Iamgold Corporation · TSX:IMG

Iamgold — Bank of America Merrill Lynch 21st Annual Mining Conference 2015

32 slides from Iamgold's conference presentation, Sep 10, 2015

  1. Slide 1: Bank of America Merrill Lynch 21st Annual Mining Conference

    Bank of America Merrill Lynch 21st Annual Mining Conference September 2015 Carol Banducci EVP & CFO TSX: IMG NYSE: IAG

  2. 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

  3. Slide 3: The Gold Price: An Industry Challenge

    The Gold Price: An Industry Challenge Spot Gold Price $US/oz 1350 1300 1250 1200 1150 1100 1050 1000 950 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Source: London Afternoon Fix Gold Price 3

  4. Slide 4: Key Strengths

    Key Strengths Balance Sheet Reduced Costs Mine Optimization - More than $830M in - Down $175M since 2013 - A continuous process Cash, Cash Equiv. & Bullion 4

  5. Slide 5: Strong Financial Position

    Strong Financial Position $1,336 Million As at June 30, 2015 › $836M cash, cash equivalents and gold bullion $158M Bullion (at market) › $645M long-term debt due 2020 1 $678M Cash & Cash › In discussions to renew and extend Equivalents credit facility 2 $500M Unused Credit Facility 1 $644.6 million

  6. Slide 6: Capitalization

    Capitalization Position (as at June 30, 2015) M$ Cash and cash equivalents 678 Bullion (at market) 158 LTD - senior unsecured notes 645 Shareholder’s Equity (incl. non-controlling interests) 2,707 Total Capitalization 3,352 Net Cash 191 Credit Metrics EBITDA (TTM) $260M Net Debt/EBITDA (TTM)1 0x Tot

  7. Slide 7: Few Gold Producers in a Net Cash Position

    Few Gold Producers in a Net Cash Position Net Cash (Net Debt) – 2015E 1,000 0 Barrick Goldcorp Agnico Alamos Torex Kinross Primero Newmont Alacer Yamana B2Gold New Gold Centerra IAMGOLD (1,000) (2,000) $US Millions (3,000) (4,000) (5,000) (6,000) (7,000) (8,000) (9,000) Source: BoA Merrill Lynch Glo

  8. Slide 8: Disciplined Capital Spending

    Disciplined Capital Spending 800 54% of the decrease from 2014 to 2015 due to 700 $669M reduced spending on gold assets; balance due to sale 600 of Niobec. 500 $ Millions Development / 400 Expansion $325M 300 Sustaining $230M 1 200 100 0 2013 2014 2015 Guidance 1 Plus or minus 10% 8

  9. Slide 9: All-In Sustaining Costs

    All-In Sustaining Costs1,2 1,400 All figures in $/oz. sold 1,288 1,272 1,201 1,221 1,194 1,200 1,136 1,124 1,1133 1,0763 1,000 1,028 800 600 400 200 ` 0 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Total Cash Costs 1,2 Average Realized Gold Price 1 1 This is a non-GAAP measure. Refer to the non-GAAP perf

  10. Slide 10: IAMGOLD's Plan

    IAMGOLD’s Plan  Revisit LOMs at lower gold prices  Reduce operating costs and sustaining capital  Review all capital programs, including future development projects  Continue to evaluate acquisition opportunities  Continue to optimize performance at Essakane and Rosebel 1  Determine optimal de

  11. Slide 11: Operations Review

    Operations Review £IAMGOLD

  12. Slide 12: Rosebel – Suriname

    Rosebel – Suriname  Multiple open-pit mine  Produced ~4 million ounces in first 11 years  Hard rock comprises ~32% of ore mix and will increase to 80% by 2018  Joint venture with Government of Suriname to target higher-grade, softer rock › >$0.11/kWh power rate › 5-year option agreement with Sar

  13. Slide 13: Rosebel – Suriname

    Rosebel – Suriname 100 1250  New power rate agreement in 2013 reduced power costs 80 1000 by ~30% 83 94 76 60 68 71 750  Power costs benefitting from lower oil prices (000s oz.)  Optimization of mill feed benefitting recoveries and ($/oz.) 40 500 20 250 reducing power draw and reagent consumption

  14. Slide 14: Essakane – Burkina Faso

    Essakane – Burkina Faso 100 1250  Open-pit mine in 5th year of production; 80 1000 10 years remaining 92 89 89 89 60 83 750  April 2015 – updated resource estimate at 40 500 Falagountou increased indicated resources by 84% to (000s oz.) ($/oz.) 613,000 oz. and grade by 10% to 1.5 g/t Au 20 250 › E

  15. Slide 15: Westwood – Canada

    Westwood – Canada 40 1600  Commercial production July 1, 2014 30 1200  Production and unit costs impacted by localized 20 800 ground fall following seismic event on May 26, 2015 (000s oz.) 35 10 35 22 23 400  Affected area under temporary halt 0 Q3'14 Q4'14 Q1'15 Q2'15 0  Mining in unaffected ar

  16. Slide 16: Sadiola – Mali

    Sadiola – Mali 30 25 1200 1000  Open-pit mine has produced 7M ozs. over 20 years 20 24 21 800  Expansion to accommodate hard rock would extend (000s oz.) 15 20 19 17 600 mine life for ~10 more years ($/oz.) 10 5 400 200  Continuing to look for additional oxide reserves 0 0 Q2'14 Q3'14 Q4'14 Q1'15

  17. Slide 17: Exploration Review

    Exploration Review # IAMGOLD

  18. Slide 18: Boto Gold Project (Senegal)

    Boto Gold Project (Senegal) • Estimated indicated resource of 1.2 Moz at 1.7 g/t Au; and inferred resource of 635,000 oz at 1.8 g/t Au • Infill drilling at Malikoundi deposit completed • Final 2014 assay results include: › 40 m at 3.24 g/t Au (including 11 m at 8.15 g/t Au) Deposit › 9 m at 10.5 g/t

  19. Slide 19: Siribaya (Mali) – JV with Merrex Gold

    Siribaya (Mali) – JV with Merrex Gold Focused on Diakha prospect - extension Fekola -B2Gold of trend hosting Boto Gold deposit 4.3Moz @ 2.16 g/t Au* • Highlights from 2014 final assay Boto-Malikoundi results include1: Mali 1.2Moz @ 1.7 g/t Au** Guinea › 6 m at 10.53 g/t Au › 3 m at 15.01 g/t Au • Hi

  20. Slide 20: Pitangui Project (Brazil)

    Pitangui Project (Brazil) • Focused on upgrading resources at the São Sebastião deposit • April 2014 – maiden inferred resource estimate of 0.64 M oz at 4.88 g/t Au > 40M oz. historical • Infill drilling program completed in Q2/15 production in Brazil’s Iron Quadrangle • Assay results highlights rep

  21. Slide 21: Eastern Borosi (Nicaragua) – JV with Calibre Mining

    Eastern Borosi (Nicaragua) – JV with Calibre Mining • 176km2 land package with 2 gold and silver deposits and series of exploration targets • Drilling program in 2015 focused on further testing discoveries from 2014 as well as exploring additional vein systems Bonanza • May 6, 2015 – Blag vein syste

  22. Slide 22: Monster Lake (Quebec) – JV with TomaGold

    Monster Lake (Quebec) – JV with TomaGold • Located in prolific Abitibi Greenstone belt • High-grade intervals (25 to 30+ g/t Au) from Monster Lake previous drilling • Highlights from 2014 final drilling results include: › 9.18 m at 46.33 g/t Au › 3.42 m at 18.68 g/t Au › 7.1 m at 6.74 g/t Au Westwoo

  23. Slide 23: Investment Highlights

    Investment Highlights  Strong balance sheet allowing for financial flexibility  Operations diversified across three continents  Focused on cost reduction, mine plan optimization, capital discipline and cash preservation  Excellent CSR reputation  Promising exploration pipeline Highly levered to

  24. Slide 24: Appendices

    Appendices CORPORATION

  25. Slide 25: Geographically Diversified Asset Base

    Geographically Diversified Asset Base Four Operating Gold Mines 25

  26. Slide 26: 2014 Reserves and Resources

    2014 Reserves and Resources 1 As of December 31, 2014 2014 Gold (000s attributable oz. contained) Total proven and probable mineral reserves 8,608 Total measured and indicated mineral resources 2,3 21,412 Total inferred resources 7,018 • Gold reserves have been estimated at our owned and operated mi

  27. Slide 27: 2015 Production and Cost Guidance

    2015 Production and Cost Guidance1 Rosebel (000s oz.) 290 - 300 Essakane (000s oz.) 360 - 370 Westwood (000s oz.) 60 - 75 Total owner-operated production (000s oz.) 710 - 745 Joint ventures (000s oz.) 70 Total attributable production (000s oz.) 780 - 815 Total cash costs2,3 – owner-operator ($/oz.)

  28. Slide 28: 2015 Capital Expenditure Outlook

    2015 Capital Expenditure Outlook Development/ ($ millions) Sustaining1 Expansion Total (Non-sustaining) Rosebel 70 10 80 Essakane 55 5 60 Westwood 30 50 80 Total gold segments 155 65 220 Côté Gold - 5 5 Total consolidated 155 70 225 Joint ventures 5 - 5 Total (±10%) 160 70 230 1 Includes capitalized

  29. Slide 29: Acquisition Criteria

    Acquisition Criteria  Predominantly gold  Producing or near-producing mine  Minimum production of 100k oz./year  Higher grades  Lower costs  Good mining jurisdiction 29

  30. Slide 30: Taxes & Royalties

    Taxes & Royalties Africa Americas Burkina Faso Mali Canada Suriname 36% includes 17.50% Quebec mining duty taxes which Corp. Tax Rate 30% 36% are deductible for mining tax Statutory corporate income tax rate of 27.5% purposes less 10% per Mining Agreement 6.5% (Au price 3%- Au price <$1000/oz >$425/

  31. Slide 31: Summary of Outstanding Derivative (Hedge) Contracts

    Summary of Outstanding Derivative (Hedge) Contracts1 Contracts 2015 2016 2017 2018 Foreign currency Canadian dollar contracts (M of C$) 60.0 90.0 – – Contract rate range (C$/$) 1.12 – 1.17 1.12 – 1.29 – – Hedge ratio2 46% 30% – – Euro contracts (M of €) 48.0 18.0 – – Contract rate range ($/€) 1.21 –

  32. Slide 32: Investor Relations Contacts

    Bob Tait VP, Investor Relations T: 416-360-4743 Laura Young Director, Investor Relations T: 416-933-4952 Investor Relations info@iamgold.com TSX: IMG NYSE: IAG

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