Iamgold Corporation · TSX:IMG

Iamgold — Q3 2010 Earnings Presentation

22 slides from Iamgold's earnings presentation, Nov 5, 2010

  1. Slide 1: Q3 2010 Presentation

    Q3 2010 PRESENTATION November 5, 2010

  2. Slide 2: Management Participants

    Management Participants STEPHEN LETWIN President & Chief Executive Officer GORDON STOTHART Executive Vice President & Chief Operating Officer CAROL BANDUCCI Executive Vice President & Chief Financial Officer JEFFERY SNOW Senior Vice President, General Counsel & Corporate Secretary MICHAEL DONNELLY S

  3. Slide 3: 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

  4. Slide 4: President's Message

    President’s Message Focus: ƒ Planned organic growth ƒ Targeted acquisitions ƒ Pro-active plan to reduce costs 4

  5. Slide 5: Q3 2010 Highlights

    Q3 2010 Highlights 9 RECORD quarterly gold production of 256,000 ounces 9 Cash cost decreased 7% from Q2 ($623/oz) to $577/oz ƒ Ï 23% gold production at Rosebel ƒ Improved grades at Rosebel ƒ Essakane mine producing 42,000 oz at $459/oz 9 Revenues increased 8% from Q3’09 to $254.1M 5

  6. Slide 6: Attributable Gold Production and Sales

    Attributable Gold Production and Sales 000s oz 300 256 244 239 250 234 228 216 206 210 190 188 200 150 100 50 0 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Gold Produced Gold sold 6

  7. Slide 7: Margins

    Margins $/ $/oz Gold margin Q3 ’09 Q3 ’10 1,237 $1,200 Gold Operating 961 660 53% Results $800 504 52% Gold production 244 256 577 (000 oz) $400 457 Gold price realized 961 1,237 $0 ($/oz) Q3 '09 Q3 '10 Cash cost 457 577 cost margin ($/oz) $/kg Niobium Operating Niobium margin Results $20 Niobium pr

  8. Slide 8: Q3 2010 Revenues

    Q3 2010 Revenues millions $ Revenues up 8% in Q3’10 vs Q3’09: 254.1 $250 235.2 ƒ 29% rise in average realized gold price $200 Partially offset by: $150 ƒ 11% decrease in sales volume $100 $50 $0 Q3 '09 Q3 '10 Niobium Gold 8

  9. Slide 9: Q3 2010 Adjusted Net Earnings

    Q3 2010 Adjusted Net Earnings millions $ millions $ Adjusted net earnings Q3 ’09 Q3 ’10 $60 $40 51.7 50 Net earnings 64.9 40.8 Unrealized derivative loss on - 1.0 $20 gold hedging at Mupane $0 Gain on sales of marketable (1.7) (1.1) Q3 '09 Q3 '10 securities Foreign exchange loss (gain) (11.5) 9.3 Ad

  10. Slide 10: Q3 2010 Operating Cash Flow

    Q3 2010 Operating Cash Flow millions $ Millions $ 11.4 (32.9) Operating cash flow 64.9 $100 (23.7) 150 $80 89.3 (10.5) $60 112.7 64.9 103.5 $40 100 $20 $0 50 Q3 '09 Q3 '10 Operating cash flow per share 0 $0.30 $0.20 0.24 0.17 $0.10 $0.00 Q3 '09 Q3 '10 10

  11. Slide 11: Solid Financial Position

    Solid Financial Position 9 Strong balance sheet 9 Well positioned for growth Millions $ 700 600 578 593 500 423 400 350 350 123 300 200 300 100 228 243 0 As at Dec. 31 '09 Jun. 30 '10 Sep. 30 '10 Cash & Bullion1 Credit Facility available 2 1 Bullion at market value 11 2 Available undrawn portion, cr

  12. Slide 12: Essakane Commercial production achieved July 16, 2010

    Essakane Commercial production achieved July 16, 2010 IMG Ownership: 90% Reserves & Resources (oz) P&P Reserves1 3,871,000 M&I Resources2 4,266,000 Inferred Resources 1,869,000 Attributable production (oz) Updates 2010 Q3 42,000 ƒ Commercial production achieved July 16, 2010 Cash Cost ($/oz) ƒ Feasi

  13. Slide 13: Rosebel

    Rosebel IMG Ownership: 95% Reserves & Resources (oz) P&P Reserves1 4,840,000 M&I Resources2 6,870,000 Inferred Resources 894,000 Attributable production (oz) 2010E 385,000 - 395,000 Updates 2010 9-mos 276,000 2010 Q3 101,000 ƒ 23% increase gold production to 101,000 ounces in Q3 2009 392,000 vs. 82,

  14. Slide 14: Sadiola and Yatela

    Sadiola and Yatela Sadiola, Mali Yatela, Mali IMG Ownership: 41% IMG Ownership: 40% JV Partner: AngloGold Ashanti Updates JV Partner: AngloGold Ashanti Updates Reserves & Resources (oz) Reserves & Resources (oz) P&P Reserves1 1,457,000 ƒ Higher throughput P&P Reserves1 44,000 ƒ Lower grades from M&I

  15. Slide 15: Tarkwa and Damang

    Tarkwa and Damang Tarkwa, Ghana Damang, Ghana IMG Ownership: 18.9% IMG Ownership: 18.9% JV Partner: Gold Fields Ltd. Updates JV Partner: Gold Fields Ltd. Updates Reserves & Resources (oz) Reserves & Resources (oz) P&P Reserves1 2,018,000 ƒ Gold production slightly P&P Reserves1 344,000 ƒ Gold produc

  16. Slide 16: Doyon Division and Mupane

    Doyon Division and Mupane Doyon Division Mupane, Botswana IMG Ownership: 100% IMG Ownership: 100% Updates Updates Reserves & Resources (oz) Reserves & Resources (oz) P&P Reserves1 53,000 ƒ Mouska stockpiled ore for P&P Reserves1 199,000 ƒ Q3’10 production higher M&I Resources2 398,000 first 8.5 mont

  17. Slide 17: Niobec: Long Life, High Margin Producer

    Niobec: Long Life, High Margin Producer IMG Ownership: 100% Reserves & Resources (000 kg Nb2O5) M&I Resources1 181,300 Inferred Resources 219,100 Production (000 kg Nb) 2010E 4,500–4,700 2010 9-mos 3,294 Updates 2010 Q3 1,057 2009 4,106 ƒ Q3’10 production 8% higher than Q3’09 Operating Margin ($/kg)

  18. Slide 18: Westwood Long Life, Low Cost

    Westwood Long Life, Low Cost Updates ƒ On track to begin commercial production in early 2013 ƒ Q3 Project expenditures totaled $19.2M ƒ 2,000-tonne silo completed ƒ Shaft now over 1,030m deep Westwood, Quebec, Canada ƒ Ventilation boring raised 597m of 837m IMG Ownership 100% ƒ 4,429m underground de

  19. Slide 19: 2010 Revised Guidance

    2010 Revised Guidance Guidance Guidance Guidance issued issued issued Jan. ‘10 Aug. ‘10 Nov. ‘10 Gold Production (000oz) 940 – 1,000 980 – 1,010 940 – 970 Cash Costs (US$/oz) $490 – $510 $530 – $550 $565 – $585 Niobium production (M kg) 4.2 – 4.4 4.5 – 4.7 4.5 – 4.7 Niobium Operating Margin $17 – $1

  20. Slide 20: Exploration

    Exploration REGIONS OF EXPLORATION ACTIVITY Aggressive Organic Growth ƒ $61M of $87M 2010 budget spent-to-date ƒ Greenfield exploration of $40M planned in 2010 ƒ Near-mine exploration of $47M planned in 2010 ƒ Focus on advanced exploration projects 20

  21. Slide 21: Continued Growth

    Continued Growth 9 RECORD production, and rising production with Essakane on-board 9 Feasibility study to expand Essakane 9 Feasibiltiy study to expand Sadiola 9 Robust $87M exploration program with great future potential especially at Essakane, Rosebel and Westwood 9 Development at Westwood progres

  22. Slide 22: Q3 2010 Presentation

    Q3 2010 PRESENTATION November 5, 2010 Investor Relations: Bob Tait VP, Investor Relations T: 416 360 4743 E: bob_tait@iamgold.com

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