Iamgold Corporation · TSX:IMG
Iamgold — Shareholder Meeting (May 2015)
52 slides from Iamgold's shareholder meeting presentation, May 11, 2015
Slide 1: 2014 Annual Meeting
2014 Annual Meeting May 11, 2015 TSX: IMG NYSE: IAG
Slide 2: Chairman’s Table
Chairman’s Table William D. Pugliese Chairman Steve Letwin President & Chief Executive Officer Tim Bradburn VP, Legal & Corporate Secretary 2
Slide 3: Board of Directors
Board of Directors John Caldwell Steve Letwin Donald Charter Mahendra Naik Robert Dengler William Pugliese Guy Dufresne John Shaw Richard Hall Timothy Snider 3
Slide 4: Executive Management Team
Executive Management Team Steve Letwin P. Gordon Stothart Carol T. Banducci CEO & President EVP & Chief EVP & Chief Financial Operating Officer Officer Benjamin Little Craig MacDougall Jeffery Snow SVP, Corporate Affairs, SVP, Exploration SVP, Business HSS & People Development & General Counsel 4
Slide 5: Appointment of the Secretary and Scrutineers
Appointment of the Secretary and Scrutineers
Slide 6: Constitution of Meeting
\ Constitution of Meeting
Slide 7: Consolidated Financial Statements and Report of the Auditor
Consolidated Financial Statements and Report of the Auditor
Slide 8: Nomination and Election of Directors
Nomination and Election of Directors
Slide 9: Nominated Directors
Nominated Directors John Caldwell Donald Charter Robert Dengler Richard Hall Steve Letwin Mahendra Naik Timothy Snider 9
Slide 10: Auditor’s Appointment and Remuneration
Auditor’s Appointment and Remuneration 10
Slide 11: Approval of Approach to Executive Compensation
Approval of Approach to Executive Compensation 11
Slide 12: 2014 Annual Meeting
2014 Annual Meeting May 11, 2015 TSX: IMG NYSE: IAG
Slide 13: 13
13
Slide 14: President’s Awards
President’s Awards 2014 PRESIDENT’S AWARD FOR HEALTH & SAFETY WESTWOOD MINE in Canada 14
Slide 15: President’s Awards
President’s Awards 2014 PRESIDENT’S AWARD FOR SUSTAINABILITY ESSAKANE MINE in Burkina Faso 15
Slide 16: President’s Awards
President’s Awards 2014 PRESIDENT’S AWARD FOR EXPLORATION COLOMBIA 16
Slide 17: 2014 Annual Meeting
2014 Annual Meeting May 11, 2015 TSX: IMG NYSE: IAG
Slide 18: 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 19: IAMGOLD’s Gold Assets
IAMGOLD’s Gold Assets Four Operating Gold Mines: 2015 Production Guidance 820k – 860k oz. 19
Slide 20: Solid Start To The Year
Solid Start To The Year Q1/15 performance delivers across key metrics › Gold production of 208,000 attributable ounces up 21% vs. Q1/14 › AISC of $1,113/oz; down 7% vs. Q1/14 › Net cash from operating activities of $30M; up 7% vs. Q1/14 › CAPEX of $54M down 43% vs. Q1/14 › Cash and bullion of $889M
Slide 21: Attributable Gold Production
Attributable Gold Production1 300 250 241 200 225 206 Westwood in Improving Mining lower 208 grade lenses 000s oz. commercial grades at at Westwood Mill expansion production Rosebel and 150 as planned 172 at Essakane Essakane Grade Lower grades improvement at Rosebel 100 and higher due to mine throu
Slide 22: All-In Sustaining Costs - gold mines
All-In Sustaining Costs1,2 - gold mines3 1,400 All figures in $/oz. sold 1,286 1,288 1,272 1,201 1,221 1,200 1,198 1,136 1,000 1,124 1,1134 1,028 800 600 400 200 ` 0 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 1 3 1 Total Cash Costs – gold mines Average Realized Gold Price 1 This is a non-GAAP measure.
Slide 23: Disciplined Capital Spending
Disciplined Capital Spending 800 54% of the decrease from 2014 to 2015 due 700 $669M to reduced spending on gold assets; balance 600 due to sale of Niobec 500 Development / 400 $M Expansion $325M 300 Sustaining $230M* 200 100 0 2013 2014 2015 Guidance * +/- 10% 23
Slide 24: Financial Strength
Financial Strength $1,389 500 $821 Unused credit $millions facility 160 Gold bullion at market 500 Cash & cash equivalents 729 162 159 As at December 31, 2014 As at March 31, 2015 IAMGOLD has $644.6 million of senior unsecured notes due October 2020. During Q1’15 the Company repurchased $5.4 million
Slide 25: Foundation for Growth
Foundation for Growth Operational Financial Lower Cost Excellence Flexibility Structure 25
Slide 26: Growth Strategy
Growth Strategy Optimize Returns from Existing Mines Advance Exploration Pursue M&A and JV Opportunities 26
Slide 27: Westwood – Canada
Westwood – Canada 40 1200 High-grade, low-cost underground gold mine with an estimated 20-year mine life 35 1000 › Avg. resource grade ~10g/t Au 30 Commercial production began July 1, 2014 25 800 Production for 2015 expected to vary due to mine 35 35 sequencing – Q2 and Q3 to account for ~60%
Slide 28: Essakane – Burkina Faso
Essakane – Burkina Faso 100 1000 Open-pit mine in 5th year of production 90 900 › Remaining LOM of 10 years 80 800 Mill expansion completed in 2013 to accommodate 92 increasing proportion of hard rock 83 89 70 89 700 Production increased 33% in 2014 60 600 At $988/oz. in Q1’15, AISC below $1
Slide 29: Rosebel – Suriname
Rosebel – Suriname 100 1000 Multiple open-pit mine with diminishing supply of soft rock 90 900 New power rate agreement in 2013 80 94 800 Lower oil prices expected to continue to benefit power costs 70 80 83 700 Stabilization of mill feed: 76 › Benefits throughput and recoveries (000s oz.) 6
Slide 30: Sadiola – Mali
Sadiola – Mali 30 1200 25 1000 24 Open-pit mine in operation for 20 years 20 800 Continuing to look for additional oxide reserves (000s oz.) 21 20 Expansion to accommodate hard rock processing a ($/oz.) 19 19 significant organic growth opportunity 15 600 Opportunity to acquire AngloGold’s 41
Slide 31: Growth Strategy
Growth Strategy Optimize Returns from Existing Mines Advance Exploration Pursue M&A and JV Opportunities 31
Slide 32: Boto Gold Project - Senegal
Boto Gold Project - Senegal As of end of 2014 Boto has: › an indicated resource of 1.2 Moz. at 1.7 g/t Au › an inferred resource of 635,000 oz. at 1.8 g/t Au Approximately 13,300m of infill diamond drilling completed in Q1’15 at the Malikoundi deposit Final assay results from 2014 continue to
Slide 33: Joint Venture Project Update – Siribaya (Mali) with Merrex Gold Inc.
Joint Venture Project Update – Siribaya (Mali) with Merrex Gold Inc. Focus on Diakha prospect - extension of trend hosting Boto Fekola -B2Gold Gold deposit 3.9Moz @ 1.91 g/t Au* 9,700m of diamond and reverse Boto-Malikoundi circulation infill drilling completed Mali 1.2Moz @ 1.7 g/t Au** in Q1’1
Slide 34: Pitangui Project - Brazil
Pitangui Project - Brazil April 2014 – maiden inferred resource estimate of 0.64 Moz at 4.88 g/t Au Airborne EM geophysical survey during Q4’14 identified conductive targets to be prioritized in future drilling programs Over 5,400m of diamond drilling was completed in Q1’15 with continued focu
Slide 35: Joint Venture Project Update – Eastern Borosi (Nicaragua) with Calibre Mining
Joint Venture Project Update – Eastern Borosi (Nicaragua) with Calibre Mining 176km land package with 2 gold and silver 2 deposits and series of exploration targets January 2015 – JV partner announced final assay results from 17 of 40 holes. Bonanza E. Borosi Project Phase II drilling program
Slide 36: Joint Venture Project Update - Monster Lake
Joint Venture Project Update - Monster Lake (Quebec) with TomaGold Corporation Excellent location in Abitibi Greenstone belt High-grade intervals (25 to 30+ g/t Au) from previous drilling Monster Lake February 2015, reported final drilling results from the 2014 program. Highlights included: ›
Slide 37: Growth Strategy
Growth Strategy Optimize Returns from Existing Mines Advance Exploration Pursue M&A and JV Opportunities 37
Slide 38: Acquisition Criteria
Acquisition Criteria Predominantly gold Producing or near-producing mine Minimum production of 100k oz./year Higher grades Lower costs Good mining jurisdiction 38
Slide 39: Sadiola – Potential Organic Growth Opportunity
Sadiola – Potential Organic Growth Opportunity Opportunity to Acquire AngloGold’s 41% interest Preservation of balance sheet strength through modified expansion 18% increase in consolidated reserves (full expansion) Average reserve grade 2.1 g/t Au Potential to increase production by up to ~
Slide 40: Why invest in IAMGOLD?
Why invest in IAMGOLD? Diversified portfolio of operating gold mines in friendly mining jurisdictions Owned and operated mines combined generating positive free cash flow AISC improving - optimizing economic returns from existing assets Demonstrated ability to adapt in a volatile gold market
Slide 41: 2014 Annual Meeting
2014 Annual Meeting May 11, 2015 TSX: IMG NYSE: IAG
Slide 42: 2015 Production and Cost Guidance
2015 Production and Cost Guidance1 Guidance Rosebel (000s oz.) 290 – 300 Essakane (000s oz.) 360 – 370 gold production Attributable Westwood (000s oz.) 110 – 130 Total owner-operator production (000s oz.) 760 – 800 Joint ventures (000s oz.) 60 Total attributable production (000s oz.) 820 – 860 Total
Slide 43: 2014 Reserves and Resources
2014 Reserves and Resources1 As of December 31, 2014 2014 Gold (000s attributable oz. contained) Total proven and probable mineral reserves 8,608 Total measured and indicated mineral resources 2,3 21,412 Total inferred resources 7,018 • Gold reserves have been estimated at our owned and operated min
Slide 44: 2015 Capital Expenditure Outlook
2015 Capital Expenditure Outlook Development/ ($ millions) Sustaining1 Expansion Total (Non-sustaining) Rosebel 70 10 80 Essakane 55 5 60 Westwood 30 50 80 Total gold segments 155 65 220 Côté Gold - 5 5 Total consolidated 155 70 225 Joint ventures 5 - 5 Total (±10%) 160 70 230 1 Includes capitalized
Slide 45: JV Agreement at Rosebel
JV Agreement at Rosebel Hard rock comprises ~31% of ore mix and will increase to 80% by 2017 Softer rock will increase margins and extend mine life Joint venture with Government of Suriname targets higher-grade, softer rock › >$0.11/kWh power rate › 5-year option agreement with Sarafina – 10,0
Slide 46: IAMGOLD – Consolidated Production and Cost Profile 2015-2019
IAMGOLD – Consolidated Production and Cost Profile 2015-20191,2 900 1,400 This chart provides a 5- 800 year outlook on 1,200 production, cash costs 700 and all-in sustaining costs Detailed charts by mine Attributable Production 000s koz. 1,000 600 for each of our wholly- 500 800 owned mines foll
Slide 47: Westwood – Production and Cost Profile 2015-2019
Westwood – Production and Cost Profile 2015-2019 250 1,200 200 1,000 Westwood to ramp up to LOM level of production in 800 2019 150 Total cash costs and AISC expected to trend 000s oz. $/oz. 600 downwards as production ramps up 100 400 Gradual increase in production allows for required undergr
Slide 48: Westwood Development Performance – Average Advance Meters / Day / Crew
Westwood Development Performance – Average Advance Meters / Day / Crew 10 9.2 9 8.8 8.4 8.8 8.7 Exceptional improvement 8 in 2014 quarter-over- quarter in average 7 advance meters/day Production is ramping up Average Meters/Day/Crew 6 5.7 as expected 5 Tonnage and grade reconciliation to date
Slide 49: Rosebel – Production and Cost Profile 2015-2019
Rosebel – Production and Cost Profile 2015-2019 350 1,600 As the percentage of hard 1,400 rock increases, production 300 is expected to decrease 1,200 Harder rock requires more 250 power for crushing and Attributable Production 000s oz. grinding, challenging to 1,000 sustain throughput capacity
Slide 50: Essakane– Production Profile 2015-2019
Essakane– Production Profile 2015-2019 450 1,400 400 1,200 Major mill expansion completed in 2013 to 350 accommodate a growing proportion of hard rock 1,000 Expansion driving strong Attributable Production 000s oz. 300 production and steady 800 250 state costs for the next $/oz. four years 200 6
Slide 51: Summary of Outstanding Hedge and Non-Hedge Derivative Contracts
Summary of Outstanding Hedge and Non-Hedge Derivative Contracts1 Contracts 2015 2016 2017 2018 Foreign currency Canadian dollar contracts (M of C$) 145.0 60.0 – – Contract rate range (C$/$) 1.10 – 1.17 1.12 – 1.18 – – Hedge ratio2 60% 29% – – Euro contracts (M of €) 126.0 – – – Contract rate range (
Slide 52: 2014 Annual Meeting
2014 Annual Meeting May 11, 2015 TSX: IMG NYSE: IAG