Iamgold Corporation · TSX:IMG
Iamgold — European Gold Forum 2009
29 slides from Iamgold's conference presentation, Apr 28, 2009
Slide 1: Taking IAMGOLD to the Next Level
April 28th, 2009 TAKING IAMGOLD TO THE NEXT LEVEL European Gold Forum Gordon Stothart Chief Operating Officer
Slide 2: Cautionary Statement
2 Cautionary Statement This presentation contains forward-looking statements. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements re
Slide 3: IAMGOLD Introduction
3 IAMGOLD Introduction • Canadian-based gold mining company NYSE: IAG discoverer of the Sadiola Mine in Mali in early TSX: IMG 1990s Shares outstanding*: 365 million Market Capitalization: $3 billion • Grown to almost 1 million ounces of annual 52-week high: $9.00 gold production with 7 gold operati
Slide 4: 2008 was an Excellent Year for IAMGOLD
4 IAMGOLD 2008 was an Excellent Year for IAMGOLD • Record gold production of 997,000 ounces, exceeded guidance by 8% • Record revenues of $870 million, up 28% • Record operating cash flow of $255 million, more than doubled • Reserves increased 55% to 12.4 million ounces* • Resources increased 16% to
Slide 5: Operations are Delivering Results
5 Operations are Delivering Results 2008 Financial Highlights US$ millions Revenue *Adjusted Net Earnings Operating Cash Flow 107.5 870 87% 254.5 28% 678 117% 57.5 117.1 210 16.4 65.2 194 14.4 56.6 14% 15% 8% Q4 Q4 2007 2008 Q4 Q4 2007 2008 Q4 Q4 2007 2008 ‘07 ‘08 ‘07 ‘08 ‘07 ‘08 * Adjusted net earn
Slide 6: Reserve & Resource Growth
6 Reserve & Resource Growth 12.4 Moz Proven & Probable Gold Reserves 55% increase in 2.8 Moz P&P Reserves Essakane • Reserve replacement achieved at all acquisition continuing IAMGOLD operations Measured & Indicated Resources* 9.6 Moz • 26.4 million ounces 1.6 Moz net addition 2.7 Moz 8.0 Moz additi
Slide 7: Corporate Strategy
7 Corporate Strategy Taking IAMGOLD to the Next Level Focusing on Growth through: • Expansions and continuous improvement at existing operations • Disciplined approach to maximize value from short life assets • Aggressive minesite and greenfields exploration • Applying disciplined political and coun
Slide 8: Three Focus Areas: West Africa, Guiana Shield and Quebec
8 Three Focus Areas: West Africa, Guiana Shield and Quebec NIOBEC DOYON DIVISION Westwood ROSEBEL YATELA Essakane Quimsacocha SADIOLA DAMANG TARKWA Camp Caiman 7 Gold Operations 4 Development Projects Niobec Niobium Mine MUPANE
Slide 9: 2009 Gold Production Outlook
9 2009 Gold Production Outlook 54% Africa Production by Mine, by Region 37% South America 9% Canada Damang, Ghana 40,000 oz Tarkwa, Ghana Suriname, 136,000 oz 325,000 oz Africa, Rosebel, Suriname 476,000 oz 325,000 oz Yatela, Mali 88,000 oz Quebec, Sadiola, Mali 79,000 oz 132,000 oz Doyon Division,
Slide 10: Operations
Operations Focus, Discipline, Results • Rosebel • West African Joint Ventures • Mupane and Doyon Division • Niobec
Slide 11: IAMGOLD's Flagship Mine: Rosebel Mine, Suriname
11 IAMGOLD’s Flagship Mine Rosebel Mine, Suriname • 37% of IAMGOLD’s production in 2009 • 2008 gold production up 20% from 2007 • Further production increases expected in 2009 and 2010 • Mill expansion and optimization increased throughput from 8.9 Mtpa to 10 Mtpa for 2009 with 11 Mtpa target IMG Ow
Slide 12: West African Joint Ventures
12 West African Joint Ventures SADIOLA TARKWA YATELA DAMANG 38% 18.9% 40% 18.9% IMG Ownership (JV: Anglogold (JV: Goldfields (JV: Anglogold (JV: Goldfields Ashanti) Ltd.) Ashanti) Ltd.) Location Mali Ghana Mali Ghana M&I Resources (oz)* 2,348,000 2,462,000 313,000 407,000 Inferred Resources (oz) (as
Slide 13: IAMGOLD Operations: Mupane and Doyon
13 IAMGOLD Operations MUPANE Doyon IMG Ownership 100% 100% Location Botswana Quebec M&I Resources (oz)* Inferred Resources (oz) 598, 000 453, 000 (as at Dec. 31, 2008) 25, 000 570,000 *M&I resources are inclusive of reserves 2008 Production (oz) 101,000 118,000 2009 (est.) 80,000 79,000 2008 Cash Co
Slide 14: Niobec Mine, Quebec
14 Niobec Mine, Quebec High Margin, Long Life Asset • Significant cash flow contributor to fuel IAMGOLD’s growth strategy - 15-20% of corporate operating cash flow • Niobium used in specialty high strength steels • Price in 2009 as strong as 2008 due to niche market and oligopoly with IMG having ~ 7
Slide 15: Development Properties
Development Properties Filling The Production Pipeline • Westwood • Quimsacocha • Camp Caiman • Essakane
Slide 16: Westwood, Quebec
16 Westwood, Quebec 14 kms Planned Exploration shaft Bousquet Historical production of 5 million ounces 2kms IMG Ownership 100% 10 m / 11.5 g/t Au 5 m / 23 g/t Au Location Quebec, Canada La Ronde Resources Resourc M&I Resources (oz) 70,000 oz • Large 3 million oz deposit in well established mining (
Slide 17: Development Projects: Quimsacocha and Camp Caiman
17 Development Projects QUIMSACOCHA CAMP CAIMAN IMG Ownership 100% 100% Location Ecuador French Guiana M&I Resources (oz)* 2,107,000 1,615,000 Inferred Resources (oz) (as at Dec. 31, 2008) 61,000 249,000 M&I resources are inclusive of reserves Mine Life (years) (est.) 7.5 7 Annual Production (est.)
Slide 18: Development Projects: Essakane, Burkina Faso
18 Development Projects Essakane, Burkina Faso • Acquisition of Orezone Resources Inc. in an all share deal closed Feb 25th • Acquired reserves and resources at $45/oz and $35/oz respectively • Boosted IAMGOLD reserves by 30% • Fully permitted, under construction to provide near-term production • A
Slide 19: IAMGOLD's Strategic Presence in West Africa
19 IAMGOLD’s Strategic Presence in West Africa West Africa Office Operating Mine Development Project Exploration Project BOTO MERREX IAMGOLD is a leading West Africa producer 20-year history in West Africa 495,000 oz of gold production from Africa in 2008
Slide 20: Essakane Project Summary
20 Essakane Project Summary Essakane June 2008 Feasibility Study - Life of Mine Plan Largest known gold deposit in Burkina Faso: Mill Throughput 7.5 5.4 Mtpa Life of Mine 9.4 years • Mining friendly Average Production 315,000 315,000oz / yr oz/yr • Politically stable democracy • Good infrastructur
Slide 21: Conclusions
Conclusions Conclusions • Positioned for Market Revaluation • 5 year Objective • Strong Financial Position • Taking IAMGOLD to the Next Level
Slide 22: Positioned for a Market Revaluation: Cash Flow & Earnings
22 Positioned for a Market Revaluation Peer Comparison – Cash Flow & Earnings 2 0 0 9 E Operat ing Cash Flow Per $ 1 0 0 0 2 0 0 9 E Earnings Per $ 1 0 0 0 Invest ed 1 $120 Invest ed 1 $70 $104 $105 $99 $58 $58 $60 $100 $92 $92 $54 $51 $48 $50 $80 $39 $40 $60 $52 $43 $30 $40 $24 $40 $33 $19 $18 $20
Slide 23: Positioned for a Market Revaluation: Reserves & Resources
23 Positioned for a Market Revaluation Peer Comparison – Reserves & Resources Mark et Cap / P& P Reserve Gold Ounce 1 Mark et Cap / M& I Resource Gold Ounce 1 $600 $400 $366 $341 $480 $350 $325 $500 $434 $431 $300 $400 $370 $238 $250 $306 $194 $300 $200 $175 $169 $245 $228 $217 $182 $150 $124 $200 $
Slide 24: Peer Company Comparison
24 Peer Company Comparison Price / Net Asset Value Historical Production 1.0 M = 2008 gold production (millions of ounces of gold) 2.1X 1.9X 1.9X 1.8X 1.8X 1.8X 1.7X 1.6X 1.6X 1.4X 1.2X 7.7 M 1.1X 1.8 M 5.2 M 0.9 M 4.0 M 0.7 M 0.7 M 1.0 M 0.3 M 0.4 M 0.3 M 0.15 M Source: public filings, IBES Market
Slide 25: IAMGOLD Reserve Growth Relative to Peers
25 IAMGOLD Reserve Growth Relative to Peers Reserve change - 2007 to 2008 % Reserve Reserve Change Change (000s ounces) • IAMGOLD’s reserve growth outperformed its peer companies • Including Essakane, acquired Feb. 2009, IMG’s reserves grew 55% to 12.4Moz Data Source: NBF ‘s North American Gold Stat
Slide 26: 5 Year Objective: Double Production to 1.8 Million Ounces
26 5 Year Objective Double Production to 1.8 Million Ounces (000 oz) Taking IAMGOLD to the Next Level….. • Optimizing existing mines Goal • Minesite and greenfields exploration • Accretive acquisitions with strategic fit Acquisitions, Discoveries IAMGOLD has doubled gold production twice in the past
Slide 27: Strong Financial Position
27 Strong Financial Position • Well positioned with a strong balance sheet, $US millions Operating Cash Flow strong operating cash flow and existing credit $200 facility $150 • Completed Cdn$345 million public equity offering 254.5 on Mar. 26, 2009 $100 117.1 • Very low gold hedge position will be c
Slide 28: Taking IAMGOLD to the Next Level
28 Taking IAMGOLD to the Next Level • Expanded and experienced management team delivered positive results in 2008 • IAMGOLD has sufficient financial resources: • To build Essakane, and • To consider additional growth opportunities • IAMGOLD is committed to: • Maximizing operations through cost reduc
Slide 29: Taking IAMGOLD to the Next Level
TAKING IAMGOLD TO THE NEXT LEVEL Gordon Stothart Chief Operating Officer T: +1 416 933 5772 E: gstothart@iamgold.com