Iamgold Corporation · TSX:IMG
Iamgold — Corporate Update (January 2016)
74 slides from Iamgold's corporate update, Jan 19, 2016
Slide 1: Westwood Update and IAMGOLD Outlook
Westwood Update and IAMGOLD Outlook January 19, 2016 TSX: IMG NYSE: IAG
Slide 2: Safety briefing
Safety briefing Arcadian Loft – exits, in case of emergency Zero Harm 2
Slide 3: Introductions
Introductions EXECUTIVE TEAM DIRECTORS OF THE BOARD Steve Letwin - CEO Mahendra Naik Gord Stothart - COO Sybil Veenman Carol Banducci - CFO Ben Little – Corporate Affairs, HSS & People TECHNICAL SUPPORT Craig MacDougall - Exploration Lise Chénard - Geology Jeff Snow – Business Development Daniel Val
Slide 4: Cautionary Statement on Forward-Looking Information
Cautionary Statement on Forward-Looking Information All information included in this presentation, 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 state
Slide 5: Presentation Outline – January 2016
Presentation Outline – January 2016 Westwood Update and IAMGOLD Outlook Westwood LOM and Five-Year Plans • Safety briefing • Mining parameters • Introductions • Development sequence and summary • Cautionary language • Production sequence • Milling parameters Corporate Overview • 5-year production su
Slide 6: Corporate Overview
Corporate Overview TSX: IMG NYSE: IAG
Slide 7: IAMGOLD's Gold Assets
IAMGOLD’s Gold Assets 2015 Attributable Production 806,000 oz. 7
Slide 8: Project Comparisons in West Africa, Europe and the Americas
Project Comparisons in West Africa, Europe and the Americas 20 exploration Brucejack Westwood 11 g/t Au Yaramoko 10 Monster >12 g/t Au Grade Au (g/t) – Logarithmic Scale Ellipse = 75% of deposits Major axis = 1.1 g/t Au 5 exploration Minor axis = 2.25 Moz Pitangui 4.9 g/t Au Morelos Fekola Hounde Ha
Slide 9: Project History (Doyon and Westwood)
Project History (Doyon and Westwood) 2008 2009 2010 2011 2012 2007 Project Shaft sinking Surface U/G U/G 1st scoping study acceleration startup (519 m) construction development development 2006 mainly complete 2014 shows • U/G Development • Head frame, hoist • Shaft sinking (1,458 • Shaft sinking (1
Slide 10: Westwood Introduction
Westwood Introduction TSX: IMG NYSE: IAG
Slide 11: Annual DART Results 2010 – 2015
Annual DART Results 2010 – 2015 14 12 DART Frequency (per 200 000 h) 10 8 6 4 2 0 2011 2012 2013 2014 2015 IAMGOLD APSM 11
Slide 12: Location
Location 2,799 hectares Westwood Mouska Mic Mac Mooshla A/B Doyon Warrenmac Ellison Bousquet Bousquet La Ronde Penna La Ronde 1 2 1 Shaft 2 Westwood Bousquet 2- Mouska M+I Bousquet 1 Dumagami LaRonde Penna 2.44 Mt @ 13 g/t Doyon 1.65 Mt @ 11.2 g/t 0.595 Moz Au 22.7 Mt 17.6 Mt 71 Mt @ 3.9 g/t 1 Moz A
Slide 13: Location
Location Doyon Mine Westwood Mine Warrenmac discovery outcrop 13
Slide 14: Westwood Geology and Mineral Resources
Westwood Geology and Mineral Resources TSX: IMG NYSE: IAG
Slide 15: Geology and Mineralization
Geology and Mineralization Doyon-Bousquet - LaRonde Mining Camp Upper greenschist / lower amphibolite Bousquet Fm. : 2699-2696 Ma From Mercier-Langevin et al. (2012) 15
Slide 16: Westwood Geology: Level Plan View
Westwood Geology: Level 084 Plan View 16
Slide 17: Westwood Geology: Cross-Section
Westwood Geology: Cross-Section 17
Slide 18: 676,135 m DD drilling (Oct '15)
21 000 m DDrilling 458 000 m DDrilling 676,135 m DDdrilling (Oct ‘15) After addition of 655,000m drilled the deposit has significantly changed 18
Slide 19: 28 mineralized ore veins
28 mineralized ore veins 135 mineralized ore veins 167 mineralized ore veins 19
Slide 20: 25y – 6M Oz
Doyon Mine Westwood 25y – 6M Oz 20 year mine life 20
Slide 21: Westwood 2014 Reserves and Resources
Westwood 2014 Reserves and Resources1 As of December 31, 2014 Tonnes Grade (g/t Au) Contained Oz. Proven 301,000 7.3 71,000 Probable 2,070,000 7.0 468,000 Total reserves2 2,371,000 7.1 539,000 Measured 199,000 11.7 75,000 Indicated 1,455,000 11.1 520,000 Total measured and indicated 1,654,000 11.2 5
Slide 22: Geological Resources Evolution
Geological Resources Evolution 22
Slide 23: Infill Drilling Targets
Infill Drilling Targets 23
Slide 24: Westwood Seismicity and Mitigation
Westwood Seismicity and Mitigation TSX: IMG NYSE: IAG
Slide 25: Timeline of Major Events
Timeline of Major Events Local Moment Regional Magnitude NRCan Magnitude Date Time Location Magnitude (MR) (MN) 17:38 104-08* N/A 1.4 2.2 2013-08-31 17:39 104-08* N/A 2.4 3.0 2014-12-12 5:23 104-02 1.2 2.8 3.0 18:35 104-00/02 1.4 1.4 1.8 2014-12-29 18:35 104-00/02 1.3 1.1 N/A 12:55 104-06* 1.6 2.1 2
Slide 26: Location of Zone Affected by May Seismic Event
Location of Zone Affected by May Seismic Event 3 16 m spacing 13 ’ Jan Levels Closed CSST 1 2 26 m spacing 26
Slide 27: Review Process
Review Process • Technical Review in parallel with ICAM investigation • Lead by WW Rock Mechanics group with significant support from Longueuil Technical Services group • Principal Consultant: Rob Mercer, Knight Piésold Ltd. • Other experts : Kathy Kalenchuk, MDEng (Numeric Modeling) Dave Collins, Y
Slide 28: Review Process
Review Process The review process was conducted with the support and advice of the following internal and external experts: • ICAM Investigation (internal incident review protocol) • Technical Review • External Consultants • Peer Review • CSST (Quebec regulator for mine safety) 28
Slide 29: Review Process
Review Process The review process included the following tasks: • Data Collection Detailed inspections & mapping Geologic, geomechanical & seismic data • Identification of possible causes (hypotheses) • Hypotheses Validation Numeric modeling Geotechical drill holes Field observations • Development o
Slide 30: Seismic Context
Seismic Context • Very complex geology Variable behaviour in Unit 3 Anisotropic (direction of foliation) Variations in alterations (alternating « hard brittle » and « soft plastic » rock) • Existing geometry in 104-06/104-10 area including prior damage August 2013 and January 2015 events Stress-in
Slide 31: Unit-3 – Mafic-intermediate Lavas and Scoriaceous Tuffs
Unit-3 – Mafic-intermediate Lavas and Scoriaceous Tuffs 31
Slide 32: Unit-3 – Mafic-intermediate Lavas and Scoriaceous Tuffs
Unit-3 – Mafic-intermediate Lavas and Scoriaceous Tuffs 32
Slide 33: Structures – Main Schistosity
Structures – Main Schistosity • Mean orientation: N100°/76° • Penetrative and unevenly distributed: more pervasive near contacts and in soft rocks • Heteroeneous and locally anastomosed patterns • Risk of convergence and friabilty when intensely developed • For more technical information www.iamgol
Slide 34: Geology Summary
Geology Summary • The geology of the Westwood Mine is complex • The protoliths are overprinted by several types of hydrothermal alteration that are themselves affected by numerous deformation events • The massive and less altered rocks are stiff and prone to seismicity and blockiness (e.g., Unit-5 a
Slide 35: July 2014 to Mar 1, 2015
July 1 2014 to Mar 1, 2015 (approx. 1 year and start of 104-3 dev to start of 104-4 development) 84-0 104-10 104-09 104-08 104-07 104-06 104-03 ? 104-02 35
Slide 36: Mar 1, 2015 to Apr 1, 2015
Mar 1, 2015 to Apr 1, 2015 (start of 104-4 development) 84-0 104-10 104-09 104-4 104-08 Development 104-07 during this 104-06 time period 104-03 ? 104-02 36
Slide 37: Apr 1, 2015 to May 1, 2015
Apr 1, 2015 to May 1, 2015 (104-4 Development) 84-0 104-10 104-09 104-4 104-08 Development 104-07 during this 104-06 time period 104-04 104-03 ? 104-02 37
Slide 38: May 1, 2015 to May 26, 2015
May 1, 2015 to May 26, 2015 (to 03:28, just prior to MN=3.2 Event) 84-0 104-10 104-09 104-4 104-08 Development 104-07 during this 104-06 time period 104-04 104-03 ? 104-02 38
Slide 39: May 26, 2015 (03:28) to July 3
May 26, 2015 (03:28) to July 3 84-0 104-10 3. May 27 @ 20:11 104-09 (MN=2.4, M=2.0) 104-08 104-07 104-06 39 1. May 26 @ 03:28 (MN=3.2, M=2.7) 104-04 104-03 2. May 26 @ 03:28 (MN=2.7, M=2.3) ? 104-02 Note: This is the plot that uses a volume with a little more northing 39
Slide 40: Numeric Model Sequence: 2015-05
Numeric Model Sequence: 2015-05 Yielded Elements Differential Stress 1040-08 1040-08 1040-07 1040-07 1040-06 1040-06 1040-04 1040-04 1040-03 1040-03 1040-02 1040-02 View looking SW Model3_vh_55 40
Slide 41: Event Trigger – 104-04 Development
Event Trigger – 104-04 Development Loss of Confinement (gradual effect) Increase in Principal Stress (immediate effect) 41
Slide 42: Conclusions from Peer Review
Conclusions from Peer Review • Rejected failure hypotheses Movement Production blasting / stress redistribution due to ore mining sequence Water managment • Peer review concluded that these events could not have been anticipated • Appropriate risk management strategies are available 42
Slide 43: Elements of Seismic Risk Management Plan (SRMP)
Elements of Seismic Risk Management Plan (SRMP) • Prevention: Reduction of seismic hazard in affected area and in new mining areas through the revision of design Prevention guidelines and processes • Correction: Resumption of mining in the Correction affected area through rehabiliation and developme
Slide 44: SRMP Framework
SRMP Framework Seismic Risk Seismic Susceptibility Consequences (Hazard) Current Rock Mass Stress State Geometry Conditions Exposure Properties (damage) Increased Loss of Consistent Variable Principal Confinement Real Effective Stress 44
Slide 45: Seismic Risk Evaluation
Seismic Risk Evaluation •Hazard Initial Risk Evaluation •Consequence •Design Criteria Application of Control •Ground Support Measures •Re-entry Protocols •Instrumentation Evaluation and •Seismic Monitoring monitoring of residual •Damage Mapping risk •Operations monitoring Correction and adjustments
Slide 46: 104 Mining Block – Reopening Process
104 Mining Block – Reopening Process Preparation Phase 1 Reinforcement of Instrumentation Mapping Detailed planning bypass cutouts Phase 1 Backfill Phase 1 104-09 104-08 West 104-07 104-02 West Bypass development 104-04/104- 104-10 104-08 104-06 104-02 03 Preparation Phase 2 Inspection closed sector
Slide 47: 104 Mining Block – Reopening Process Continued
104 Mining Block – Reopening Process Continued Equipment Recovery Backfill Phase 2 104-06 104-08 104-10 104-02 104-03 104-04 (East) (East) (East) Rehabilitation Phase 2 Intersection Ventilation Instrumentation Dynamic Support Support Network Phase 2 Resumption of development and production sequences
Slide 48: Location of Zone Affected by May Seismic Event
Location of Zone Affected by May Seismic Event 3 16 m spacing 13 ’ Jan Levels Closed CSST 1 2 26 m spacing 48
Slide 49: Westwood LOM & Five-Year Plans
Westwood LOM & Five-Year Plans TSX: IMG NYSE: IAG
Slide 50: Mining Parameters for Five-Year Plan
Mining Parameters for Five-Year Plan • Development: Trackless: 8.1 m/crew/day Track: 3.9 m/crew/day Alimak Raise: 3.6 m/crew/day Conventional Raise: 1.8 m/crew/day • Production: Longhole Mining (transverse, longitudinal, hybrid) Dilution: 65% for 2-m mining widths Mining recovery: 95% 50
Slide 51: 5-Year Plan: Development Sequence
5-Year Plan: Development Sequence 2020 2019 2018 2017 2016 51
Slide 52: 5-Year Plan: Development Summary
5-Year Plan : Development Summary 2016 2017 2018 2019 2020 Total km km km km km km Stope Preparation (w/o V30) Drift 4.4 7.0 6.3 7.0 8.3 33.0 Deferred Development Trackless Drift 7.4 7.8 6.9 6.7 6.4 35.2 Tracked Drift 7.4 2.0 9.4 Ramp 2.6 2.7 2.5 2.3 2.0 12.1 Alimak Raise 1.9 0.8 0.5 0.3 0.2 3.7 Con
Slide 53: 5-Year Plan: Development Summary
5-Year Plan : Development Summary 30,000 25,000 20,000 Metres 15,000 10,000 5,000 0 2016 2017 2108 2019 2020 Vertical Trackless Drift (Jumbo) Tracked Drift 53
Slide 54: 5-Year Plan: Production Sequence
5-Year Plan : Production Sequence 2020 2019 2018 2017 2016 *includes inferred resources 54
Slide 55: 5-Year Plan: Mine Production
5-Year Plan : Mine Production 1,000 250 900 Mining Cost ($/t hoisted) 800 200 Ore Hoisted (Ktpa) 700 600 150 500 400 100 300 200 50 100 0 0 2016 2017 2018 2019 2020 Ore Hoisted Mining Unit Cost *includes inferred resources 55
Slide 56: Milling Parameters for Five-Year Plan
Milling Parameters for Five-Year Plan • Maximum Throughput: 900 000 tpa • Mill Availability: 95% (345 days/year) • Metallurgical Recovery: 96% 56
Slide 57: 5-Year Plan: Production Summary
5-Year Plan : Production Summary 2016 2017 2018 2019 2020 Total Tonnes Milled (‘000t) 335 500 600 900 900 3,235 Grade Au g/t 5.4 7.5 6.3 7.5 7.5 7.1 Ounces Au (Rec.96%) (000 oz.) 56 115 115 210 210 706 Tonnes waste hoisted (‘000t) 780 780 610 615 630 3,410 Total tonnes hoisted (‘000t) 1 115 1 280 1
Slide 58: 5-Year Plan: Mill Production
5-Year Plan : Mill Production 1000 25 900 800 20 700 $/tonne milled 000 tonnes 600 15 500 400 10 300 200 5 100 0 0 2016 2017 2018 2019 2020 Total Processed Milling Unit Costs *includes inferred resources 58
Slide 59: Westwood LOM Plan – January 2016
Westwood LOM Plan – January 2016 ASSUMPTIONS GOLD PRICE $US / LOM TOTALS AND AVERAGES ($/oz.) $CDN Ounces produced (Moz.) 3.3 2016 1,150 1.25 LOM average annual production (oz.) 183,000 2017 1,225 1.25 LOM average annual cash costs ($/oz.) 658 2018 1,250 1.20 LOM average annual AISC ($/oz) 804 2019
Slide 60: Westwood LOM – Production and Costs Forecast
Westwood LOM – Production and Costs Forecast Westwood LOM Forecast 250,000 $2,500 200,000 $2,000 150,000 $1,500 Production (oz.) Cash Costs ($/oz) AISC ($/oz) 100,000 $1,000 50,000 $500 0 $0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 *includes inferred
Slide 61: 5-Year Plan: Capital Spending
5-Year Plan : Capital Spending 90 80 70 60 $ millions 50 Development Capital 40 Sustaining Capital 30 20 10 0 2016 2017 2018 2019 2020 61
Slide 62: 5-Year Plan: Westwood Free Cash Flow
5-Year Plan : Westwood Free Cash Flow Free Cash Flow Before Financing 150 100 50 $ Millions 0 -50 -100 -150 2016 2017 2018 2019 2020 62
Slide 63: Opportunities
Opportunities • Resource conversion, exploration • Optimization mine design (development review) • Warrenmac/WW10 type ore zones on lower levels (volume) • Revision of capital program, including shaft deepening • Technology, automation, new mining methods, vertical development alternatives • Continu
Slide 64: Rosebel and Essakane LOM Overviews
Rosebel and Essakane LOM Overviews TSX: IMG NYSE: IAG
Slide 65: Rosebel LOM Plan – January 2016
Rosebel LOM Plan – January 2016 ASSUMPTIONS LOM TOTALS AND AVERAGES Gold price ($/oz.) 1,200 Attributable ounces produced (95%) (Koz.) 2,044 Electricity costs ($/kWh) 0.13 LOM average annual attributable 316,000 production (95%) (oz.) Mine life (years) 6.6 LOM average annual cash costs ($/oz.) 767 M
Slide 66: Rosebel – Production and Costs Forecast
Rosebel – Production and Costs Forecast Rosebel LOM Forecast 400,000 $1,600 350,000 $1,400 300,000 $1,200 250,000 $1,000 Attributable Production (oz.) Cash Cost ($/oz) 200,000 $800 AISC ($/oz) 150,000 $600 100,000 $400 50,000 $200 0 $0 2016 2017 2018 2019 2020 2021 2022 Actively exploring UJV areas
Slide 67: Essakane LOM Plan – January 2016
Essakane LOM Plan – January 2016 ASSUMPTIONS LOM TOTALS AND AVERAGES Gold price ($/oz.) 1,200 Attributable ounces produced (90%) (Koz.) 2,978 Electricity costs ($/kWh) 0.19 LOM average annual attributable 368,000 production (90%) (oz.) Crude oil ($/bbl) 75 LOM average annual cash costs ($/oz.) 788 M
Slide 68: Essakane LOM – Production and Costs Forecast
Essakane LOM – Production and Costs Forecast Essakane LOM Forecast 450000 $1,400 400000 $1,200 350000 300000 $1,000 250000 Attributable Production (oz.) $800 Cash Costs ($/oz) 200000 AISC ($/oz) 150000 $600 100000 $400 50000 0 $200 2016 2017 2018 2019 2020 2021 2022 2023 2024 Actively exploring pote
Slide 69: Sadiola – Mali
Sadiola – Mali 25 1200 1077 1100 20 914 1000 Open-pit mine has produced 7M oz. over 20 years 800 Decline in cash costs for 2015 due to 706 695 15 (000s oz.) ($/oz.) 600 lower fuel and consumable prices 10 and favourable FX rates 400 RC drilling program testing oxide 5 targets; encouraging results
Slide 70: Wrap Up
Wrap Up TSX: IMG NYSE: IAG
Slide 71: 2016 Production and Cost Guidance
2016 Production and Cost Guidance1 Rosebel (000s oz.) 285 - 295 Essakane (000s oz.) 365 – 375 Westwood (000s oz.) 50 – 60 Total owner-operated production (000s oz.) 700 – 730 Joint ventures (000s oz.) 70 Total attributable production (000s oz.) 770 – 800 Total cash costs2,3 – owner-operator ($/oz.)
Slide 72: 2016 Capital Expenditure Guidance
2016 Capital Expenditure Guidance Development/ ($ millions) Sustaining1 Expansion Total (Non-sustaining) Rosebel 50 15 65 Essakane 85 - 85 Westwood 15 65 80 Total gold segments 150 80 230 Corporate and - 10 10 development projects2 Total consolidated 150 90 240 Joint ventures 5 5 10 Total (±10%)3 15
Slide 73: Summary
Summary • Management’s understanding of Westwood is vastly improved; mine plan incorporates lessons from 2015 • Deployment of capital in Westwood will contribute to the ramp-up of our highest grade, lowest cost, longest life mine • LOM plans at each of our wholly-owned mines are designed to ensure I
Slide 74: Question and Answer Period
Question and Answer Period Bob Tait Laura Young VP, Investor Relations Director, Investor Relations T: 416-360-4743 T: 416-933-4952 TSX: IMG NYSE: IAG