Slide 1: 2013 Second Quarter Results
2013 Second Quarter Results August 13, 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 JEFFERY SNOW SVP, General Counsel 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: Q2: Executing on All Fronts
Q2: Executing on All Fronts 55% of cost reduction target achieved and on track to reaching $100M target by year-end Total cash costs of $787/oz.1,2 YTD, below the bottom range of guidance Lowering 2013 total cash costs guidance to $790-$840/oz. from $850-$925/oz. 1,2 Lowering 2013 all-in sus
Slide 6: Priorities
Priorities Cost Reduction Disciplined Capital Allocation Cash Preservation 6
Slide 7: Cost Reduction: New Power Agreement in Suriname
Cost Reduction: New Power Agreement in Suriname 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
Slide 8: Cost Reduction: Achieved 55% of $100M Target
Cost Reduction: Achieved 55% of $100M Target $54 Operations $22 $40 Exploration $30 $6 Corporate $3 0 10 20 30 40 50 60 Target Achieved to Date 8
Slide 9: 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 Rosebel Expansion feasibility study incorporating reduced power rates will determine optim
Slide 10: Financial Review
Financial Review # IAMGOLD’ : Vai 10 CORPORATION
Slide 11: Revenues
Revenues Net Gold Q2 ‘13 Change Q2 ‘12 Revenue Impact Price 1,373 (14%) 1,593 ($42M) ($/oz.)1 Gold Sales2 201 (5%) 212 ($23M) (000s oz.) $millions Yr/Yr Sales Main Factor 364.5 Variance (oz.) 301.1 Essakane (19,000) Lower production as throughput and grades Rosebel (24,000) dropped with harder rock
Slide 12: Adjusted Net Earnings
Adjusted Net Earnings* (In $ millions, except for per share amounts) Q2'13 Q2'121 Net earnings attributable to equity holders (28.4) 52.9 Impairment of investments 39.3 14.9 $0.20 Interest expense on senior unsecured notes 5.3 - per share Foreign exchange losses (gains) (0.2) 0.6 Unrealized derivati
Slide 13: Net Cash From Operating Activities Before Changes in Working Capital
Net Cash From Operating Activities Before Changes in Working Capital* (In $ millions, except for per share amounts) Q2’13 Q2’121 Net Cash from operating activities per consolidated interim financial 37.9 69.6 statements $0.20 Adjusting items from non-cash working per share capital items and non-curr
Slide 14: Attributable Gold Production
Attributable Gold Production Due to: Westwood Pre-commercial +10,000oz. Mouska +39,000oz. Sadiola +2,000oz. 000s ozs. 224 Partially offset by: 204 Lower grades at Essakane (19,000 oz.) Lower throughput and grades at Rosebel (12,000 oz.) Q2'12 Q2'13 14
Slide 15: Q2'13 Gold Production and Sales Reconciliation
Q2’13 Gold Production and Sales Reconciliation 224 214 201 -10 koz. -6 koz. -3 koz. -3 koz. -1 koz. Pre-commercial production 000s ozs. Q2'13 Westwood Q2'13 Mouska Essakane Rosebel Other Q2'13 Attributable Attributable Attributable Gold Commercial Gold Sales Production Gold Production 15
Slide 16: Total Cash Costs and All-In Sustaining Costs
Total Cash Costs and All-In Sustaining Costs* Revised 2013 Previous $/oz. Q2’13 Q2’12 Variance Guidance Guidance Total Cash Costs1 787 737 7% $790-$840/oz. $850-$925 – Gold Mines All-In Sustaining $1,100- Costs 1,2 – 1,133 1,002 13% $1,150-$1,250 $1,200/oz. Owner-Operator All-In Sustaining $1,150- 1
Slide 17: Gold Margin
Gold Margin Spot Gold January 1, 2012 – June 30, 2013 1900 856 1800 586 1700 Gold Margin 1600 $/oz. Cash Costs 1500 1400 1300 1200 737 787 1100 Q2'12 Q2'13 Realized gold price 1,593 1,373 ($/oz.)* *This is a non-GAAP measure. Refer to the non-GAAP performance measures section of the MD&A for reconci
Slide 18: Niobium
Niobium Revenue Q2’13 Q2’12 22% Niobium production 1.2 1.2 (Mkg Nb) $millions 49.8 Niobium 48.4 sales 1.3 1.2 (Mkg Nb) Operating margin 17 15 ($/kg) Q2'12 Q2'13 18
Slide 19: Liquidity
Liquidity June 30, Dec 31, We are committed to preserving our 2013 20121 $millions financial liquidity. Cash & cash $1,358 equivalents 447 798 $millions 250 Gold bullion 161 223 at market 500 Unused 500 500 credit facility 161 Unused Niobec 250 250 447 facility Q2'13 Total 1,358 1,771 As at cash bul
Slide 20: Operations Review
Operations Review CORPORATION
Slide 21: Rosebel
Rosebel Attributable Gold Production (95%) 2013 Ongoing Examples of Cost Reduction (000’s oz) 94 95 100 89 82 › Reduced: › Equipment standby time through better management of shift changes Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 › Staffing requirements through business process and operating efficiency improve
Slide 22: Essakane
Essakane Attributable Gold Production (90%) 2013 Ongoing Examples of Cost Reduction (000s oz) 81 77 77 65 62 › Implemented a transition plan to replace more expats with nationals › Consolidated bus contracts to transport Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 employees to and from worksite, 5% reduction in p
Slide 23: Westwood/Mouska
Westwood/Mouska Maintaining 2013 production guidance of Q2 Performance 130,000 -150,000 oz. › Production ramped up with batch processing of both Mouska stockpiled ore and ore from Westwood Westwood mine expected to reach › Seeing significant positive grade reconciliation from commercial production i
Slide 24: Sadiola
Sadiola Attributable Gold Production (41%) Q2 Performance › Operating efficiency continues to improve, mined ore grades exceeded plan for H1 (000s oz) 26 27 2013 22 19 24 › 13% higher throughput and better recoveries offset lower grades › Production up 26% from Q1 as throughput Q2'12 Q3'12 Q4'12 Q1'
Slide 25: Niobec
Niobec Niobium Production Q2 Performance › 7 day planned maintenance shutdown (Mkg Nb) › Continued stable mill operations 1.2 1.2 1.2 1.2 1.2 › Operating margin $17/kg; improving operating efficiencies contributing positively Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 2013 Ongoing Examples of Cost Reduction › Im
Slide 26: Exploration Review
Exploration Review CORPORATION
Slide 27: 2013 Exploration Program - $99.0 Million
2013 Exploration Program - $99.0 Million* Continued focus on: Near-mine development and select greenfields projects in South America and Canada Greenfield Senegal Brazil Côté Gold Target: $40M, Realized YTD: $30M Brownfield 1. $13M greenfield and $13M brownfield achieved through: Essakane • Downsize
Slide 28: Q2 Exploration Highlights and Priorities
Q2 Exploration Highlights and Priorities Essakane On track to bring in softer ore from the Falagountou satellite deposit in 2014 (6 months sooner than originally planned) Site evaluation drilling for an updated resource estimate commenced Q2 Infill drilling completed on the Southeast project –
Slide 29: Conclusion
Conclusion CORPORATION
Slide 30: 2013 Guidance
2013 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 attributable production (000
Slide 31: Q&A
Q&A TSX: IMG NYSE: IAG
Slide 32: Analyst Day
Analyst Day Toronto, Ontario November 7, 2013 TSX: IMG NYSE: IAG
Slide 33: Appendix
Appendix TSX: IMG NYSE: IAG
Slide 34: 2012 Reserves and Resources - Gold
2012 Reserves and Resources - Gold Tonnes Grade Attributable Contained Ounces GOLD OPERATIONS (000s) (g/t) (000 oz) As at December 31, 2012 Proven & Probable Reserves 382,933 1.2 11,327 Measured & Indicated Resources 824,914 1.1 22,603 Inferred Resources2 121,589 1.8 6,093 Notes • Measured and indic
Slide 35: 2012 Reserves and Resources - Niobium
2012 Reserves and Resources - Niobium Tonnes Grade Nb2O5 Contained Nb2O5 NIOBIUM RESERVES & RESOURCES1,2,3,4,5,6 (000s) (%) (million kg) As at December 31, 2012 (100%) Probable Reserves 422,900 0.42 1,768 Measured Resources 291,631 0.44 1,271 Indicated Resources 344,158 0.38 1,292 Inferred Resources
Slide 36: 2012 Resources – Rare Earth Elements
2012 Resources – Rare Earth Elements Tonnes Grade TREO Contained TREO RARE EARTH RESOURCES1,2,3 (000s) (%) (million kg) As at December 31, 2012 (100%) Indicated Resources 531,000 1.64 8,730 Inferred Resources 527,000 1.83 9,652 (1) In mining operations, measured and indicated resources that are not
Slide 37: 2013 Capital Program
2013 Capital Program1 Development/ ($ millions) Sustaining Expansion Total Rosebel 108 222 130 Essakane 100 200 300 Westwood 20 80 100 Total Gold Segments 228 302 530 Niobec 31 49 80 Corporate and Other 5 - 5 Total Consolidated 264 351 615 Joint Ventures3 30 45 75 Total 294 396 690 1 Capitalized bor
Slide 38: 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: Revenue - Mining costs (called cost of sale
Slide 39: 2013 Second Quarter Results
2013 Second Quarter Results August 13, 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