Iamgold Corporation · TSX:IMG
Iamgold — Morgan Stanley Leveraged Finance Conference 2015
40 slides from Iamgold's conference presentation, Jun 4, 2015
Slide 1: Morgan Stanley Leveraged Finance Conference
Morgan Stanley Leveraged Finance Conference June 3-4 2015 Carol Banducci EVP & CFO . 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: Geographically Diversified Asset Base
Geographically Diversified Asset Base 2015 Production Guidance 14% North America 35% 51% South West America Africa Four Operating Gold Mines: 2015 Production Guidance 820k – 860k oz. 3
Slide 4: Financial Strength
Financial Strength $1,389 500 $821 Unused credit $millions facility 160 Gold bullion at market 500 Cash & cash equivalents 729 162 159 As at December 31, 2014 As at March 31, 2015 4
Slide 5: Capitalization
Capitalization As of March 31, 2015 ($M) Credit Metrics Cash and cash equivalents 729 EBITDA (TTM) $220M Net Debt/EBITDA (TTM)** 0x Bullion (at market) 160 Total Debt/EBITDA (TTM) 2.95x Interest coverage 6.7x LTD - senior unsecured notes* 645 Total Debt/Equity 23.7% Shareholder’s Equity 2,717 Total
Slide 6: Few Gold Producers in a Net Cash Position
Few Gold Producers in a Net Cash Position Net Cash (Net Debt) – 2015E Source: BoA Merrill Lynch Global Research - May 18, 2015 6
Slide 7: Solid Start To The Year
Solid Start To The Year Q1/15 performance delivers across key metrics › Gold production of 208,000 attributable ounces up 21% vs. Q1/14 › AISC of $1,113/oz; down 7% vs. Q1/14 › Net cash from operating activities of $30M; up 7% vs. Q1/14 › CAPEX of $54M down 43% vs. Q1/14 › Cash and bullion of $889M
Slide 8: Attributable Gold Production
Attributable Gold Production1 300 250 241 200 225 206 Westwood in Improving Mining lower 208 grade lenses 000s oz. commercial grades at at Westwood Mill expansion production Rosebel and 150 as planned 172 at Essakane Essakane Grade Lower grades improvement at Rosebel 100 and higher due to mine throu
Slide 9: All-In Sustaining Costs
All-In Sustaining Costs1,2 - gold mines3 1,400 All figures in $/oz. sold 1,286 1,288 1,272 1,201 1,221 1,200 1,198 1,136 1,000 1,124 1,1134 1,028 800 600 400 200 ` 0 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 1 3 1 Total Cash Costs – gold mines Average Realized Gold Price 1 This is a non-GAAP measure.
Slide 10: Disciplined Capital Spending
Disciplined Capital Spending 800 54% of the decrease from 2014 to 2015 due 700 $669M to reduced spending on gold assets; balance 600 due to sale of Niobec 500 Development / 400 $M Expansion $325M 300 Sustaining $230M* 200 100 0 2013 2014 2015 Guidance * +/- 10% 10
Slide 11: Foundation for Growth
Foundation for Growth Financial Operational Lower Cost Flexibility Excellence Structure 11
Slide 12: Growth Strategy
Growth Strategy Optimize Returns from Existing Mines Advance Exploration Pursue M&A and JV Opportunities 12
Slide 13: Westwood – Quebec, Canada
Westwood – Quebec, Canada 40 1200 High-grade underground gold mine 35 Average resource grade ~10 g/t Au 30 1000 Estimated 20-year mine life Expected to be our lowest cost operation Commercial production began July 1, 2014 800 25 35 35 2015 AISC costs expected between $1,100 and (000s oz.
Slide 14: Essakane – Burkina Faso
Essakane – Burkina Faso 100 1000 Open-pit mine in 5th year of production with 10 years 90 900 remaining 80 800 April 2015 – updated resource estimate at Falagountou 92 increased indicated resources by 84% to 613,000 oz. 70 83 89 700 and grade by 10% to 1.5 g/t Au 89 › Expected to extend Essakane
Slide 15: Rosebel – Suriname
Rosebel – Suriname Multiple open-pit mine Produced ~4 million ounces in first 11 years Hard rock comprises ~31% of ore mix and will increase to 80% by 2018 Joint venture with Government of Suriname to target higher-grade, softer rock › >$0.11/kWh power rate › 5-year option agreement with Sar
Slide 16: Rosebel – Suriname
Rosebel – Suriname 100 1000 New power rate agreement in 2013 reduced power 90 900 costs by ~30% 80 94 800 Power costs benefitting from lower oil prices Successful cost reduction and productivity 70 83 700 improvement initiatives in 2014 80 76 › Stabilization of mill feed has benefitted through
Slide 17: Sadiola – Mali
Sadiola – Mali 30 1200 25 1000 Open-pit mine Produced 7 million ounces over 20 years 20 24 800 Continuing to look for additional oxide reserves (000s oz.) 21 20 Expansion to accommodate hard rock ($/oz.) 19 19 15 600 processing a significant organic growth opportunity 10 400 Opportunity to
Slide 18: Growth Strategy
Growth Strategy Optimize Returns from Existing Mines Advance Exploration Pursue M&A and JV Opportunities 18
Slide 19: Boto Gold Project - Senegal
Boto Gold Project - Senegal Resource estimate as at end of 2014: › indicated resource of 1.2 Moz. at 1.7 g/t Au › inferred resource of 635,000 oz. at 1.8 g/t Au Approximately 13,300m of infill diamond drilling completed in Q1’15 at the Malikoundi deposit Final assay results from 2014 continue
Slide 20: Joint Venture Project Update – Siribaya (Mali) with Merrex Gold Inc.
Joint Venture Project Update – Siribaya (Mali) with Merrex Gold Inc. Focus on Diakha prospect - extension of trend hosting Boto Fekola -B2Gold Gold deposit 3.9Moz @ 1.91 g/t Au* 9,700m of diamond and reverse Boto-Malikoundi circulation infill drilling completed Mali 1.2Moz @ 1.7 g/t Au** in Q1’1
Slide 21: Pitangui Project - Brazil
Pitangui Project - Brazil April 2014 – maiden inferred resource estimate of 0.64 Moz at 4.88 g/t Au Airborne EM geophysical survey during Q4’14 identified conductive targets to be prioritized in >40Moz historical future drilling programs production Over 5,400m of diamond drilling was completed
Slide 22: Joint Venture Project Update – Eastern Borosi (Nicaragua) with Calibre Mining
Joint Venture Project Update – Eastern Borosi (Nicaragua) with Calibre Mining 176km land package with 2 gold and silver 2 deposits and series of exploration targets January 2015 – JV partner announced final assay results from 17 of 40 holes. Bonanza E. Borosi Project Phase II drilling program
Slide 23: Joint Venture Project Update - Monster Lake (Quebec) with TomaGold Corporation
Joint Venture Project Update - Monster Lake (Quebec) with TomaGold Corporation Excellent location in Abitibi Greenstone belt High-grade intervals (25 to 30+ g/t Au) from previous drilling Monster Lake February 2015, reported final drilling results from the 2014 program. Highlights included: ›
Slide 24: Growth Strategy
Growth Strategy Optimize Returns from Existing Mines Advance Exploration Pursue M&A and JV Opportunities 24
Slide 25: Acquisition Criteria
Acquisition Criteria Predominantly gold Producing or near-producing mine Minimum production of 100k oz./year Higher grades Lower costs Good mining jurisdiction 25
Slide 26: Sadiola – Potential Organic Growth Opportunity
Sadiola – Potential Organic Growth Opportunity Opportunity to Acquire AngloGold’s 41% interest Preservation of balance sheet strength through modified expansion 18% increase in consolidated reserves (full expansion) Average reserve grade 2.1 g/t Au Potential to increase production by up to ~
Slide 27: Investment Highlights
Investment Highlights Excellent CSR reputation Significant financial flexibility Prudent risk management Reduced costs and capital spending Geographic diversification across three continents Rosebel and Essakane generating positive free cash flow Optimizing performance, advancing explo
Slide 28: Appendices
Appendices CORPORATION
Slide 29: 2015 Production and Cost Guidance
2015 Production and Cost Guidance1 Guidance Rosebel (000s oz.) 290 – 300 Essakane (000s oz.) 360 – 370 gold production Attributable Westwood (000s oz.) 110 – 130 Total owner-operator production (000s oz.) 760 – 800 Joint ventures (000s oz.) 60 Total attributable production (000s oz.) 820 – 860 Total
Slide 30: 2014 Reserves and Resources
2014 Reserves and Resources1 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 min
Slide 31: 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
Slide 32: Capital Structure
Capital Structure Equity Debt IMG CDN Equity (as at May 20, 2015) Price: $2.63 IAMGOLD 6 ¾ callable bonds October 1, 2020 Market Cap: $1,029M Rating: B2 (Moody’s), and B+ (S&P) as of May 2015 52 Wk High/Low: $4.57/$1.62 Rank: Sr Unsecured YTD: (17%) Issue price: $100 Last trade: $86.50 (05/21/2015)
Slide 33: 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 purposes 27.5% less 10% per Mining Agreement 6.5% (Au 3%- Au price <$1000/oz price >$425/
Slide 34: Summary of Outstanding Derivative (Hedge) Contracts
Summary of Outstanding Derivative (Hedge) Contracts1 Contracts 2015 2016 2017 2018 Foreign currency Canadian dollar contracts (M of C$) 95.0 60.0 – – Contract rate range (C$/$) 1.10 – 1.17 1.12 – 1.18 – – Hedge ratio2 47% 20% – – Euro contracts (M of €) 87.0 – – – Contract rate range ($/€) 1.21 – 1.
Slide 35: IAMGOLD – Consolidated Production and Cost Profile 2015-2019
IAMGOLD – Consolidated Production and Cost Profile 2015-20191,2,3 This chart provides a 5- 900 1,400 800 year outlook on 1,200 production, cash costs 700 and all-in sustaining costs Detailed charts by mine Attributable Production 000s koz. 1,000 600 for each of our wholly- 800 500 owned mines fo
Slide 36: Westwood – Production and Cost Profile 2015-2019
Westwood – Production and Cost Profile 2015-2019 250 1,200 200 1,000 Westwood to ramp up to LOM level of production in 800 2019 150 Total cash costs and AISC expected to trend 000s oz. $/oz. 600 downwards as production ramps up 100 400 Gradual increase in production allows for required undergr
Slide 37: Westwood Development Performance – Average
Westwood Development Performance – Average Advance Meters / Day / Crew 10 9.2 8.8 8.8 Exceptional improvement 9 8.7 8.4 8 in 2014 quarter-over- quarter in average 7 advance meters/day Production is ramping up Average Meters/Day 6 5.7 as expected 5 Tonnage and grade 4.2 reconciliation to date h
Slide 38: Rosebel – Production and Cost Profile 2015-2019
Rosebel – Production and Cost Profile 2015-2019 350 1,600 As the percentage of hard 1,400 rock increases, production 300 is expected to decrease 1,200 Harder rock requires more 250 power for crushing and Attributable Production 000s oz. grinding, challenging to 1,000 sustain throughput capacity
Slide 39: Essakane– Production Profile 2015-2019
Essakane– Production Profile 2015-20191 450 1,400 Falagountou deposit expected to extend peak production 400 1,200 Major mill expansion completed in 2013 to 350 accommodate a growing 1,000 proportion of hard rock Attributable Production 000s oz. 300 Expansion driving strong 800 production and st
Slide 40: Investor Relations
Investor Relations info@iamgold.com Bob Tait Laura Young Penelope Talbot-Kelly VP, Investor Relations Director, Investor Relations Analyst, Investor Relations T: 416-360-4743 T: 416-933-4952 T: 416-933-4738 TSX: IMG NYSE: IAG
IAMGOLD — Morgan Stanley Leveraged Finance Conference 2015 on 6ix