Iamgold (TSX: IMG; NYSE: IAG) has revealed a costs blowout at its massive Côté gold project in Ontario, with preliminary estimates from an ongoing risk analysis indicating that development of the asset would require between $1.2 billion and $1.3 billion to complete.
That compares to the company’s previous assessment of between $710 million and $760 million needed and represents an eye-popping 90% cost increase after adjusting the figure for the $78.5 million spent in the first three months of the year.
Unfortunately announcements like these are becoming the norm for new projects. Teck added a cool half billion to capex for Quebrada Blanca in South America.
A minor consolation might be the realised value for commodities may compensate.
