Iamgold Corporation · TSX:IMG
Iamgold — TD Securities Mining Conference 2015
28 slides from Iamgold's conference presentation, Jan 27, 2015
Slide 1: TD Securities Mining Conference
TD Securities Mining Conference January 27-28, 2015 Carol Banducci EVP & CFO . TSX: IMG NYSE: IAG
Slide 2: 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 3: IAMGOLD's Gold Assets
IAMGOLD’s Gold Assets SADIOLA Senegal ESSAKANE Mali Boto WESTWOOD Siribaya Burkina Faso Val d’Or Suriname Colombia Côté Gold ROSEBEL Brazil Peru Operating Gold Mines Development Project Pitangui Advanced Exploration Exploration Office Four Operating Gold Mines: 2015 Production Guidance 820k – 860k o
Slide 4: Staying Focused on Strategic Priorities
Staying Focused on Strategic Priorities Cost Reduction Capital Discipline Cash Preservation Focused on Economic Returns 4
Slide 5: All-In Sustaining Costs Continue to Improve
All-In Sustaining Costs1,2 Continue to Improve 1,400 All figures in $/oz. sold 1,273 1,286 1,288 1,272 1,200 1,229 1,184 Q4/14 1,124 1,115 ASIC- gold mines 1,000 1,050 expected to be ~$100/oz. 800 below low end of 2014 guidance of 600 $1,150- $1,250/oz. 400 200 ` 0 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4
Slide 6: Cost Reductions Continued Throughout 2014
Cost Reductions Continued Throughout 2014 Gold Operations Cost Reductions 60 $40M $50M 50 8 9 9 Essakane Westwood 40 1 $M 30 Rosebel 23 $62M 20 40 Includes sustainable savings 10 from 2013 Corporate restructuring in 2014 0 Q3 2014 YTD Initiatives to improve mining and Gold Operations Total Cor
Slide 7: Disciplined Capital Allocation
Disciplined Capital Allocation 800 2015 CAPEX guidance down 29% from 2014 700 $669M 600 500 51% Guidance was $360M $M 400 Exp./Dev. Sustaining 300 29% $325M $230M* 200 100 0 2013 2014 E 2015 Guidance * +/- 10% 7
Slide 8: Sale of Niobec
Sale of Niobec Transaction completed January 22, 2015 Total consideration of $530M › $500M cash received upon closing › $30M when REE deposit begins commercial production › 2% gross proceeds royalty payable on REE production 8
Slide 9: Niobec Sale Strengthens Cash Position
Niobec Sale Strengthens Cash Position $833 M 162 $333 M 671 162 171 As at December 31, 2014 Cash Position with Sale of Niobec Pro-forma as at December 31, 2014 Cash & cash equivalents Gold bullion at market Cash & cash equivalents Gold bullion at market Financial capacity for investing in the profit
Slide 10: Priorities for Use of Proceeds from Sale of Niobec
Priorities for Use of Proceeds from Sale of Niobec Optimize returns from existing assets Strategic acquisitions with near-term capability to generate positive cash flow 10
Slide 11: Acquisition Criteria
Acquisition Criteria Predominantly gold Producing or near-producing mine Potential to produce 100k oz./year Higher grades Lower costs Good mining jurisdiction 11
Slide 12: Operations Overview
Operations Overview 12
Slide 13: Westwood Ramping Up – Canada
Westwood Ramping Up – Canada 40 35 Underground gold mine with an estimated 30 35 35 20 year mine life 25 Commercial production July 1, 2014 (000s oz.) 20 15 › 70,000k oz. first 6 months 10 High-grade, low-cost operation 5 › Avg. resource grade ~10g/t Au 0 › Q3’14 total cash cost $772/oz. Q3'14
Slide 14: Optimizing Performance at Essakane – Burkina Faso
Optimizing Performance at Essakane – Burkina Faso 100 1000 Open-pit mine in 4th year of production › Remaining LOM of 10 years 80 92 89 800 83 Mill expansion completed in 2013 to accommodate 60 68 600 increasing proportion of hard rock (000s oz.) ($/oz.) 40 400 Total cash costs reflect harder
Slide 15: Resource Development and Brownfield Exploration at Essakane
Resource Development and Brownfield Exploration at Essakane 170000 175000 180000 185000 190000 195000 200000 205000 Legend N 1625000 1625000 Essakane Pit Stratigraphy Takabangou Focused on Finding Soft Rock Drilling continues to upgrade existing 1620000 1620000 AC- Average Au inferred resources an
Slide 16: Improving Performance at Rosebel - Suriname
Improving Performance at Rosebel - Suriname 100 1000 Multiple open-pit mine 80 94 800 Diminishing supply of soft rock 80 83 Improving trend in grades (000s oz.) 60 68 600 ($/oz.) › RC drilling for in-pit grade control 40 400 › Completed road to higher grade pit 20 200 Reducing variation in m
Slide 17: Reinventing Rosebel by Targeting Softer Rock – Suriname
Reinventing Rosebel by Targeting Softer Rock – Suriname Soft rock ~26% of ore mix at 2014 year-end and will continue to decrease Softer rock will increase margins and extend mine life Joint venture with Government of Suriname targets higher-grade, softer rock › >$0.11/kWh power rate › 5-year o
Slide 18: Revitalization Strategy for Sadiola – Mali
Revitalization Strategy for Sadiola – Mali 30 1200 25 1000 20 24 800 Open-pit mine in operation for 20 years (000s oz.) 19 20 Transitioning to hard rock ($/oz.) 15 21 600 10 400 Continuing to look for additional oxide reserves 5 200 Existing plant not built for hard rock 0 0 Q1'14 Q2'14 Q3'1
Slide 19: 2014 Production Trend
2014 Production Trend1 300 250 7% 9% 241 200 20% 225 206 Improving Westwood in 000’s oz. grades at Mill expansion commercial Rosebel and 150 172 at Essakane production Essakane Grade 100 improvement and higher throughput at 50 Rosebel 0 Q1 Q2 Q3 Q4 1 Attributable gold production includes Westwood no
Slide 20: 2015 Production and Cost Guidance
2015 Production and Cost Guidance3 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 21: 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 22: Exploration - Greenfield
Exploration - Greenfield IAMGOLD
Slide 23: Greenfield: Boto Gold Project, Senegal
Greenfield: Boto Gold Project, Senegal Boto Project: Resource Areas July 2013 –initial indicated resource estimate of 1.1 Moz at 1.62 g/t Au April 2014 – confirmed continuity of resource / extends mineralization of Malikoundi deposit October 2014 – infill drilling results show wide intervals o
Slide 24: Greenfield: Pitangui Project, Brazil
Greenfield: Pitangui Project, Brazil Infill drilling continues at Sâo Sebastiâo April 2014 –maiden inferred resource estimate of 0.64 Moz at 4.88 g/t Au June 2014 – confirmed continuity of known resource / identified new high- grade intersections in second zone Ongoing delineation drilling f
Slide 25: Joint Venture Project Updates
Joint Venture Project Updates Eastern Borosi (Nicaragua) with Calibre Mining › 176km2 land package Bonanza E. Borosi Project with 2 gold and silver deposits and series of BLAG VEIN exploration targets Siuna BL14-005: 6.4 m @ 4.1 g/t Au › Q3/14- Phase I drilling La India 235.9 g/t Ag focused on 3 d
Slide 26: Joint Venture Project Updates
Joint Venture Project Updates Monster Lake (Quebec) with Tomagold Corporation › High grades and excellent location in Abitibi Greenstone belt › High-grade intervals from previous exploration (25 to +30 g/t Au) › Q3’14- reported remaining results from Phase I DD program (> 4,500m) › Positive result
Slide 27: Why invest in IAMGOLD?
Why invest in IAMGOLD? Diversified portfolio of operating gold mines in friendly mining jurisdictions Owned and operated mines generating positive free cash flow AISC improving - focused on optimizing economic returns from existing assets Demonstrated ability to adapt in a volatile gold mark
Slide 28: Investor Relations
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