Iamgold Corporation · TSX:IMG
Iamgold — CIBC Whistler Institutional Investor Conference 2014
23 slides from Iamgold's conference presentation, Jan 24, 2014
Slide 1: Cash Preservation, Cost Reduction, Disciplined Capital Allocation
Cash Preservation Cost Reduction Disciplined Capital Allocation Gordon Stothart Executive Vice President and COO CIBC Whistler Institutional Investor Conference – January 22 - 25, 2014 TSX: IMG NYSE: IAG
Slide 2: 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 3: IAMGOLD's High Quality, Long-Life Assets
IAMGOLD’s High Quality, Long-Life Assets YATELA SADIOLA Senegal ESSAKANE Mali Boto WESTWOOD Siribaya NIOBEC Burkina Faso Val d’Or Suriname MOUSKA Colombia Côté Gold ROSEBEL Peru Niobium Mine Brazil GOLD Mines Development Project Advanced Exploration Exploration Office Six Gold Mines: 2014 Production
Slide 4: Balanced Geographic Portfolio
Balanced Geographic Portfolio Gold Mineral Resources1 41% 18% North North America 40% America 33% Africa Africa 42% 26% South South America America 20112 20123 1 Mineral resources include mineral reserves. 2 Based on IAMGOLD attributable mineral resources as at December 31, 2011. 3 Based on IAMGOLD
Slide 5: Priorities
Priorities Cost Reduction Disciplined Capital Allocation Cash Preservation 5
Slide 6: 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 6
Slide 7: 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 8: 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 9: 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 10: Liquidity
Liquidity We are committed to preserving Dec 31, Sept 30, Dec 31, our financial liquidity. 2013E1 2013 20122 $millions $1,130 Cash & cash ~220 361 797 equivalents $millions 250 Gold bullion 162 179 223 at market 500 Unused 500 500 500 credit facility 162 Unused Niobec ~220 250 250 250 credit facilit
Slide 11: Rosebel - A New Power Agreement
Rosebel - A New Power Agreement Rosebel resources Old Agreement New Agreement ~20¢/kWh power Reduced power rate Areas being considered for next expansion: 5% gov’t carried For current and Charmagne equity future operations West Charmagne 170 km2 5% gov’t carried Headley’s Reef Taxes & royalties equi
Slide 12: Essakane Exploration Focus
Essakane Exploration Focus Falagountou satellite resource • >200,000 ounces 1,383 km2 • Community Relocation Action Plan approved in land March position • Site evaluation drilling commenced in Q2 12
Slide 13: Westwood – Mineral Reserve and Resource Estimate
Westwood – Mineral Reserve and Resource Estimate As of December 31, 2012: Reserve Estimate Proven reserve of 65Koz @ 7.6 g/t Au Probable reserve of 283Koz @ 13.1 g/t Au -1,000 m Resource Estimate (includes reserves) Measured resource of 67Koz @ 7.5 g/t Au Indicated resource of 466Koz @ 13.0 g/t Au -
Slide 14: Doyon Division
Doyon Division1 Westwood / Mouska › Mouska contributed 15,000 ozs. of production in Q4 for annual production of 63,000 ozs. › Westwood produced 20,000 ozs. in Q4 for annual production of 73,000 ozs. › Combined the Doyon Division produced 136,000 ozs. of gold in 2013, within guidance of 130,000 – 150
Slide 15: Côté Gold – Well Established Infrastructure
Côté Gold – Well Established Infrastructure Mineral Resource Estimate Effective December 31, 2012 Rail Timmins Roads Tonnes Grade Contained Ounces Power lines (millions) (g/t) (million ozs) 500 kV Indicated 101 CN Rail Power line 0.25 g/t Au cut-off 278 0.86 7.68 Côté Gold 144 Chapleau Property 115
Slide 16: Sadiola & Yatela – Joint Ventures in Mali
Sadiola & Yatela – Joint Ventures in Mali Sadiola Overview › Produced 86,000 ozs. (attributable 41%) 2014 Production Guidance in 2014, below guidance of 125,000 – 140,000 ozs. › Potential to extend current oxide operation 90,000 - 100,000 oz.* (attributable) to mine sulphides still under considerati
Slide 17: Niobec – Quebec
Niobec – Quebec Overview 2014 Production Guidance › 2013 a record year with 5.3Mkg of production at an average margin of $18/kg, due to strong recoveries and higher grade 4.7 - 5.1 Mkg Nb › Expansion would triple production and increase mine life to 46 years Niobium is a scarce metal that strengthen
Slide 18: 2014 Exploration Program - $59.6 Million
2014 Exploration Program - $59.6 Million1 Continued focus on: Near-mine development and select greenfields projects in W. Africa, South America and Canada Greenfield: Boto - Senegal; Pitangui – Brazil; Côté Gold - Canada Brownfield: Essakane – Burkina Faso; Rosebel – Suriname; Westwood - Canada 1 Ex
Slide 19: Advancing Select Greenfield Projects - Priorities
Advancing Select Greenfield Projects - Priorities Boto Gold Project – Senegal Indicated resource of 1.1M oz. at 1.62 g/t Au Drilling was suspended in Q3’13 during the rainy season Resumed drilling program around Malikoundi deposit in November Deposit remains open along strike to north and down dip a
Slide 20: 2014 Attributable Gold Production Guidance
2014 Guidance Guidance gold production Rosebel (000s oz.) 330 - 350 Attributable Essakane (000s oz.) 315 - 330 Doyon division (000s oz.)1 100 - 120 Total owner-operated production (000s oz.) 745 - 800 Joint ventures (000s oz.) 90 - 100 Total attributable production (000s oz.) 835 - 900 Total cash co
Slide 21: 2014 Capital Expenditure Forecast
2014 Capital Expenditure Forecast Development/ ($ millions) Sustaining Expansion Total Rosebel 701 30 100 Essakane 802 25 105 Westwood 35 55 90 Côté Gold - 15 15 Total owner-operated gold 185 125 310 Niobec 20 50 70 Total consolidated 205 175 380 Joint ventures – Sadiola and Yatela 10 10 20 Total (±
Slide 22: Reasons to Invest in IAMGOLD
Reasons to Invest in IAMGOLD Operations Rosebel: New power rates and access to softer, higher grade ore from surrounding JV area Essakane: More grinding and crushing capacity, ore from Falagountou and review of power sources Westwood: Mine to ramp up, leading to higher production and lower unit cost
Slide 23: Presentation Date: January 24, 2014
Presentation Date: January 24, 2014 Investor Relations info@iamgold.com Bob Tait Laura Young Penelope Talbot-Kelly VP, Investor Relations Director, Investor Relations Analyst, Investor Relations T: 416-360-4743 T: 416-933-4952 T: 416-933-4738 TSX: IMG NYSE: IAG
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