Iamgold Corporation · TSX:IMG
Iamgold — Deutsche Bank 27th Annual Leveraged Finance Conference 2019
51 slides from Iamgold's conference presentation, Sep 24, 2019
Slide 1: Deutsche Bank 27th Annual Leveraged Finance Conference
Deutsche Bank 27th Annual Leveraged Finance Conference September 24, 2019 TSX: IMG l NYSE: IAG
Slide 2: Cautionary Statement
Cautionary Statement All information included in this presentation whether in narrative or chart form, 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 s
Slide 3: Technical Information and Qualified Persons
Technical Information and Qualified Persons The mineral resource estimates contained in this news release have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43- 101"). The "Qualified Person" responsible for the review and approval of al
Slide 4: IAMGOLD: Building a Cash Flow Pipeline
IAMGOLD: Building a Cash Flow Pipeline Our vision is to be the global leader in generating superior value for our stakeholders through accountable mining. 1 2 3 4 CREATING DIVERSIFYING MAINTAINING ENSURING superior our portfolio a strong a robust stakeholder balance sheet pipeline value • Operationa
Slide 5: Creating Superior Stakeholder Value
1 2 3 4 Creating Superior Stakeholder Value Our Operations SELF-FUNDING, SELF-SUSTAINING, SAFE & PROFITABLE • Operating cost management to achieve positive cash-flow; • Capital expenditures reflect value-adding initiatives. Operational improvements at our current sites: • Debottleneck Essakane mill;
Slide 6: Diversifying Our Portfolio
1 2 3 4 Diversifying Our Portfolio MAP OF OPERATING, DEVELOPMENT AND EXPLORATION PROJECTS Operating Mine Development Project Advanced Exploration NORTH AMERICA Westwood Côté Gold Nelligan ATTRIBUTABLE MEASURED AND Monster Lake INDICATED RESOURCES CENTRAL AMERICA Eastern Borosi 32% 39% South Africa A
Slide 7: Maintaining a Strong Balance Sheet
1 2 3 4 Maintaining a Strong Balance Sheet MAINTAINING LIQUIDITY WELL ABOVE $1 BILLION Cash and cash equivalents $609.7 M Short-term investments $ 50.7 M Available credit facility $499.6 M Total Liquidity As at June 30, 2019 $1,160 M Forward Sale Funds Receipt: Dec. 2019 + $170 M On January 15, 2019
Slide 8: Ensuring a Robust Pipeline
1 2 3 4 Ensuring a Robust Pipeline FUTURE PRODUCTION OPPORTUNITIES GROWTH OPPORTUNITIES Monster Lake Quebec Nelligan Quebec Diakha-Siribaya Mali Saramacca, Suriname Mill Optimization, Burkina Faso Eastern Borosi Nicaragua Côté Gold Project, Canada Boto Gold Project, Senegal Pitangui Project, Brazil
Slide 9: Financial Highlights
Financial Highlights 9
Slide 10: Operating and Financial Highlights
Operating and Financial Highlights (In $ millions, except where noted) H1’18 H1’19 Variance Attributable production (000s oz) 443 383 14% Attributable sales (000s oz) 450 377 16% Total cash costs ($/oz)1 $773 $890 15% AISC ($/oz)1 $1,012 $1,109 10% Revenue2 $592 $498 16% Gross profit $105 $6 94% Net
Slide 11: Recent Financial Achievements
Recent Financial Achievements MOODY’S UPGRADES TO BA31 On September 28, 2018, Moody's Investor Services upgraded long-term corporate credit rating to Ba3 from B1 with a stable outlook. CREDIT FACILITY2 On November 15, 2018, amended credit facility to increase the amount to $500 million (from $250 mi
Slide 12: Lowest Leverage Amongst Peer Group
Lowest Leverage Amongst Peer Group Multiples of EBITDA Average Peer Debt/EBITDA Liabilities Cash Source: FactSet, Company Filings. Market data as of September 18th 2019, Company Fillings as of June 30th 2019 1 Availability as of June 30th 2019, which also excludes amount utilized for Letters of Cred
Slide 13: Cash and Debt – Historical Balances
Cash and Debt – Historical Balances $800 Cash Total Debt Total Leverage (1) 5.0x 4.6x $600 $677 $639 $640 $400 $699 $485 4.0x $392 $399 $200 3.6x $0 3.0x Total Leverage $(222) $(159) $(271) $(763) -$200 $MM $(548) -$400 $(797) $(816) $(758) 2.0x $(1,052) -$600 1.9x -$800 1.1x 1.0x 1.6x 1.2x -$1,000
Slide 14: Hedging Summary – Reducing Input Exposure
Hedging Summary – Reducing Input Exposure Fuel hedges of planned consumption › WTI oil – coverage for 5 years 2019 – 90% using zero cost collar options with strike prices between $40-$60/barrel 2020 & 2021 – 75% using zero cost collar options with strike prices between $43-$62/barrel 2022 & 20
Slide 15: Capital Allocation
Capital Allocation UPDATE ON SELF-FUNDING MODEL • Mine sites tasked with free cash flow generation: • Must cover operating, sustaining and site expansion projects • Mine sites additionally fund corporate, exploration and financing. • New growth projects would be funded from the balance sheet. • Only
Slide 16: Leveraging Existing Asset Base
Leveraging Existing Asset Base Photo: Wärtsilä 16
Slide 17: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG) Zero Harm remains both a goal and journey: • Respecting the natural environment, building strong community partnerships and putting the health and safety of our employees first. Strong environmental, social, and governance practices have always been part of
Slide 18: Near Term Catalysts
Near Term Catalysts H1 2019 $170 Million Gold Prepay Agreement Diahka-Siribaya Updated Resource H2 2019 Essakane CIL and Heap Leach Feasibility Study Saramacca Production Targeted Expect delivery of Boto Mining Permit Nelligan Initial Resource Preliminary Westwood Plan Update 2020 Saramacca Full Pro
Slide 19: 2019 Production and Cost Guidance
2019 Production and Cost Guidance REFLECTS YTD PROGRESS AND H2 EXPECTATIONS Updated Guidance Previous Guidance1 Essakane (000s oz) 380 – 390 375 – 390 Rosebel (000s oz) 240 – 260 315 – 330 Westwood (000s oz) 95 – 105 100 – 120 Total owner-operated production (000s oz) 715 – 755 790 – 840 Sadiola Joi
Slide 20: 2019 Capex Outlook
2019 Capex Outlook GUIDANCE UPDATED AT Q2 Updated Guidance Previous Guidance $millions Non- Non- Sustaining1 Sustaining Total Sustaining1 Sustaining Total $40 $70 $110 Essakane $55 $70 $125 $40 $50 $90 Rosebel $70 $75 $145 $15 $20 $35 Westwood $15 $30 $45 Owner-operator $95 $140 $235 $140 $175 $315
Slide 21: Rosebel Gold Mine, Suriname
Rosebel Gold Mine, Suriname 21
Slide 22: Rosebel – Overview
Rosebel – Overview OVERVIEW Brokopondo district in north eastern Suriname Ownership • 95% IAMGOLD, 5% Government of Suriname South Mining Method • Conventional open pit methods Paramaribo America Guyana Production • Began commercial production in 2004 Status Rosebel French • Updated 43-101 disclosed
Slide 23: Rosebel – Consolidating a Gold District
Rosebel – Consolidating a Gold District Joint Venture 45km radius Pits Existing concessions subject to the UJV Gross Rosebel right of Brokolonko exploitation not subject to the UJV 23
Slide 24: Saramacca Progress: Roadwork
Saramacca Progress: Roadwork 24
Slide 25: Essakane Gold Mine, Burkina Faso
Essakane Gold Mine, Burkina Faso 25
Slide 26: Essakane – Overview
Essakane – Overview OVERVIEW North-eastern Burkina Faso, West Africa Morocco Ownership • 90% IAMGOLD, 10% Government of Burkina Faso Algeria • Conventional drill, blast, load and haul surface Western Mining Method Sahara mining method Africa • Began commercial production in July 2010 Mauritania Mali
Slide 27: Essakane – Regional Exploration Targets
Essakane – Regional Exploration Targets BROWNFIELD SUCCESS • ~1 Moz of resources delineated at Falagountou West and East, 8 kilometres east of Essakane; evaluating potential to increase resources at both deposits • Approximately 24km RC and diamond drilling on the mine lease and surrounding concessi
Slide 28: Westwood Gold Mine, Canada
Westwood Gold Mine, Canada 28
Slide 29: Westwood – Overview
Westwood – Overview OVERVIEW Northwestern Québec – A Prolific Gold Mining Camp Ownership • 100% IAMGOLD Mining Method • Underground • Commenced commercial production Production July 2014 Status • Progressing development LOM • Mine life to 2033 • 95 – 105koz 2019 Guidance • $15mm sustaining capex • $
Slide 30: Re-seeding the Pipeline
Re-seeding the Pipeline >5 Moz Au Brownfield >2 Moz Au Advance Greenfield <2 Moz Au Greenfield Production Fala/Fala E Côté Boto Saramacca Feasibility Study Sadiola Pre-feasibility Study Monster Lake Diakha Yorbeau Saõ Sebastiaõ Gossey E. Borosi Initial Resource / Scoping Nelligan Tassiri Korizena Je
Slide 31: IAMGOLD: Building a Cash Flow Pipeline
IAMGOLD: Building a Cash Flow Pipeline Our vision is to be the global leader in generating superior value for our stakeholders through accountable mining. 1 2 3 4 CREATING DIVERSIFYING MAINTAINING ENSURING superior our portfolio a strong a robust stakeholder balance sheet pipeline value • Operationa
Slide 32: Appendix
Appendix tf [IAMGOLD 32
Slide 33: Development Projects
Development Projects 33
Slide 34: Côté Gold Project Ontario (64.75%)
Côté Gold Project Ontario (64.75%) OVERVIEW FEASIBILITY STUDY HIGHLIGHTS1- 100% Basis Mining: open pit Mine Capacity: 62 Mtpa • Gogama, Ontario, 130 km southwest of Location Timmins; 200 km northwest of Sudbury Process: crush, grind, gravity, leach, CIP Mill Capacity: 13.1 Mtpa • Land package coveri
Slide 35: Boto Gold Senegal (90%)
Boto Gold Senegal (90%) OVERVIEW FEASIBILITY STUDY HIGHLIGHTS3- 100% Basis Mining: open pit Mine Capacity: 18.2 Mtpa • Senegal, West Africa Location • Along same trend as B2Gold’s Fekola Mine Process: crush, grind, leach, CIP Mill Capacity: 2.75 Mtpa in Mali Mill Daily Throughput 7,500 tpd Ownership
Slide 36: Mineral Reserves and Resources
Mineral Reserves and Resources 36
Slide 37: 2018 Mineral Reserves and Resources
2018 Mineral Reserves and Resources Mineral resources (“resources”) and mineral reserves (“reserves”) have been estimated as at December 31, 2018 pursuant to Canadian securities regulatory requirements, specifically the requirements of National Instrument 43-101 and the definitions of resources and
Slide 38: Attributable Reserves (Moz)
129% Increase in Reserves Since 2016 20 17.9 Moz 18 14.5 Moz Attributable Reserves (Moz) 1,2 16 Reserve Increases5 14 Rosebel3: +1.3Moz 12 Côté: +0.9Moz Essakane: +0.9Moz 10 7.8 Moz Boto: +0.3Moz 8 6 4 2 0 2016 2017 2018 4 1 Mineral reserves have been estimated at December 31, 2017 and 2018 using a
Slide 39: Gold Mineral Reserves (100% Basis)
Gold Mineral Reserves1 100% BASIS RESERVES Proven Probable Contained Contained Tonnes Grade Tonnes Grade As at December 31, 2018 Ounces Ounces (000s) (g/t) (000s) (g/t) (000s) (000s) Rosebel 29,776 0.6 587 100,583 1.0 3,208 Saramacca — — — 26,549 1.8 1,542 Essakane — — — 148,812 0.9 4,380 Westwood 1
Slide 40: Gold Mineral Reserves (Attributable)
Gold Mineral Reserves1 ATTRIBUTABLE RESERVES Proven Probable Contained Contained Tonnes Grade Tonnes Grade As at December 31, 2018 Ounces Ounces (000s) (g/t) (000s) (g/t) (000s) (000s) Rosebel (95%) 28,287 0.6 558 95,554 1.0 3,048 Saramacca (66.5%) — — — 17,655 1.8 1,025 Essakane (90%) — — — 133,931
Slide 41: Gold Mineral Resources (100% Basis)
Gold Mineral Resources1,2 (Measured and Indicated Resources are Inclusive of Proven and Probable Reserves) 100% BASIS RESOURCES Measured Indicated Inferred Contained Contained Contained As at December 31, 2018 Tonnes Grade Tonnes Grade Tonnes Grade Ounces Ounces Ounces (000s) (g/t) (000s) (g/t) (000
Slide 42: Gold Mineral Resources (Attributable)
Gold Mineral Resources1,2 (Measured and Indicated Resources are inclusive of Proven and Probable reserves) ATTRIBUTABLE RESOURCES Measured Indicated Inferred Contained Contained Contained As at December 31, 2018 Tonnes Grade Tonnes Grade Tonnes Grade Ounces Ounces Ounces (000s) (g/t) (000s) (g/t) (0
Slide 43: Côté Gold Project – Reserves & Resources History
Côté Gold Project – Reserves & Resources History CÔTÉ GOLD - IMG ATTRIBUTABLE RESERVES & RESOURCES 10.0 1.0 9.0 0.9 30% share 8.0 sold to SMM. 0.8 Initial Reserve Declared 7.0 from PFS 0.7 Ore Grade (g/t Au) Ounces Au (Moz) 6.0 0.6 5.0 0.5 4.0 0.4 3.0 0.3 2.0 0.2 1.0 0.1 0 14.5 Moz 1 0 2012.02 2012.
Slide 44: Exploration Projects
Exploration Projects tf [IAMGOLD 44
Slide 45: Monster Lake
Monster Lake Quebec (50% JV Interest) OVERVIEW RESOURCE Location • Quebec 100% Tonnes Grade Contained Ounces • 50:50 JV with TomaGold, with option to earn up to a Basis (000) (g/t) (000 Au) Ownership 75% interest • Continuing to better define and extend the 325- Inferred1 1,110 12.14 433 Megane Zone
Slide 46: Nelligan
Nelligan Quebec (51% JV Interest) OVERVIEW HIGHLIGHTS Renard Zone drill hole results1: Location • Quebec • NE-19-149: 17.3 metres grading 5.50 g/t Au • 51% JV Interest, option to earn up to 80% Ownership • NE-19-138: 123.7 metres grading 1.26 g/t Au interest • NE-19-113: 34.5 metres grading 1.75 g/t
Slide 47: Diakha-Siribaya
Diakha-Siribaya Mali (90%) OVERVIEW RESOURCE • Located approximately 10km south along 100% Tonnes Grade Contained Ounces strike from the Boto Gold Project in Senegal Basis (000) (g/t) (000 Au) • 20182: 14,600 metres of RC & DD drilling completed. Results include: Measured 18,031 1.28 744 › 1.61 g/t
Slide 48: Pitangui
Pitangui Brazil (100%) OVERVIEW RESOURCE Tonnes Grade Contained Ounces • Banded iron formation hosted deposit (000) (g/t) (000 Au) • 25 km from Jaguar’s Turmalina mill Highlights • 2017 drilling program resulted in a 21% Inferred1 5,365 4.7 819 increase in inferred resources • Continuing to test pri
Slide 49: Eastern Borosi
Eastern Borosi Nicaragua (51% JV Interest) OVERVIEW RESOURCE • Earn-in option with Calibre Mining; 100% Tonnes Grade Contained Ounces Ownership IAMGOLD can earn up to a 70% interest Basis (000) AuEq (g/t) (000 Au) Inferred1,2 4,418 5.7 812 • Multiple high grade Au-Ag epithermal vein Highlights syste
Slide 50: Loma Larga: Optionality via Strategic Investment
Loma Larga: Optionality via Strategic Investment Ecuador (~36%) OVERVIEW FEASIBILITY STUDY HIGHLIGHTS1 Mine Life ~12 years Nameplate Capacity 3,000 tpd • IAMGOLD owns ~36% of INV Metals (TSX:INV) Annual Average Gold Production 130,000 oz • FS has robust economics with after-tax IRR of Gold Grade 4.9
Slide 51: Investor Relations Contacts
Indi Gopinathan Martin Dumont Investor Relations Lead Senior Analyst, Investor Relations T: 416-360-4743 T: 416-933-5783 TSX: IMG l NYSE: IAG 51
IAMGOLD — Deutsche Bank 27th Annual Leveraged Finance Conference 2019 on 6ix