Slide 1: 2014 Second Quarter Results
2014 Second Quarter Results August 14, 2014 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 TIM BRADBURN Associate General Counsel & Corporate Secretary BOB TAIT VP, Investor Relations 2
Slide 3: 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 4: Opening Remarks
Opening Remarks #I1AMGOLD
Slide 5: Strategy Update - Rosebel
Strategy Update - Rosebel Continuing to target soft rock within JV area Drilling of exploration targets at Sarafina Continuing discussions on prospective properties Strong support from the Government of 5 Suriname 5
Slide 6: Strategy Update - Essakane
Strategy Update - Essakane Successful mill expansion driving growth in production Solar power project moving forward Assessing other cost effective power solutions 6
Slide 7: Strategy Update - Westwood
Strategy Update - Westwood Achieved commercial production July 1, 2014 Production ramp-up in second half of 2014, with cash costs expected to trend down Evaluating various production profiles to generate optimal economic returns Focused on reducing fixed costs and improving productivity 7
Slide 8: Strategy Update - Sadiola
Strategy Update - Sadiola Expansion project requires long- term supply of low-cost, reliable power Power reliability a priority for the Malian government Collaborating with other mining companies Identify additional oxide reserves 8
Slide 9: Financial Review
Financial Review CORPORATION
Slide 10: Revenues
Revenues 301.1 288.6 Revenue Q2 2013 Change Q2 2014 Impact Gold Price1 1,373 (6%) 1,288 ($13.9M) ($/oz.) $millions Gold Sales2 201 (4%) 192 ($6.3M) 305.3 (000s oz.) 279.3 Niobium Sales 1.3 8% 1.4 $7.4M (Mkg Nb) Q2 2013 Q2 2014 1 Average realized gold price per ounce sold. This is a non-GAAP measure.
Slide 11: Adjusted Net Earnings
Adjusted Net Earnings1 (In $ millions, except for per share amounts) Q2'13 Q2'14 Net earnings attributable to equity holders (28.4) (16.0) Changes in estimates of asset retirement obligations at closed sites (10.2) 3.1 Unrealized derivative losses (gains) 9.6 (4.8) 30.2 Write-down of assets 12.2 9.2
Slide 12: Net Cash From Operating Activities
Net Cash From Operating Activities (In $ millions, except for per share amounts) Q2’13 Q2’14 $0.19 Net cash from operating activities per $0.18 per share per share consolidated interim financial 37.9 96.8 statements 70.1 Adjusting items from non-cash 68.3 working capital items and non-current ore st
Slide 13: Attributable Gold Production
Attributable Gold Production 224 Due to 206 › Rosebel lower grades -14,000 oz. › Mouska end of life production -30,000 oz. › Yatela - 3,000 oz. › Westwood (pre-commercial) - 1,000 oz. Partially offset by 000s oz. › Essakane higher grades and throughput +30,000 oz. H2 gold production expected t
Slide 14: Westwood in Commercial Production
Westwood in Commercial Production Achieved commercial production July 1, 2014 Average of 1,075 tonnes hoisted first 30 days of July H2 total cash costs expected to trend down to average between $750/oz. and $850/oz. 2014 guidance maintained at 100k oz. – 120k oz. 14
Slide 15: All-In Sustaining Costs Continue to Improve
All-In Sustaining Costs1 Continue to Improve 1,600 1,373 All figures in $/oz. sold 1,400 1,334 1,288 1,273 1,286 1,200 1,2513 1,216 1,242 1,198 1,136 1,000 800 600 400 200 0 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 ` Total Cash Costs Average Realized Gold Price 1 This is a non-GAAP measure. Refer to
Slide 16: Niobec
Niobec 17% increase in production Throughput and recoveries benefit from 2013 mill optimization efforts Q2 2013 Q2 2014 Raised 2014 guidance 22% to 5.2 to 5.5 Mkg Nb with operating margin1 of $17 to $19/kg Niobium production 1.2 1.4 (Mkg Nb) $millions Niobium sales 1.3 1.4 57.2 49.8 (Mkg Nb) O
Slide 17: Liquidity
Liquidity $1,047 250 $millions 500 177 120 As of June 30, 2014 Cash & cash equivalents Gold bullion at market Unused credit facility Unused Niobec credit facility The Company has $650 million of senior unsecured notes due October 2020. 17
Slide 18: Operations Review
Operations Review £IAMGOLD
Slide 19: Rosebel - Suriname
Rosebel - Suriname Attributable Gold Production (95%) Q2 2014 Performance Above average rainfall limited access to areas (000s oz.) with higher grade material 82 95 70 80 68 Decline in production drove cash costs higher Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Outlook Following a Q1 grade reconciliation
Slide 20: Essakane – Burkina Faso
Essakane – Burkina Faso Q2 2014 Performance Attributable Gold Production (90%) Production increased 35% from Q1’14 › Mill throughput up 29% and volume of hard rock up 27% (000s oz.) 8% grade improvement from Q1’14 92 62 64 59 68 Gained access to higher grade ore in the south-central pit High
Slide 21: Doyon Division – Canada
Doyon Division – Canada July 1, 2014: Westwood declared commercial production Q2 2014 Performance Westwood mill processed 20,000 oz. Q1 stockpiled ore › 9,000 oz. non-commercial from WW › 11,000 oz. from Mouska Outlook Production ramping up Cash costs expected to trend downwards, averaging $75
Slide 22: Sadiola – Mali
Sadiola – Mali Attributable Gold Production (41%) (000s oz.) Q2 2014 Performance 24 19 24 19 24 Q2 production up 26% from Q1’14, reflecting 20% increase in throughput Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Outlook Total Cash Costs1 Reliable, long-term supply of low-cost power critical to expansion projec
Slide 23: Niobec – Canada
Niobec – Canada Niobium Production Q2 2014 Performance (Mkg Nb) Production up 8% from Q1’14 1.6 1.2 1.3 1.3 1.4 Planned mill shutdown in April had minimal impact on production Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Milling process improvements from 2013 continue to deliver Niobium Operating Margin1 Out
Slide 24: Exploration Review
Exploration Review IAMGOLD
Slide 25: Greenfield: Pitangui Project, Brazil
Greenfield: Pitangui Project, Brazil Sâo Sebastiâo gold deposit located in the prolific Iron Quadrangle April 2014 – declared maiden inferred resource of 0.64 Moz at 4.88 g/t Au June 2014 – confirmed mineralization continuity of the known resource and new high-grade intersections in a second z
Slide 26: Greenfield: Boto Gold Project, Senegal
Greenfield: Boto Gold Project, Senegal July 2013 – declared initial indicated resource estimate of 1.1 Moz at 1.62 g/t Au Based on 423 drill holes, totaling 56,832 metres April 2014 – ongoing drilling confirms continuity of resource and extends mineralization associated with largest deposit
Slide 27: Joint Venture Project Updates
Joint Venture Project Updates Monster Lake (Quebec) with Tomagold Corporation › Reported assay results from 5 holes confirming presence of high-grade mineralization › Numerous high-grade intervals from previous exploration (25 to +30 g/t Au) › Ongoing exploration targeting 4-km long mineralized tr
Slide 28: Resource Development and Brownfield Exploration
Resource Development and Brownfield Exploration ROSEBEL ESSAKANE Focused on increasing inventory of Drilling continues to upgrade transitional and soft rock – results to existing inferred resources and to be incorporated into resource evaluate potential extensions models Diamond drilling ongoi
Slide 29: De-risking Côté Gold Continues
De-risking Côté Gold Continues Rail Timmins Completed more than 14,000m in Roads Power lines Q2’14 of definition drilling with view to bring resource to feasibility level CN Rail 500 kV › Key objective is to better 101 Power line Côté Gold 144 Chapleau Property 115 kV understand the controls on gr
Slide 30: Outlook for the Second Half
Outlook for the Second Half Expect higher gold production and lower costs Grade improvement at Rosebel and Essakane Westwood ramping up Continued strong performance at Niobec Encouraging exploration results 30
Slide 31: 2014 Second Quarter Results
2014 Second Quarter Results August 14, 2014 Investor Relations info@iamgold.com Bob Tait Laura Young Penelope Talbot-Kelly VP, Investor Relations Director, Investor Relations Analyst, Investor Relations T: 416-360-4743 T: 416-933-4952 T: 416-933-4738 TSX: IMG NYSE: IAG