Iamgold Corporation · TSX:IMG
Iamgold — BMO Capital Markets 2012 Global Metals and Mining Conference
28 slides from Iamgold's conference presentation, February 2013
Slide 1: Assault on Costs
Assault on Costs February 2013 BMO Capital Markets’ 2012 Global Metals and Mining Conference TSX: IMG NYSE: IAG CEO Steve Letwin, COO Gord Stothart, CFO Carol Banducci
Slide 2: 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 3: Action Plan
Action Plan Assault on Costs Continue to base decisions on strong ROCE Operating costs under aggressive and constant review An increased number of cost reduction initiatives have been undertaken at all operations Implemented a new business performance measurement model Links together dozens of repor
Slide 4: Revenues
Revenues 2012 revenues flat with 2011 reflecting... 7% increase in average realized gold price to $1,667 per ounce 8% decline in attributable gold sales to 827,000 ounces 2% higher Niobium sales volume 1673.2 1670.0 $millions Gold 2011 Change 2012 Price 1,555 7% 1,667 ($/oz) Gold Sales* 896 (8
Slide 5: Adjusted Net Earnings
Adjusted Net Earnings* (In $ millions, except for per share amounts) Q4'11 Q4'12 2011 2012 $1.08 per share Net earnings from continuing operations 133.6 84.6 391.3 334.7 attributable to equity holders Interest expense on senior unsecured notes - 11.2 - 11.2 $0.84 per share Foreign exchange (gain) lo
Slide 6: Operating Cash Flow before Changes in Working Capital
Operating Cash Flow before Changes in Working Capital (In $ millions, except for per share amounts) Q4’11 Q4’12 2011 2012 $1.75 per share Cash flow generated from continuing operating activities per the 205.5 118.9 592.8 441.0 consolidated financial statements Adjusting items from non-cash working $
Slide 7: Ended 2012 with strong fourth quarter
Ended 2012 with strong fourth quarter Gold Attributable gold production of 214,000 ounces in Q4 annual production at 830,000 ounces Attributable gold sales of 232,000 ounces in Q4 annual sales of 827,000 ounces Total cash costs for gold of $731 /oz in Q4 full year average cash costs of $715 /oz Niob
Slide 8: Gold Margin
Gold Margin Gold Operating Q4’11 Q4’12 2011 2012 Results* Gold 973 952 production 253 214 896 830 995 919 (000soz) $/oz Realized price 1,638 1,704 1,555 1,667 ($/oz) Cash cost 731 715 643 731 636 715 643 636 ($/oz) Gold margin 995 973 919 952 Q4'11 Q4'12 2011 2012 ($/oz) cash costs gold margin *From
Slide 9: Niobium Revenue
Niobium Revenue Q4’11 Q4’12 2011 2012 22% Niobium production 1.2 1.2 4.6 4.7 (Mkg Nb) $millions 190.5 177.8 Niobium sales 1.3 1.1 4.6 4.7 (Mkg Nb) 47.7 46.0 Operating margin 16 15 15 15 ($/kg) Q4'11 Q4'12 2011 2012 9
Slide 10: Strong Liquidity
Strong Liquidity Sept. 30, Dec. 31, 2012 2012 $millions 2,007 1,886 Cash & cash 250 1,787 *$897 *$814 250 equivalents 1,613 250 $millions 500 1,365 350 Gold bullion 500 $239 $223 500 at market 250 211 224 239 Unused 223 $500 $500 500 credit facility 1,052 1,033 215 Unused Niobec 897 814 $250 $250 fa
Slide 11: Rosebel
Rosebel Attributable Gold Production (95%) 2012 › Installed larger pebble crusher › Higher labour, fuel and power costs (000’s oz) 93 94 95 100 › Upgraded gravity circuit was positive › Improved recoveries to 96% Q1'12 Q2'12 Q3'12 Q4'12 Rosebel Soft Transition Hard 2012 31% 49% 20% 2013E 33% 35% 32%
Slide 12: Good Expansion Potential at Rosebel
Good Expansion Potential at Rosebel ROSEBEL Suriname Rosebel resources Areas being considered for next expansion: Charmagne West Charmagne Headley’s Reef Reached agreement with Government of Suriname concerning future resource development and related power costs Focused on bringing in satellite reso
Slide 13: Essakane
Essakane Attributable Gold Production (90%) 2012 › Much improved levels of operating stability, although grade and mill recovery lower (000s oz) 80 81 77 77 › Mill throughput increased › Water management plans successful › Reduced import VAT on expansion materials Q1'12 Q2'12 Q3'12 Q4'12 Essakane So
Slide 14: Essakane Exploration Focus
Essakane Exploration Focus 2013 program priorities: • Brownfields program to evaluate targets within 15km of the mill, priority on soft oxide targets • Advance screening and target testing on the 1,283 km2 land position • Targeted drill testing of Sokadie and Tassiri targets to the south 14
Slide 15: Westwood Development
Westwood Development In 2013, including ore from Mouska, 2012 to produce 130,000 -150,000 oz 1 › Doyon Division (Mouska) mill refurbished › Shaft sunk to interim target, now at 1,958m Mine plan remains on track to reach LOM throughput levels in 2015 › Six-year labour contract signed effective from D
Slide 16: Westwood – Mineral Reserve and Resource Estimate
Westwood – Mineral Reserve and Resource Estimate As of December 31, 2012: Reserve Estimate Proven reserve of 65Koz @ 7.6 g/t Au Probable reserve of 283Koz @ 13.1 g/t Au -1,000 m Resource Estimate (includes reserves) Measured resource of 67Koz @ 7.5 g/t Au Indicated resource of 466Koz @ 13.0 g/t Au -
Slide 17: Sadiola
Sadiola Attributable Gold Production (41%) 2012 › Lower throughput and grade (000s oz) 25 26 27 › Graphitic ore impacted recoveries 22 › Operations unaffected by unrest in northern Mali Q1'12 Q2'12 Q3'12 Q4'12 2013 Initiatives Outlook › Improve crushing and screening to pre-condition mill feed › Imp
Slide 18: Côté Gold – Well Established Infrastructure
Côté Gold – Well Established Infrastructure ENERGY Favouring 230 kV line from Timmins Timmins Rail Roads Power lines ROAD 500 kV CN Rail Close to Hwy 144, 130 km to Timmins, 101 Power line 170 km to Sudbury Côté Gold 144 Chapleau Property 115 kV Gogama Power line RAIL 25 km to CN Rail siding in Goga
Slide 19: Côté Gold Mineral Resource Mostly Classified as Indicated
Côté Gold Mineral Resource Mostly Classified as Indicated Mineral Resource Estimate Effective December 31, 2012 Resource based on assay results from 293 holes Tonnes Grade Contained Ounces (158,047 metres) of drilling (millions) (g/t) (million ozs) 114% increase in Indicated Resource (Dec. 31, 2012)
Slide 20: Côté Gold – Effective Grade Makes a Compelling Project
Côté Gold – Effective Grade Makes a Compelling Project In g/t Au Reported Grade 1.8 African projects With Power North American projects 1.6 Rate for in-situ, less recovery & South American projects Effective Grade - Adjusted Adjustment 1.4 1.2 royalties 1.03 1.0 0.86 .95 .80 0.8 0.6 0.4 0.2 0.0 1 2
Slide 21: Balanced Geographic Portfolio
Balanced Geographic Portfolio Gold Mineral Resources 43% 18% North North America 40% America 30% Africa Africa 27% 42% South South America America 20111 20122 Gold Production 36% 3% 21 North North America America 54% 35% Africa Africa 43% South 29% America South America 20113 20174,5 Source: Company
Slide 22: Niobec
Niobec Niobium Production 2012 › Higher realized prices (Mkg Nb) 1.1 1.2 1.2 offset by higher costs for 1.2 labour and consumables, and lower grades Q1'12 Q2'12 Q3'12 Q4'12 › Increased throughput 2013 Initiatives › Change planned maintenance to improve plant availability › Optimize FeNb batches to r
Slide 23: 2012 Exploration Program
2012 Exploration Program Q2 152.3M Drilling: 682 km Q1 Q4 Quebec Ontario Exploration activity at 20 projects 23
Slide 24: 2013 Exploration Program
2013 Exploration Program In 2013, Company plans to spend $142M: $25M for brownfield $39M for near-mine $52M for greenfield $26M for scoping & feasibility studies, of which $24M is for Côté Gold Shifting greenfield focus from West Africa to Brazil, Colombia and Canada $38M of total spend to be capita
Slide 25: Controlled Growth via Expansion and New Development
Controlled Growth via Expansion and New Development (attributable to IAMGOLD) 1,400-1,600 875-950 830 000s oz // 2012 2013E 2017E Forecasting 80% growth in production 25
Slide 26: 2013 Guidance
2013 Guidance Rosebel (000s oz) 365 – 385 gold production Essakane (000s oz) 255 – 275 Attributable Doyon division - Westwood & Mouska (000s oz)1 130 - 150 Total owner-operated production (000s oz) 750 - 810 Joint ventures (000s oz) 125 - 140 Total attributable production (000s oz) 875 - 950 Owner-o
Slide 27: Return on Capital
Return on Capital 40% 34% 35% 30% IAMGOLD 25% 23% Peers 21% Including: 20% 18% AEM-T ELD-T 15% G-T K-T 13% YRI-T 14% 10% 10% 8% 5% 0% 2009 2010 2011 2012 27
Slide 28: Assault on Costs
Assault on Costs February 2013 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
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