Iamgold Corporation · TSX:IMG
Iamgold — Non-Deal Roadshow (December 2016)
59 slides from Iamgold's roadshow presentation, Dec 15, 2016
Slide 1: Westwood Tour December 2016
Westwood Tour December 2016
Slide 2: Cautionary Statement
Cautionary Statement 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 statements of historical fact, const
Slide 3: Presentation Outline
Presentation Outline 1. Westwood Overview 2. 2016 Highlights 3. Geological Overview/Resources 4. Seismicity 5. 5-Year Plan 6. Opportunities l TSX: IMG l NYSE: IAG l 3
Slide 4: Project Comparisons
Project Comparisons 20 exploration Westwood Brucejack 11 g/t Au Yaramoko 10 Monster >12 g/t Au Ellipse = 75% of deposits Major axis = 1.1 g/t Au Grade Au (g/t) – Logarithmic Scale 5 exploration Minor axis = 2.25 Moz Pitangui 4.9 g/t Au Morelos Fekola Hounde Hardrock 2 Boto Borden 1.7 g/t Au explorat
Slide 5: Doyon-Westwood Project History
Doyon-Westwood Project History 2008 2009 2010 2011 2012 2007 Project Shaft sinking Surface U/G U/G 1st scoping study acceleration startup (519 m) construction development development 2006 mainly complete 2014 shows • U/G Development • Head frame, hoist • Shaft sinking (1,458 • Shaft sinking (1,932 I
Slide 6: 2016 Highlights
2016 Highlights
Slide 7: Health and Safety Improvements
Health and Safety Improvements 18 16 14 12 Q1 DART Frequency 10 Q2 8 Q3 Q4 6 APSM 4 2 DART 0 0 2011 2012 2013 2014 2015 2016 APSM = Quebec Mining Association average frequency DART = Days Away, Restricted or Transferred (per 200 000 h) l TSX: IMG l NYSE: IAG l 7
Slide 8: Westwood – Quebec (100%)
Westwood – Quebec (100%) Q3 2015 Q3 2016 Attributable gold production 2,000 16,000 Head grade 6.11 6.47 All-in sustaining costs1,2 ($/oz) $1,751 $1,391 Total cash costs1,2 ($/oz) $1,438 $888 Westwood 2015 LOM Forecast Q3 2016 Highlights 250,000 $2,500 Production from planned mining blocks on sched
Slide 9: Westwood Development – Progress Update as of Sept. 30, 2016
Westwood Development – Progress Update as of Sept. 30, 2016 Key Performance Indicators YTD Target YTD Actual Variance No lost time DART Rate* 3.30 0.8 -75% incidents Safety or injuries TRIR+ 8.8 8.0 -9% Underground lateral development 16,684 16,899 1% Development (m) Underground vertical development
Slide 10: Development Update: Re-opening
Development Update: 104 Re-opening All by-pass drifts complete; all rehabilitation zones accessible 15 vehicles recovered (value of = $4.5M CAD) All damaged areas inspected by external consultant Final rehabilitation and backfill sequences in progress Analysis of mining sequence in progres
Slide 11: Development Update: Rockbreaker/192 Loading
Development Update: 180 Rockbreaker/192 Loading Project Scope: › Loading 192 › Rockbreaker #1 & #2 on level 180 › Rockbreaker #3 on top of ramp on level 192 › Casing Orepass #1 between levels 180 and 192 Commissioning loading Q4 2016 Allows greater development capacity from 156 and 180 horizon
Slide 12: Development Update: Rockbreaker/192 Loading
Development Update: 180 Rockbreaker/192 Loading 180 Rockbreaker #2 Orepass Casing 192 Conveyor l TSX: IMG l NYSE: IAG l 12
Slide 13: Development Update: Battery Scoops
Development Update: Battery Scoops Extensive testing program in place prior to selection › 2014: 1 prototype tested › 2016: 3 models tested (different suppliers) › Next test scheduled Q4 2016 Key selection criteria: › Charge life and recharge process › Reliability › Efficiency › Ease of operatio
Slide 14: Geology and Resources
Geology and Resources
Slide 15: Location
Location l TSX: IMG l NYSE: IAG l 15
Slide 16: Location
Location Westwood 2,799 hectares Mouska Mic Mac Mooshla A/B Doyon Warrenmac Ellison Bousquet Bousquet La Ronde Penna La Ronde 1 2 1 Shaft 2 Westwood Bousquet 2- Mouska M+I Bousquet 1 Dumagami LaRonde Penna 2.44 Mt @ 13 g/t Doyon 1.92 Mt @ 12.0 g/t 0.739 Moz Au 22.7 Mt 17.6 Mt 71 Mt @ 3.9 g/t 1 Moz A
Slide 17: Westwood Project Geological History
Westwood Project Geological History Westwood M+I 1.92 Mt @ 12.0 g/t 0.739 Moz Au Bousquet 2- Mouska Bousquet 1 Dumagami LaRonde Penna 2.44 Mt @ 13 g/t Doyon Inferred: 22.7 Mt 17.6 Mt 71 Mt @ 3.9 g/t 1 Moz Au 34.1 Mt @ 5.45 g/t 7.55 Mt @ 11.3 g/t @ 3.5 g/t @ 7.5 g/t 9 Moz Au (+ Cu) 6.0 Moz Au 2.7 Moz
Slide 18: Geology and Mineralization
Geology and Mineralization Doyon-Bousquet - LaRonde Mining Camp Upper greenschist / lower amphibolite Bousquet Fm. : 2699-2696 Ma From Mercier-Langevin et al. (2012) l TSX: IMG l NYSE: IAG l 18
Slide 19: Surface View
Surface View Doyon Mine Westwood Mine Warrenmac discovery outcrop l TSX: IMG l NYSE: IAG l 19
Slide 20: Westwood Geology: Level Plan View
Westwood Geology: Level 084 Plan View l TSX: IMG l NYSE: IAG l 20
Slide 21: Westwood Geology – Cross Section View
Westwood Geology – Cross Section View l TSX: IMG l NYSE: IAG l 21
Slide 22: Westwood Geology – Cumulative Diamond Drilling
Westwood Geology – Cumulative Diamond Drilling 2007 2012 2016E 21,000m DDrilling 458,000m Ddrilling >750,000m DDrilling l TSX: IMG l NYSE: IAG l 22
Slide 23: Mineralized ore veins 2007, 2012, 2016
2007 2012 2016 28 mineralized ore veins 135 mineralized ore veins 147 mineralized ore veins 23
Slide 24: Doyon Mine and Westwood mine life
Doyon Mine Westwood 25 years – 6M oz 20 year mine life 24 24
Slide 25: Westwood 2015 Reserves and Resources
Westwood 2015 Reserves and Resources 1 Contained As of December 31, 2015 Tonnes Grade (g/t Au) Ounces Proven 744,000 7.5 180,000 Probable 1,718,000 7.6 418,000 Total Reserves2 2,462,000 7.6 598,000 Measured 466,000 12.7 190,000 Indicated 1,450,000 11.8 549,000 Total Measured & Indicated2,3,4 1,916,0
Slide 26: Geological Resources Evolution
Geological Resources Evolution l TSX: IMG l NYSE: IAG l 26
Slide 27: Ounces Per Vertical Meter
Ounces Per Vertical Meter LOM April 2016 l TSX: IMG l NYSE: IAG l 27
Slide 28: Potential Resource Upside
Potential Resource Upside • Planning for several domains is affected by the gaps in current resource model. • Further drilling and resource conversion is expected to improve the production plan in the outer years due to economies of scale (shared infrastructure). • Mining plans are kept flexible in
Slide 29: Seismicity
Seismicity
Slide 30: Timeline of Major Seismic Events
Timeline of Major Seismic Events Local Moment Regional Magnitude NRCan Magnitude Date Time Location Magnitude (MR) (MN) 17:38 104-08* N/A 1.4 2.2 2013-08-31 17:39 104-08* N/A 2.4 3.0 2014-12-12 5:23 104-02 1.2 2.8 3.0 18:35 104-00/02 1.4 1.4 1.8 2014-12-29 18:35 104-00/02 1.3 1.1 N/A 12:55 104-06* 1
Slide 31: Location of Affected Zone
Location of Affected Zone 3 ’ 13 Levels Jan Closed 1 2 l TSX: IMG l NYSE: IAG l 31
Slide 32: Location of Affected Zone
Location of Affected Zone l TSX: IMG l NYSE: IAG l 32
Slide 33: Review Process
Review Process Technical review in parallel with ICAM investigation External experts involved throughout review Analysis included: • Seismic analysis › Frequency and distribution › Mechanism • Geotechnical drilling • Numerical modelling l TSX: IMG l NYSE: IAG l 33
Slide 34: Seismic Mechanism
Seismic Mechanism 104-6 • A zone of very complex geology exists near the 104 infrastructure • Previous development and seismicity led to creation of a highly stressed pillar • Development of 104-04 sub-level passed through this pillar 104-4 This drive experienced significant convergence and deformat
Slide 35: Five-Year Plan and Operating Parameters
Five-Year Plan and Operating Parameters
Slide 36: Westwood Potential
Westwood Potential Westwood has significant resource potential undrilled in existing mining blocks, at depth and to the west Development completed in 2016 and scheduled for 2017 is essential to Westwood ramp-up and expansion plans › Diamond drilling rate increases in 2017 with available infrastr
Slide 37: Westwood Strategy Overview
Westwood Strategy Overview 2017 2020 2021 + • Full, sustainable production; Vision • Advance strategic plan and maximum profitability • Ramp-up Complete priority projects for each of the four pillars of the vision • Infrastructure development for Mining Blocks 3 and 4 • Construction of Block 5-6 • C
Slide 38: 2017 Strategic Priorities
2017 Strategic Priorities Labour Sustainability Resources Operations • Rigorous and • Continue • Resource • Develop proactive labour deposition plan conversion communications management for waste and • Revise mining network strategy • Reinforcement of tailings strategy for new and plans H&S culture,
Slide 39: 2017 Production Plan Summary
2017 Production Plan Summary Production from Blocks 1 and 2 Reopening of 104 mining area Infrastructure and development in blocks 3 and 4 Diamond drilling begins below 180-level (Blocks 5-6) l TSX: IMG l NYSE: IAG l 39
Slide 40: Mining Parameters for 5-Year Plan
Mining Parameters for 5-Year Plan • Development: – Trackless: 8.1 m/crew/day – Track: 3.9 m/crew/day – Alimak Raise: 3.6 m/crew/day – Conventional Raise: 1.8 m/crew/day • Production: – Longhole Mining (transverse, longitudinal, hybrid) – Dilution: 50% for 2-m mining widths – Mining recovery: 95% l T
Slide 41: 5-Year Plan: Development Sequence
5-Year Plan: Development Sequence 5-Year Plan: Development Sequence 2019 2018 2017 2020 l TSX: IMG l NYSE: IAG l 41
Slide 42: 5-Year Plan: Development Summary
5-Year Plan: Development Summary 5-Year Plan: Development Sequence 2016 Q3 2017 2018 2019 2020 2021 (9A+3F) Budget Km Km Km Km Km Km Stope Preparation (w/o V30) Drift 4.4 6.5 4.0 4.4 5.3 4.8 Deferred Development Trackless Drift 8.7 5.9 5.2 5.9 7.0 6.1 Track Drift 5.2 3.3 Ramp 3.2 2.1 2.3 2.7 2.0 2.8
Slide 43: 5-Year Plan: Development Summary
5-Year Plan: Development Summary 5-Year Plan: Development Sequence 25,000 20,000 15,000 Meters 10,000 5,000 0 2016 Q3 2017 Budget 2018 2019 2020 2021 (9A+3F) Trackless drift (Jumbo) Track drift Vertical Note: Slot Rse V30 not included l TSX: IMG l NYSE: IAG l 43
Slide 44: Mining Methods
Mining Methods • Production plan based on long-hole mining • Several variations currently in plan: – Transverse – Longitudinal Retreat – Hybrid • Method selection a function of: – Thickness of ore zone (2-10 meters) – Expected stress state – Number and configuration of stopes in panel – Presence of
Slide 45: Longitudinal Retreat
Longitudinal Retreat l TSX: IMG l NYSE: IAG l 45
Slide 46: Longitudinal With 2 Accesses
Longitudinal With 2 Accesses l TSX: IMG l NYSE: IAG l 46
Slide 47: Transverse Sequence
Transverse Sequence l TSX: IMG l NYSE: IAG l 47
Slide 48: Hybrid (Blade) Accesses
Hybrid (Blade) Accesses l TSX: IMG l NYSE: IAG l 48
Slide 49: Hybrid Blade Sequence
Hybrid Blade Sequence l TSX: IMG l NYSE: IAG l 49
Slide 50: 5-Year Plan: Production Sequence
5-Year Plan: Production Sequence 5-Year Plan: Development Sequence 2020 2019 2018 2017 2016 2020 2019 2018 2017 *includes inferred resources l TSX: IMG l NYSE: IAG l 50
Slide 51: 5-Year Plan: Mine Production
5-Year Plan: Mine Production 5-Year Plan: Development Sequence 1,000 900 280 Mining Costs ($US/t hoisted) 800 Total Hoisted (Ktpa) 700 230 206 600 500 159 180 143 400 118 130 300 109 84 200 80 100 0 30 2016 Q3 2017 Budget 2018 2019 2020 2021 (9A+3F) Total ore Hoisted (Ktpa) Mining Unit Cost l TSX: I
Slide 52: 5-Year Plan: Milling Parameters
5-Year Plan: Milling Parameters 5-Year Plan: Development Sequence Maximum Throughput: 900 000 tpa Mill Availability: 95% (345 days/year) Average Metallurgical Recovery: 94.6% Parameters by Corridor Corridor Recovery Au:Ag Ratio Zone 2 96% 5:1 North 93% 3.5:1 Westwood 93% 1:4 l TSX: IMG l NYSE:
Slide 53: Mill Flowsheet
Mill Flowsheet l TSX: IMG l NYSE: IAG l 53
Slide 54: 5-Year Plan: Production Summary
5-Year Plan: Production Summary 5-Year Plan: Development Sequence 2016 2017 2018 2019 2020 2021 Q3(9A+3F) Tonnes Milled (‘000t) 337 566 463 707 799 918 Grade Au g/t 6.24 7.23 8.98 8.18 7.78 7.36 Ounces Au 63.6 124.3 128.1 176.9 189.6 204.7 (Rec. 94.6%) (000 oz.) Tonnes waste hoisted (‘000t) 836 632
Slide 55: 5-Year Plan: Mill Production
5-Year Plan: Mill Production 5-Year Plan: Development Sequence 1,000 25 900 21 20 800 20 700 17 16 16 Tonnes Milled (Ktpa) 15 $US/ Tonne Milled Ounces ('000) 600 15 500 400 10 300 190 205 200 177 5 124 128 100 64 0 0 2016 Q3 2017 Budget 2018 2019 2020 2021 (9A+3F) Milling (Ktpa) Ounces ('000) Millin
Slide 56: 5-Year Plan: Capital Spending
5-Year Plan: Capital Spending 90 80 70 60 Millions $US 50 40 30 20 10 0 2016 Q3 2017 2018 2019 2020 2021 (9A+3F) Budget Sustaining Non-Sustaining 56 l TSX: IMG l NYSE: IAG l
Slide 57: 5-Year Plan: Westwood Free Cash Flow
5-Year Plan: Westwood Free Cash Flow 5-Year Plan: Development Sequence 150 100 50 Millions $US 0 2016 Q3 2017 2018 2019 2020 2021 (9A+3F) Budget -50 -100 -150 Free Cash Flow Note - Based on gold price assumptions: 2017 - $1,250; 2018 - $1,275; 2019 - $1,275; 2020 - $1,275; 2021 - $1,275 l TSX: IMG l
Slide 58: Opportunities
Opportunities 5-Year Plan: Development Sequence › Resource conversion & exploration › Optimization mine design (development review) › Higher volume stopes (thicker ore zones) › Revision of capital program, including shaft deepening (blocks 5&6) › Technology, automation, new mining methods, vertical
Slide 59: Questions?
Questions?