Iamgold Corporation · TSX:IMG

Iamgold — Q4 2018 Earnings Presentation

36 slides from Iamgold's earnings presentation, Feb 21, 2019

  1. Slide 1: Fourth Quarter 2018 Results

    Saramacca Road Construction, Jan 2019 Fourth Quarter 2018 Results February 21, 2019 l TSX: IMG l NYSE: IAG l

  2. Slide 2: Management Participants

    Management Participants SIAMGOLD Steve Letwin President & Chief Executive Officer “coamtutan area chat open oe enn cet cucpecacithatepe come nnn “ceuoma ss snes mtn bp cnn _ ens <csenlonmlantavn comune detent anne Indi Gopinathan Investor Relations Lead

  3. Slide 3: 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

  4. Slide 4: Strategic Review

    Strategic Review 4

  5. Slide 5: Building a Cash Flow Pipeline

    Building a Cash Flow Pipeline Our Approach: Create Superior Ensure a Robust Shareholder Value: Balance Maintain a Strong Pipeline of Potential focused on maximizing Geopolitical Risk: Balance Sheet: Projects: shareholder value Diversified portfolio To withstand gold price Through exploration and thr

  6. Slide 6: Pipeline of Near Term Catalysts

    Pipeline of Near Term Catalysts PENDING MARKET 2018 Executed Catalysts H1 2019 H2 2019 2020 CONDITIONS ✔ ✔$170 Million Gold Saramacca Saramacca Côté Investment Saramacca Gold District Consolidation Prepay Agreement Production Full Production Decision Broklokono Exploration Rights Acquired (Q1) Saram

  7. Slide 7: Financial Review

    Financial Review 7

  8. Slide 8: Summary of Financial Results

    Summary of Financial Results (In $ millions, except per share amounts) Q4 Q4 FY FY 2018 2017 2018 2017 Revenues1 274.3 291.1 1,111.0 1,094.9 Cost of Sales 250.3 250.0 974.1 942.0 Gross profit 24.0 41.1 136.9 152.9 Adjusted net earnings (loss)2,3 (16.1) (13.8) 29.8 29.3 Adjusted net earnings (loss)2,

  9. Slide 9: Full Year Movements in Non-Cash Working Capital

    Full Year Movements in Non-Cash Working Capital $288.4 $(48.3) $(32.2) $(11.0) $(7.3) $1.5 $191.1 $ millions Operating Cash Mine Supplies Stockpiles VAT Recoverable Finished Goods Other Operating Cash Flow, Before (ESK) Flow 2 1 Working Capital $97.3 million2 change in movements of non- cash working

  10. Slide 10: Hedging Summary – Reducing Input Exposure

    Hedging Summary – Reducing Input Exposure • Fuel hedges of planned consumption • WTI oil – coverage for 5 years • 2019 – 90% using zero cost collar options with strike prices between $40-$60/barrel • 2020 & 2021 – 75% using zero cost collar options with strike prices between $43-$62/barrel • 2022 &

  11. Slide 11: Maintain a Strong Balance Sheet

    Maintain a Strong Balance Sheet Cash and cash equivalents $615 M Short-term investments $119 M Available credit facility1 $500 M Total Liquidity $1,234 M As at December 31, 2018 IN ADDITION: On January 15, 2019, IMG entered into a forward gold sale arrangement to receive $170 million in exchange for

  12. Slide 12: Operations Review

    Operations Review

  13. Slide 13: Continue to Focus on Safety

    Continue to Focus on Safety IAMGOLD Global DART and TRI Rates – 2008 to 2018 3.79 YTD 2018 (December) Man Hours 21,541,325 TRI Rate 1.13 # of TRI 122 DART Rate 0.66 2.40 # of DART 71 LTI rate 0.24 1.90 1.98 # of LTI 26 1.81* 1.76* * Without Niobec 1.53* 1.56 1.44* 1.43 1.18 1.13 1.06 1.06 1.00 0.93

  14. Slide 14: Continuing our Reserve Growth

    Continuing our Reserve Growth Attributable Contained Gold (000s oz) As at December 31st, 2018 Change 2017 Total Proven and Probable Mineral Reserves1 17,864 23% 14,514 Total Measured and Indicated Mineral Resources2,3 27,850 13% 24,723 Total Inferred Resources 8,668 (1%) 8,793 • Mineral reserves hav

  15. Slide 15: 2018 Production & Cost Summary

    2018 Production & Cost Summary Attributable Cost of Sales1 Total Cash Costs2 AISC2 Production ($/oz sold) ($/oz produced) ($/oz sold) (oz) Essakane 405,000 $762 $718 $1,002 Rosebel 287,000 $857 $831 $1,006 Westwood 129,000 $886 $884 $1,073 Sadiola 59,000 – $925 $930 Total* 882,000 $815 $793 $1,057 1

  16. Slide 16: Essakane

    Essakane Burkina Faso (90%) 2018 Highlights 2018 Actuals Q4 FY • 2nd consecutive record production year Attributable gold production (oz) 103,000 405,000 • Mill performing above nameplate capacity TCC1 $723 $718 • Recovery at 91% • AISC 5% higher due to higher sustaining capital AISC1 $1,114 $1,002

  17. Slide 17: Essakane – Debottlenecking the CIL Plant

    Essakane – Debottlenecking the CIL Plant Overview Images • Debottlenecking exercise currently in feasibility study Primary Screening • Heap leach planned after CIL operations • Objective: increase current CIL plant throughput, at 100% hard rock, from 12 Mtpa to 13.5 Mtpa • Major subprojects: • Repla

  18. Slide 18: Rosebel

    Rosebel Suriname (95%) 2018 Highlights 2018 Actuals Q4 FY • Attributable production down 5% Attributable gold production (oz) 85,000 287,000 • Grades for Q4 increased as the mine sequenced into higher grade zones TCC1 $774 $831 AISC1 $981 $1,006 • Mill throughput decreased due to higher planned main

  19. Slide 19: Westwood

    Westwood Quebec (100%) 2018 Highlights 2018 Actuals Q4 FY • Production up 3% due to higher throughput, partially offset by lower grades Attributable gold production (oz) 28,000 129,000 • Lower grades reflect mining activity in lower grade stopes TCC1 $1,102 $884 • AISC up 10% due to higher cost of s

  20. Slide 20: Sadiola

    Sadiola Mali (41%) 2018 Highlights 2018 Actuals Q4 FY • Attributable production down 6% from the prior year period Attributable gold production (oz) 14,000 59,000 due to processing of marginal grade stockpiles • Cessation of mining activities due to depletion of oxide ore; TCC $866 $925 1 • Mill pro

  21. Slide 21: Côté Gold

    Côté Gold Ontario (64.75%) Summary of Studies (100% Basis) FS (2018) PFS (2017) Base Case Extended Mine Plan Mine Plan Project (100% Basis) Mining Capacity 60 Mtpa 62 Mtpa 70 Mtpa Daily Milling Throughput 32,000 t 36,000 t 36,000 t LOM Average Annual Production 320 koz 367 koz 372 koz Recovered Gold

  22. Slide 22: Boto Gold

    Boto Gold Senegal (90%) IMG FS Delivers Robust Project Economics1 Tonnes Grade Contained Contained Ounces (000) (g/t) Ounces • Reserves increased by 36% to 1.9Moz; Indicated (000) (000) Resources increased by 29% to 2.5Moz Probable Reserves2 35,060 1.7 1,926 1,733 • After-tax NPV@6% increased by 151

  23. Slide 23: 2019 Production and Cost Guidance

    2019 Production and Cost Guidance Current Guidance1 Essakane (000s oz) 375 – 390 Rosebel (000s oz) 315 – 330 Westwood (000s oz) 100 – 120 Total owner-operated production (000s oz) 790 – 840 Sadiola Joint Venture (000s oz) 20 – 30 Total attributable production (000s oz) 810 – 870 Cost of sales 2 ($/o

  24. Slide 24: 2019 Capex Outlook

    2019 Capex Outlook Current Guidance $millions Non- Sustaining1 Sustaining Total Essakane $75 $50 $125 Rosebel $70 $75 $145 Westwood $15 $30 $45 Owner-operator $160 $155 $315 Corporate and Development Projects2 – $40 $40 Total (±5%)3,4 $160 $195 $355 1 Sustaining capital includes capitalized strippin

  25. Slide 25: Exploration Review

    Exploration Review 25

  26. Slide 26: Rosebel – Consolidated Prospective Land Packages

    Rosebel – Consolidated Prospective Land Packages Brokolonko 26

  27. Slide 27: Essakane – Regional Exploration Targets

    Essakane – Regional Exploration Targets Brownfield Success • ~1 Moz of resources delineated at Falagountou West and East, 8 kilometres east of Essakane; evaluating potential to increase resources at both deposits • During Q4’18, completed approximately 4.2km RC and diamond drilling on the mine lease

  28. Slide 28: Diakha-Siribaya

    Diakha-Siribaya Mali (90%) • Located approximately 10km south along strike Tonnes Grade Contained (100% Basis) ounces from the Boto Gold Project in Senegal (000) (g/t) (000 Au) Indicated1 18,031 1.28 744 • 2018: +14.5km reverse circulation and diamond drilling completed, including2: Inferred1 23,179

  29. Slide 29: Pitangui and Eastern Borosi

    Pitangui Brazil (100%) • Banded iron formation hosted deposit, 25km from Jaguar’s Tonnes Grade Contained Ounces (000) (g/t) (000 Au) Turmalina mill 1 Inferred 5,365 4.7 819 • Completed +17km diamond drilling during 2018 to expand São Sebastião deposit • 2017 drill program increased Inferred Resource

  30. Slide 30: Monster Lake and Nelligan

    Monster Lake Quebec (50% JV Interest) Ownership: 50:50 JV with TomaGold, with option to earn up to a Tonnes Grade Contained Ounces 100% Basis (000) (g/t) (000 Au) 75% interest 1 Inferred 1,110 12.1 433 • Results of 2018 winter drilling program2: › 40.94 g/t Au over 5.3m › 72.17 g/t Au over 2.6m › 39

  31. Slide 31: Re-seeding the Pipeline

    Re-seeding the Pipeline Resources (100%) Production Fala /Fala E > 5 Moz Au Boto Feasibility Study >2 Moz Au Côté Saramacca Sadiola <2 Moz Au Pre-feasibility Study Projects Diakha Monster Lake Saõ Sebastiaõ Gossey Yorbeau Initial Resource / Scoping Brownfield E. Borosi Adv. Greenfield Tassiri Sarama

  32. Slide 32: Building a Cash Flow Pipeline

    Building a Cash Flow Pipeline Create Superior Shareholder Value: Balance Geopolitical Risk: Building strong cash flow from current operating assets and Diversified portfolio disciplined approach to realizing the value of our portfolios 4 operating mines on 3 continents NEAR-TERM: DEVELOPMENT GROWTH

  33. Slide 33: Technical Information and Qualified Persons

    Technical Information and Qualified Persons The mineral resource estimates contained in this presentation 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 supervision of the prepara

  34. Slide 34: Appendix

    Appendix 34

  35. Slide 35: Hedging Summary – Reducing Input Exposure

    Hedging Summary – Reducing Input Exposure As at December 31, 2018 2019 2020 2021 2022 2023 Foreign Currency Canadian dollars (millions of C$)1 60 – Canadian dollar contracts (millions of C$) 282 186 Rate range ($/C$) 1.25 – 1.39 1.30 – 1.36 Hedge ratio 75% 50% Euros (millions of €)2 100 Euro contrac

  36. Slide 36: Investor Relations Contacts

    Indi Gopinathan Martin Dumont Investor Relations Lead Senior Analyst, Investor Relations T: 416-360-4743 T: 416-933-5783 l TSX: IMG l NYSE: IAG l

IAMGOLD — Q4 2018 Earnings Presentation on 6ix