Slide 1: 2012 Third Quarter Results
2012 Third Quarter Results November 14, 2012 TSX: IMG NYSE: IAG
Slide 2: Management Participants
Management Participants STEVE LETWIN President & CEO GORD STOTHART EVP & Chief Operating Officer CAROL BANDUCCI EVP & Chief Financial Officer CRAIG MACDOUGALL SVP, Exploration JEFFERY SNOW SVP, General Counsel BOB TAIT VP, Investor Relations 2
Slide 3: Cautionary Statement
Cautionary Statement This presentation contains forward-looking statements. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements rega
Slide 4: Introduction
Introduction IAMGOLD owned /operated mines performing well Underperformance at joint ventures impacting consolidated production and cash costs Full year production expected to be at lower end of guidance and cash costs + 3% of higher end of guidance Consolidated earnings impacted by lower go
Slide 5: Highlights
Highlights Côté Gold Resource Update (Oct 4, 2012) 274% increase in indicated resource and substantial increase in total ounces Disposal of Quimsacocha in process Suriname › Progress towards definitive agreement, including attractive Power Price Agreement to support expansion related incremental pro
Slide 6: Revenues
Revenues Q3 revenues down 10%: Lower gold sales volume produced 17,000 fewer ounces timing of shipments accounted for 12,000 fewer ounces sold Partially offset by higher Niobium revenue $millions 431.9 Gold Q3’11 Change Q3’12 386.8 Price $1,675 -% $1,670 ($/oz) Gold Sales* 217 (13%) 188 (000
Slide 7: Adjusted Net Earnings
Adjusted Net Earnings* (in $millions, except for per share Q3’11 Q3’12 Lower gold sales amount) Net earnings from continuing Higher exploration spending operations attributable to equity 50.0 78.0 $0.30 holders per share Partially offset by lower mining Foreign exchange loss 11.9 2.5 costs and
Slide 8: Operating Cash Flow Before Changes in Working Capital
Operating Cash Flow Before Changes in Working Capital (in $millions, except for per share Q3’11 Q3’12 amount) $0.46 Lower gold sales Cash flow generated from continuing operating activities per the unaudited per share Higher income tax paid consolidated interim financial 174.5 97.6 statements 8%
Slide 9: Attributable Gold Production
Attributable Gold Production* IAMGOLD Operated Sites Rosebel – up 1,000 ozs › Higher recoveries reflecting upgraded gravity 8% circuit Essakane – down 9,000 ozs › Lower recoveries and processing of lower grade 000s ozs 222 ore, partially offset by higher throughput 205 Mouska – down 5,000 ozs › Site
Slide 10: Total Cash Costs
Total Cash Costs* $/oz Q3’11 Q3’12 Variance At all producing 674 710 5% gold mines IMG operated mines 602 644 7% (excluding Sadiola & Yatela) *From continuing operations and includes royalties 10
Slide 11: Gold Margin
Gold Margin Gold Operating Q3’11 Q3’12 Results* Gold production 222 205 1,001 960 (000 oz) $/oz Realized price 1,675 1,670 gold margin ($/oz) cash costs Cash cost 674 710 ($/oz) 674 710 Gold margin 1,001 960 ($/oz) Q3'11 Q3'12 *From continuing operations 11
Slide 12: Niobium Revenue
Niobium Revenue Higher niobium prices Q3’11 Q3’12 and sales volume 22% Niobium production 1.2 1.2 (Mkg Nb) $ Millions Niobium sales 1.0 1.2 47.7 42.4 (Mkg Nb) Operating margin 14 16 ($/kg) Q3'11 Q3'12 12
Slide 13: Strong Liquidity
Strong Liquidity June 30, Sept. 30, 2012 2012 $millions 2,007 1,886 Cash & cash 250 $400 *$897 250 equivalents 1,569 1,613 $millions 500 1,365 350 350 Gold bullion 500 $215 $239 at market 250 162 211 224 239 Unused $500 $500 500 credit facility 1,057 1,052 1,033 215 Unused Niobec 897 $250 $250 facil
Slide 14: Rosebel
Rosebel Gold Production Q3’12 vs Q3’11 › Improving recoveries with expanded 95 gravity circuit (000’s oz) 94 94 93 › Partially offset by lower throughput // › Higher costs due to increase in Q3'11 Q1'12 Q2'12 Q3'12 tonnage minded and increased proportion of hard rock Outlook › Expect throughput impr
Slide 15: Essakane
Essakane Gold Production Q3’12 vs Q3’11 › Lower recoveries and lower grades (000’s oz) 86 80 81 77 › Partially offset by increase in ore milled › Higher costs due to lower grades and // higher strip ratio Q3'11 Q1'12 Q2'12 Q3'12 › Signed labour contract providing for a 5% increase over each of the n
Slide 16: Sadiola
Sadiola Gold Production Q3’12 vs Q3’11 › Lower throughput and lower grades (000’s oz) 30 26 25 22 › Higher cash costs with lower production and increase in hard rock // processing Q3'11 Q1'12 Q2'12 Q3'12 OUTLOOK Outlook › Enhances gravity circuit improving recoveries › Negotiated agreement with Powe
Slide 17: Niobec
Niobec Niobium Production Q3’12 vs Q3’11 (millions of kg Nb) › Increased throughput 1.2 1.2 1.2 1.1 › Lower grades // Q3'11 Q1'12 Q2'12 Q3'12 › High labour costs Outlook › Complete feasibility study Q3’13 › Finalize permitting 2014 17 17
Slide 18: Westwood Development
Westwood Development Q3’12 vs Q3’11 Q1 2013 › Shaft sunk to 1,817 metres › Underground development totaling 9,800 › Production start-up with slower metres of lateral and vertical excavation than anticipated ramp up › Infill delineation and resource expansion drilling continues › Wastewater treatment
Slide 19: 2012 Exploration Program
2012 Exploration Program $12.1M: Near-mine exploration & resource development $31.6M: Greenfield exploration Q2 Budget: $157.3M Drilling: Q1 670 km Q4 Exploration activity at 20 projects 19
Slide 20: Future Gold Production Profile
Future Gold Production Profile (attributable to IAMGOLD) Westwood begins 1,400-1,600 production in 2013 Impact of Brownfield expansion begins 875-950 2014 - 2015 Discontinued operations 76 840-910 896 Côté Gold begins 000s oz production 2017 // 2011A 2012E 2013E 2017E 20
Slide 21: 2012 Third Quarter Results
2012 Third Quarter Results November 14, 2012 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