Slide 1: Cash Preservation, Cost Reduction, Disciplined Capital Allocation
Cash Preservation Cost Reduction Disciplined Capital Allocation Steve Letwin President & Chief Executive Officer August 2013 TSX: IMG NYSE: IAG
Slide 2: Cautionary Statement on Forward-Looking Information
Cautionary Statement on Forward-Looking Information All information included in this presentation, including any information as to the Company’s future financial or operating performance, and other statements that express management’s expectations or estimates of future performance, other than state
Slide 3: IAMGOLD's High Quality, Long-Life Assets
IAMGOLD’s High Quality, Long-Life Assets YATELA SADIOLA Senegal ESSAKANE Mali Boto WESTWOOD Siribaya NIOBEC Burkina Faso Val d’Or Suriname MOUSKA Colombia Côté Gold ROSEBEL Peru Niobium Mine Brazil GOLD Mines Development Project Advanced Exploration Exploration Office Six Gold Mines: 2013 Production
Slide 4: Balanced Geographic Portfolio
Balanced Geographic Portfolio Gold Mineral Resources 43% 18% North North America 40% America 30% Africa Africa 42% 27% South South America 4 America 20111 20122 Source: Company disclosure, analyst reports 1Based on December 31, 2011 attributable mineral resources. 2Based on IAMGOLD attributable mine
Slide 5: Priorities
Priorities Cost Reduction Disciplined Capital Allocation Cash Preservation 5
Slide 6: Cost Reduction: Achieved 55% of $100M Target
Cost Reduction: Achieved 55% of $100M Target $54 Operations $22 $40 Exploration $30 $6 Corporate $3 0 10 20 30 40 50 60 Target Achieved to Date 6
Slide 7: 2013 Guidance: Attributable gold production
2013 Guidance Previous Guidance gold production Rosebel (000s oz.) 365 - 385 Attributable Essakane (000s oz.) 255 - 275 Doyon division - Westwood & Mouska (000s oz.)1 130 - 150 Total owner-operated production (000s oz.) 750 - 810 Joint ventures (000s oz.) 125 - 140 Total attributable production (000
Slide 8: 2013 Capital Program
2013 Capital Program1 Development/ ($ millions) Sustaining Expansion Total Rosebel 108 222 130 Essakane 100 200 300 Westwood 20 80 100 Total Gold Segments 228 302 530 Niobec 31 49 80 Corporate and Other 5 - 5 Total Consolidated 264 351 615 Joint Ventures3 30 45 75 Total 294 396 690 1 Capitalized bor
Slide 9: Disciplined Capital Allocation Strategy
Disciplined Capital Allocation Strategy Niobec Expansion Expansion decision to be made when feasibility study and permits are in place NIOBEC WILL NOT MOVE FORWARD WITHOUT A PARTNER TO JOINTLY FUND THE PROJECT Sadiola Waiting for JV partner to decide to proceed WILL NOT PROCEED ALONE REGARDLESS OF P
Slide 10: Return on Capital
Return on Capital 40% 34% 35% 30% IAMGOLD 25% 23% Peers 20% 18% 21% Including: AEM-T ELD-T 15% G-T 13% K-T 14% YRI-T 10% 10% 8% 5% 0% 2009 2010 2011 2012 ROC Calculation: Pre-Tax Earnings from Operations/Capital Pre-tax Earnings* from Operations: Revenue - Mining costs (called cost of sale
Slide 11: Cash Preservation – Liquidity
Cash Preservation – Liquidity June 30, We are committed to preserving our 2013 $millions financial liquidity. Cash & cash $1,358 equivalents 447 $millions 250 Gold bullion 161 at market 500 Unused 500 credit facility 161 Unused Niobec 250 447 facility As at Q2'13 Total 1,358 cash bullion (at market)
Slide 12: Rosebel - A New Power Agreement
Rosebel - A New Power Agreement Rosebel resources Old Agreement New Agreement ~20¢/kWh power Reduced power rate Areas being considered for next expansion: 5% gov’t carried For current and Charmagne equity future operations West Charmagne 170 km2 5% gov’t carried Headley’s Reef Taxes & royalties equi
Slide 13: Rosebel - Suriname
Rosebel - Suriname 2013 Production Guidance 2013 Ongoing Examples of Cost Reduction 365,000 - 385,000 oz. › Reduced: › Equipment standby time through better management of shift changes › Staffing requirements through business process and operating efficiency improvements › Frequency and cost of prev
Slide 14: Essakane – Burkina Faso
Essakane – Burkina Faso 2013 Production Guidance 2013 Ongoing Examples 255,000 - 275,000 oz. of Cost Reduction › Implemented a transition plan to replace more expats with nationals › Consolidated bus contracts to transport employees to and from worksite, 5% reduction in price › Negotiated price disc
Slide 15: Essakane Exploration Focus
Essakane Exploration Focus Falagountou satellite resource 1,383 km2 • >200,000 ounces land • Community Relocation Action Plan approved in position March • Site evaluation drilling commenced in Q2 15
Slide 16: Westwood/Mouska – Quebec
Westwood/Mouska – Quebec Overview 2013 Production Guidance › Westwood plant (refurbished Doyon mill) commenced production Q1 130,000 - 150,000 oz.* › Began processing pre-commercial ore from Westwood (10,000 ozs.) in Q2 › Westwood Mine expected to reach commercial production in October 2013 › Mine p
Slide 17: Westwood – Mineral Reserve and Resource Estimate
Westwood – Mineral Reserve and Resource Estimate As of December 31, 2012: Reserve Estimate Proven reserve of 65Koz @ 7.6 g/t Au Probable reserve of 283Koz @ 13.1 g/t Au -1,000 m Resource Estimate (includes reserves) Measured resource of 67Koz @ 7.5 g/t Au Indicated resource of 466Koz @ 13.0 g/t Au -
Slide 18: Sadiola – Joint Venture in Mali
Sadiola – Joint Venture in Mali Overview › Operating efficiency continues to improve, 2013 Production Guidance mined ore grades exceeded plan for H1 2013 125,000 - 140,000 oz.* (attributable) › 13% higher throughput and better recoveries offset lower grades › Q2 production up 26% from Q1 as throughp
Slide 19: Côté Gold – Well Established Infrastructure
Côté Gold – Well Established Infrastructure Mineral Resource Estimate Effective December 31, 2012 Rail Timmins Roads Tonnes Grade Contained Ounces Power lines (millions) (g/t) (million ozs) 500 kV Indicated 101 CN Rail Power line 0.25 g/t Au cut-off 278 0.86 7.68 Côté Gold 144 Chapleau Property 115
Slide 20: Niobec – Quebec
Niobec – Quebec Overview 2013 Production Guidance › Continued stable mill operations › One of three major producers in the world 4.7 - 5.1 Mkg Nb › Expansion would triple production and increase mine life to 46 years › Completion of feasibility study Q4 2014 Niobium is a scarce metal that strengthen
Slide 21: 2013 Exploration Program - $99.0 Million
2013 Exploration Program - $99.0 Million* Continued focus on: Near-mine development and select greenfields projects in South America and Canada Greenfield Senegal Brazil Côté Gold Brownfield Essakane Targeted reduction in exploration spending for 2013: $40M Rosebel Realized Q2 YTD: $30M $13M green
Slide 22: Advancing Select Greenfield Projects
Advancing Select Greenfield Projects Boto Gold Project - Senegal Maiden resource announced Q2/13 Indicated resource of 1.1M oz. at 1.62 g/t Au Scoping study expected 2014 Pitangui Project - Brazil Plan to complete a mineral resource estimate in Q4/13 subject to the continuation of encouraging infill
Slide 23: Reasons to Invest in IAMGOLD
Reasons to Invest in IAMGOLD Operations Rosebel: New power rates and access to softer, higher grade ore from surrounding JV area Essakane: More grinding and crushing capacity, ore from Falagountou and review of power sources Westwood: Mine ramp up, leads to higher production and lower unit costs Str
Slide 24: Today's Presentation Date: August 2013
Today’s Presentation Date: August 2013 Coming Event: Analyst Day Toronto, Ontario November 7, 2013 Investor Relations Bob Tait Laura Young VP, Investor Relations Director, Investor Relations T: 416-360-4743 T: 416-933-4952 E: info@iamgold.com E: info@iamgold.com TSX: IMG NYSE: IAG