free cash flow of around $700 million through December 2026.

The company operates three gold mines: the 70%-owned Cote Gold and the 100%-owned Westwood in Canada, and the 85%-owned Essakane in Burkina Faso. Moody's upgrade reflects the combined impact of stronger operating performance from Cote Gold and tangible progress in lowering leverage, while the agency continues to weigh scale, geopolitical exposure and mine-life profiles when assessing IAMGOLD's rating trajectory.


Key points

  • Moody's raised IAMGOLD's corporate family rating to B1 from B2 and improved related default and note ratings while moving the outlook to stable.
  • The upgrade follows about $515 million in net debt reduction in 2025 and full repayment of a $400 million second-lien term loan, plus Cote Gold reaching full production.
  • IAMGOLD's liquidity position is about $1.57 billion, supported by cash, available facility capacity and forecast free cash flow through December 2026.

Risks and uncertainties

  • Geopolitical risk at the Essakane mine in Burkina Faso could affect production and operations in that jurisdiction.
  • Scale constraints from operating three mines with 720,000 to 820,000 thousand attributable gold ounces expected in 2026 may limit credit flexibility compared with larger peers.
  • Essakane's shorter mine life, indicated to extend to 2029, presents a near-term operational and reserve-timing risk.

Risks

  • Geopolitical exposure at Essakane in Burkina Faso could impact operations or cash flow.
  • Moderate company scale with 720,000 to 820,000 thousand attributable ounces expected in 2026 may constrain flexibility.
  • Short remaining mine life at Essakane through 2029 presents timing and reserve risk.

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