IAMGOLD to buy back half of Franco-Nevada's Côté Gold royalty

IAMGOLD, a Canadian gold producer whose shares trade in Toronto, said on November 5 it will buy back half of Franco-Nevada’s royalty on its Côté Gold mine in Ontario. Franco-Nevada bought that royalty from a private third party in June 2025 for US$1.05 billion in cash. A gross margin royalty is a share of a mine’s gross margin paid to the royalty’s owner; this one will fall from 7.5% to 3.75%.

IAMGOLD estimates the repurchase price at about $525 million, with no currency given. Sumitomo Metal Mining, which owns 30% of the mine, passed on the option, so IAMGOLD, the 70% owner, pays it all.

BNN Bloomberg reported that chief executive Renaud Adams called now the right time, mostly because of the gold price and longer mine life. That matters because higher gold prices push royalty costs up: Mr Adams said royalties average about $370 an ounce this year. Mr Adams also said IAMGOLD is building itself into a Canadian-focused gold producer.

Sources: IAMGOLD · Franco-Nevada · Franco-Nevada Corporation (SEC Form 6-K) · BNN Bloomberg