Iamgold Corporation · TSX:IMG
Iamgold — Shareholder Meeting (May 2009)
36 slides from Iamgold's shareholder meeting presentation, May 14, 2009
Slide 1: Taking IAMGOLD to the Next Level
May 14th, 2009 TAKING IAMGOLD TO THE NEXT LEVEL Annual General Meeting Joseph Conway President & CEO
Slide 2: Cautionary Statement
2 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 re
Slide 3: IAMGOLD: 2008 was a breakthrough year
3 IAMGOLD 2008 was a breakthrough year • Record gold production of 997,000 ounces NYSE: IAG TSX: IMG • Record revenues of $870 million Shares outstanding*: 365 million • Record operating cash flow of $254 million Market Capitalization: $3.6 billion 52-week high: $10.40 • Adjusted net earnings up 87%
Slide 4: 2008 Financial Results
4 2008 Financial Results Operations are delivering results US$ millions Revenue *Adjusted Net Earnings Operating Cash Flow ($ millions) ($ millions) ($ millions) 870 108 254 117% 28% 87% 678 58 117 2007 2008 2007 2008 2007 2008 * Adjusted net earnings is a non-GAAP measure. Please refer to the Suppl
Slide 5: Gold Production by Mine
5 Gold Production by Mine Record Gold Production in 2008 of 997,000oz (000’s Gold Ounces) 997,000 1,000 800 Sleeping Giant 600 Doyon Division Rosebel Mupane 431,000 Damang 400 Tarkwa Yatela Sadiola 200 0 2004 2005 2006 2007 2008
Slide 6: 2008 Operating Results
6 2008 Operating Results Margin Growth Cash Costs vs Realized Gold Price ($/oz) Average $884 Realized $855 Gold Price Margin Cash Costs $693 $607 Margin Cash Costs
Slide 7: Gold Resource Growth
Gold Resource Growth Record Gold Resources (000’s ozs) 30,000 2008: 26.4 Mozs Essakane 25,000 Quimsacocha Camp Caiman 20,000 Others Canada 15,000 Rosebel 2004: 5.5 Mozs Mupane 10,000 Damang 5,000 Tarkwa Yatela 0 Sadiola 2004 2005 2006 2007 2008 •Resources include reserves, Includes Essakane property
Slide 8: Gold Reserve Growth
8 Gold Reserve Growth Industry Leading Growth Mozs Proven & Probable Gold Reserves • Reserve replacement achieved at all continuing IAMGOLD operations • 55% increase (including Essakane) to 12.4 million ounces Measured & Indicated Resources* 12.4 Moz • 26.4 million ounces 2.8 Moz Essakane acquisitio
Slide 9: Peer Reserve Growth
9 Peer Reserve Growth Reserve change - 2007 to 2008 % Reserve Reserve Change Change (000s ounces) • IAMGOLD’s reserve growth outperformed its peer companies • Including Essakane, acquired Feb. 2009, IMG’s reserves grew 55% to 12.4Moz Data Source: NBF ‘s North American Gold Statistics, April 3, 2009
Slide 10: Essakane Acquisition
10 Essakane Acquisition Increased Company Reserves, Near Term Production • Acquisition of Orezone Resources Inc. in an all share deal closed Feb 25th 2009 • A second flagship mine to produce over 300,000 ounces per year • Acquired reserves and resources at $45/oz and $35/oz respectively (at Dec 11.
Slide 11: Royalty Acquisitions
11 Royalty Acquisitions Reducing costs • Acquired the royalty payable on Q1 2009 Royalty Costs Doyon/Westwood, reducing cash costs by ($/oz) approximately $31 per ounce over the year $65 • Acquired majority of royalty payable on Rosebel, eliminates the impact and will reduce cash costs by about $40
Slide 12: Strong Financial Position
12 Strong Financial Position Ready for continued growth Operating Cash Flow ($ millions) • 2008 Operating cash flow $254 million • Raised $282 million1 in equity financing in Q1 2009 254 • Cash & Bullion2: $463 million 75 117 38 Credit facility3: $90 million 2005 2006 2007 2008 Funds Available: $553
Slide 13: Health, Safety & Sustainability
13 Health, Safety & Sustainability Continuing commitment to Zero Harm 2008 HIGHLIGHTS SAFETY 24% reduction in total accidents, zero fatalities ENVIRONMENT No significant incidents COMMUNITY Active social programs near our mines CERTIFICATION Seven operations are ISO 14001 certified SUSTAINABILITY Fi
Slide 14: Q1 2009 Operations
Q1 2009 Operations FOCUS DISCIPLINE RESULTS Three Focus Areas: West Africa, Guiana Shield and Quebec 1 2 Doyon Division 3 4 7 Gold Mines Rosebel Mupane Niobec SURINAME CANADA BOTSWANA CANADA Niobec Niobium Mine 83,000 oz 27,000 oz 14,000 oz 985,000 kg Nb 5 6 Sadiola Yatela MALI MALI 24 36,000 oz
Slide 15: Rosebel, Suriname
15 Rosebel SURINAME Record Gold Production • OPERATIONS • Record 2008 production up 20% to 315,000 ounces • 2008 M&I resources up 17% or 1.7 million ounces • Acquisition of royalty reduces costs by $40-$50 per oz • $85 million capex in 2008 • Q1 2009 production up 16% to 83,000 ounces • Q1 2009 cash
Slide 16: Doyon Division, Canada
16 Doyon Division CANADA Record Gold Production • OPERATIONS • 2008 production 118,000 ounces • Acquisition of royalty reduced costs by $31 per oz • $9.9 million capex in 2008 • 2009 OUTLOOK IMG Ownership 100% • Doyon Mine scheduled to close Q3 2009 • Mouska will continue until at least the end of 2
Slide 17: Mupane, Botswana
17 Mupane BOTSWANA 2008 Change to owner mining reduced costs • OPERATIONS • 2008 production up 17% to 101,000 ounces • Transition from contractor mining to owner mining reduced cash costs by 33% to $367/oz • $2.2 million capex in 2008 • 630+ days lost time accident free IMG Ownership 100% • PROJECT
Slide 18: Niobec Mine, Quebec
18 Niobec Mine QUEBEC High Margin, Strong Cash Flow • OPERATIONS • Mine production up slightly • Operating margin continues to increase • 2008 Reserves increased 36%, Inferred Resources increased 72% • PROJECT IMG Ownership 100% • Paste backfill system will extract more ore grade material, resulting
Slide 19: West African Joint Ventures
19 West African Joint Ventures SADIOLA TARKWA YATELA DAMANG IMG Ownership 38% 18.9% 40% 18.9% JV: Anglogold Ashanti JV: Goldfields Ltd. JV: Anglogold Ashanti JV: Goldfields Ltd. Location Mali Ghana Mali Ghana M&I Resources (oz)* 2,348,000 2,462,000 313,000 407,000 Inferred Resources (oz) (as at Dec.
Slide 20: Q1 2009 Development Projects
20 Q1 2009 Development Projects FILLING THE PIPELINE Three Focus Areas: West Africa, Guiana Shield and Quebec 1 Essakane 22 Westwood 4 Advanced Stage BURKINA FASO CANADA Development Projects Aggressive Greenfields Exploration Late 2010, Est. 315,000 oz Early 2013, Est. 200,000 oz 3 Quimsacocha E
Slide 21: Essakane, Burkina Faso
21 Essakane BURKINA FASO Near Term Production, On Schedule CONSTRUCTION UPDATE • Q1 2009 expenditures of $44 million ($25 million since acquisition) • Changed to owner construction from ECPM • March 2009 historic ground breaking ceremony, 6,000 attendees present to officially launch the constructi
Slide 22: Westwood, Quebec
22 Westwood QUEBEC Long Life, Low Cost • CONSTRUCTION UPDATE • Construction ahead of schedule • 2008 capex of $38 million • January 2009 updated positive scoping study provides further confidence on production in early 2013 • Raise bore for exploration shaft started in Aug. 2008 completed March 2009
Slide 23: Quimsacocha, Ecuador
23 Quimsacocha ECUADOR Ready to resume development UPDATE • Pre-feasibility study completed mid 2008 • April 2008: Mining Mandate passed by Ecuador, 180 day moratorium on mining. • Jan. 2009: New mining law ratified; royalties not less than 5% on gold. • Feb. 2009: Meeting with President Correa an
Slide 24: Other Development Projects
24 Other Development Projects Updates CAMP CAIMAN GREENFIELDS EXPLORATION IMG Ownership 100% SOUTH AMERICA Location French Guiana Suriname – Sarakreek M&I Resources (oz)* 1,615,000 Suriname – Rosebel Regional Inferred Resources (oz) (as at Dec. 31, 2008) 249,000 Guyana – Eagle Mountain Mine Life (ye
Slide 25: Outlook
Outlook Conclusions • Production • Exploration & Development
Slide 26: Corporate Strategy
26 Corporate Strategy Taking IAMGOLD to the Next Level Focusing on Growth and Cost Reduction • Continued improvement at existing operations • Disciplined political and country risk management • Maintain a strong balance sheet • Pursue accretive acquisitions in our focus regions • Aggressive explorat
Slide 27: 2009 Gold Production Outlook
27 2009 Gold Production Outlook Production by Region, by Mine 2009 Outlook - Total Gold Production: 880,000 oz Canada Doyon Division, Canada 9% 79,000 oz Tarkwa, Ghana Africa 136,000 oz South America 54% 37% Damang, Ghana 40,000 oz Sadiola, Mali 132,000 oz Rosebel, Suriname 325,000 oz Yatela, Mali 8
Slide 28: Double Production, Reduce Costs
28 5 Year Objective Double Production, Reduce Costs (000 oz) Taking IAMGOLD to the Next Level….. 2,000 • Optimizing existing mines Goal • Minesite and greenfields exploration 1,750 • Accretive acquisitions with strategic fit Acquisitions, Discoveries IAMGOLD has doubled gold production twice 1,500 i
Slide 29: Conclusions
Conclusions Conclusions • Undervalued compared to peers • Taking IAMGOLD to the Next Level
Slide 30: Peer Company Comparison
30 Peer Company Comparison Price / Net Asset Value Historical Production 5.5X 1.0 M = 2008 gold production (millions of ounces of gold) 3.4X 3.0X 2.7X 2.2X 1.8X 1.5X 1.5X 1.5X 5.2 M 1.2X 1.2X 0.9 M 7.7 M 4.0 M 1.8 M 0.4 M 0.7 M 1.0 M 0.3 M 0.3 M 0.7 M Source: public filings, IBES Market data as of M
Slide 31: Taking IAMGOLD to the Next Level
31 Taking IAMGOLD to the Next Level Conclusions 2008 was a breakthrough year • Record gold production of 997,000 ounces • Cost containment Q1 2009 was an excellent start to an important building year • Consistent operating results • Dramatic Reserve growth • $550 million capital available What is ne
Slide 32: Questions & Answers
# IAMGOLD CORPORATION (©) Member of World Gold Council 74 www.gold. gold gold.org
Slide 33: IAMGOLD's President's Award
IAMGOLD’S PRESIDENT’S AWARD HEALTH SAFETY | SUSTAINABILITY Joseph F. Conway, President & CEO
Slide 34: 1st Annual President's Award, Health & Safety
34 1st Annual President’s Award, Health & Safety Honours outstanding results in accident prevention, procedures and responses Through visual indicators, weekly safety meetings and a focus on pro- actively reporting, IAMGOLD Tanzania achieved Zero Lost Time Accidents in 2008 Managers Peter Sheehan &
Slide 35: 1st Annual President's Award, Sustainability
35 1st Annual President’s Award, Sustainability Recognizes excellence in social and environmental stewardship Recipient: IAMGOLD Tanzania Ltd. The importance and success of IAMGOLD’s community development program in Tanzania cannot be underestimated. IAMGOLD’s involvement in community development pr
Slide 36: 401 Bay Street, Suite 3200, PO Box 153 Toronto, Ontario, Canada M5H 2Y4 T
May 14th, 2009 401 Bay Street, Suite 3200, PO Box 153 Toronto, Ontario, Canada M5H 2Y4 T 416 360 4710 F 416 360 4750 TF 1 888 IMG 9999 W www.iamgold.com E info@iamgold.com