Iamgold Corporation · TSX:IMG
Iamgold — Corporate Update (December 2013)
31 slides from Iamgold's corporate update, Dec 12, 2013
Slide 1: WESTWOOD: Commercial Production
WESTWOOD: Commercial Production December 12th, 2013 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: Today's Speakers
Today’s Speakers STEVE LETWIN President & Chief Executive Officer GORD STOTHART EVP & Chief Operating Officer CAROL BANDUCCI EVP & Chief Financial Officer DENIS-MIVILLE DESCHÊNES SVP, Project Development BOB TAIT VP, Investor Relations 3
Slide 4: WESTWOOD: Commercial Production – Steve Letwin
WESTWOOD: Commercial Production Steve Letwin – President and CEO December 12th, 2013 TSX: IMG NYSE: IAG
Slide 5: WESTWOOD: Commercial Production – Gord Stothart
WESTWOOD: Commercial Production Gord Stothart – EVP and COO December 12th, 2013 TSX: IMG NYSE: IAG
Slide 6: Long-term View of Westwood Remains Unchanged
Long-term View of Westwood Remains Unchanged Long-term view of mine plan, estimated reserves and resources and economic value remains intact. 6
Slide 7: Westwood… An Excellent Beginning
Westwood… An Excellent Beginning Started up in Q1 2013… as planned in 2008 Mouska production on target for 2013 and, as a bonus, extended into 2014 Seamless transition of Mouska workforce to Westwood mine Mining of Westwood started at Warrenmac orebody with positive reconciliations for grade, recove
Slide 8: Westwood – Mineral Reserve and Resource Estimate Remains Intact
Westwood – Mineral Reserve and Resource Estimate Remains Intact 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
Slide 9: Transition from Mouska to Westwood
Transition from Mouska to Westwood Plant 2011 2012 2013 2014 2015 Refurbishment Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Old Plant Refurbishment New Plant in Commercial Production Mine Operation 2011 2012 2013 2014 2015 & Development Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 10: Westwood Criteria for Reaching Commercial Production
Westwood Criteria for Reaching Commercial Production Commercial production generally and primarily dependent on mill throughput. Westwood mill is a refurbishment of an existing mill and quickly demonstrated the capacity to treat designed tonnage rates upon restart In the case of Westwood, we are def
Slide 11: Change in Westwood Commercial Production Target
Change in Westwood Commercial Production Target 2013 plan was to achieve commercial production in Q4 of 2013. The service hoist failure and the rockburst event were two catalysts that led to a reassessment of the Westwood ramp-up. Commercial production target is now Q3 2014. Guidance Remains Unchang
Slide 12: Westwood Going forward…
Westwood Going forward… Revising LOM Assessing options to manage low mill usage in H1 2014 Additional ore from Mouska Custom milling opportunities Mill staff to be temporarily redeployed to help during commissioning and ramp-up of Essakane Expansion Completing recovery program from the rockburst eve
Slide 13: Opportunity to Build a Better Mine
Opportunity to Build a Better Mine Enhanced understanding of mine following assessment of 2013 events enables mine design modifications with potential to enhance economic value. 13
Slide 14: WESTWOOD: Commercial Production – Denis Miville-Deschênes
WESTWOOD: Commercial Production Denis Miville-Deschênes December 12th, 2013 TSX: IMG NYSE: IAG
Slide 15: Service Hoist Incident Assessment
Service Hoist Incident Assessment Incident: June 20th, 2013 The service cage fell ~30m to the bottom of the shaft during a routine break test The hoist drums accelerated instead of triggering the emergency brake The hoist cable detached from the hoist drum and fell to the bottom of the shaft onto th
Slide 16: Service Hoist Incident Assessment – Result
Service Hoist Incident Assessment Result ABB ordered the shutdown of all similar hoists located around the world for about five days while a software patch was written to fix the fundamental problem. Two temporary hoist motors were sourced on a “loan” basis and installed during the first week in Jul
Slide 17: Rockburst Incident
Rockburst Incident A series of seismic events occurred immediately following an underground blast Sat. Aug. 31st – Thurs Sept. 3rd Affected sectors : Access drifts on Levels 1040-10 to 1040-06; Depth : ± 900 m Around (4000) four thousand tonnes of rock were displaced Competent geological unit (U3 =
Slide 18: Rockburst Incident – Location
Rockburst Incident – Location Pillar Burst Fall of Ground 18
Slide 19: Level 104-09 to Level 104-06
Level 104-09 to Level 104-06 1040-09 1040-08 1040-09 1040-08 1040-07 1040-07 1040-06 1040-06 19
Slide 20: Level 104-09
Level 104-09 View looking South from the crosscut access into the Level intersection. The Pillar on the right of the photo gives the appearance of having failed suddenly, ejecting the rock laterally into the drift as shown. The back condition is relatively good – damage is to the West wall only. Thi
Slide 21: Level 104-07
Level 104-07 104-07 Level. View looking South from the crosscut access into the 104-07 Level intersection. Appearance is of a Gravity-Induced Fall of Ground, because of the large angular blocks and wedges. Only a few broken support elements can be seen – e.g. remains of a Splitset in the far wall, a
Slide 22: Level 104-06
Level 104-06 View looking South from the crosscut access into the fall of ground in the 104-06 Level intersection. The fall of ground consists of mostly smaller broken/foliated blocks. One broken rebar is seen hanging in the screen, and one mechanical bolt is also hanging in the screen with the mech
Slide 23: Rockburst Incident: Going forward…
Rockburst Incident: Going forward… Completing investigation Geological and geotechnical review; 3D stress review Developing action plan to resume mining in the affected sectors Regaining access will require extensive rehabilitation and/or bypass drifts Installing permanent seismic monitoring system
Slide 24: Rockburst Incident – Going forward…
Rockburst Incident – Going forward… Ramp Ramp New ramp Previous ramp design (36m) design (18m) 24
Slide 25: WESTWOOD: Commercial Production – Carol Banducci
WESTWOOD: Commercial Production Carol Banducci – EVP and CFO December 12th, 2013 TSX: IMG NYSE: IAG
Slide 26: Westwood – Taxes
Westwood – Taxes No cash income taxes in 2013 or 2014 Sufficient carry forwards and deductions available to eliminate taxable income Quebec Mining Duty Taxes (previously introduced by the Liberal government) expected to be approximately $3M in 2013 and $1M in 2014 Very difficult to eliminate cas
Slide 27: Westwood – Capital Expenditures
Westwood – Capital Expenditures Capital spending as at Sep 30, 2013 of $103M. Sales of 46,000 ounces netted against capital expenditures ($63M). Commercial production expected Q3 2014. 2014 production from the Doyon division (Mouska & Westwood) expected to be in the range of 100,000 to 120,000 ou
Slide 28: Questions?
WESTWOOD: Commercial Production Questions? TSX: IMG NYSE: IAG
Slide 29: WESTWOOD: Commercial Production – Gord Stothart
WESTWOOD: Commercial Production Gord Stothart – EVP and COO December 12th, 2013 TSX: IMG NYSE: IAG
Slide 30: Optimizing the Development of Westwood
Optimizing the Development of Westwood Long-term View of Westwood Remains Unchanged Long-term view of mine plan, estimated Reserves and Resources and economic value remains intact. Opportunity to Build a Better Mine Enhanced understanding of mine following assessment of “events” enables mine design
Slide 31: WESTWOOD: Commercial Production
WESTWOOD: Commercial Production December 12th, 2013 TSX: IMG NYSE: IAG