Iamgold Corporation · TSX:IMG
Iamgold — Investor Presentation (April 2012)
24 slides from Iamgold's investor presentation, April 2012
Slide 1: REE: The Value of REEs
REE Rare Earth Elements The Value of REEs Jeffery Snow SVP & General Counsel Pierre Pelletier VP, Metallurgy Stephen Eddy Director, Corporate Development IAMGOLD.COM | TSX: IMG | NYSE: IAG April, 2012
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: What are Rare Earth Elements?
What are Rare Earth Elements? Group of 17 chemical elements in the periodic table Referred to as “rare” because they are not commonly found in commercially viable concentrations 2 main subgroups: i) Light rare earths (LREE) and ii) Heavy rare earths (HREE) VITAL IN CLEAN ENERGY AND REE miner
Slide 4: REE Properties and Applications
REE Properties and Applications LIGHT RARE EARTHS PROPERTIES APPLICATIONS (La) Lanthanum Silvery-white/gray in colour (Ce) Cerium High luster but tarnish readily in air (Pr) Praseodymium Most REE compounds are strongly (Nd) Neodymium paramagnetic (Sm) Samarium Catalytic, chemical, electrical
Slide 5: Rare Earths are Integral to a Wide Range of Growing Markets
Rare Earths are Integral to a Wide Range of Growing Markets REO Usage (2010) Estimated Magnets 25% Compound Annual Application Growth Rate 2010-2015 Fluid Cracking Catalysts 15% Phosphors 30% Battery Alloy 14% Rechargeable Batteries 18% Polishing Powder 14% Permanent Magnets 16% Metallurgy, excl. Ba
Slide 6: REE Plays a Key Role in the Clean Energy Sector
REE Plays a Key Role in the Clean Energy Sector Hybrid and electric cars can contain 20–25 pounds1 of rare earths (Twice the amount found in standard gasoline cars) UV Cut Glass Cerium Glass and Mirrors Polishing Powder Cerium Diesel Fuel Additive Cerium LCD Screen Lanthanum Europium Yittrium Hybrid
Slide 7: Global Supply of Rare Earth Elements
Global Supply of Rare Earth Elements 2011 Global Rare Earth Reserves1 (E) 114 Million Tonnes 3.1 Mt 1.6 Mt Australia India 55 Mt 19 Mt 13 Mt 22 Mt China CIS U.S.A. Others 48% 17% 11% 3% 1% 20% % of global reserves 1Source: “The not-so-rare issue with rare-earth investing”, Globe and Mail, Mar. 13, 2
Slide 8: The China Factor
The China Factor China accounts for 95% of global production Bayan Obo deposit (Mongolia) supplies >70% of China’s LREE (ie. 46% China’s production and 42% globally) China In 2010, China Rare Earth forecasts drop in production reduced prices surged Demand Prices export quota to record highs dropped
Slide 9: Growing Gap between Supply and Demand
Growing Gap between Supply and Demand 160,000 140,000 Since 2000, global demand for rare earths has grown ~4.7% per year Demand tpa - REO 120,000 Over the next decade, demand is 100,000 expected to grow at 7-9% CAGR 80,000 60,000 40,000 20,000 0 '05 '06 '07 '08 '09 '10 '11F '12F '13F '14F '15F C
Slide 10: Race is on to Fill the Growing Gap
Race is on to Fill the Growing Gap Global Rare Earths Supply and Demand 2005-2015 250,000 Number of exploration stage companies has significantly increased since China announced quotas 200,000 Demand tpa - REO 150,000 100,000 50,000 0 '05 '06 '07 '08 '09 '10 '11F '12F '13F '14F '15F China Supply R
Slide 11: Critical Rare Earth Elements
Critical Rare Earth Elements Critial Heavy rare earth oxides (HREO) Symbol Name Rare Earth Oversupply IMG’s REE Risk are less commonly occurring Oxides (CREO) Significantly more expensive Ce Cerium High 47.9% Higher risk of future shortage La Lanthanum High 24.5% LREO U.S. Department of Ener
Slide 12: IAMGOLD's REE Resource
IAMGOLD’s REE Resource Geological Map and Cross Section of the St. Honoré Carbonatite Total Inferred Resource (NI 43-101) 466.8 tonnes Pyrochlore, magnetite, blotite, Total Rare Earth Oxide (TREO) (grade %) 1.65% apatite, and white to pink dolomite TREO 7.7 million tonnes Heavy Rare Earth Oxides 2%
Slide 13: Major REO Projects
Major REO Projects Potentially largest REE deposit outside of China Lynas Molycorp Australia USA 1.4 Mt 1.1 Mt China’s Mongolian deposit IAMGOLD Bayan Obo 7.7 Mt TREO 40 Mt TREO Avalon Quest Rare Element Northwest Territories, Canada Canada USA 4.3 Mt TREO 1.3 Mt 0.9 Mt Source: Company reports 13
Slide 14: IAMGOLD's Composition of REE Resource
IAMGOLD’s Composition of REE Resource REE Mineral Resources by Light REO Heavy REO Grade Groups Grade Tonnage Ce2O3 La2O3 Nd2O3* Pr2O3 Sm2O3 Gd2O3 Eu2O3* Dy2O3* Tb2O3* Please see cautionary disclaimer on page 23 Groups Million ppm % TREO % TREO HREO ppm ppm ppm ppm ppm ppm ppm ppm ppm Tonnes > 2.50
Slide 15: Excellent Infrastructure
Excellent Infrastructure 1 km north of IAMGOLD’s operating niobium mine Prospect of utilizing existing underground at Niobec as well as surface facilities to mine and process the REEs Among the world’s top 5 mining friendly jurisdictions1 Existing road and rail infrastructure Proximity to
Slide 16: Estimated value of IAMGOLD's Major REOs at current prices
Estimated value of IAMGOLD’s Major REOs at current prices Forecast 20121 Oxides Grade Price Gross Value % $/kg $/t Cerium oxide 0.79 60 474 Lanthanum oxide 0.41 80 328 *Neodymium oxide 0.30 190 570 Please see cautionary disclaimer on page 23 Praseodymium oxide 0.09 180 162 Samarium oxide 0.03 90 27
Slide 17: Rare Earth Elements Competitive Landscape
Rare Earth Elements Competitive Landscape Over 56 rare earth projects are publicly owned – of which, only one asset is in production # Project Name Owner Country Stage Resource (‘000 Tonnes) Grade (%) TREO (‘000 Tonnes) 1 Selwyn Lake Aben Resources Ltd Canada Exploration 0 0 0 2 Nolans Bore Arafura
Slide 18: Benchmarking IAMGOLD's REE Project
Benchmarking IAMGOLD’s REE Project # Project Name Owner Country Stage Resource (‘000 Tonnes) Grade (%) TREO (‘000 Tonnes) 1 REE Project IAMGOLD Canada Reserves Development 466,800 1.65 7,702 2 Kvanefjeld Greenland Minerals and Energy Ltd Greenland Reserves Development 619,000 1.06 6,555 3 Nechalacho
Slide 19: Benchmarking IAMGOLD's REE Project (cont'd)
Benchmarking IAMGOLD’s REE Project (cont’d) Canada USA Rest of the world Overview Market Cap (US$M) $5,015 $316 $217 $12 $3,100 $281 $1,810 $205 $104 Project REE Project Nechalacho Hoidas Lake Montviel Mountain Pass Bear Lodge CL Kvanefjel Zandkopsdrift Northern Cape, South Source: Metals Economics
Slide 20: Global REE Projects
Global REE Projects # of REE Projects 208 145 56 6 2 1 19 Project REE as Primary Owner is } 15 Exploration 13 Target Outline Reserves Feasibility Pre-Production Production Containing REE Commodity Publicly Traded Stage Development 191 114 43 12 12 19 7 2 1 Number of companies Source: Metals Economic
Slide 21: Ground to Market Process
Ground to Market Process Products Permanent magnets LED’s Consumer Electronics REFINING 5 to meet specific downstream technological applications SEPARATION 4 separating and purifying the individual REE oxides HYDRO-METALLURGY 3 cracking the REE minerals to produce mixed REE oxides concentrates
Slide 22: IAMGOLD REE Milestones
IAMGOLD REE Milestones Further exploration and infill drilling expected to extend resource model Drilling below current depth 8,750 m drill campaign initiated in Jan’12 to define lateral extent of resource Scoping 2012 Scoping Study will define significance of REE resource Study Pilot Extend
Slide 23: REE Technical Information Qualified Person/Control Notes
REE Technical Information Qualified Person/Control Notes REE Technical Information and Qualified Person/Quality Control Notes Mineral resource estimates have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). The “Qualified Person”
Slide 24: Thank You
Thank You Contact us IAMGOLD Corporation 401 Bay Street, Suite 3200P.O. Box 153, Toronto, Ontario M5H 2Y4 Canada T: 416 360 4710 | TF: 1 888 464 9999 | F: 416 360 4750 Jeffery Snow SVP & General Counsel Pierre Pelletier VP, Metallurgy Stephen Eddy Director, Corporate Development April, 2012 IAMGOLD.