Iamgold Corporation · TSX:IMG
Iamgold — JP Morgan Global High Yield Conference 2020
40 slides from Iamgold's conference presentation, February 2020
Slide 1: JP Morgan Global High Yield Conference
JP Morgan Global High Yield Conference February 24 – 26, 2020 TSX: IMG l NYSE: IAG
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: Technical information and qualified persons
Technical information and qualified persons The mineral resource estimates contained in this news release 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 review and approval of all
Slide 4: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG) • Implemented the Toward Sustainable Mining framework at all operations • Implementing the World Gold Council’s Responsible Gold Mining Principles Strong ESG • Received highest level (GA-1) of Moody’s Corporate Governance for the Metals and practices Mining
Slide 5: Creating superior shareholder value
Creating superior shareholder value Reinforcing the model • Operating cost management to achieve positive cash- flow; Essakane, Burkina Faso • Capital expenditures reflect value-adding initiatives. Operational improvements at our current sites: • Debottleneck Essakane mill; • Essakane CIL/Heap Leach
Slide 6: Maintaining a strong balance sheet
Maintaining a strong balance sheet MAINTAINING LIQUIDITY WELL ABOVE $1 BILLION Cash and cash equivalents1 $830 M Short-term investments $ 6M Available credit facility $500 M $1,336 M Total Liquidity As at December 31, 2019 Senior Notes Outstanding Coupon: 7%; Maturity: April 15, 2025 Corp Rating: B1
Slide 7: Ensuring a robust pipeline
Ensuring a robust pipeline FUTURE PRODUCTION AND GROWTH OPPORTUNITIES GROWTH OPPORTUNITIES • Gosselin (Côté), Ontario • Monster Lake, Quebec • Rouyn, Quebec • Karita, Guinea Saramacca, Suriname Mill Optimization, Burkina Faso Côté Gold Project, Ontario • Pitangui, Brazil Boto Gold Project, Senegal D
Slide 8: Reserve & resource update
Reserve & resource update Attributable Contained Gold (000s oz) As at December 31st, 2019 2019 Change 2018 Total Proven and Probable Mineral Reserves1 16,706 (6%) 17,864 Total Measured and Indicated Mineral Resources2,3 27,164 (2%) 27,850 Total Inferred Resources 11,965 38% 8,668 • Mineral reserves
Slide 9: Comparison of industry reserves
Comparison of industry reserves 20 17.9M oz 16.7M oz 14.5M oz 15 11.3M oz 10.1M oz 8.6M oz 7.8M oz 10 512M oz 7.7M oz 87 422M oz 5 24 395M oz 19 78 365M oz 349M oz 60 75 328M oz 0 23 69 314M oz 17 26 65 286M oz 62 54 43 20 22 19 23 34 20 20 19 53 -5 156 33 21 31 22 15 119 26 26 22 108 24 107 100 78
Slide 10: Diversifying our portfolio
Diversifying our portfolio MAP OF OPERATING, DEVELOPMENT AND EXPLORATION PROJECTS ATTRIBUTABLE MEASURED AND INDICATED RESOURCES NORTH AMERICA Westwood 31% Côté Gold Nelligan Monster Lake 40% North America Africa CENTRAL AMERICA Eastern Borosi 28% South America SOUTH AMERICA WEST AFRICA Rosebel Essak
Slide 11: Catalysts
Catalysts H1 2019 H2 2019 2020 ✓ $170 Million Gold Prepay Agreement ✓ Essakane CIL and Heap Leach o Saramacca Full Production ✓ Diahka-Siribaya Updated Resource Feasibility Study Completed o Essakane CIL Plant Optimization ✓ Oxygen Plant at Essakane ✓ Nelligan Initial Resource o Westwood NI 43-101 c
Slide 12: Financial highlights
Financial highlights # IAMGOLD
Slide 13: Summary of 2019 financial results
Summary of 2019 financial results (In $ Millions, except per share amounts) 2019 2018 Revenues1 $1,065.3 $ 1,111.0 Cost of Sales $ 995.7 $ 974.1 Gross profit $ 69.6 $ 136.9 Adjusted net earnings (loss)2,3 $ (18.3) $ 29.8 Adjusted net earnings (loss)2,3 ($/share) $ (0.04) $ 0.06 Net cash from operati
Slide 14: Below peer average leverage
Below peer average leverage 8.0x Multiples of EBITDA LT Debt 6.0x Average Peer Cash Debt/EBITDA (2) Liabilities Net Leverage 4.0x 2.8x 2.9x 3.0x 2.1x 2.3x 2.0x 1.3x 1.6x 1.6x 0.0x (2.0x) Cash (4.0x) (6.0x) (8.0x) US$mm Market Capitalization (in USD) $7,033 $1,372 $4,222 $1,241 $545 $1,522 $1,703 $2,
Slide 15: Progressive debt reduction
Progressive debt reduction $800 Cash Total Debt Total Leverage (1) 5.0x $600 $639 $640 $642 $698 $485 $400 4.0x $408 $409 $392 3.4x $200 Total Leverage $0 3.0x (159) (652) (222) $MM (271) -$200 (481) 2.7x (734) -$400 (797) (791) (837) 2.0x (1,047) -$600 1.8x 1.5x 1.6x -$800 1.3x 1.0x 1.0x 1.1x -$1,0
Slide 16: Leveraging existing asset base
Leveraging existing asset base Photo: Wärtsilä 16
Slide 17: 2020 production and cost guidance
2020 production and cost guidance TRANSITION YEAR AT ESSAKANE AND ROSEBEL ♦ WESTWOOD ADVANCES ♦ SADIOLA CEASES PRODUCTION Full Year Guidance1 Essakane (000s oz) 365 – 385 Rosebel (000s oz) 245 – 265 Westwood (000s oz) 90 – 110 Total attributable production (000s oz) 700 – 760 Cost of sales 2 ($/oz)
Slide 18: 2020 capex outlook
2020 capex outlook $millions Sustaining1 Non-Sustaining2 Total3 Essakane $40 $100 $140 Rosebel $55 $60 $115 Westwood $25 $25 $50 $120 $185 $305 Corporate and Development Projects - $65 $65 Total (±5%)4,5 $120 $250 $370 1 Sustaining capital includes capitalized stripping of $15 million for Rosebel. 2
Slide 19: Rosebel Gold Mine, Suriname
Rosebel Gold Mine, Suriname 19
Slide 20: Rosebel – overview
Rosebel – overview OVERVIEW KEY INITIATIVES Ownership • 95% IAMGOLD, 5% Government of Suriname To improve mined volumes, recoveries, communition, productivity and safety Mining • Conventional open pit performance. Method methods Reserves & Resources Production • Began commercial Status production in
Slide 21: Essakane Gold Mine, Burkina Faso
Essakane Gold Mine, Burkina Faso 21
Slide 22: Essakane – overview
Essakane – overview OVERVIEW KEY INITIATIVES Ownership • 90% IAMGOLD, 10% Government of Burkina Faso CIL (carbon-in-leach) Debottlenecking Mining • Conventional drill, blast, load and • Improve throughput and gravity Method haul surface mining method recovery, $9M capex Production • Began commercial
Slide 23: CIL/HL feasibility study highlights
CIL/HL feasibility study highlights PRODUCTION PROFILE HIGHLIGHTS 600,000 PFS FS CIL (FS) HL (FS) Mining Capacity 70.0 Mtpa 55.0 Mtpa CIL (PFS) HL (PFS) CIL Milling Capacity (100% hard rock equivalent) 10.8 Mtpa 11.7 Mtpa 500,000 HL Processing Capacity 10.0 Mtpa 8.5 Mtpa HL Tonnage 61.9 Mt 43.1 Mt 4
Slide 24: Westwood Gold Mine, Canada
Westwood Gold Mine, Canada 24
Slide 25: Westwood – overview
Westwood – overview OVERVIEW KEY INITIATIVES Ownership • 100% IAMGOLD Progressing Development Mining • Underground • Targeting safe, profitable, long life Method Production • Commenced commercial mine Status production July 2014 • Ramp-up production and cost LOM • Mine life to 2033 guidance issued 2
Slide 26: Development and exploration projects
Development and exploration projects 26
Slide 27: Côté Gold – transformational value in Canada
Côté Gold – transformational value in Canada OVERVIEW RESERVE AND RESOURCE1 FEASIBILITY STUDY HIGHLIGHTS2 (100% Basis) Extended Case Base Case (100% Basis) Mine Capacity: Mine Capacity: Location • Gogama, Ontario, 130 km southwest of Contained Mining: open pit Tonnes Grade 70 Mtpa 62 Mtpa Timmins; 2
Slide 28: …with exploration potential
…with exploration potential GOSSELIN, YOUNG-SHANNON 1.5 KM NORTHEAST OF CÔTÉ Gosselin Drill Hole Highlights • GOS19-17: 342.5 metres grading 0.98 g/t Au • includes: 225.0 metres grading 1.34 g/t Au • GOS19-24: 412.0 metres grading 1.28 g/t Au • includes: 221.4 metres grading 1.47 g/t Au CONCEPTUAL P
Slide 29: Boto Gold – high margin investment in prospective district
Boto Gold – high margin investment in prospective district OVERVIEW RESERVE AND RESOURCE1 OPTIMIZATION STUDY HIGHLIGHTS1 (100% Basis) (100% Basis) Location • Senegal, West Africa Contained Mine Capacity: Tonnes Grade Mining: open pit Ounces 38 Mtpa Ownership • 90% IAMGOLD / 10% Gov’t of Senegal (000
Slide 30: …with district potential
…with district potential BOTO GOLD PROJECT, SENEGAL • Announced the receipt of the exploitation permit for an initial period of 20 years. • Completion of the completion of the Optimization Study1, which confirms robust project economics. DIAKHA-SIRIBAYA GOLD PROJECT, MALI • Resource ounces increased
Slide 31: Resource stage in Canada
Resource stage in Canada NELLIGAN (75% JV INTEREST) • 15 kilometres south of Monster Lake • Exercised option to increase undivided interest to 75% (from 51%), MONSTER LAKE (Au) following completion of NI 43-101 Technical Report • Completed initial resource estimate1, comprising approximately 97 mill
Slide 32: Re-seeding the pipeline
Re-seeding the pipeline West Africa North America South America Fala/Fala E Saramacca >5 Moz Au Production >2 Moz Au <2 Moz Au Boto Côté Feasibility Study Brownfield Advance Greenfield Greenfield Pre-feasibility Study Diakha-Siribaya Monster Lake Saõ Sebastiaõ Initial Resource / Gossey Nelligan East
Slide 33: IAMGOLD – building a cash flow pipeline
IAMGOLD – building a cash flow pipeline Our vision is to be the global leader in generating superior value for our stakeholders through accountable mining. CREATING DIVERSIFYING MAINTAINING ENSURING superior our a strong a robust stakeholder value portfolio balance sheet pipeline • Operational • Reg
Slide 34: Appendix
Appendix # IAMGOLD 34
Slide 35: Reducing input exposure through hedging
Reducing input exposure through hedging As at December 31, 2019 2020 2021 2022 2023 2024 Foreign Currency Canadian dollar contracts (millions of C$) 186 Rate range1 ($/C$) 1.30 – 1.36 Hedge ratio 50% Commodities 2 Brent oil contracts (barrels) 3 573 588 420 Contract price range ($/barrel of crude oi
Slide 36: Gold mineral reserves
Gold mineral reserves 100% BASIS RESERVES Proven Probable Contained Contained Tonnes Grade Tonnes Grade As at December 31, 2019 Ounces Ounces (000s) (g/t) (000s) (g/t) (000s) (000s) Rosebel1 29,522 0.6 574 92,356 1.0 2,947 Saramacca1 111 0.5 2 26,090 1.8 1,531 Essakane1 — — — 124,713 1.0 3,805 Westw
Slide 37: Gold mineral reserves
Gold mineral reserves ATTRIBUTABLE RESERVES Proven Probable Contained Contained Tonnes Grade Tonnes Grade As at December 31, 2019 Ounces Ounces (000s) (g/t) (000s) (g/t) (000s) (000s) Rosebel (95%)1 28,046 0.6 545 87,738 1.0 2,800 Saramacca (66.5%)1 74 0.5 1 17,350 1.8 1,018 Essakane (90%)1 — — — 11
Slide 38: Gold mineral resources
Gold mineral resources1,2 (Measured and indicated resources are inclusive of proven probable reserves) 100% BASIS RESOURCES Measured Indicated Inferred Contained Contained Contained As at December 31, 2019 Tonnes Grade Tonnes Grade Tonnes Grade Ounces Ounces Ounces (000s) (g/t) (000s) (g/t) (000s) (
Slide 39: Gold mineral resources
Gold mineral resources1,2 (Measured and indicated resources are inclusive of proven probable reserves) ATTRIBUTABLE RESOURCES Measured Indicated Inferred Contained Contained Contained As at December 31, 2019 Tonnes Grade Tonnes Grade Tonnes Grade Ounces Ounces Ounces (000s) (g/t) (000s) (g/t) (000s)
Slide 40: Investor Relations contacts
Indi Gopinathan Martin Dumont VP, Investor Relations Senior Analyst, & Corporate Communications Investor Relations 416-360-4743 416-933-5783
IAMGOLD — JP Morgan Global High Yield Conference 2020 on 6ix