Iamgold Corporation · TSX:IMG
Iamgold — BofA Merrill Lynch Conference 2012
40 slides from Iamgold's conference presentation, May 2012
Slide 1: Maximizing Returns for Investors
Maximizing Returns for Investors May 2012 Steve Letwin President & Chief Executive Officer TSX: IMG NYSE: IAG
Slide 2: Cautionary Statement
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 rega
Slide 3: IAMGOLD's Platform – High Quality, Long-Life Assets
IAMGOLD’s Platform – High Quality, Long-Life Assets YATELA SADIOLA Senegal ESSAKANE Mali Boto Val d’Or Siribaya Burkina Faso NIOBEC Westwood Kalana Suriname MOUSKA Colombia ROSEBEL Côté Lake Quimsacocha Peru MINE Development Project Brazil Advanced Exploration Exploration Office Proposed Trelawney a
Slide 4: The Transformation of IAMGOLD – Operations
The Transformation of IAMGOLD – Operations Focus on core assets we own Sold Tarkwa & and operate to Rosebel Sadiola Damang interests improve Essakane Yatela Rosebel Sadiola and Mupane in 2011 Essakane productivity and Mouska Tarkwa Yatela capital Mupane Damang Mouska/Westwood deployment Pre-feas
Slide 5: The Transformation of IAMGOLD – Financials
The Transformation of IAMGOLD – Financials Cash & Cash Cash & Cash Strengthen Cash balances balance sheet to Equivalents: $271M Equivalents: $1,033M enhanced through maximize sale of non- financial flexibility Gold Bullion (at market): strategic assets Gold Bullion (at market): $141M $224M Explo
Slide 6: Gold Production Forecast
Gold Production Forecast Gold production attributable to IAMGOLD 1,400-1,600 1,100-1,200 1,000-1,100 Discontinued operations Essakane (90%) 967 972 000s oz 76 840-910 Rosebel (95%) 239 337 Sadiola (41%) & Yatela (40%) 122 Mouska 395 385 178 150 33 24 '10 '11 '12E '13E '14E '15E '16E '17E Sustaining
Slide 7: Essakane
Essakane Grade Contained Q1 Attributable production: 80,000 ozs As at December 31, 2011 Tonnes (g/t Au Au (millions) undiluted) (000s oz) March production: 30,000+ ozs Probable Reserves 109.2 1.1 3,472 Measured Mineral Resource1 - - - H2’12 Indicated Mineral Resource1 139.6 1.1 4,262 Expect final ag
Slide 8: Essakane Exploration
Essakane Exploration 210,000+ m of RC and DD drilling planned in 2012 Focus of the drilling program will be split between: a resource definition program at Falagountou An in-fill program at Essakane north 8
Slide 9: Rosebel
Rosebel Q1 Attributable production: 93,000 ozs Attributable Tonnes Grade Contained March production: 32,000+ ozs As at December 31, 2011 (millions) (g/t) ounces (000s oz) H2’12 Proven Reserves 102.4 1.0 3,155 Expect higher throughput with installation of third ball mill, temporary pre-crusher, a lar
Slide 10: Future Expansion Potential at Rosebel is Significant
Future Expansion Potential at Rosebel is Significant ROSEBEL Suriname Rosebel resources Areas being considered for next expansion: Charmagne West Charmagne Headley’s Reef Announced Heads of Agreement with Government of Suriname on Dec. 21’11 to support significant expansion at Rosebel Agreement in p
Slide 11: Sadiola
Sadiola Attributable Q1 Attributable production: 25,000 ozs Tonnes Grade Contained As at December 31, 2011 (millions) (g/t) ounces (000s oz) Military unrest in Mali had no significant impact on production Proven Reserves 10.4 2.1 280 Probable Reserves 96.7 1.6 2,018 2012 Outlook Measured Mineral Res
Slide 12: Westwood Development
Westwood Development Grade Contained Tonnes Classification (g/t Au Au (millions) undiluted) (000s oz) Indicated Mineral Resource1 0.2 8.5 60 (Warrenmac) Indicated Mineral Resource1 0.6 13.8 248 (Zone 2 Westwood) Inferred Mineral Resource 9.4 11.3 3,407 Total Recovered Gold 3,480,070 oz Q1 Mine Life
Slide 13: Trelawney Acquisition
Trelawney Acquisition One of Canada’s largest undeveloped gold projects Attractive location in prospective greenstone belt Provides a more geographically balanced asset portfolio Excellent strategic fit Increases resource base by 30% Large land package with significant expansion potential All cash t
Slide 14: Transaction Overview
Transaction Overview Transaction Terms C$3.30 cash / Trelawney share Proposed Total transaction value of approximately C$505 million1 Transaction 36.6% premium based on 20-day volume weighted average price (“VWAP”)2 Structure Acquisition via Plan of Arrangement Trelawney shareholder vote (
Slide 15: Robust and Well Balanced Resource Base
Robust and Well Balanced Resource Base Attributable Mineral Resources1 By Region1 M&I Inferred 18% North America 40% Africa 11.3 42% South America 5.8 millions oz 18.2 19.1 35% North America 5.5 32% Proforma Africa 0.9 IAMGOLD Côté Lake Proforma 33% South America Source: Company disclosure 1Measured
Slide 16: Robust and Well Balanced Production Base
Robust and Well Balanced Production Base Attributable Production By Region 1,470-1,620 3% North America 2011 54% Africa 43% 000s oz 8961 South America Sadiola Mouska Current Essakane projects 200-3502 36% Côté Lake North America Rosebel 3 ~370 35% Proforma2,3 Africa 2011 Future Estimated Future Deve
Slide 17: Targeted Project Development Timelines
Targeted Project Development Timelines 2011 Estimated 2012 2013 2014 2015 2016 2017 Future Attributable Operation Production Attributable (000oz) H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 Production (000oz) Mine optimization Rosebel Expansion of crushing Expanded Hard Rock Processing 385 & grinding capaci
Slide 18: Proven Acquisition Strategy
Proven Acquisition Strategy Acquisitions from 2003-2009 Track Record of Building Value Essakane Rosebel Cost of Capital Doyon/Mouska/Westwood Acquisitions Spend Niobec Mupane $1.9B $1.5B Tarkwa & Damang Prospective exploration lands Asset Operating 2011 Analyst Consensus NAV of Assets acquired by IA
Slide 19: Niobec
Niobec Key Metrics of the Niobec Expansion Pre-Feasibility Study under the Block Cave Scenario Tonnes Grade Contained Nb2O5 Classification (millions) (%Nb2O5) (million kgs) Probable Reserves 419.2 0.42% 1,746 Measured Mineral Resource1 235.3 0.44% 1,028 Indicated Mineral Resource1 250.2 0.39% 986 In
Slide 20: Funding for Niobec Expansion
Funding for Niobec Expansion Niobium Operation IPO $976M Strategic Sale Credit Facility Cash Flow (2013E-2016E) Capital Expenditures Funding (2013E-2016E) Sources Expansion Fully Self Funded 20
Slide 21: Rare Earth Inferred Resource: 467 Million Tonnes
Rare Earth Inferred Resource: 467 Million Tonnes Rare earth element (REE) zone Grade 1.65% Total Rare Earth Oxides (TREO) 7.7 Bkg TREO 98% Light REEs, including › Cerium (47.9%) › Lanthanum (24.5%) Shaft › Neodymium (18.4%) 2% Heavy REEs Potential development would be self-funded Niobec mine Scoping
Slide 22: Speed to Market Advantage
Speed to Market Advantage Rare Earth Element Zone Adjacent to Niobec St-Honoré N NIOBEC Mining friendly jurisdiction Saguenay Port Excellent community relations Rail Line Very competitive hydro power rates (~$0.045 per kWh) Existing road and rail QUEBEC infrastructure Close proximity to deep water
Slide 23: 2012 Exploration Program
2012 Exploration Program 2012 Exploration Budget Greenfields $54M $131M Brownfields $77M Mali Quebec Senegal Burkina Colombia Suriname Faso Peru Brazil 20 projects various stages Planned drilling: 670 km (core and RC drilling across 20 early to late stage exploration projects and the Exploration Off
Slide 24: Strong Balance Sheet
Strong Balance Sheet Financial Position $2.0B available 2,007 2 250 Niobec Significant positive cash flow facility 500 Available $1B shelf prospectus $millions credit 224 Bullion Zero debt Cash 1,033 at Q1'12 24
Slide 25: Growth Strategy
Growth Strategy Expand and optimize existing mines Increase productivity Pursue exploration plays Evaluate acquisition opportunities Surface full value of Niobec Exploit rare earth potential Focused on maximizing return on capital 25
Slide 26: Appendix
Appendix TSX: IMG NYSE: IAG
Slide 27: Dividends have increased 317% since December 2010
Dividends have increased 317% since December 2010 Dividends paid per Share $0.30 $0.25 $0.25 $0.20 $0.20 $ US $0.15 $0.10 $0.08 $0.06 $0.05 $- Previous Jan 14 2011 Jul 20 2011 Jan 5 2012 First Date Payable Growing dividends while investing in growth 27
Slide 28: Rare Earths are Integral to a Wide Range of Fast Growing Markets
Rare Earths are Integral to a Wide Range of Fast Growing Markets REO Usage by Industry (2010E) Phosphorous 6% Other Glass 4% Additives 6% Magnets Auto 25% Catalysts 7% Metallurgy, excl. batteries 9% Fluid Cracking Catalysts Polishing 15% Powder 14% Battery Alloy 14% Demand for REEs Growing at 9-15%
Slide 29: Niobium: Rare Metals with Unique Properties
Niobium: Rare Metals with Unique Properties Using niobium to enhance steel has many benefits: Adds strength Lightens weight Enhances flexibility Improves durability Reduces costs Niobium is used to produce high-quality steel 29
Slide 30: 2012 Greenfield Exploration: West Africa
2012 Greenfield Exploration: West Africa Essakane Continued evaluation of near-mine satellite prospects Oxide targets prioritized 92,000 m diamond and RC drill program YATELA 35,000 m air-core drill program SADIOLA Senegal Essakane Siribaya JV (50% IAMGOLD) Boto Mali Burkina Faso 60,000 m diamond an
Slide 31: Kalana Project, Mali: 2012 Exploration Program
Kalana Project, Mali: 2012 Exploration Program Kalako Kalanako West Kalana Mining Permit (387 km2) + Kalako West (21 km²) Avnel - IMG Option Agreement (Aug 2009) Kalana Mine $11.2 M exploration budget Ténintoumanina 20,000 m DD and 40,000 m RC drilling planned Kalana Complete initial resource estima
Slide 32: Siribaya Project, Mali: 2012 Exploration Program
Siribaya Project, Mali: 2012 Exploration Program Land Package 848 km2 Siribaya Maiden Resource Merrex - IAMGOLD Option > Indicated: 308 Koz @ 2.39 g/t Au Agreement > Inferred: 70 Koz @ 2.29 g/t Au IAMGOLD has earned 50% interest by spending C$10.5M over 3 years Zone 1B 2012 Exploration Zone 1A $5.9
Slide 33: 2012 Exploration: South America
2012 Exploration: South America Colombia Suriname Near-Mine Continue to assess Suriname Aggressively test extensions to business development Colombia ROSEBEL known mineralised trends opportunities Assess resource potential of Field evaluation of Quimsacocha Koemboe prospect priority regional targets
Slide 34: 2011 Acquisition of Exploration Interests in Colombia
2011 Acquisition of Exploration Interests in Colombia Recent acquisitions of interest in companies active in Colombia: Bellhaven Copper & Gold Superior grade Au-Cu porphyry A1.5 Moz Aueq Inferred resource in La Cantera deposit A second discovery in the Middle Zone Multiple untested magnetic anomalie
Slide 35: 2012 Exploration: Canada
2012 Exploration: Canada Niobec MINE Complete diamond drilling campaign to Development Project determine lateral limits of niobium Exploration Office mineralization Resource definition drilling on REE Zone Commence Scoping Studies on REE deposit Quebec Exploration Advance exploration on the followin
Slide 36: 2011 Reserves and Resources
2011 Reserves and Resources Tonnes Grade Attributable Contained Ounces GOLD OPERATIONS (000s) (g/t) (000 oz) As at December 31, 2011 Proven & Probable Reserves 413,927 1.3 13,300 Measured & Indicated Resources1 590,594 1.3 18,198 Inferred Resources 95,157 2.4 5,789 Tonnes Grade Nb2O5 Contained Nb2O5
Slide 37: Notes regarding reserves and resources
Notes regarding reserves and resources Cautionary Note to Investors Concerning Estimates of Measured and Indicated Resources This presentation uses the terms "measured resources" and "indicated resources". We advise investors that while those terms are recognized and required by Canadian regulations
Slide 38: 2012 Guidance
2012 Guidance 2012 Guidance (000s ounces) Attributable gold production Rosebel 370-395 Essakane 320-345 Mines owned and operated by IAMGOLD 690-740 Sadiola and Yatela 150-170 Total Production 840-910 Cash Costs ($/oz) $670-695 Niobium Production (MKg) 4.6-5.1 Niobium Operating Margin ($/kg) $15-17 /
Slide 39: Management Team
Management Team Bob Carreau Senior Vice President, Health, Safety & Sustainability Steve Letwin President & Chief Executive Officer Michael Donnelly Senior Vice President, Exploration Benjamin Little Senior Vice President, Corporate Affairs Denis Miville-Deschênes Gordon Stothart Senior Vice Preside
Slide 40: Maximizing Returns for Investors
Maximizing Returns for Investors May 2012 401 Bay Street, Suite 3200 Toronto, ON M5H 2Y4 Canada 1-888-464-9999 www.iamgold.com INVESTOR RELATIONS Bob Tait, VP Investor Relations T: 416 360 4743 C: 647 403 5520 Laura Young, Director, Investor Relations T: 416 933 4952 C: 416 670 3815 TSX: IMG NYSE: I