Golden Star Resources Ltd.
Golden Star Resources — Iamgold — Merger or Acquisition (June 2004)
26 slides from Golden Star Resources's merger presentation, Jun 15, 2004
Slide 1: Golden Star & IAMGold: A Logical Combination
Golden Star & IAMGold Golden Star Peter Bradford President & CEO June 2004 A Logical Combination
Slide 2: Disclaimer
Disclaimer SAFE HARBOR: The statements contained in this presentation are both historical and forward-looking in nature. The United States Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. Such forward-looking statements include the sta
Slide 3: Agenda
Transaction Summary Golden Star & IAMGold - A Logical Combination The New Golden Star Concluding Comments Appendices Agenda
Slide 4: Offer Terms
Offer Terms 1.15 Golden Star shares per IAMGold share Implied offer price of C$8.33 per IAMGold share(1) 13% premium to May 27 IAMGold closing share price on the TSX Key Conditions: IAMGold / Wheaton River arrangement is not completed Minimum of 66 2 3% IAMGold shares tendered Confirmatory due dilig
Slide 5: Transactions Comparison
Transactions Comparison Transaction Summary Notes: Based on the closing prices on the TSX on May 27, 2004 Based on the closing prices on the TSX on March 30, 2004 IAMGold-Wheaton River Golden Star-IAMGold
Slide 6: A Perfect Fit
A Perfect Fit Golden Star + IAMGold Production from 2005 in excess of 800,000 oz Potential to quickly become 1 million oz producer New unhedged gold producer focused on West Africa ~$8 million in potential annual synergies 7 million oz reserves plus 13 million oz resources Strong operational managem
Slide 7: We're Neighbors
We're Neighbors Golden Star & IAMGold - A Logical Combination
Slide 8: Strong Board and Management
Strong Board and Management Golden Star & IAMGold - A Logical Combination Board of Directors Senior Management Ian MacGregor, Chairman Counsel with Fasken Martineau DuMoulin Peter Bradford, President and CEO CEO since 1999. Metallurgical Engineer. Extensive experience operating in West Africa (Iduap
Slide 9: A New Leader In West Africa
A New Leader In West Africa Creates a new, unhedged intermediate gold producer focused on West Africa Fills the void created by AngloGold's acquisition of Ashanti Leverages Golden Star's exploration and operational expertise over a larger asset base Consolidation along Ashanti belt in Ghana Signific
Slide 10: The Asset Base
WASSA Ghana 90% SADIOLA Mali 38% YATELA Mali 40% TARKWA Ghana 18.9% DAMANG Ghana 18.9% BOGOSO/ PRESTEA Ghana 90% The New Golden Star Asset Base New Golden Star
Slide 11: Largest Resource Base in Peer Group
Largest Resource Base in Peer Group Source: Company filings and BMO Nesbitt Burns estimates 1. Gold Equivalent (Silver converted to gold equivalent using $5.50/oz silver and $350/oz gold) (1) The New Golden Star Reserves & Resources Moz
Slide 12: Leading Intermediate Gold Producer
Leading Intermediate Gold Producer... Source: BMO Nesbitt Burns Equity Research & Golden Star Estimates 1. Gold Equivalent (Silver converted to gold equivalent using $5.50/oz silver and $350/oz gold) (1) The New Golden Star Gold Production 000s oz
Slide 13: Funded Internally
....Funded Internally... Source: BMO Nesbitt Burns Equity Research & Golden Star Estimates (assumes $380/oz gold price) The New Golden Star Free Cash Flow $ millions
Slide 14: One of the Strongest Balance Sheets
....and One of the Strongest Balance Sheets The New Golden Star 1. As at March 31, 2004 Source: Company filings and BMO Nesbitt Burns estimates Net Cash(1) $ millions
Slide 15: Excellent Trading Liquidity
Excellent Trading Liquidity The New Golden Star Source: Bloomberg January 1, 2004 to March 30, 2004. Includes all North American listings Average Daily Value Traded $ millions Trading Volume Distribution
Slide 16: Attractive Valuation
Attractive Valuation Note: As at June 8, 2004 The New Golden Star EV/2005E Gold Production $/oz EV/ Total Resources $/oz
Slide 17: A Logical Combination: Concluding Comments
A Logical Combination Concluding Comments Diversified Production and Cash Flow from 6 Projects Regional Synergies Exceptional Growth Profile Strong Board and Management Broad Operating, Development and Exploration Skills Self Financing Capital Markets Synergies
Slide 18: Corporate Overview
Corporate Overview Based in Denver, listed on: AMEX: GSS TSX: GSC Market cap $0.7 billion Widely held Approximately 32% institutional Good liquidity $21 million per day for the first 3 months of 2004 Appendix A: Golden Star Today Note: Market Cap as at June 8, 2004
Slide 19: Bogoso/Prestea Mine
Bogoso/Prestea Mine Bogoso/Prestea Mine Conventional open pit mining CIL processing at present Future BIOX processing of sulfides Open pit reserves of 2.9 Moz 27.3 Mt @ 3.3 g/t Additional resources of 56.9 Mt @ 2.5 g/t 2003 production of 174,315 oz Average cash cost of $166/oz 2004 production of 135
Slide 20: Bogoso/Prestea Expansion
Bogoso/Prestea Expansion Two stage expansion project Commitment to second processing plant in early 2004 with gold production in 2005 Conversion of Bogoso mill to BIOX to start early 2005 for completion late 2005 Delivers multiple benefits Increased gold production resulting in >230,000 oz/year by 2
Slide 21: Wassa Mine
Wassa Mine Construction underway Conventional open pit mine CIL processing Start up in Q3 2004 Low capital cost $26 million to first gold production 2004 Forecast of 50 - 55,000 ounces Increasing to +140,000 oz/year in 2005 665,000 oz reserves Resources of 40.1 Mt @1.2 g/t Exploration potential Dril
Slide 22: Exceptional Growth Profile
Exceptional Growth Profile Source: Golden Star Estimates Appendix A: Golden Star Today 160% Growth 000s oz
Slide 23: Strong Resource Growth
Strong Resource Growth Appendix A: Golden Star Today Millions of Ounces
Slide 24: $21 million for Exploration in 2004
$21 million for Exploration in 2004 $21 million for Exploration in 2004 Appendix A: Golden Star Today Prestea Underground Bogoso/Prestea Wassa Other Africa South America East 6.6 5.9 2.5 4 1.8
Slide 25: Appendix B: Profile
Appendix B: New Golden Star Profile (1) Based on exchange ratio of 1.15 (2) June 8, 2004; IAMGold price is implied offer price based on 1.15 exchange ratio (3) 3 months ended March 31, 2004 (4) March 31, 2004 (5) December 31, 2003 (6) Based on BMO Nesbitt Burns Research and Golden Star estimates
Slide 26: Appendix C: Timeline - Key Events
June 10 Golden Star announces formal offer to IAMGold Prior to June 25 IAMGold will issue Directors' Circular addressing Golden Star offer [June 25] Deadline for IAMGold proxies related to Wheaton merger June 29 IAMGold shareholders meeting to consider Wheaton merger July 6 Wheaton shareholder meeti