Iamgold Corporation · TSX:IMG
Iamgold — Investor Presentation (November 2020)
53 slides from Iamgold's investor presentation, November 2020
Slide 1: Corporate Presentation
Corporate Presentation November 2020 TSX: IMG l NYSE: IAG
Slide 2: 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
Slide 3: Technical Information and Qualified Persons
Technical Information and Qualified Persons The Mineral Resource and Reserve 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 (“QP”) responsible for the review an
Slide 4: IAMGOLD – Positioned for Profitable Growth
IAMGOLD – Positioned for Profitable Growth • Three operating mines on three continents with 2020 guidance of 630-680koz1 Diversified Operating I • Disciplined approach to realizing value – targeting a self-funding model at each operation Portfolio • Operating improvements: Essakane optimization, Sar
Slide 5: Strategic Focus
Strategic Focus TRANSFORMATION THROUGH ORGANIC GROWTH TO REALIZE VALUE Strategic Deliverables Strategic focus • Improved consolidated costs / increased margins / • Achieve self-funding at each operating site positive cash flow • Increased gold production • Sequence development of organic growth • Gr
Slide 6: Diversified Operating Portfolio
I Diversified Operating Portfolio Diversified Operating Portfolio GLOBAL OPERATING, DEVELOPMENT AND EXPLORATION PROJECTS HISTORICAL GOLD PRODUCTION (Attributable Gold Production, koz) Operating Mine 1,000 – 1,300 Development Project 882 882 Advanced Exploration 806 813 762 Strategic Equity Interest
Slide 7: Meaningful Production Growth
II Compelling Value & Production Growth Meaningful Production Growth FULLY FUNDED PEER-LEADING ORGANIC GROWTH PROFILE SUPPORTED BY SOLID OPERATING BASE (2020 Attributable Gold Production, koz2) 2024 +76% 1,375 Target1 1,000 – 1,300 Achievable 2020 923 905 Guidance Pathway to 890 786 780 746 630 – 68
Slide 8: Building Long Term Value
II Compelling Value & Production Growth Building Long Term Value Generating Near-term Investing in Mine-Site Project Long-term FCF1 Growth Pipeline (US$M) $145.5 • Construction commenced in September 2020 NELLIGAN (75% JV) 3.2 MOZ3 • 66% project engineering QC, CANADA 1.0 G/T CANADA complete as at Q
Slide 9: Industry Leading Reserve Growth
II Compelling Value & Production Growth Industry Leading Reserve Growth 17.9Moz 18 16.7Moz IAMGOLD P&P Reserves 14.5Moz 13 11.3Moz 10.1Moz 8.6Moz +101% Growth in Reserve Base 7.7Moz 7.8Moz 8 512Moz 87 3 422Moz (18%) Decline in Reserve Base 24 395Moz 19 78 365Moz -2 349Moz 60 75 328Moz 23 69 314Moz 1
Slide 10: Côté Gold – Potential Global Tier I Gold Asset
II Compelling Value & Production Growth Côté Gold – Potential Global Tier I Gold Asset CÔTÉ HAS SIGNIFICANT DISTRICT SCALE POTENTIAL IN MINING-FRIENDLY CANADA Tier I Asset Criteria* I Mine Life >10 Years I 18+ Year Mine Life with district expansion potential • Based on only current mineral reserve
Slide 11: Compelling Value Proposition
II Compelling Value & Production Growth Compelling Value Proposition ATTRACTIVE UPSIDE RELATIVE TO MID-TIER PRODUCER PEER GROUP Financial Metrics1 Mineral Reserves & Net Asset Value2 PRICE / 2021E OPERATING CASH FLOW (P/CF, x) ENTERPRISE VALUE / P&P RESERVES P&P Reserves (Moz)2 (US$/oz) 11.0x 10.7x
Slide 12: Strong Financial Position & Expected FCF from Operations
III Strong Financial Position Strong Financial Position & Expected FCF from Operations IAMGOLD is well positioned to execute on Côté given existing liquidity and expected free cash flow from operations Senior Notes Outstanding $1.4B2 EXPECTED Total Liquidity FREE CASH FLOW ($450 M) FROM EXISTING OPE
Slide 13: Leader Among Peers: Leverage and Liquidity
III Strong Financial Position Leader Among Peers: Leverage and Liquidity DISCIPLINED APPROACH FAVOURABLY POSITIONS COMPANY AMONG PRODUCER PEER GROUP 2.2x Debt / 2021E EBITDA1,2 Net Debt / 2021E EBITDA1,2 1.2x 1.0x 1.0x 1.0x 0.9x 0.8x 0.7x 0.7x 0.6x 0.6x 0.6x 0.5x 0.4x 0.4x 0.3x 0.3x 0.2x 0.1x Net Ne
Slide 14: Environmental, Social and Governance (ESG)
IV Culture of Accountable Mining Environmental, Social and Governance (ESG) Recent Highlights IAMGOLD supporting local beekeepers in Antioquia Municipality (Colombia) Strong ESG practices • Donations to local communities in response to the global COVID-19 crisis, allocating $1.5 million to date: – C
Slide 15: Adapting to Our New Normal: COVID-19 Response
IV Culture of Accountable Mining Adapting to Our New Normal: COVID-19 Response Zero Harm© is our commitment to continually strive to reach the highest standards in human health & safety, minimize our environmental footprint, and work co-operatively with our host communities. • COVID-19 in Q3 2020: H
Slide 16: COVID-19 Measures Across Operations
IV Culture of Accountable Mining COVID-19 Measures Across Operations Essakane, Burkina Faso Rosebel, Suriname Westwood, Canada Left: Bus pick up Left: Successful first point incorporates attempt to bring workers social distancing underground under new and reduced protocol, including numbers in each
Slide 17: Focus on Safety: Historical DART & TRI Rates
IV Culture of Accountable Mining Focus on Safety: Historical DART & TRI Rates HISTORICAL GLOBAL DART & TRI RATES PER 200,000 HOURS WORKED DART1: 2020 TARGET – 0.57 2.40 TRI1: 2020 TARGET – 0.94 1.98 1.81* 1.76* 1.53* 1.56 1.44* 1.44 1.18 1.13 1.06 1.06 1.00 0.87 0.93 0.85 0.68 0.59 0.66 0.53 0.53 0.
Slide 18: Ensuring a Robust Pipeline
V Robust Pipeline of Projects Ensuring a Robust Pipeline FUTURE PRODUCTION AND GROWTH OPPORTUNITIES GROWTH OPPORTUNITIES • Gosselin (Côté), Ontario • Diakha-Siribaya, Mali • Karita, Guinea • Monster Lake, Quebec Saramacca, Suriname Mill Optimization, Burkina Faso Côté Gold Project, Ontario • Fayolle
Slide 19: Robust Exploration Pipeline
V Robust Pipeline of Projects Robust Exploration Pipeline West Africa North America South America Fala/Fala E Grand Duc Saramacca >5 Moz Au Production >2 Moz Au <2 Moz Au Côté Construction Brownfield Advanced Greenfield Greenfield Boto Fayolle Feasibility Study Diakha-Siribaya Monster Lake Saõ Sebas
Slide 20: Upcoming Catalysts
Upcoming Catalysts 2020 2021* Westwood NI 43-101 o Westwood Expands Production** Côté Construction Go-ahead o Rosebel Ramp-up with Saramacca o Saramacca Full Production o Essakane Optimized Mill o Essakane CIL Plant Optimization o Advancing Growth Projects o De-risking of Boto with investment in
Slide 21: Operations
Operations Photo: Wärtsilä 21
Slide 22: Rosebel Gold Mine, Suriname
Rosebel Gold Mine, Suriname 22
Slide 23: Rosebel – Overview
Rosebel – Overview OVERVIEW KEY NOTES Brokopondo district in north-eastern Suriname Ownership • Gross Rosebel Concession: 95% IAMGOLD, 5% Reserves & Resources Government of Suriname • Rosebel’s reserves & resources • Saramacca UJV: 70% extends mine life to 2033 including IAMGOLD, 30% Staatsolie Sara
Slide 24: Saramacca Update
Saramacca Update ABOVE: ROM FACILITY PAD TRUCK SHOP RIGHT: FORMWORKS & CONCRETE AT FACILITY PAD 24
Slide 25: Essakane Gold Mine, Burkina Faso
Essakane Gold Mine, Burkina Faso 25
Slide 26: Essakane – Overview
Essakane – Overview OVERVIEW KEY NOTES North-eastern Burkina Faso, West Africa Ownership • 90% IAMGOLD, 10% Government of Burkina Faso CIL (carbon-in-leach) Debottlenecking Mining • Conventional drill, blast, load and • Improve throughput and gravity NIGER Method haul surface mining method recovery,
Slide 27: CIL/HL Feasibility Study Highlights
CIL/HL Feasibility Study Highlights HIGHLIGHTS1 KEY NOTES Mine Life 2031 CIL Optimization Study Mining Capacity 55.0 Mtpa • FS supported increasing mill throughput to 11.7Mtpa (hard rock) from 10.8Mtpa CIL Milling Capacity 11.7 Mtpa • Minimal capital outlay of $9 million with commissioning targeted
Slide 28: Westwood Gold Mine, Canada
Westwood Gold Mine, Canada 28
Slide 29: Westwood – Overview
Westwood – Overview OVERVIEW KEY NOTES Northwestern Québec – A Prolific Gold Mining Camp Ownership • 100% IAMGOLD Progressing Development Mining • Underground • Targeting safe, profitable, long life Method Production • Began commercial production in mine Status July 2014 • Ramp-up production and cos
Slide 30: Westwood – “Hub-and-Spoke” Model
Westwood – “Hub-and-Spoke” Model ATTRACTIVE DISTRICT EXPLORATION POTENTIAL1 THAT COULD SUPPLEMENT EXCESS MILL CAPACITY FAYOLLE PROPERTY (OP) A B ROUYN GOLD PROJECT (UG) 100% ACQUIRED FROM MONARCH GOLD IN JUNE 2020 OPTION TO ACQUIRE 100% FROM YORBEAU RESOURCES A Fayolle • ~35 km northeast of Rouyn-No
Slide 31: Construction Review
Construction Review id COTEGOLD 3 IAMGOLD
Slide 32: Transformational Value in Canada
Transformational Value in Canada CÔTÉ GOLD – HIGHLIGHTS • NPV5% of $2.5B and IRR of 25.9% at US$1,900 / oz gold1,2 • NPV5% of $1.1B and IRR of 15.3% at US$1,350 / oz gold1,2 ONTARIO QUÉBEC • Annual gold production 469 koz at $693 / oz AISC, first 6 years2 • 18+ year potential mine life2 Kapuskasing
Slide 33: Key Project Metrics
Key Project Metrics C$ 10B* C$ 5B* In estimated economic activity during In wages forecast through direct PROJECT HIGHLIGHTS: GO-FORWARD UPDATE1,2 the mine’s operations and indirect job creation (100% basis, average LOM) Mine Life 18 years Open Pit Mining 70 Mtpa Mill Capacity 13.1 Mtpa (36,000 tpd)
Slide 34: Sensitivity to Gold Price – Project Economics
Sensitivity to Gold Price – Project Economics SIGNIFICANT LEVERAGE TO THE GOLD PRICE After-Tax Net Present Value (NPV5%) – 100% Basis1 After-Tax Internal Rate of Return (IRR) – 100% Basis1 (US$Bn) (%) Spot Gold2 Spot Gold2 $2.8 27.6% Base 25.9% $2.5 Case 24.2% $2.3 22.4% Base Case $2.0 20.5% $1.8 18
Slide 35: Project Timeline – Key Milestones
Project Timeline – Key Milestones EXECUTION PLAN • Construction commenced at Côté in early September following ground-breaking ceremony • Fish salvage, construction camp preparation and road access development • Activities ramp-up into Q4 2020 with ~66% project engineering now complete TIMELINE Cons
Slide 36: Ground-breaking & Site Preparation
Ground-breaking & Site Preparation CHESTER CAMP – 264 MAN CAMP GROUND-BREAKING CEREMONY TREE CLEARING – 456 HECTARES COMPLETED FISH RELOCATION IN TMF AREA 36
Slide 37: Development and Exploration Projects
Development and Exploration Projects 37
Slide 38: Exploration Potential at Côté
Exploration Potential at Côté GOSSELIN, YOUNG-SHANNON 1.5 KM NORTHEAST OF CÔTÉ Gosselin Drill Hole Highlights1 • GOS19-17: 342.5 metres grading 0.98 g/t Au • includes: 225.0 metres grading 1.34 g/t Au • GOS19-24: 412.0 metres grading 1.28 g/t Au • includes: 221.4 metres grading 1.47 g/t Au CONCEPTUA
Slide 39: Boto Gold – High Margin Investment in Prospective District
Boto Gold – High Margin Investment in Prospective District OVERVIEW RESERVE AND RESOURCE1 OPTIMIZATION STUDY HIGHLIGHTS1 (100% Basis) (100% Basis) Location • Senegal, West Africa Contained Mine Capacity: Tonnes Grade Mining: open pit Ounces 38 Mtpa Ownership • 90% IAMGOLD / 10% Gov’t of Senegal (000
Slide 40: Bambouk District: Boto – Karita – Diakha-Siribaya
Bambouk District: Boto – Karita – Diakha-Siribaya BOTO GOLD PROJECT, SENEGAL Gold Price After-tax NPV6%1 After-tax IRR1 Yatela Deposit Operation (US$/oz) (US$M) (%) • Announced the receipt of the exploitation permit $2,000 $732 55% Sadiola for an initial period of 20 years $1,900 $652 50% • De-riski
Slide 41: Monster Lake & Nelligan
Monster Lake & Nelligan NELLIGAN (75% JV INTEREST) • 15 kilometres south of Monster Lake • Exercised option to increase undivided interest to 75% (from 51%), following MONSTER LAKE (Au) completion of NI 43-101 Technical Report • Completed initial resource estimate1, comprising approximately 97 milli
Slide 42: Exploration Around the World
Exploration Around the World IP Survey – Saramacca Suriname Drill Barge at Gosselin, Ontario RC Drilling – Diakha Mali Geological Field Visit Peru Visible Gold in core Rouyn Gold Project, Quebec
Slide 43: IAMGOLD – Positioned for Profitable Growth
IAMGOLD – Positioned for Profitable Growth Diversified Operating Compelling Value & I Portfolio II Production Growth Robust Pipeline Strong Strong Financial V of Projects ESG III practices Position Culture of IV Accountable Mining 43
Slide 44: Appendix
Appendix # IAMGOLD
Slide 45: 2020 Production and Cost Guidance – revised
2020 Production and Cost Guidance – revised REVISED GUIDANCE1 PREVIOUS GUIDANCE2 Essakane (000s oz) 350 – 370 350 – 370 Rosebel (000s oz) 210 – 230 210 – 230 Westwood (000s oz) 70 – 80 85 – 100 Total attributable production (000s oz) 630 – 680 645 – 700 Cost of sales 3 ($/oz) $1,045 – $1,075 $990 –
Slide 46: 2020 Capex Outlook – revised
2020 Capex Outlook – revised REVISED PREVIOUS GUIDANCE Non- Non- $millions Sustaining1 Sustaining2 Total3 Sustaining1 Sustaining2 Total3 Essakane $40 $70 $110 $40 $65 $105 Rosebel $50 $40 $90 $50 $40 $90 Westwood $15 $10 $25 $25 $18 $43 $105 $120 $225 $115 $123 $238 Côté Gold - $66 $66 - $77 $77 Bot
Slide 47: Reducing Input Exposure Through Hedging
Reducing Input Exposure Through Hedging 2020 2021 2022 2023 Foreign Currency1 Canadian dollar contracts (millions of C$) 68 252 210 185 Rate range2 ($/C$) 1.30 – 1.40 1.30 – 1.47 1.30 – 1.48 1.30 – 1.46 Hedge ratio 95% 81% 65% 34% Commodities1,3,4 Brent oil contracts (barrels) 144 588 520 170 Contra
Slide 48: Reserves & Resources (Year-over-Year)
Reserves & Resources (Year-over-Year) ATTRIBUTABLE CONTAINED GOLD (000S OZ) As at December 31st, 2019 2019 Change 2018 Proven and Probable Mineral Reserves1 16,706 (6%) 17,864 Measured and Indicated Mineral Resources2,3 27,164 (2%) 27,850 Inferred Resources 11,965 38% 8,668 • Mineral reserves have b
Slide 49: Gold Mineral Reserves
Gold Mineral Reserves 100% BASIS RESERVES Proven Probable Contained Contained Tonnes Grade Tonnes Grade As at December 31, 2019 Ounces Ounces (000s) (g/t) (000s) (g/t) (000s) (000s) Rosebel1 29,522 0.6 574 92,356 1.0 2,947 Saramacca1 111 0.5 2 26,090 1.8 1,531 Essakane1 — — — 124,713 1.0 3,805 Westw
Slide 50: Gold Mineral Reserves
Gold Mineral Reserves ATTRIBUTABLE RESERVES Proven Probable Contained Contained Tonnes Grade Tonnes Grade As at December 31, 2019 Ounces Ounces (000s) (g/t) (000s) (g/t) (000s) (000s) Rosebel (95%)1 28,046 0.6 545 87,738 1.0 2,800 Saramacca (66.5%)1 74 0.5 1 17,350 1.8 1,018 Essakane (90%)1 — — — 11
Slide 51: Gold Mineral Resources
Gold Mineral Resources1,2 (Measured and indicated resources are inclusive of proven and probable reserves) 100% BASIS RESOURCES Measured Indicated Inferred Contained Contained Contained As at December 31, 2019 Tonnes Grade Tonnes Grade Tonnes Grade Ounces Ounces Ounces (000s) (g/t) (000s) (g/t) (000
Slide 52: Gold Mineral Resources
Gold Mineral Resources1,2 (Measured and indicated resources are inclusive of proven and probable reserves) ATTRIBUTABLE RESOURCES Measured Indicated Inferred Contained Contained Contained As at December 31, 2019 Tonnes Grade Tonnes Grade Tonnes Grade Ounces Ounces Ounces (000s) (g/t) (000s) (g/t) (0
Slide 53: Investor Relations contacts
Indi Gopinathan, VP, Investor Relations & Corporate Communications 416-388-6883 Philip Rabenok, Senior Analyst, Investor Relations 647-967-9942