Iamgold Corporation · TSX:IMG
Iamgold — Investor Day (June 2006)
35 slides from Iamgold's investor day presentation, Jun 5, 2006
Slide 1: John McCombe, VP Operations
John McCombe VP, Operations
Slide 2: Operations Mali
Operations Mali Sadiola • IAMGOLD discovery in 1991 • Commercial Production in 1996 Yatela Gold Mine Yatela • Acquired in 1997 • Commercial production in 2001 Sadiola Gold Mine Bamako IAMGOLD
Slide 3: Sadiola and Yatela Ownership Structure
SADIOLA GOLD MINE OWNERSHIP STRUCTURE IAMGOLD AngloGold 38% 38% SEMOS SEMOS (SADIOLA (SADIOLA GOLD GOLD MINE) MINE) 18% 6% Republic of Mali Int’l. Finance Corp. YATELA GOLD MINE OWNERSHIP STRUCTURE IAMGOLD AngloGold 40% 40% YATELA 20% Republic of Mali
Slide 4: Production Mali – Sadiola
Production Mali – Sadiola • 38% IAMGOLD Sadiola - IMG Attributable prodcution & costs • 2005 production - 442,000 ozs @ 250 $350 $270 /oz $300 200 $250 2006 150 $200 0 0 0 oz s • Focus on optimization of 100 $150 $100 Sadiola Deeps Pre-feasibility 50 $50 • Production – 480,000 ozs 0 $0 • Costs - $30
Slide 5: Sadiola – Deep Sulphides
IAMVISION IAMGROW TH IAMVALUE IAMGOLD IAMVISION IAMPROGRESS IAMGROWTH IAMRESPONSIBLE IAMVALU E IAMVISION IAMPROGRESS IAMGROWTH IAMRESPONSIBLE IAMVISION Sadiola – Deep Sulphides • Decision on Feasibility study – Q4 2006 • Current focus on optimization: - improve recovery to 80% + - reduce power costs
Slide 6: Sadiola – Exploration Spending
Sadiola – Exploration Spending 4,000 Exploration Expenditure 3,500 3,000 2,500 000's $US 2,000 1,500 1,000 500 0 2006 2007 2008
Slide 7: Sadiola Costs per ounce production
Sadiola Costs per ounce production (%) Mining Plant G&A Royalty / Management Fee 10% 16% 36% 38% 2005 cost - $270 /oz Fuel: 17% of total cost Reagents: 14% total cost 2006E Cost: $305 / oz
Slide 8: Sadiola – 2006 Mine Plan
IAMVISION IAMGROW TH IAMVALUE IAMGOLD IAMVISION IAMPROGRESS IAMGROWTH IAMRESPONSIBLE IAMVALU E IAMVISION IAMPROGRESS IAMGROWTH IAMRESPONSIBLE IAMVISION Sadiola – 2006 Mine Plan Tonnes Grade Recovery Strip Gold Cost per Processed Ratio ounces ounce (000’s) (100% basis) 4,800 3.6 g/t 85% 3.3 : 1 480,0
Slide 9: Sadiola – Future Production Forecast
Sadiola – Future Production Forecast (excludes Deep Sulphides Sulphides)) 500,000 $3 20 480,000 460,000 $3 00 440,000 $2 80 420,000 $US/oz oz's 400,000 $2 60 380,000 $2 40 360,000 340,000 $2 20 320,000 300,000 $2 00 Production 2006 2007 2008 Costs
Slide 10: Production Mali - Yatela
Production Mali - Yatela Yatela - IMG Attributable production & costs • 40% IAMGOLD • 2005 production - 245,000 ozs 140 $300 @ $269 /oz 120 $250 100 $200 2006 80 $150 • Pit deepening to extend life 60 • Production – 290,000 ozs $100 40 • Costs - $250 /oz 20 $50 Mine Life – 3+ years - $- 2001 2002 20
Slide 11: Yatela Costs per ounce production
Yatela Costs per ounce production (%) Mining Plant G&A Royalty / Management Fee 11% 14% 53% 22% 2005 cost - $269 /oz Fuel: 12% of total cost Reagent: 7% of total cost 2006E Cost = $250 /oz
Slide 12: Yatela – 2006 Mine Plan
IAMVISION IAMGROW TH IAMVALUE IAMGOLD IAMVISION IAMPROGRESS IAMGROWTH IAMRESPONSIBLE IAMVALU E IAMVISION IAMPROGRESS IAMGROWTH IAMRESPONSIBLE IAMVISION Yatela – 2006 Mine Plan Tonnes Grade Recovery Strip Gold Cost per Processed Ratio ounces ounce (000’s) (100% basis) 2,900 3.6 g/t 84% 7:1 290,000 $2
Slide 13: Yatela – Future Production Forecast
Yatela – Future Production Forecast Production $350 350,000 Costs 300,000 $300 250,000 $250 $200 $US/oz 200,000 oz 150,000 $150 100,000 $100 50,000 $50 0 $0 2006 2007 2008 Potential to extend mine life beyond 2009 with further drilling at depth
Slide 14: Production Ghana
Production Ghana Tarkwa Damang • Acquired in 1999 Gold Mine • Reserves have increased six fold since being acquired Mineralized Trends Damang Tarkwa Gold GHANA GHANA • Acquired in 2002 Mine • Resource based unchanged after 5 years production Accra
Slide 15: Tarkwa and Damang Ownership Structure
TARKWA GOLD MINE OWNERSHIP STRUCTURE IAMGOLD Gold Fields Ghana Ltd. 18.9% 71.1% TARKWA 10% Republic of Ghana DAMANG GOLD MINE OWNERSHIP STRUCTURE IAMGOLD Abosso Gold Fields Ltd. 18.9% 71.1% DAMANG 10% Republic of Ghana
Slide 16: Production Ghana – Tarkwa
Production Ghana – Tarkwa Tarkwa - IMG Attributable production & costs • 2005 production – 725,000 ozs @ $268 /oz 160 $350 2006 140 $300 • Decision on 2nd phase mill expansion 120 $250 expected 100 $200 0 00 o zs 80 • Production – 750,000 ozs $150 60 • Costs - $305 /oz 40 $100 Mine Life – 20+ years
Slide 17: Tarkwa – Mill Expansion
IAMVISION IAMGROW TH IAMVALUE IAMGOLD IAMVISION IAMPROGRESS IAMGROWTH IAMRESPONSIBLE IAMVALU E IAMVISION IAMPROGRESS IAMGROWTH IAMRESPONSIBLE IAMVISION Tarkwa – Mill Expansion •CIL mill expansion feasibility study - Q4 2006 •Capital Cost – Estimate $65M •Expected to reduce LOM operating costs by $20
Slide 18: Tarkwa Costs per ounce production
Tarkwa Costs per ounce production (%) Mining Plant G&A Royalty / Management Fee 9% 10% 42% 39% 2005 cost - $268 /oz Fuel = 12% of total cost Consumables: 33% of total cost 2006E Cost: $305
Slide 19: Tarkwa – 2006 Mine Plan
IAMVISION IAMGROW TH IAMVALUE IAMGOLD IAMVISION IAMPROGRESS IAMGROWTH IAMRESPONSIBLE IAMVALU E IAMVISION IAMPROGRESS IAMGROWTH IAMRESPONSIBLE IAMVISION Tarkwa – 2006 Mine Plan Tonnes Grade Recovery Strip Gold Cost per Processed Ratio ounces ounce (000’s) (100% basis) 21,200 1.3g/t CIL - 96% 3.2: 1 7
Slide 20: Tarkwa – Future Production Forecast
Tarkwa – Future Production Forecast Production Potential 800,000 $450 Costs impact of mill $400 750,000 expansion $350 700,000 $300 650,000 $250 600,000 $200 550,000 $150 500,000 $100 450,000 $50 400,000 $0 2006 2007 2008
Slide 21: Production Ghana - Damang
Production Ghana - Damang Damang - IMG Attributable production & costs • 2005 production – 229,000 ozs @ 70 $400 $247 /oz 60 $350 50 $300 2006 $250 40 00 0 's oz • Production – 205,000 ozs $200 30 • Costs - $365 /oz $150 20 $100 Mine Life – 5+ years 10 $50 - $- 2002 2003 2004 2005 2006E Production C
Slide 22: Damang Costs per ounce production
Damang Costs per ounce production (%) M ining P lant G&A R oyalty / M anagement F ee 6% 12% 43% 39% 2005 cost - $247 /oz Fuel = 6% of total cost Consumables: 16% of total costs 2006E cost - $365 / oz
Slide 23: Damang – 2006 Mine Plan
IAMVISION IAMGROW TH IAMVALUE IAMGOLD IAMVISION IAMPROGRESS IAMGROWTH IAMRESPONSIBLE IAMVALU E IAMVISION IAMPROGRESS IAMGROWTH IAMRESPONSIBLE IAMVISION Damang – 2006 Mine Plan Tonnes Grade Recovery Strip Gold Cost per Processed Ratio ounces ounce (000’s) (100% basis) 5,200 1.4g/t 92% 4.3: 1 205,000
Slide 24: Damang – Future Production Forecast
Damang – Future Production Forecast Production $370 260,000 Costs 250,000 $350 240,000 $330 230,000 220,000 $310 210,000 $290 200,000 $270 190,000 180,000 $250 2006 2007 2008
Slide 25: 2006 – Mupane
2006 – Mupane IAM PROGRESS • Disappointing first quarter • Initiatives for 2006 – Optimize existing operation – Evaluate the potential at depth – Add production from satellite deposits • Production – 2006FY 88,000 ozs – Estimated costs for Q2-Q4 - $330 /oz
Slide 26: Mupane – 1H 2006
IAMVISION IAMGROW TH IAMVALUE IAMGOLD IAMVISION IAMPROGRESS IAMGROWTH IAMRESPONSIBLE IAMVALU E IAMVISION IAMPROGRESS IAMGROWTH IAMRESPONSIBLE IAMVISION Mupane – 1H 2006 9000 $600 8000 $500 7000 G old oz P ro d uc ed 6000 $400 US$ / oz 5000 $300 4000 3000 $200 2000 $100 1000 0 $0 Jan-06 Feb-06 Mar-06
Slide 27: Mupane – 2006 Mine Plan
IAMVISION IAMGROW TH IAMVALUE IAMGOLD IAMVISION IAMPROGRESS IAMGROWTH IAMRESPONSIBLE IAMVALU E IAMVISION IAMPROGRESS IAMGROWTH IAMRESPONSIBLE IAMVISION Mupane – 2006 Mine Plan Tonnes Grade Recovery Strip Gold Cost per Processed Ratio ounces ounce (000’s) (100% basis) 900 3.4g/t 90% 7.2: 1 88,000 $33
Slide 28: Operational Focus for 2006
IAMVISION IAMGROW TH IAMVALUE IAMGOLD IAMVISION IAMPROGRESS IAMGROWTH IAMRESPONSIBLE IAMVALU E IAMVISION IAMPROGRESS IAMGROWTH IAMRESPONSIBLE IAMVISION Operational Focus for 2006 • Grinding throughput • Rotation de-bottlenecking • Oxygen supply • Mining Optimization • Resource Modeling
Slide 29: Larry Phillips, VP Corporate Affairs
Larry Phillips VP, Corporate Affairs
Slide 30: Managing Country Risk
Managing Country Risk Building Partnerships that last
Slide 31: How Do We Measure Country Risk?
IAMVISION IAMGROW TH IAMVALUE IAMGOLD How Do We Measure Country Risk? • Corruption/Rule of Law • Security of Title or License • Mining Code and Fiscal Terms • Support for Mining within the country • Physical Security
Slide 32: Essentials for Effective Country Risk Strategies
IAMVISION IAMGROW TH IAMVALUE IAMGOLD Essentials for Effective Country Risk Strategies • Understand the Politics • Know the Regional Trends • Dig into the Business Environment • Assess the future importance of Mining • Analyze the NGOs who are or may be active • Identify key decision makers at each
Slide 33: From Mali to Ecuador
IAMVISION IAMGROW TH IAMVALUE IAMGOLD From Mali to Ecuador Applying Lessons Learned Mali (centralized) • Support is built from the top down Ecuador (de-centralized) • Support is built from the ground up
Slide 34: Factors to Watch This year
IAMVISION IAMGROW TH IAMVALUE IAMGOLD Factors to Watch This year • Regional effects of oil diplomacy • Price volatility leading to policy shifts
Slide 35: Key Focus for 2006
IAMVISION IAMGROW TH IAMVALUE IAMGOLD Key Focus for 2006 • Develop an integrated approach that involves all disciplines • Create a common template for managing country risks that encompasses Africa and South America