Iamgold Corporation · TSX:IMG
Iamgold — Q2 2018 Earnings Presentation
36 slides from Iamgold's earnings presentation, Aug 9, 2018
Slide 1: Second Quarter 2018 Results
Second Quarter 2018 Results August 9, 2018 l TSX: IMG l NYSE: IAG l
Slide 2: Management Participants
Management Participants # IAMGOLD Steve Letwin President & Chief Executive Officer “coamtutan area chat open oe enn cet cucpecacithatepe come nnn “ceuoma ss snes mtn bp cnn _ ens <csenlonmlantavn comune detent anne Ken Chernin Vice President, Investor Relations
Slide 3: 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 4: Strategic Overview
Strategic Overview
Slide 5: Solid Second Quarter
Solid Second Quarter Operations performing well Balance sheet strong Production and cost guidance confirmed Growth projects on track 5
Slide 6: Successful Execution
Successful Execution Well positioned to achieve 1.2M to 1.3Moz by 2022 at AISC below $850/oz through organic growth Boto Gold Côté Gold Investment Advancing decision to be Westwood towards made development Ramping up production Future Growth Essakane Options Unlocking potential through Further brown
Slide 7: Financial Review
Financial Review
Slide 8: Financial Highlights
Financial Highlights (In $ millions, except for per share amounts) Q2 2017 Q2 2018 Variance Revenue1 $275 $277 1% Gross profit $36 $30 (18%) Net operating cash flow $86 $51 (41%) Net operating cash flow before changes in working capital2 $68 $73 8% Net earnings (loss)3 $507 ($26) ($533) Adjusted net
Slide 9: Adjusted Net Earnings Per Share of $0.03
Adjusted Net Earnings Per Share of $0.031,2 $(0.7)M $5.4M $0.03 / sh $11.0M $13.1M $10.9M $(0.06) / sh $(26.2)M $12.7M Net loss 1 Depr. adj. & Write-down of FX loss Other Tax Adjusted net write-down of related party adjustments earnings 1,2 assets loan receivable 1 Attributable to equity holders. 2
Slide 10: Hedging Summary
Hedging Summary As at June 30, 2018 2018 2019 2020 2021 2022 Foreign Currency Canadian dollars (millions of C$)1 - 60 Canadian dollar option contracts (millions of C$) 107 60 Rate range ($/C$) 1.30 – 1.45 1.25 – 1.39 Hedge ratio 72% 38% Euros (millions of €)2 50 100 Euro option contracts (millions o
Slide 11: Maintaining Strong Liquidity
Maintaining Strong Liquidity Cash and cash equivalents $656 M Short-term investments $120 M Available credit facility1 $249 M Total Liquidity2 $1,025 M 1 The revolving credit facility has been extended by two years to March 2022 and has been amended to include the option to add a further $100 millio
Slide 12: Operations Review
Operations Review
Slide 13: Production Tracking to Guidance
Production Tracking to Guidance 882koz 850 - 900koz 900 844koz 806koz 813koz 800 700 600 500 400 300 H1'18: 200 443koz 100 0 2014 2015 2016 2017 2018E Source: Company filings 13
Slide 14: All-in Sustaining Costs Tracking to Guidance
All-in Sustaining Costs Tracking to Guidance 1150 $/oz sold $1,118 1100 $1,057 $990 - $1,070 1050 $1,003 H1'18: 1000 $1,012 950 900 850 800 2015 2016 2017 2018E Source: Company filings 14
Slide 15: 2018 Capex Outlook
2018 Capex Outlook Capital expenditure guidance lowered by $40M to $325M (±5%) Previous Guidance Current Guidance $millions Non- Non- Sustaining1 Sustaining Total Sustaining1 Sustaining Total Essakane $75 $75 $150 $90 $50 $140 Rosebel $45 $85 $130 $45 $45 $90 Westwood $20 $45 $65 $25 $40 $65 Owner-o
Slide 16: Essakane
Essakane Burkina Faso (90%) Q2 2018 Highlights Q2 2018 Actuals • Production down 4% due to planned mill maintenance Attributable gold production (oz) 97,000 • Mill continues to perform well above nameplate capacity TCC1 $728 • Recovery at 91%, consistent with prior periods and expected to improve wi
Slide 17: Heap Leaching at Essakane
Heap Leaching at Essakane1 • Positive PFS results following successful infill program with higher grades than anticipated in several areas • Probable Reserves increase of 39% to 4.7Moz, before depletion • Extend LOM by 3 years (2026) • 8.5 year mine life expected with 12Mtpa CIL throughput and 10Mtp
Slide 18: Rosebel
Rosebel Suriname (95%) Q2 2018 Highlights Q2 2018 Actuals • Attributable production down 5% due to lower throughput Attributable gold production (oz) 70,000 • Mill throughput decreased primarily due to planned mill maintenance and higher proportions of hard rock TCC1 $842 AISC1 $1,035 • AISC up 12%
Slide 19: Saramacca Progressing Towards H2’19 Production
Saramacca Progressing Towards H2’19 Production • Reserve estimate expected H2’18 Tonnes Grade Contained Ounces Attributable 66.5% (000) (g/t) (000 Au) • Detailed engineering work related to infrastructure Measured & Indicated1 9,605 2.2 680 and production of the haul road nearly complete Inferred1 9
Slide 20: Westwood
Westwood Quebec (100%) Q2 2018 Highlights Q2 2018 Actuals • Production down 6% due to mining lower grade stopes, as planned Attributable gold production (oz) 31,000 • Excluding marginal ore stockpiles, ore grade mined TCC1 $929 underground was 6.26 g/t, or 32% higher than mill head AISC1 $1,129 grad
Slide 21: Sadiola
Sadiola Mali (41%) Q2 2018 Highlights Q2 2018 Actuals • Attributable production is up 14% from the prior year period Attributable gold production (oz) 16,000 • Total cash costs and AISC up due to higher energy cost and mill maintenance TCC1 $970 • Cessation of mining activities due to depletion of o
Slide 22: Côté Gold
Côté Gold Ontario (64.75%) Joint Venture with Sumitomo Metal Mining3 Attributable 64.75% Tonnes Grade Contained Ounces (000) (g/t) (000 Au) • Sale of 30% interest in Côté Gold Project to SMM for $195M • SMM is well funded with extensive technical expertise Probable Reserves1 126,961 0.9 3,837 • Comm
Slide 23: Boto Gold
Boto Gold Senegal (100%) Pre-feasibility Study Highlights Tonnes Grade Contained Ounces (000) (g/t) (000 Au) • Mine life of 13.5 years with mill throughput of 2.0Mtpa • LOM average annual production of nearly 100,000 oz Probable Reserves1 26,841 1.64 1,415 with higher production in early years Measu
Slide 24: Exploration Review
Exploration Review 24
Slide 25: Saramacca – Exploration Update
Saramacca – Exploration Update Tonnes Grade Contained Ounces 100% Project Basis SMDD17-218 (000) (g/t) (000 Au) 15m @ 22.90 g/t Au Measured & Indicated1 14,444 2.2 1,022 Inferred1 13,632 1.2 518 N Over 21km RC and diamond drilling SMDD17-227 completed YTD 32.5m @ 2.28 g/t Au SMDD17-255 10.5m @ 22.
Slide 26: Consolidated a Gold District – Brokolonko
Consolidated a Gold District – Brokolonko Soil Anomalies • Secured exploration rights to Brokolonko in Largest: 800 x 250m January 2018 Avg 0.39 g/t Au • Commenced work to upgrade access roads • Geological mapping, outcrop sampling, and auger geochemical survey • Completed 4.5km RC and diamond drill
Slide 27: Essakane – Regional Exploration Targets
Essakane – Regional Exploration Targets Brownfield Success Dembam 2 • ~1 Moz of resources delineated at Falagountou West and East, 8 kilometres east of Essakane Takabangou • During Q2’18, completed nearly 24km RC and diamond drilling on the mine lease and surrounding concessions, inclusive of infill
Slide 28: Diakha-Siribaya
Diakha-Siribaya Mali (100%) Effective Dec 31, 2017 Tonnes Grade Contained (Diakha & Zone 1B) (000) (g/t) ounces Highlights: RPA (000 Au) • Located approximately 10km south along strike Measured & Indicated1 2,102 1.9 129 from the Boto Gold Project in Senegal Inferred1 19,816 1.7 1,092 • >14km RC and
Slide 29: Pitangui and Eastern Borosi
Pitangui Brazil (100%) Highlights: • Banded iron formation hosted deposit Tonnes Grade Contained Ounces (000) (g/t) (000 Au) • 25kms from Jaguar’s Turmalina mill Inferred 1 5,365 4.7 819 • Completed >4.9km of diamond drilling to expand São Sebastião deposit in Q2’18 • Focused on extending mineraliza
Slide 30: Monster Lake and Nelligan
Monster Lake Quebec (50% JV Interest) Ownership: 50:50 JV with TomaGold, with option to earn up to a Tonnes Grade Contained Ounces 100% Basis (000) (g/t) (000 Au) 75% interest 1 Inferred 1,110 12.1 433 Highlights: • Announced results of 2018 winter drilling program2: › 40.94 g/t Au over 5.3m › 72.17
Slide 31: Growth Catalysts
Growth Catalysts 2018 Q1 Q2 Q3 Q4 2019 2020 2021 ✔ ✔ Saramacca Gold Essakane Heap Leach Saramacca Reserve Essakane Oxygen Saramacca Essakane HL Côté District Consolidation Pre-feasibility Study declaration plant Commissioning production production production ✔ Boto Pre-feasibility Gossey initial Côt
Slide 32: Appendix
Appendix 32
Slide 33: 2018 Production and Cost Guidance
2018 Production and Cost Guidance Full Year Guidance 1 Essakane (000s oz.) 380 – 395 Rosebel (000s oz.) 295 – 310 Westwood (000s oz.) 125 – 135 Total owner-operated production (000s oz.) 800 – 840 Joint ventures (000s oz.) 50 – 60 Total attributable production (000s oz.) 850 – 900 Cost of sales 2 ($
Slide 34: Loma Larga – Optionality via Strategic Investment
Loma Larga – Optionality via Strategic Investment Ecuador Project Overview • IAMGOLD owns ~36% of INV Metals (TSX:INV) PFS Highlights1 • PFS has robust economics with after-tax IRR of 26.3%, NPV@5% of US$300.9M, payback of 2.7 years Mine Life ~11 years • Probable Mineral Reserves of 1.86M oz of cont
Slide 35: Technical Information and Qualified Persons
Technical Information and Qualified Persons The mineral resource estimates contained in this presentation 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 supervision of the prepara
Slide 36: Ken Chernin VP, Investor Relations
Ken Chernin Laura Young Martin Dumont VP, Investor Relations Director, Investor Relations Senior Analyst, Investor Relations T: 416-360-4743 T: 416-933-4952 T: 416-933-5783 l TSX: IMG l NYSE: IAG l