Iamgold (NYSE: IAG; TSX IMG) share shot up 25% on Tuesday after it sold its latest portion of nearly US$1 billion in assets to build the Côté gold project in northern Ontario.
The Toronto-based miner and developer said today it’s selling its exploration and developments assets in Senegal, Mali and Guinea to Casablanca, Morocco-based Managem for US$282 million.
On Monday it agreed to sell 10% more in the Côté joint venture to partner Sumitomo Metal Mining of Japan for US$340 million following the October sale of its Rosebel gold mine in Suriname to China’s Zijin Mining for US$360 million.
The asset sales almost cover Iamgold’s remaining US$1 billion in costs to construct the Côté project about 125 km southwest of Timmins, according to the company’s third-quarter results. The project is about two-thirds complete, it said.
Jackie Przybylowski, a mining analyst at BMO Capital Markets, called the stake sale to Sumitomo a well-timed bailout that increases the bank’s estimate of the project’s net present value to US$3.4 billion from US$875 million with a 5% discount rate.