Iamgold Corporation · TSX:IMG
Iamgold — Q3 2015 Earnings Presentation
30 slides from Iamgold's earnings presentation, Nov 4, 2015
Slide 1: 2015 Third Quarter Results
2015 Third Quarter Results November 4, 2015 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: Management Participants
Management Participants Steve Letwin President & Chief Executive Officer Gordon Stothart Executive Vice President & Chief Operating Officer Carol Banducci Executive Vice President & Chief Financial Officer Craig MacDougall Senior Vice President, Exploration Jeff Snow Senior Vice President, General C
Slide 4: Key Messages
Key Messages CORPORATION
Slide 5: Near Term Catalysts
Near Term Catalysts Communicate optimal mine plan for Westwood in January 2016 Communicate mine plans for Essakane & Rosebel in Q1/16 1 5
Slide 6: Financial Review
Financial Review 6
Slide 7: Adjusted Net Earnings from Continuing Operations
Adjusted Net Earnings from Continuing Operations1 (In $ millions, except for per share amounts) Q3'14 Q3'15 Net loss from continuing operations attributable to equity holders (84.5) (85.0) Unrealized derivative gains losses 6.9 20.2 2 Impact of production interruption at Westwood - 15.0 Changes in e
Slide 8: Revenues from Continuing Operations
1,2 Revenues from Continuing Operations Revenue Q3 2014 Change Q3 2015 Impact Gold Price3 1,272 (12%) 1,121 ($27.7) ($/oz.) Gold Sales4 Owner-Operator 224 (18%) 184 ($48.9) (000s oz.) $millions 287 208 Year-over-year Change in Gold Sales3 by Site (000s oz.) 305.3 Q3 2014 Q3 2015 Change Essakane 99 1
Slide 9: Cost of Gold Sales
Cost of Gold Sales ($ Millions) Q3 2014 Q3 2015 Variance Mainly Due to Impact Total Operating Costs 185.2 149.6 • Lower mining and milling costs at Rosebel and (26.1) Essakane • Production interruption (6.5) (35.6) • Closure of Mouska (3.0) Depreciation 63.8 68.3 • Essakane – higher production 8.0 •
Slide 10: Net Cash From Operating Activities
Net Cash From Operating Activities (In $ millions, except for per share amounts) Q3’14 Q3’15 $0.24 per share Net cash from operating activities per 115.3 9.8 consolidated interim financial statements 88.9 Adjusting items from non-cash working capital items and non-current ore stockpiles Receivable
Slide 11: Strong Financial Position
Strong Financial Position $783M cash, cash equivalents and gold bullion $500M $633M $635M long-term debt due 2020 1 $1,283M As at Sep 30, 2015 In discussions to refinance and extend credit facility 2 Net Debt/EBITDA (TTM)3 0x $150M Cash & Cash Equvialents Net Cash $148M Gold Bullion at Market Unused
Slide 12: Debt Covenant Requirements - Use of Proceeds
Debt Covenant Requirements - Use of Proceeds Under the indenture governing IAMGOLD’s senior unsecured notes, the proceeds of certain asset sales are to be used to reinvest, or commit to reinvest, in its business within 365 days after the date of sale. After that period, if 1. there remains proceeds
Slide 13: Attributable Gold Production
Attributable Gold Production1 250 225 Main Drivers: 197 Record production at Essakane – up 29% 200 Westwood Partially offset by: 150 Rosebel Lower grades at Rosebel 000s oz. 100 Production interruption at Westwood Essakane 50 0 Q3'14 Q3'15 Essakane Rosebel Westwood Sadiola Yatela 1 Attributable gold
Slide 14: Attributable Gold Production
1 Attributable Gold Production 300 250 241 200 225 208 202 197 000’s oz. 150 100 50 0 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Westwood in commercial Improving grades at Mining lower grade Lower throughput at Higher production at production Rosebel and Essakane lenses at Westwood as Rosebel reflectin
Slide 15: All-In Sustaining Costs
All-In Sustaining Costs1,2 1,400 All figures in $/oz. sold 1,272 1,221 1,200 1,201 1,194 1,121 3 1,115 1,113 1,076 3,4 1,000 1,021 1,027 3,4 800 600 400 200 ` 0 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Total Cash Costs1,2 Average Realized Gold Price1 1 This is a non-GAAP measure. Refer to the non-GAA
Slide 16: Operations Review
Operations Review £IAMGOLD
Slide 17: Essakane – Burkina Faso
Essakane – Burkina Faso 120 1149 1250 Record production for Q3/15 of 107,000 ounces, up 29% from Q3/14 due to higher grades and 22% increase in mill throughput 1022 Mill expansion completed in 2013 to accommodate increasing 100 988 proportion of hard rock 955 1000 922 › Hard rock milled will mov
Slide 18: Rosebel – Suriname
Rosebel – Suriname 100 1250 Q3/15 production flat with Q2/15; decline from Q3/14 due to 1104 1111 lower grades and throughput 90 1048 1037 Better dilution control from RC drilling, improved operating efficiency, lower production costs, lower fuel costs, and a decrease 80 1000 in consumables are
Slide 19: Westwood – Canada
Westwood – Canada 40 1751 Thorough review following seismic event on May 26 completed th by internal and external experts 35 1507 1600 › Study reviewed seismic history, stress distribution and mine sequencing › Developed recovery plan for rehabilitation and enhanced 30 design strategy for ground c
Slide 20: Sadiola – Mali
Sadiola – Mali 25 1200 1077 1100 Q3/15 production lower year-over-year due to lower grades Q3/15 cash costs of $661/oz. and AISC of $695/oz. lower 1000 than previous year due to lower fuel and consumable prices 20 914 and favourable FX rates 800 RC drilling program testing oxide targets; encou
Slide 21: Exploration Review
Exploration Review # IAMGOLD
Slide 22: Monster Lake (Quebec) – JV with TomaGold
Monster Lake (Quebec) – JV with TomaGold • October 30, 2015 - Amended earn-in option agreement with TomaGold › will acquire 50% interest in exchange for C$3.2M cash payment Monster Lake › Option to increase interest to 75% with further C$10M in exploration expenditures by 2021 • June 25, 2015 - High
Slide 23: Siribaya (Mali) – JV with Merrex Gold
Siribaya (Mali) – JV with Merrex Gold • Focused on Diakha prospect - extension of trend Fekola -B2Gold hosting Boto Gold deposit 4.3Moz @ 2.16 g/t Au* • Highlights from infill delineation drilling Boto-Malikoundi completed in H1/15 include: Mali 1.2Moz @ 1.7 g/t Au** Guinea › 34 m at 11.99 g/t Au, i
Slide 24: Boto Gold Project (Senegal)
Boto Gold Project (Senegal) • Estimated indicated resource of 1.2 M oz at 1.7 g/t Au; and inferred resource of .64 M oz at 1.8 g/t Au • Infill drilling at Malikoundi deposit completed Q2/15 Deposit • July 20, 2015 - Final 2015 assay results reported include: Open › 36 m at 3.59 g/t Au, including 7 m
Slide 25: Pitangui Project (Brazil)
Pitangui Project (Brazil) • April 2014 – maiden inferred resource estimate of 0.64 M oz at 4.88 g/t Au • Assay results highlights reported July 7, 2015: › 11.9 m at 6.84 g/t Au, including 3.5 m at 17.02 g/t Au › 7.6 m at 9.78 g/t Au and 4.4 m at 16.56 g/t Au › 7.4 m at 8.12 g/t Au > 40M oz. historic
Slide 26: Eastern Borosi (Nicaragua) – JV with Calibre Mining
Eastern Borosi (Nicaragua) – JV with Calibre Mining • Drilling program in 2015 focused on further testing discoveries from 2014 as well as exploring additional vein systems • Q3/15 received final assay results from diamond drilling in Q2/15 • May 6, 2015 – Blag vein system drilling1: Bonanza E. Boro
Slide 27: Thank you
Thank you TSX: IMG NYSE: IAG
Slide 28: Appendices
Appendices CORPORATION
Slide 29: 2015 Capital Expenditure Outlook
2015 Capital Expenditure Outlook 1 Development/ ($ millions) Sustaining Expansion Total (Non-sustaining) Rosebel 65 10 75 Essakane 55 5 60 Westwood 20 60 80 Total gold segments 140 75 215 Côté Gold - 5 5 Total consolidated 140 80 220 Joint ventures 5 5 10 Total (±10%) 145 85 230 1 Does not include c
Slide 30: 2015 Production and Cost Guidance
2015 Production and Cost Guidance 1 2 Previous Revised Rosebel (000s oz.) 290 - 300 290 – 300 Essakane (000s oz.) 360 - 370 365 - 380 Westwood (000s oz.) 60 - 75 55 - 65 Total owner-operated production (000s oz.) 710 - 745 710 - 745 Joint ventures (000s oz.) 70 70 Total attributable production (000s