Iamgold Corporation · TSX:IMG
Iamgold — Conference Call — Call Presentation (July 2020)
50 slides from Iamgold's conference presentation, Jul 21, 2020
Slide 1: The Time is Now: Côté Gold
The Time is Now: Côté Gold July 21, 2020 TSX: IMG l NYSE: IAG
Slide 2: Management Participants
Management Participants • Gordon Stothart President & Chief Executive Officer • Carol Banducci Executive Vice President & Chief Financial Officer • Bruno Lemelin Senior Vice President, Operations & Projects • Craig MacDougall Senior Vice President, Exploration • Jeffery Snow Senior Vice President, B
Slide 3: Cautionary Statement
Cautionary Statement All information included in this presentation whether in narrative or chart form, 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 s
Slide 4: Technical Information and Qualified Persons
Technical Information and Qualified Persons The mineral reserve and resource estimates contained in this presentation have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). Mineral resources that are not mineral reserves do not ha
Slide 5: Transformational, Rare, Valuable
TRANSFORMATIONAL RARE VALUABLE July 21, 2020 5
Slide 6: Transformational Value in Canada
Transformational Value in Canada CÔTÉ GOLD - HIGHLIGHTS • NPV of $2.0B and IRR of 22.4% at US$1,700 / oz gold1,2 ONTARIO QUÉBEC • NPV of $1.1B and IRR of 15.3% at US$1,350 / oz gold1,2 • Annual gold production 469 koz at $693 / oz AISC, first 6 years2 • 18+ year potential mine life2 Kapuskasing Timm
Slide 7: Transformational to IAMGOLD's Production Profile
Transformational – to IAMGOLD’s Production Profile • Contributes to Lower All-in Sustaining Costs1 GEOGRAPHIC SPLIT OF • $771 / oz LOM (at $1,350 / oz gold)1; First 6 years = $693 / oz1 PRODUCTION • Increases Production Profile1 South America North America Africa • Average 363 koz / year1,2 over 18
Slide 8: 2020 Global Industry AISC Cost Curve
2020 Global Industry AISC Cost Curve CÔTÉ DELIVERS ROBUST ECONOMICS SUPPORTED BY AN ATTRACTIVE 2ND QUARTILE AISC PROFILE1 $2,500 1ST QUARTILE 2ND QUARTILE 3RD QUARTILE 4TH QUARTILE 2020E All-in Sustaining Costs (AISC, US$/oz) $2,000 Rosebel2 Essakane2 Westwood2 $1,500 BOTO (2020 FS) $1,000 $842 2020
Slide 9: A Meaningful Production Profile
A Meaningful Production Profile ONE OF THE LARGEST UNDEVELOPED GOLD ASSETS IN NORTH AMERICA WITH DISTRICT SCALE POTENTIAL 663 (Annual Gold Production, kozpa) 602 Operating Asset Development Stage 469 410 413 350 363 337 343 345 282 288 289 265 269 218 219 225 200 200 207 210 175 188 142 UG OP UG UG
Slide 10: A Rare Development Asset…
A Rare Development Asset… LONG LIFE: OVER 7MOZ OF CONTAINED GOLD RESERVES IN MINING-FRIENDLY CANADA PROVIDE GEOGRAPHIC DIVERSITY 70 Gold Development Assets – Throughput vs. Contained Reserves 100% Basis 60 50 Throughput (ktpd) 40 30 20 Boto 10 - - 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 Contained R
Slide 11: Valuable – in the Marketplace
Valuable – in the Marketplace KIRKLAND LAKE / DETOUR AGNICO & YAMANA / MALARTIC 3.7B 3.5B 1.3B 1 2 US$ US$ US$ Purchase by Kirkland Lake of Purchase by Agnico-Eagle To build Côté – 100% basis Detour Gold, offered Nov 25, and Yamana Gold of Osisko’s (IMG portion US$0.9B): 2019. Malartic, offered Apr
Slide 12: Valuable – to All Stakeholders
Valuable – to All Stakeholders C$ 10B* C$ 5B* In estimated economic activity In wages forecast through direct during the mine’s operations and indirect job creation 450* Full time, well paying jobs IAMGOLD will be working closely with anticipated during operations and Indigenous and Northern communi
Slide 13: Côté Gold – Ready to Build
Côté Gold – Ready to Build FINANCIAL CAPACITY, BUILD EXPERTISE, COMMITTED PARTNER, ADVANCED DESIGN, KEY PERMITS IN HAND Site Prep / EPCM Financing Engineering Permitting & Contracts • Liquidity of $1.3B (Q1/20) • Detail engineering on project • Impacts and Benefits • 450,000 hours of early • Cash ov
Slide 14: Côté Gold – Ready to Build
Côté Gold – Ready to Build SITE PREPARATION CHESTER CAMP - 264 MAN CAMP TREE CLEARING – 456 HECTARES COMPLETED July 21, 2020 14
Slide 15: Financing Strategy
Financing Strategy This is the master for a divider page. In order to use a different photo in you presentation, copy all the elements from this page (except the logo, date and page number) and paste it onto a new “Blank” slide in your document. Insert your new picture, crop it to the same side as t
Slide 16: Financing Strategy – Conservative, Appropriate
Financing Strategy – Conservative, Appropriate FINANCIAL STRATEGY AND GOVERNANCE: • Maintain conservative balance sheet ratio of less than 1.5x Net Debt / Equity • Minimum cash balance: $200M • Limit volatility of input costs • Maintain significant leverage to gold price EXECUTION: • Opportunistical
Slide 17: Project Overview
Project Overview This is the master for a divider page. In order to use a different photo in you presentation, copy all the elements from this page (except the logo, date and page number) and paste it onto a new “Blank” slide in your document. Insert your new picture, crop it to the same side as the
Slide 18: Our Partner
Our Partner SMM OVERSEAS CORE FACILITIES3 • Sumitomo Metal Mining Co., Ltd. (“SMM”) is a Tokyo, Japan-based mining company with $8.2 billion in annual revenues1 and market capitalization of approximately $8.4 billion2 • SMM is a global leader in the development and mining of non-ferrous metals • SMM
Slide 19: Côté Gold – Key Project Notes
Côté Gold – Key Project Notes OVERVIEW RESERVE AND RESOURCE1 (100% Basis) Location • Gogama, Ontario, 130 km Contained southwest of Timmins; 200 km Tonnes Grade Ounces northwest of Sudbury (000) (g/t) (000 Au) • Land package covering 500 km2 Proven & Ownership • 92.5% JV (70:30 IAMGOLD/SMM); 233,000
Slide 20: Côté Gold – Key Project Notes (Continued)
Côté Gold – Key Project Notes (Continued) SUMMARY OF PROJECT METRICS1,2 (100% Basis) METRIC3 FS Extended Case @ $1,250 Go-forward Update @ $1,350 Go-forward Update @ $1,700 Mining: open pit; Mine Capacity: 70 Mtpa Mine Capacity: 70 Mtpa Mine Capacity: 70 Mtpa Process: crush, grind, gravity, leach, C
Slide 21: Sensitivity to Gold Price – Project Economics
Sensitivity to Gold Price – Project Economics 100% Project Basis - After Tax (Including Equipment Financing) Gold Price NPV 5% Payback IRR $ / oz (US$B) (Years) (%) 2,000 2.8 2.2 27.6 1,900 2.5 2.3 25.9 1,800 2.3 2.4 24.2 1,700 2.0 2.6 22.4 1,600 1.8 2.9 20.5 1,500 1.5 3.2 18.6 1,400 1.3 3.6 16.4 1,
Slide 22: Capital Cost Breakdown
Capital Cost Breakdown IAMGOLD (70%) Expected Go – Forward Initial Capital INITIAL CAPITAL COSTS (US$M) $875M - $925M Contingency, 6% Escalation 2021-22, 2% Tailings Management Facility, 10% Processing plant, 28% Owner cost, 3% On-site Infrastructure, 7% Off site Facilities, 2% Ops Readiness, 1% Ind
Slide 23: Capex Variances Between FS and Today
Capex Variances Between FS and Today Cost Impact Category Main Variances ($M US) Labor rate underestimated based on bids received (Earthwork) 42 M Additional site services and early works required 12 M FS Adjustments Construction period increased based on more conservative schedule & seasonal impact
Slide 24: De-risking Côté – 55% of Pricing Secured
De-risking Côté – 55% of Pricing Secured Category Portion of Secure Pricing Portion of Remaining cost up to September 2020 to Secure after September 2020 Owner cost 48% 52% Off Site Facilities 52% 48% Ops Readiness 2% 98% Processing plant 38% 62% Indirect Cost 65% 35% Mining (incl. lease) 83% 17% On
Slide 25: Autonomous Deployment
Autonomous Deployment 8 CAT SITES RUNNING TODAY COST DRIVERS (5 Australia, 2 Canada, 1 Brazil) • Reduction in number of trucks because of higher utilization 3 sites run • All downstream savings tied with that reduction 1-25 trucks • Fewer drivers, • Reduced camp size, 2 sites run • Reduced insurance
Slide 26: July 21, 2020
1. https://magazine.cim.org/en/news/2018/teck-launches-autonomous-haul-truck-pilot-at-hvc/ 2. https://im-mining.com/2019/04/02/autonomous-trucks-pilot-highland-valley-copper-run-end-2019/ 3. https://www.zdnet.com/article/rio-tinto-preparing-for-the-mine-of-the-future-with-automation/ 4. https://im-m
Slide 27: Planned Production Schedule – Grade and Ounces
Planned Production Schedule – Grade and Ounces (100% basis)1 Expected Recovered Gold Ounces and Average Feed Grade* 700 1.60 1.50 1.40 600 Expected Recovered Gold Ounces (koz) 1.30 Expected Average Feed Grade (g/t) 1.20 500 1.10 1.00 Mining ends 400 0.90 0.80 300 0.70 0.60 0.50 200 0.40 0.30 100 0.2
Slide 28: Côté Gold - Project Timeline
Côté Gold - Project Timeline1 CONSTRUCTION* OPERATION** FINAL CLOSURE** 2.6 years 18+ years 2 years 2020–2023 2023–2041 2041–2042 *Figures reflect Extended Mining Plan. Refer to cautionary language. **Reserve and Resource extensions have not been factored into these dates. 1. Forward-looking stateme
Slide 29: Community and Environment
Community and Environment This is the master for a divider page. In order to use a different photo in you presentation, copy all the elements from this page (except the logo, date and page number) and paste it onto a new “Blank” slide in your document. Insert your new picture, crop it to the same si
Slide 30: Responsible Mining
Responsible Mining IT’S ABOUT COMMUNITY, TECHNOLOGY & PARTNERSHIP Community Technology Partnership Mining creates communities Technology supports the sustainability of the Partnership with stakeholders enables a • Long life mines with exploration potential mining business and diversity in employment
Slide 31: Community Relations
Community Relations INDIGENOUS • Impacts and Benefits Agreement (IBA) signed with local First Nations, Mattagami and Flying Post First Nations • Memorandum of Understanding (MOU) signed with Métis Nation of Ontario. • IAMGOLD will be working closely with Indigenous and Northern communities as we bui
Slide 32: Strong Stakeholder Engagement
Strong Stakeholder Engagement Côté Oversight Committee: IAMGOLD, SMM Impacts and Benefits Agreement Signed Tree Clearing Team Water Ceremony Conducted with First Nations Partners July 21, 2020 32
Slide 33: Permitting
Permitting Federal/ Provincial Forestry Fisheries Received / Section 35 Environmental Closure Transmission Ontario Resource Act Sec 36 / Fisheries Approved Assessment Plan Line Energy Board License Sched 2 Act Approval (MDMER)* Lakes and Rivers Environmental Compliance Required for Lakes and Rivers
Slide 34: Project Execution
Project Execution This is the master for a divider page. In order to use a different photo in you presentation, copy all the elements from this page (except the logo, date and page number) and paste it onto a new “Blank” slide in your document. Insert your new picture, crop it to the same side as th
Slide 35: Timeline
Timeline1 TMF Phase 1 Complete Construction Process Approval Major Building Commercial Production Earthworks Enclosed Start Commissioning Full Production Construction Completed Achieved Start 2020 2021 2022 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1. Forward-looking stat
Slide 36: COVID-19 Management During Construction
COVID-19 Management During Construction • Manage Access to Site • Limit Exposure Risk • Sanitation and Monitoring • Incorporate Lessons Learned and Best Practices July 21, 2020 36
Slide 37: Construction Labour Ramp-Up
Construction Labour Ramp-Up1 Cote Project – September 30, 2020 to April 30, 2023 1500 Number of Personnel on Site 1350 1200 1050 900 750 600 450 300 150 0 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Reduced risk of transmission during early stages of construction: •
Slide 38: Geology and Exploration
Geology and Exploration This is the master for a divider page. In order to use a different photo in you presentation, copy all the elements from this page (except the logo, date and page number) and paste it onto a new “Blank” slide in your document. Insert your new picture, crop it to the same side
Slide 39: Côté Gold Geological Setting
Côté Gold Geological Setting • Property: >500km2 located along South- Western extension of the prolific Abitibi Belt • Swayze GSB cut by the regionally extensive Rideout Deformation Zone • History: Numerous high-grade vein and shear zone hosted deposits / prospects some with limited UG production •
Slide 40: Exploration Potential
Exploration Potential GOSSELIN, YOUNG-SHANNON 1.5 KM NORTHEAST OF CÔTÉ Gosselin Drill Hole Highlights • GOS19-17: 342.5 metres grading 0.98 g/t Au • includes: 225.0 metres grading 1.34 g/t Au • GOS19-24: 412.0 metres grading 1.28 g/t Au CONCEPTUAL PLAN • includes: 221.4 metres grading 1.47 g/t Au Ex
Slide 41: Next Steps
Next Steps Mineralization similar to Côté and preliminary metallurgical testing indicates similar recoveries Delineation drilling programs advancing to support a Mineral Resource Estimate of Gosselin and evaluate the resource potential the Young-Shannon Zone Completion of a Maiden resource estimate
Slide 42: Transformation of IAMGOLD
Transformation of IAMGOLD This is the master for a divider page. In order to use a different photo in you presentation, copy all the elements from this page (except the logo, date and page number) and paste it onto a new “Blank” slide in your document. Insert your new picture, crop it to the same si
Slide 43: Geographically Balanced, Lower Cost, Operational Flexibility
Geographically Balanced, Lower Cost, Operational Flexibility GOALS: STRATEGIC FOCUS: • Lower consolidated costs / increase margins • Achieve self-funding at each operating site • Increase gold production • Sequence development of organic growth projects • Increase operational flexibility • Commence
Slide 44: Its time is now.
TRANSFORMATIONAL RARE VALUABLE Its time is now. July 21, 2020 44
Slide 45: Appendix
Appendix s# IAMGOLD July 21, 2020 45
Slide 46: Experienced Open Pit Operators
Experienced Open Pit Operators Essakane Rosebel Côté1 Intrusion Hosted Deposit Type Structural Vein Hosted Structural Vein Hosted (Porphyry Style) Throughput 11.7 Mtpa1 (100% Hard Rock) 12.8 Mtpa2 13.1 Mtpa3 Strip Ratio 2.41:11 6.9:12 2.67:13,4 Mining Rate 70 Mtpa1 105 Mtpa2 70 Mtpa3,4 1. Refer to I
Slide 47: Côté Gold – Experienced Project Leadership
Côté Gold – Experienced Project Leadership Philippe (Phil) Gaultier Luc-Bernard Denoncourt Michel Payeur Vice President, Project Manager, Deputy Project Manager, Development Projects Côté Gold Côté Gold Phil oversees IAMGOLD’s development Luc has been in charge of various projects and Michel is a dy
Slide 48: Track Record of Success on IAMGOLD Projects
Track Record of Success on IAMGOLD Projects History of Successful Open Pit, Bulk Tonnage Builds – on time, on budget: Essakane Essakane Expansion Date 2009-2010 2012-2014 Budget $443 million $369 million Delivered 5% over budget. 9% under budget. Delivered 6 months early. Delivered on time. Design D
Slide 49: Work to Mitigate Execution Risk
Work to Mitigate Execution Risk CONCERNS EXPERIENCED AT OTHER PROJECTS CÔTÉ PROJECT RISK MITIGATION Greenfield build risk Team has history and experience in greenfield builds, large and small. Insufficient geotechnical analysis Extensive geotechical work across TMF, Pit and Infrastructure Weak taili
Slide 50: Indi Gopinathan, VP, Investor Relations & Corporate Communications
Indi Gopinathan, VP, Investor Relations & Corporate Communications 416-388-6883 Philip Rabenok, Senior Analyst, Investor Relations 647-967-9942
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