Iamgold Corporation · TSX:IMG
Iamgold — 2019 TD Securities Mining Conference
35 slides from Iamgold's conference presentation, Jan 16, 2019
Slide 1: 2019 TD Securities Mining Conference
2019 TD Securities Mining Conference Gordon Stothart, EVP & COO January 16, 2019 l TSX: IMG l NYSE: IAG l
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: Geographically Balanced Over 3 Continents
Geographically Balanced Over 3 Continents NORTH AMERICA Gold Mine IAMGOLD Attributable Measured and Indicated Resources Westwood Development Project Côté Gold Advanced Exploration As at December 31, 2011 As at December 31, 2017 Nelligan 3% Monster Lake WEST AFRICA North America Essakane 23% Sadiola
Slide 4: 2018 – Abundance of Catalysts
2018 – Abundance of Catalysts 2018 Q1 Q2 Q3 Q4 2019 2020 2021 ✔ ✔ ✔ ✔ Saramacca Gold Essakane Heap Leach Saramacca Reserve Côté Feasibility Siribaya updated Westwood Côté District Consolidation Pre-feasibility Study declaration Study Resource ramp-up production ✔ ✔ ✔ Boto Pre-feasibility Boto Feasib
Slide 5: Value Creation Through Solid Growth Strategy
Value Creation Through Solid Growth Strategy Short-Cycle Capacity Long-Cycle Capacity Rosebel Gold Mine Côté Gold Project • Saramacca • Joint-venture agreement with Sumitomo • Mine optimization Metal Mining Co., Ltd. • Continued concession consolidation • Shorter Essakane Gold Mine Boto, Pitangui, •
Slide 6: Liquidity Position as at December 31, 2018
Liquidity Position as at December 31, 2018 Cash and cash equivalents $615 M Short-term investments $119 M Available credit facility1 $500 M Total Liquidity $1,234 M On January 15, 2019, IMG entered into a forward gold sale arrangement to receive $170 million in exchange for delivering 150,000 ounces
Slide 7: 2018 Operating Results Achieve Guidance
2018 Operating Results Achieve Guidance Attributable gold production of 882koz; near high end of guidance of 850koz – 900koz Q4’18 production of 231koz Attributable gold sales of 872koz Total cash costs1 expected at near the high end of guidance of $750/oz to $800/oz All-in sustaining cost
Slide 8: 2019 Production and Cost Guidance
2019 Production and Cost Guidance Current Guidance1 Essakane (000s oz) 375 – 390 Rosebel (000s oz) 315 – 330 Westwood (000s oz) 100 – 120 Total owner-operated production (000s oz) 790 – 840 Joint ventures (000s oz) 20 – 30 Total attributable production (000s oz) 810 – 870 Cost of sales 2 ($/oz) $790
Slide 9: 2019 Capex Outlook
2019 Capex Outlook Current Guidance $millions Non- Sustaining1 Sustaining Total Essakane $75 $50 $125 Rosebel $70 $75 $145 Westwood $15 $30 $45 Owner-operator $160 $155 $315 Corporate and Development Projects2 – $20 $20 Total owner-operator3 $160 $175 $335 Sadiola (Joint Venture) – – – Total (±5%)4
Slide 10: Rosebel’s Path to Sustaining Growth
Rosebel’s Path to Sustaining Growth 2020 – 2033 2019 Continued consolidation 2018 Saramacca production 2017 51% reserve start increase with 69% reserve declaration at Regional increase through Saramacca exploration mine plan optimization Drilling Saramacca- CREATING A NEW GOLD Saramacca initial reso
Slide 11: Rosebel – Significant Transformational Achievements
Rosebel – Significant Transformational Achievements Suriname (95%) 51% Increase in Total Reserves • 1.6Moz increase in reserves to 4.7Moz1 when compared to December 31, Extends LOM to 2033, 2017, including 1.0Moz declared at the Saramacca Deposit including Saramacca • Potential for further increase
Slide 12: Rosebel – Consolidated Prospective Land Packages
Rosebel – Consolidated Prospective Land Packages Brokolonko Brokolonko Saramacca Trend +20km 11
Slide 13: Essakane’s Path to Sustaining Growth
Essakane’s Path to Sustaining Growth 2021- 2030 2020 Heap Leaching at 2019 Potential further CIL end of CIL operations optimization 2018 Oxygen Plant Commissioned (~15Mtpa) Exploration upside with multiple satellite deposits Gossey resource 10-15km from mill estimate De-bottlenecking CIL (~13.5Mtpa)
Slide 14: Essakane – Driving Transformational Change
Essakane – Driving Transformational Change Burkina Faso (90%) CIL Optimization & Heap Leach • 39% increase in reserves based on PFS and higher grade intercepts1 • After encouraging drill results, refocusing Feasibility Study on CIL optimization Extended mine life with Heap Leach Facility planned aft
Slide 15: World’s Largest Hybrid Solar/Thermal Plant
World’s Largest Hybrid Solar/Thermal Plant Commissioned in Q1’18 • 15MWp solar plant + 57MW thermal plant • Approximately 130,000 photovoltaic panels • Decreases fuel consumption by ~6 million litres per year • Reduces annual CO2 emissions by 18,500 tons Photo: Wärtsilä 14
Slide 16: 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; evaluating potential to increase resources at both deposits Takabangou • During Q4’18, completed approximately 4.2km RC and diamond drilli
Slide 17: Westwood’s Path to Sustaining Growth
Westwood’s Path to Sustaining Growth 2020 – 2035 2020 Potential to extend LOM through exploration 2015-2019 Full Production Ramp-up Resource Conversion Ongoing performance optimization RAMPING UP PRODUCTION 16
Slide 18: Westwood – Ramping up to Full Production
Westwood – Ramping up to Full Production Quebec (100%) Ramping Up Continues • Production expected to be between 100,000 and 120,000 oz in 2019 with Ramping up to full production planned from three of the six designed mining blocks production by 2020; • Development of 180-West level – beginning block
Slide 19: Development Pipeline
Development Pipeline 18
Slide 20: Côté Gold Development Project
Côté Gold Development Project 2021 – 2038 2020 Production 2019 Construction Potential to 2018 Construction extend LOM 2017 FS yields decision expected H1’19 Begin pre-strip through exploration significantly PFS confirms low improved operating costs project and attractive returns economics ADVANCING
Slide 21: Côté Gold
Côté Gold Ontario (64.75%) Feasibility Results Demonstrate Economically IMG Viable Project1 Tonnes Grade Contained Contained Ounces • 23% increase in P&P Reserves and 24% increase in M&I Resources (millions) (g/t) (000) Ounces compared to the 2017 PFS (000) Base Case (100%) Proven & Probable Reserve
Slide 22: Boto Gold
Boto Gold Senegal (90%) IMG FS Delivers Robust Project Economics1 Tonnes Grade Contained Contained Ounces (000) (g/t) Ounces • Reserves increased by 36% to 1.9Moz; Indicated (000) (000) Resources increased by 29% to 2.5Moz Probable Reserves1 35,060 1.71 1,926 1,733 • After-tax NPV@5% increased by 15
Slide 23: Exploration – Re-seeding the Pipeline
Exploration – Re-seeding the Pipeline Falagountou Production Fala East 1 M ounce Au plus resource SSP Côté Feasibility Study Boto Gold <1 M ounce Au resource Saramacca Pre-feasibility Study Projects Pitangui-Saõ New Projects Sebastiaõ Scoping Siribaya-Diakha Monster Lake Overman Medium Term: Gossey
Slide 24: Projects Support a Clear Growth Strategy
Projects Support a Clear Growth Strategy Boto Gold Côté Gold Investment Advancing decision to be Westwood towards made development Ramping up production Future Growth Essakane Options Unlocking potential through Further brownfield CIL optimization, expansion and Rosebel Heap Leaching, exploration pr
Slide 25: Appendix
Appendix 24
Slide 26: Hedging Summary
Hedging Summary As at November 29, 2018 2019 2020 2021 2022 2023 Foreign Currency Canadian dollars (millions of C$)1 60 Canadian dollar option contracts (millions of C$) 60 Rate range ($/C$) 1.25 – 1.39 Hedge ratio 34% Euros (millions of €)2 100 Euro option contracts (millions of €) 72 Rate range (€
Slide 27: Rosebel’s Strengthened Profile
Rosebel’s Strengthened Profile • Total Reserves increase of 51% to 4.7Moz, including 1.0Moz from Saramacca • Extend LOM by 5 years to 2033 • Peak Mining Capacity of 105.0Mtpa, including 30.0Mtpa from Saramacca • 15 year mine life expected with mill throughput of 10.9Mtpa, including 1.9Mtpa from Sara
Slide 28: Saramacca Progressing Towards H2’19 Production
Saramacca Progressing Towards H2’19 Production • Detailed engineering work related to infrastructure and production of the haul road Contained Attributable3 nearly complete Tonnes Grade Ounces Contained (000) (g/t) (000 Au) Ounces (000 Au) • Completed long haul truck selection: 80t Haulmax 3900 Prov
Slide 29: Sadiola - Potential to Revitalize Mine
Sadiola - Potential to Revitalize Mine Mali (41%) Sadiola Sulphide Project • Although committed to the Project, should an agreement not be reached with the Government of Mali, the operation will be Strip Ratio 3.9 placed on suspended operations once stockpiles depleted midway through 2019. Max. Thro
Slide 30: Loma Larga – Optionality via Strategic Investment
Loma Larga – Optionality via Strategic Investment Ecuador Project Overview • IAMGOLD owns ~36% of INV Metals (TSX:INV) FS Highlights1 • PFS has robust economics with after-tax IRR of 24.7%, NPV@5% of US$356, payback of 2.6 years Mine Life 12 years • Proven and Probable Mineral Reserves of 2.2M oz of
Slide 31: Diakha-Siribaya
Diakha-Siribaya Mali (100%) • Located approximately 10km south along strike Effective Dec 31, 2017 Tonnes Grade Contained (Diakha & Zone 1B) (000) (g/t) ounces from the Boto Gold Project in Senegal RPA (000 Au) Measured & Indicated1 2,102 1.9 129 • Announced results from 2018 delineation drilling pr
Slide 32: Pitangui / Eastern Borosi
Pitangui Brazil (100%) • 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 approx. 10km diamond drilling during 2018 to expand São Sebastião deposit • Focused on extending mineralization b
Slide 33: Monster Lake / 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 • Results of 2018 winter drilling program2: › 40.94 g/t Au over 5.3m › 72.17 g/t Au over 2.6m › 39
Slide 34: 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 35: Investor Relations Contacts
Indi Gopinathan Martin Dumont Investor Relations Lead Senior Analyst, Investor Relations T: 416-360-4743 T: 416-933-5783 l TSX: IMG l NYSE: IAG l