Slide 1: 2013 Third Quarter Results
2013 Third Quarter Results November 6, 2013 TSX: IMG NYSE: IAG
Slide 2: Management Participants
Management Participants STEVE LETWIN President & CEO GORD STOTHART EVP & Chief Operating Officer CAROL BANDUCCI EVP & Chief Financial Officer CRAIG MACDOUGALL SVP, Exploration TIM BRADBURN Associate General Counsel and Corporate Secretary BOB TAIT VP, Investor Relations 2
Slide 3: 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 4: Introduction
Introduction CORPORATION
Slide 5: Priorities: Cost Reduction, Disciplined Capital Allocation, Cash Preservation
Priorities Cost Reduction Disciplined Capital Allocation Cash Preservation 5
Slide 6: Third Quarter 2013 Highlights
Third Quarter 2013 Highlights Net earnings attributable to shareholders was $0.07/share Net cash from operating activities before changes in working capital1 was $0.18/share Production of 228,000 ounces; up 11% year-over-year Total cash costs – gold mines were $807/oz. for Q3 and 1 2 $793/oz. YT
Slide 7: Maintaining 2013 Cost Guidance
Maintaining 2013 Cost Guidance Total Cash Costs1 – Total Cash Costs1 – Owned and Operated Gold Mines2 Commercial Gold Mines3 790 840 750 800 $ / oz. $ / oz. 735 741 807 793 Q3'13 Q3 YTD Q3'13 Q3 YTD Costs Lower Guidance Upper Guidance Costs Lower Guidance Upper Guidance All-in Sustaining Costs1 – Ow
Slide 8: Maintaining 2013 Production Guidance
Maintaining 2013 Production Guidance Total Attributable Production – Total Attributable Production – Owned and Operated Gold Mines1 All Gold Mines2 950 875 810 750 640 558 000s ozs. 000s ozs. 228 204 224 224 195 195 159 159 159 188 188 188 Q1 YTD Q2 YTD Q3 YTD Q1 YTD Q2 YTD Q3 YTD Q1'13 Q2'13 Q3'13
Slide 9: Cost Reduction: Achieved 77% of $100M Target
Cost Reduction: Achieved 77% of $100M Target $54 Operations $38 $40 Exploration $35 $6 Corporate $4 0 10 20 30 40 50 60 Target Achieved to Date 9
Slide 10: 2013 Capital Program
2013 Capital Program1 Development/ ($ millions) Sustaining Expansion Total Rosebel 108 222 130 Essakane 100 200 300 Westwood - 100 100 Total Gold Segment 208 322 530 Niobec 31 49 80 Corporate and Other 5 - 5 Total Consolidated 244 371 615 Joint Ventures3 30 45 75 Total 274 416 690 1 Capitalized borr
Slide 11: Disciplined Capital Allocation Strategy
Disciplined Capital Allocation Strategy Niobec Expansion Expansion decision to be made when feasibility study and permits are in place NIOBEC WILL NOT MOVE FORWARD WITHOUT A PARTNER TO JOINTLY FUND THE PROJECT Sadiola Waiting for JV partner to decide to proceed WILL NOT PROCEED ALONE REGARDLESS OF P
Slide 12: Return on Capital
Return on Capital 40% 34% 35% 30% IAMGOLD 25% 23% Peers 20% 18% 21% Including: AEM-T ELD-T 15% G-T 13% K-T 14% YRI-T 10% 10% 8% 5% 0% 2009 2010 2011 2012 ROC Calculation: Pre-Tax Earnings from Operations/Capital Pre-tax Earnings* from Operations: Revenues - mining costs (called cost of sal
Slide 13: Financial Review
Financial Review CORPORATION
Slide 14: Revenues
Revenues Net Gold Q3 ‘13 Change Q3 ‘12 Revenue Impact Price1 1,334 (20%) 1,670 ($61.4M) ($/oz.) Gold Sales2 195 4% 188 $18.4M (000s oz.) $millions Yr/Yr Sales Main Factors 336.2 Variance (oz.) 293.5 Mouska +13,000 Ore stockpiled in 2012 during mill refurbishment; Q2 2013 production sold in Q3 2013 R
Slide 15: Adjusted Net Earnings
Adjusted Net Earnings1 (In $ millions, except for per share amounts) Q3'13 Q3'122 Net earnings attributable to equity holders 25.3 78.0 Impairment (impairment reversal) of (2.5) 1.2 investments Interest expense on senior unsecured notes 2.8 1.2 Foreign exchange losses (gains) 2.4 0.9 Unrealized deri
Slide 16: Net Cash From Operating Activities Before Changes in Working Capital
Net Cash From Operating Activities Before Changes in Working Capital1 (In $ millions, except for per share Q3’13 Q3’122 amounts) Net cash from operating activities per consolidated interim financial 64.9 95.8 statements Adjusting items from non-cash working capital items and non- current ore stockpi
Slide 17: Attributable Gold Production
Attributable Gold Production Due to: Westwood pre-commercial +43,000 oz. Mouska +2,000 oz. Partially offset by: 000s ozs. 228 Lower grades at Essakane -13,000 oz. 205 Lower grades at Sadiola -7,000 oz. Lower throughput at Yatela -2,000 oz. Q3'12 Q3'13 17
Slide 18: Q3'13 Gold Production and Sales Reconciliation
Q3’13 Gold Production and Sales Reconciliation 228 185 195 +2 +1 -4 Pre-commercial production +11 -43 000s ozs. Q3'13 Westwood Q3'13 Mouska Essakane Other Rosebel Q3'13 Attributable Attributable Attributable Gold Commercial Gold Sales Production Gold Production 18
Slide 19: Total Cash Costs and All-In Sustaining Costs
Total Cash Costs and All-In Sustaining Costs1 Previously Lowered $/oz. Q3’13 Q3’12 Variance 2013 Guidance Total Cash Costs2,3 807 710 14% $790-$840/oz. GOLD MINES Gold Mines All-In Sustaining Costs2,4 1,216 1,065 14% $1,150-$1,250/oz. Gold Mines OWNER-OPERATOR Total Cash Costs2,3 735 644 14% $750-$8
Slide 20: Gold Margin
Gold Margin Spot Gold January 1, 2012 ‐ September 30, 2013 $1,900 960 $1,800 527 Gold Margin $1,700 $1,600 $/oz. Total Cash $1,500 Costs 1 $1,400 $1,300 807 $1,200 710 $1,100 Jan‐12 Mar‐12 May‐12 Jul‐12 Sep‐12 Nov‐12 Jan‐13 Mar‐13 May‐13 Jul‐13 Sep‐13 Q3'12 Q3'13 Realized gold price 1 1,670 1,334 ($
Slide 21: Niobium
Niobium Revenue Q3’13 Q3’12 22% Niobium production 1.3 1.2 (Mkg Nb) $millions Niobium 47.7 48.0 sales 1.1 1.2 (Mkg Nb) Operating margin 19 16 ($/kg) Q3'12 Q3'13 21
Slide 22: Liquidity
Liquidity We are committed to preserving Sept 30, June 30, Dec 31, our financial liquidity. 2013 2013 20121 $millions $1,290 Cash & cash 361 447 797 equivalents 250 $millions Gold bullion 179 161 223 at market 500 Unused 500 500 500 credit facility 179 361 Unused Niobec 250 250 250 credit facility A
Slide 23: Operations Review
Operations Review 23
Slide 24: Examples of Ongoing Cost Reduction Initiatives
Examples of Ongoing Cost Reduction Initiatives Reducing Power Costs and Consumption of Consumables Reduced power rates and cyanide consumption at Rosebel Reduced fuel consumption at Westwood Reduced consumption of energy and steel in the grinding process at Essakane Reducing Labour Costs Imp
Slide 25: Rosebel
Rosebel Attributable Gold Production (95%) Q3 Performance › Production unchanged from Q3’12 as higher (000s oz) throughput was offset by lower recoveries 95 100 89 82 95 › Compared to Q2’13, production was up 16% due to a 7% increase in throughput and 8% increase Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 in gra
Slide 26: Essakane
Essakane Attributable Gold Production (90%) Q3 Performance › Lower production Y/Y due to lower grades (000s oz) (expected to be 10-15% lower than LOM average) 77 77 65 62 64 › Offset by 7% Y/Y throughput increase resulting Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 from expansion in crushing and milling capaciti
Slide 27: Doyon Division
Doyon Division Westwood / Mouska › Production continuing to ramp up with batch processing of Mouska and Westwood ore › Gold sales exceeded production due to late Q2 production being sold in Q3 › YTD production of 101,000 ozs. › 36,000 ozs gold sales (capitalized) from the Westwood pre-commercial 43,
Slide 28: Sadiola
Sadiola Attributable Gold Production (41%) Q3 Performance › Lower production as a result of lower grade and (000s oz) recoveries partially offset by higher throughput. 26 27 19 24 19 › Total cash costs1 were $1,297/oz. due to lower production Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 › 12% decrease in royalties
Slide 29: Niobec
Niobec Niobium Production Q3 Performance (Mkg Nb) 1.2 1.2 1.2 1.2 1.3 › Niobium production up 8% Y/Y mainly due to a 10% increase in throughput › Revenues in line with Q3’12 due to marginally lower sales volume offset by Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 higher realized prices › Operating margin increas
Slide 30: Exploration Review
Exploration Review 30
Slide 31: 2013 Exploration Program - $96.4 Million
2013 Exploration Program - $96.4 Million1 Continued focus on: Near-mine development and select greenfields projects in W. Africa, South America and Canada Greenfield Boto, Senegal Pitangui, Brazil Côté Gold, Canada Brownfield Target: $40M, Realized YTD: $35M Essakane 1. $14M greenfield and $15M brow
Slide 32: Q3 Exploration Highlights and Priorities
Q3 Exploration Highlights and Priorities Greenfield projects advancing Boto Gold project (Senegal) Indicated resource of 1.1M oz. at 1.62 g/t Au Drilling was suspended in Q3’13 during the rainy season Will resume drilling program around Malikoundi deposit in November through yearend Deposi
Slide 33: Conclusion
Conclusion CORPORATION
Slide 34: 2013 Guidance
2013 Guidance Current Guidance Previous Guidance gold production Rosebel (000s oz.) 365 - 385 Attributable Essakane (000s oz.) 255 - 275 Doyon division - Westwood & Mouska (000s oz.)1 130 - 150 Total owner-operated production (000s oz.) 750 - 810 Joint ventures (000s oz.) 125 - 140 Total attributabl
Slide 35: Q&A
Q&A TSX: IMG NYSE: IAG
Slide 36: 2013 Third Quarter Results
2013 Third Quarter Results November 6, 2013 Investor Relations Bob Tait Laura Young VP, Investor Relations Director, Investor Relations T: 416-360-4743 T: 416-933-4952 E: info@iamgold.com E: info@iamgold.com TSX: IMG NYSE: IAG