Slide 1: 2014 Third Quarter Results
2014 Third Quarter Results November 13, 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: Staying Focused on Strategic Priorities
Staying Focused on Strategic Priorities Cost Reduction Capital Discipline Cash Preservation Focused on Economic Returns 5
Slide 6: Cost Reduction - Targeting $100/oz by 2015
Cost Reduction - Targeting $100/oz by 2015 80 $72M Operations Cost Reductions (as at Sept 30th) YTD by Site ($M) 70 “Includes 9 sustainable 60 1 savings carried forward from 9 2013” 50 22 $M 40 30 62 $62M 20 23 10 8 0 2014 YTD Operations Total Corporate G&A Exploration Westwood Rosebel Essakane Niob
Slide 7: 2014 CAPEX Expected 46% Lower than 2013
2014 CAPEX Expected 46% Lower than 2013 800 700 $669M 600 CAPEX Outlook for 2014 revised downwards by 10% 500 Previous guidance was $400M 46% $M 400 Exp./Dev. $360M Sustaining 300 200 100 0 2013 2014 7
Slide 8: Strong Liquidity Today; Stronger After Niobec Sale
Strong Liquidity Today; Stronger After Niobec Sale $1.34 B $1.09 B 500 250 164 500 671 164 171 As at September 30, 2014 Pro Forma Liquidity with Cash Proceeds from Sale of Niobec Cash & cash equivalents Gold bullion at market Cash & cash equivalents Gold bullion at market Unused credit facility Unus
Slide 9: Positive Indicators
Positive Indicators Q3/14 down $114/oz. Growth for from Q4/13 two PRODUCTION consecutive AISC quarters in GOLD MINES1 2014 2014 Guidance 42% down 46% growth CASH from 2013 during Actual Q3/14 CAPEX 1We have begun including the income from our Diavik royalty as an offset to operating costs in the cal
Slide 10: 2014 Revised Full Year Guidance
2014 Revised Full Year Guidance6 Guidance Revised Guidance gold production Rosebel (000s oz.) 330 - 350 315 - 320 Attributable Essakane (000s oz.) 315 - 330 330 - 335 Doyon division (000s oz.)1 100 - 120 95 - 100 Total owner-operated production (000s oz.) 745 - 800 740 - 755 Joint ventures (000s oz.
Slide 11: Financial Review
Financial Review CORPORATION
Slide 12: Revenues
Revenues 341.5 Revenue 293.5 Q3 2013 Change Q3 2014 Impact Gold Price1 1,334 (5%) 1,272 ($12.3M) ($/oz.) $millions Gold Sales2 Owner-Operator 169 24% 210 $52.7M 305.3 (000s oz.) 279.3 Niobium Sales 1.1 27% 1.4 $6.8M (Mkg Nb) Q3 2013 Q3 2014 1 Average realized gold price per ounce sold. This is a non
Slide 13: Adjusted Net Earnings
Adjusted Net Earnings1 (In $ millions, except for per share amounts) Q3'13 Q3'14 Net earnings (losses) attributable to equity holders 25.3 (72.5) Deferred tax expense - 72.0 Changes in estimates of asset retirement obligations at closed sites - 1.8 Unrealized derivative (gains) losses (7.1) 6.9 Writ
Slide 14: Net Cash From Operating Activities
Net Cash From Operating Activities (In $ millions, except for per share amounts) Q3’13 Q3’14 $0.24 per share Net cash from operating activities per consolidated interim financial 64.9 115.3 statements 88.9 Adjusting items from non-cash working capital items and non-current $0.18 per share ore stockp
Slide 15: Maintaining Strong Liquidity
Maintaining Strong Liquidity $1,047 $1,085 250 250 $millions 500 500 164 177 120 171 As of June 30, 2014 As of September 30, 2014 The Company has $650 million of senior unsecured notes due October 2020. 15
Slide 16: Attributable Gold Production
Attributable Gold Production 225 Due to 228 › Higher grades at Essakane +19,000 oz. › Higher recoveries and throughput at Sadiola +2,000 oz. Offset by › Lower grades at Rosebel -12,000 oz. 000s oz. › Westwood -8,000 oz. › Winding down operations at Yatela -3,000 oz. Q3 2013 Q3 2014 16
Slide 17: 2014 Production Trend
2014 Production Trend1 250 200 20% 9% 225 206 150 172 Mill expansion Westwood in 000’s oz. at Essakane commercial production 100 Grade improvement and higher 50 throughput at Rosebel 0 Q1 Q2 Q3 1 Attributable gold production includes Westwood non-commercial production 17
Slide 18: All-In Sustaining Costs Continue to Improve
All-In Sustaining Costs1,2,3 Continue to Improve 1,600 All figures in $/oz. sold 1,400 1,334 1,288 1,273 1,286 1,272 1,200 1,207 1,229 1,184 1,000 1,124 1,115 800 600 400 200 0 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 1,3,4 ` Total Cash Costs Average Realized Gold Price 1 This is a non-GAAP measure.
Slide 19: Operations Review
Operations Review £IAMGOLD
Slide 20: Westwood – Canada
Westwood – Canada July 1, 2014: Commenced Q3 2014 Performance Commercial Strong first quarter of commercial production Production Mill Rate: 1,400 tpd Positive grade reconciliation: avg. 7.54 g/t Au. xx rate: 94% Recovery Produced 35,000 oz.; total cash costs $772/oz. 1 All-in sustaini
Slide 21: Rosebel - Suriname
Rosebel - Suriname Q3 2014 Performance Attributable Gold Production (95%) Production up 22% from Q2’14, despite transition and hard rock up from 55% to 71% (000s oz.) › Grades up 14% – 60% of variance › Implementation of measures stemming from 95 80 83 grade control audit 70 68 › Long-haul road to
Slide 22: Essakane – Burkina Faso
Essakane – Burkina Faso Attributable Gold Production (90%) Q3 2014 Performance H1 - robust production ramp-up with mill expansion (000s oz.) Q3/14 grades increased 22% to 1.2 g/t Au. from Q2’14 64 68 92 83 Hard rock increased to 83% from 24% in Q2’14 59 Total cash costs reflect harder rock a
Slide 23: Sadiola – Mali
Sadiola – Mali Attributable Gold Production (41%) Q3 2014 Performance (000s oz.) Lower production from Q2’14 due to lower grades, partially offset by 10% increase in tonnage mined 19 24 19 24 21 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Outlook Transitioning to hard rock Expansion required to accommodate
Slide 24: Niobec – Canada
Niobec – Canada Niobium Production Q3 2014 Performance (Mkg Nb) Another quarter of strong performance 1.3 1.6 1.3 1.4 22% increase in operating margins , reflecting 1 1.4 ongoing continuous improvement initiatives › Use of cyclones in processing reduces consumables required Q3'13 Q4'13 Q1'14 Q2'
Slide 25: 2014 Revised Capital Expenditure Outlook
2014 Revised Capital Expenditure Outlook1 Development/ ($ millions) Sustaining Expansion Total Rosebel 75 25 100 Essakane 60 35 95 Westwood 20 75 95 Côté Gold - 12 12 Total owner-operated gold 155 147 302 Niobec 22 20 42 Total consolidated 177 167 344 Joint ventures – Sadiola2 4 12 16 Total 181 179
Slide 26: Exploration Review
Exploration Review IAMGOLD
Slide 27: 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 28: 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 29: 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 30: Joint Venture Project Updates
Joint Venture Project Updates Siribaya (Mali) with Merrex Gold Inc. › Focus on Diakha prospect - extension of trend hosting Boto Gold deposit and B2Gold’s Fekola deposit › Phase I RC drilling program intersected multiple zones of gold mineralization with similar characteristics to Boto › Phase II
Slide 31: Resource Development and Brownfield Exploration
Resource Development and Brownfield Exploration ROSEBEL ESSAKANE Focus on increasing inventory of Drilling continues to upgrade existing transitional and soft rock continued inferred resources and to evaluate in Q3 – initiated drilling on the Mayo potential main pit extensions and Royal Hill dep
Slide 32: 2014 Third Quarter Results
2014 Third Quarter Results November 13, 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