Slide 1: 2012 Second Quarter Results
2012 Second Quarter Results August 14, 2012 TSX: IMG NYSE: IAG
Slide 2: Management Participants
Management Participants STEVE LETWIN President & CEO GORD STOTHART EVP & Chief Operating Officer CRAIG MACDOUGALL SVP, Exploration BRIAN TRNKUS VP, Finance Associate General Counsel & Corporate TIM BRADBURN Secretary 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 Solid Q2 Results in Line with Expectations Development & Expansion Projects on Track Maintaining Guidance 4
Slide 5: Q2'12 Performance
Q2’12 Performance Adjusted Net Earnings1 $74.0M ($0.20/sh) Revenues $410.6M Operating Cash Flow2 $72.4M ($0.19/sh) Final tax payment for 2011 (previously accrued in 2011) impacted CFPS by $0.19 per share Gold Margin $856/oz Attributable Gold Production 204,000 ozs 1From continuing operations attribu
Slide 6: Update on Key Initiatives
Update on Key Initiatives ESSAKANE › Expansion construction started July ‘12 › Negotiation with government on fiscal terms going well ROSEBEL › Expect signed definitive agreement by year-end › Concept study re: satellite resources to follow SADIOLA › Targeting end of 2014 for start-up of new plant ›
Slide 7: Q2'12 Revenues
Q2’12 Revenues Q2 revenues up 19%: Technical issues limiting 2011 production at Essakane effectively addressed Higher throughput & recoveries at Rosebel Q2 sales include 13,000 ounces produced in Q1 Gold Q2’11 Change Q2’12 $millions 410.6 Price 345.7 ($/oz) $1,515 5% $1,593 Gold Sales* 182 16%
Slide 8: Q2'12 Adjusted Net Earnings
Q2’12 Adjusted Net Earnings* (in $millions, except for number Q2’11 Q2’12 of shares) Net earnings from continuing $0.20 operations attributable to equity 74.5 52.9 per share holders $0.18 Foreign exchange gain (5.1) (0.7) per share Unrealized (gain) loss on 8% derivative instruments (1.4) 5.8 Gain o
Slide 9: Q2'12 Operating Cash Flow Before Changes in Working Capital
Q2’12 Operating Cash Flow Before Changes in Working Capital* (in $millions, except where Q2’11 Q2’12 noted) $0.20 Cash flow generated from per share $0.19 continuing operating activities 12.2 52.7 per share per the unaudited consolidated interim financial statements Adjusting items from non-cash 8%
Slide 10: Q2'12 Attributable Gold Production
Q2’12 Attributable Gold Production* IAMGOLD OPERATED SITES 9% Rosebel – up 7,000 ozs › Higher throughput & recoveries 8% Essakane – up 19,000 ozs › Technical issues limiting production in 2011 addressed 000s ozs Mouska – up 2,000 ozs 188 204 › Mill cleanup in Q2’12 Joint Ventures Sadiola – down 11,0
Slide 11: Gold Margin Up 5%
Gold Margin Up 5% Gold Operating Q2’11 Q2’12 Results* Gold production 188 204 (000 oz) 856 818 Realized price $/oz 1,515 1,593 ($/oz) gold margin cash costs Cash cost 697 737 ($/oz) 697 737 Gold margin 818 856 ($/oz) Q2'11 Q2'12 *From continuing operations 11
Slide 12: Total Cash Costs
Total Cash Costs* $/oz Q2’11 Q2’12 Variance At all producing 697 737 6% gold mines Excluding non-IMG operated mines: 666 641 (4%) Sadiola & Yatela *Includes royalties 12
Slide 13: Niobium Revenue
Niobium Revenue Q2’11 Q2’12 22% Niobium production 1.1 1.2 (Mkg Nb) $ Millions 48.1 48.4 Niobium sold 1.3 1.2 (Mkg Nb) Operating Q2'11 Q2'12 margin 14 15 ($/kg) 13
Slide 14: Strong Balance Sheet
Strong Balance Sheet 2,007 Mar. 31, June 30, 2012 2012 250 $millions 1,569 1,613 1,548 Cash & cash 500 $1,033 $400 equivalents 350 1,365 350 350 $millions 250 151 162 211 224 Gold bullion $224 $215 at market 500 Unused $500 $500 credit facility 1,047 1,057 1,052 1,033 215 Unused 400 Niobec $250 $250
Slide 15: Rosebel
Rosebel Q2 Attributable H2’12 Outlook production: › Expect higher throughput › 2012 Guidance maintained at with installation of 370,000-395,000 ozs 94,000 ozs temporary pre-crusher & › Expect definitive agreement with Government of Suriname on next larger pebble crusher and › 8% higher than Q2’11 du
Slide 16: Essakane
Essakane Q2 Attributable production: H2’12 Outlook 81,000 ozs › Expect final agreement on › 2012 Guidance maintained › 30% higher than Q2’11 fiscal terms at 320,000-345,000 ozs › Addressed technical › Construction of expanded issues limiting production plant began July’12 in 2011 16 16
Slide 17: Sadiola
Sadiola Q2 Attributable H2’12 Outlook production: Steps taken to improve 22,000 ozs performance › 2012 Guidance (Sadiola & › Installation of additional crusher › 33% lower than Q2’11 due Yatela combined) and equipment to increase to lower throughput, lower usage of gravity circuit to maintained at 1
Slide 18: Niobec
Niobec Q2 production: Expansion Outlook 1.2 million kgs Update › 2012 Guidance: › Expect to complete 4.6-5.1 Mkg of niobium feasibility study based on production block caving model in Q3’13 › Expect to finalize permitting in 2014 18 18
Slide 19: Westwood Development
Westwood Development H1’12 Outlook › $79.7M CAPEX YTD › On-track for early 2013 › Preparation and construction of the infrastructure completed start-up › Shaft sinking reached 1,705 metres › Underground development included 6,837 metres of lateral and vertical excavation › Infill delineation and res
Slide 20: 2012 Exploration Program
2012 Exploration Program Q1 Q2: $36.6M Budget: › $13.4M: $157.3M Near-mine exploration H2 & resource Drilling: development 670 km › $23.2M: Greenfield exploration Exploration activity at 20 projects 20
Slide 21: Estimated Future Production Profile
Estimated Future Production Profile In Million ozs 1.4-1.6 1.1-1.2 1.1-1.2 1.0-1.1 1.0-1.1 0.8-0.9 2012 2013 2014 2015 2016 2017 Bars represent mid-points of upper & lower limits of ranges Driven by return on capital 21
Slide 22: 2012 Second Quarter Results
2012 Second Quarter Results August 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