Slide 1: Q2 2010 Presentation
Q2 2010 PRESENTATION August 11, 2010
Slide 2: Management Participants
Management Participants PETER C. JONES President & Chief Executive Officer P. GORDON STOTHART Executive Vice President & Chief Operating Officer CAROL T. BANDUCCI Executive Vice President & Chief Financial Officer LARRY E. PHILLIPS Executive Vice President, Corporate Affairs MICHAEL DONNELLY Senior
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
Slide 4: Q2 2010 Financial Highlights
Q2 2010 Financial Highlights 24% Adjusted net earnings 32% Operating cash flow 5% Revenues 4
Slide 5: Production
Production $/oz Gold margin Q2 ’09 Q2 ’10 1,200 $1,200 Gold Operating 898 577 $800 Results 461 623 Gold production $400 249 190 437 (000 oz) $0 Gold price realized 898 1,200 Q2 '09 Q2 '10 ($/oz) cost margin Cash cost 437 623 ($/oz) $/kg Niobium margin Niobium Operating Results $20 $15 19 19 Niobium
Slide 6: 2010 Revised Guidance
2010 Revised Guidance Initial Guidance1 Revised Guidance Gold Production (000oz) 940 –1,000 980 –1,010 Cash Costs (US$/oz) $490–$510 $530–$550 Niobium production (M kg) 4.2–4.4 4.5–4.7 Niobium Operating Margin (US$/kg) $17–$19 $17–$19 Capital Expenditures (US$M)2 $381 $408 1 Guidance issued in Jan 2
Slide 7: Q2 2010 Revenues
Q2 2010 Revenues millions $ $250 225.3 Revenues down 5% in Q2 ’10 vs Q2 ’09: 214.0 $200 Decrease in gold sales $(59.6M) $150 Partially offset by: 35% rise in gold realized $100 price $44.4M $50 11% increase in niobium sales volume $3.9M $0 $(11.3M) Q2 '09 Q2 '10 Niobium Gold 7
Slide 8: Q2 2010 Adjusted Net Earnings
Q2 2010 Adjusted Net Earnings millions $ millions $ Adjusted net earnings Q2 ’09 Q2 ’10 $60 $40 Net earnings 44.1 35.7 39.1 31.5 Impairment charge 9.3 - $20 Unrealized derivative loss on - 7.4 gold hedging at Mupane $0 Gain on sales of marketable (0.3) (0.8) Q2 '09 Q2 '10 securities Foreign exchange
Slide 9: Q2 2010 Operating Cash Flow
Q2 2010 Operating Cash Flow millions $ millions $ Operating cash flow 300 $60 19.7 47.6 250 51.4 51.4 $40 38.9 89.7 200 $20 169.7 150 $0 103.5 Q2 '09 Q2 '10 100 50 Operating cash flow per share $0.20 0 Capitalized development Other capital spending Q1'10 cash balance Q2'10 cash balance Investments &
Slide 10: Solid Financial Position
Solid Financial Position 5-Year Estimated Accumulated Operating Cash Flow millions $ vs. Capital Needs As at As at billions $ Dec. 31, Jun. 30, ~$2.1B 2009 2010 @$1,000/oz ~$1.8B @$900/oz ~$1.4B Cash & Bullion1 $300 $228 Operations ~$1.2B Sadiola Deeps @$700/oz Credit Facility Essakane $123 $350 ava
Slide 11: Essakane Advanced Start-Up Date
Essakane Advanced Start-Up Date Updates Started processing rock on June 25 2010 Based on results to date, expect commercial production to be declared effective as of mid-July Essakane, Burkina Faso, Africa As of Q2 2010, 5.2 million tonnes of ore stockpiled, representing approximately 6 months
Slide 12: Rosebel Flagship and Further Expansion Potential
Rosebel Flagship and Further Expansion Potential 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 H1 175,000 2010 Q2 82,000 Unusually high amounts of rain limit
Slide 13: 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 Production down 17% P&P Reserves1 44,000 Focus on mining sat
Slide 14: 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 Doyon mine completed at P&P Reserves1 199,000 Expect costs to remain M&I Resources2 398,000 end of 2009 M&I R
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 Throughput improved at P&P Reserves1 344,000 Gold producti
Slide 16: Niobec: Long Life, High Margin Producer
Niobec: Long Life, High Margin Producer IMG Ownership: 100% Reserves & Resources (M kg Nb2O5) M&I Resources1 181.3 Inferred Resources 219.1 Production (M kg Nb) 2010E2 4.5–4.7 2010 H1 2.2 Updates 2010 Q2 1.1 2009 4.1 Sales rose by 11%; production by 18% Operating Margin ($/kg) Operating margin r
Slide 17: Westwood Long Life, Low Cost
Westwood Long Life, Low Cost Updates On track to begin commercial production in early 2013 In Q2’10 implemented a 2,000-tonne silo, a permanent ventilation system and two hoists Westwood, Quebec, Canada At end Q2’10, mine shaft at depth of 926m, with plans to reach 1,220m by year end IMG Owner
Slide 18: Exploration & Development
Exploration & Development REGIONS OF EXPLORATION ACTIVITY Aggressive Organic Growth 2010 budget increased by $9.1M to $86.8M Greenfields expenditures of $40M Brownfield expenditures of $47M Additional funds to advance drilling program by approx. 51,000m to over 360,000m Focus on advanced e
Slide 19: 'The year of Essakane' is only the beginning…
‘The year of Essakane’ is only the beginning… Continued Growth (000s ounces) 1,200 1,000 800 600 400 200 0 2004 2005 2006 2007 2008 2009 2010F 2011F 2012F 2013F 2014F Africa Canada South America *Assumes: • Essakane start-up June 2010 • Sadiola Sulphides start-up mid-2012 19 • Quimsacocha deferred •
Slide 20: Q2 2010 Presentation
Q2 2010 PRESENTATION August 11, 2010 Investor Relations: Bob Tait T: 416 360 4743 E: bob_tait@iamgold.com