See IAG's publication ("Making the Right Choices") page 8, IAG's own Q & A:
"When do you expect to generate free cash flow?" Answer: 2014.
They do NOT have free cash flow now, and this will get worse with decline in gold price.
IAG also states they will not be spending on development of Cote gold project until 2015.
This publication also states Letwin's philosophy that the sweet spot is making money with low grade gold.