Iamgold Corporation · TSX:IMG
Iamgold — BMO Capital Markets 26th Global Metals & Mining Conference 2017
46 slides from Iamgold's conference presentation, Mar 1, 2017
Slide 1: Empowering People, Extraordinary Performance
BMO Capital Markets 26th Global Metals & Mining Conference February 28 – March 1, 2017 STEVE LETWIN, PRESIDENT & CEO Empowering People, Extraordinary Performance l TSX: IMG l NYSE: IAG l
Slide 2: Cautionary Statement
Cautionary Statement 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 statements of historical fact, const
Slide 3: Why Invest in IAMGOLD?
Why Invest in IAMGOLD? • Established gold producer with industry leading growth profile • Geographically diversified in three prolific gold producing regions • Optimizing all operations and lowering cost structure • Exploration program driving greenfield and brownfield growth • Balance sheet strengt
Slide 4: Our Vision
Our Vision Growing intermediate gold producer in established mining camps NORTH AMERICA • Become a 1 million ounce gold producer Westwood by 2020 Côté Gold Monster Lake • 20‐25% organic production growth Nelligan WEST AFRICA • Lower AISC to $900 to $950 by 2020 Essakane Sadiola • Targeting 10‐15% re
Slide 5: Our Strategy
Our Strategy Five Pillars of IAMGOLD Strategy Optimizing all Focus on organic Position Prudent financial Industry leading operations growth company for management CSR performance opportunities long‐term and flexibility growth • Focus on cost • Brownfield • Opportunistic • Maintain one of • Maintain
Slide 6: Optimizing Operations
IAMGOLD’ CORPORATION timizing Operations
Slide 7: Essakane – Burkina Faso (90%)
Essakane – Burkina Faso (90%) 2016 Accomplishments 2017 Guidance • Commissioning of intensive leach reactor to further improve recoveries in Q2 Attributable gold production 370,000 to 380,000 • Geometallurgical study to improve gold recoveries from Capex $90M ore with high graphite content due in Q2
Slide 8: Rosebel – Suriname (95%)
Rosebel – Suriname (95%) 2016 Accomplishments 2017 Guidance • Major mill improvements: • Commissioning of secondary crusher to increase Attributable gold production 295,000 to 305,000 the grinding capacity of hard rock; Capex $70M • Installation of a power flex drive to increase torque Sustaining $6
Slide 9: Westwood – Quebec (100%)
Westwood – Quebec (100%) 2016 Accomplishments 2017 Guidance • Completed nearly 25 km of underground development – averaging 74 meters per day Attributable gold production 115,000 to 125,000 • Underground development continuing to open access Capex $65M to new mining areas Sustaining $20M • Nearly do
Slide 10: Sadiola – Mali (41%)
Sadiola – Mali (41%) 2016 Accomplishments 2017 Guidance • Consistent year over year production in 2016 • Based on exploration success, extended mine life to 2018 Attributable gold production 65,000 to 75,000 • Alignment with partner AGA to move Sulphide Project Capex $15M forward Sustaining $5M • Pr
Slide 11: Organic Growth Opportunities
Organic Growth Opportunities
Slide 12: Essakane – Falagountou East Is Being Fast-Tracked
Essakane – Falagountou East Is Being Fast‐Tracked Project Highlights • Falagountou East has potential to provide additional low‐cost, near‐surface, high‐grade saprolite ore • Drilling program has confirmed additional short‐term saprolite and mineral resources • The immediate north extension is activ
Slide 13: Rosebel – Focus on Saramacca and Saddle Zones
Rosebel – Focus on Saramacca and Saddle Zones 2016 Achievements • Saramacca completed phase 1 drilling program, and highlights include*: • 4.31 g/t Au over 101.0 metres • 5.22 g/t Au over 46.5 metres • 3.98 g/t Au over 78.0 metres • Confirmed presence of multiple mineralized structures within ~2 km
Slide 14: Sadiola – Sulphide Expansion Project
Sadiola – Sulphide Expansion Project 2017 Objectives Sulphide Expansion Project • IAMGOLD has secured board approval and intends 2015 Technical Report1 to move ahead with project Strip Ratio 3.9 • Project partner is aligned with development Max. Throughput (Mtpa) 7.2 scenario • Go forward is conditi
Slide 15: Westwood – Exceptional Pace of Development Driving Ramp-up
Westwood – Exceptional Pace of Development Driving Ramp‐up 2017 Objectives Westwood LOM – Production & Costs Forecast • 2017 exploration drill programs will be increased to 250,000 $2,500 110 km from 78 km in 2016, to support operational ramp up to full production; and to provide a 5 year 200,000 $2
Slide 16: Long-Term Growth
# IAMGOLD’ CORPORATION
Slide 17: Peer-Leading Organic Growth Pipeline
Peer‐Leading Organic Growth Pipeline Côté Gold Boto Gold Pitangui Loma Largo • One of Canada’s • Expanding Malikoundi • Sao Sebastiao deposit • Project in Equador, largest undeveloped deposit in Senegal in Brazil is an advanced operated by INV gold projects • Evaluation studies greenfield exploratio
Slide 18: Côté Gold – Organic Growth Optionality in World-Class Camp
Côté Gold – Organic Growth Optionality in World‐Class Camp Project Highlights Project Economics and Key Parameters1, 2 • One of Canada’s largest undeveloped gold deposits Years 1–3 60 Mtpa • Located in a prolific mining region near Timmins, Mining Capacity Years 4–14 50 Mtpa Years 15–18 15 Mtpa Onta
Slide 19: Boto – Senegal (100% owned)
Boto – Senegal (100% owned) 2016 Accomplishments • Completed drilling at Malikoundi deposit targeting mineralization in footwall and along strike to the north • Initial drill results confirmed wider intervals of mineralization in footwall and extension of high grade mineralization along strike north
Slide 20: Pitangui – Brazil (100% owned)
Pitangui – Brazil (100% owned) 2016 Accomplishments • Diamond drilling confirmed the presence of favourable host iron formations along strike of the São Sebastião deposit • Permits obtained to allow drilling of the Pitangui Project shallow up‐plunge extension of the deposit Iron Quadrangle: >40 Moz
Slide 21: Loma Largo – Optionality via Strategic Investment
Loma Largo – Optionality via Strategic Investment See INV news release dated July 14, 2016 Project Overview PFS Highlights* • IAMGOLD owns ~36% of INV Metals (TSX:INV) Mine Life ~11 years • PFS has robust economics with after‐tax IRR of 26.3%, NPV@5% of US$300.9M, payback of 2.7 years Nameplate Capa
Slide 22: Monster Lake – Quebec (50-50 Joint Venture with TomaGold)
Monster Lake – Quebec (50‐50 Joint Venture with TomaGold) 2016 Accomplishments • Diamond drilling targeted Monster Lake Shear Zone (“MLSZ”) which hosts the 325‐Megane zone • Drilling is interpreted to have intersected a new, mineralized structure parallel to the MLSZ structure in an area located 200
Slide 23: Nelligan – Quebec (Earn-In Option with Vanstar Mining)
Nelligan – Quebec (Earn‐In Option with Vanstar Mining) 2016 Accomplishments New Discovery – • Exploration drilling to test Induced Polarization (IP) anomalies have discovered new zones of North gold mineralization Sector • Intersections from new discovery area include: • Up to 35.8 metres grading 1.
Slide 24: Eastern Borosi – Nicaragua (Option Agreement with Calibre Mining)
Eastern Borosi – Nicaragua (Option Agreement with Calibre Mining) 2016 Accomplishments • Diamond drilling tested selected gold‐silver vein systems • Encouraging drilling results reported from a number of vein systems including a new discovery at Veta Loca, which intersected 6.3 metres grading 10.2 g
Slide 25: Diakha-Siribaya – Mali
Diakha‐Siribaya – Mali 2016 Accomplishments • Diamond and reverse circulation drilling: • Extend the deposit at depth below the current Permit limit resource pit shell; • Test for potential northern strike North 70m @1.55 g/t Au extension of Diakha deposit • Reported assay results included: Extensio
Slide 26: Clear Criteria Supports Disciplined Approach to M&A
Clear Criteria Supports Disciplined Approach to M&A • Focus is on opportunistic M&A • Comfortable with M&A in jurisdictions where our presence is established • ie. North America, West Africa, Latin America • Projects/Mines capable of producing > 100,000 ounces per year; and adding 1 M ounces of M+I
Slide 27: Timeline For Growth Catalysts – 2017 to 2020
Timeline For Growth Catalysts – 2017 to 2020 2017 Sadiola Boto Gold • Sulphide • Resource update in Expansion Project Q4 and evaluation construction start studies to continue Côté Gold Essakane • PFS to be • Updated released summer 2017 and initiate FS resources at Falagountou satellite deposit 2018
Slide 28: Financial Management
Financial Management
Slide 29: Focused on Maintaining Financial Strength
Focused on Maintaining Financial Strength • One of the strongest balance sheets in the gold industry • Committed to prudent financial management • Sustainable cost reductions across all operations • Improving gold margins • Focused on the “3 C’s”: • Cash preservation/allocation • Cost reduction • Ca
Slide 30: Balance Sheet Strength Underpins Financial Flexibility
Balance Sheet Strength Underpins Financial Flexibility Position (as at December 31, 2016) $M Cash and cash equivalents (Excludes restricted cash) 652 Restricted Cash 111 Available Credit Facility1 247 Total Available Liquidity: 899 LTD ‐ senior unsecured notes due in 2020 489 Shareholder’s Equity (i
Slide 31: Strongest Liquidity Amongst Intermediate Producers
Strongest Liquidity Amongst Intermediate Producers Current Leverage Metrics – Debt / EBITDA* Senior Producers(1) Intermediate Producers(1) 2.6x 1.7x Yamana New Gold (2) 2.8x 3.0x 1.5x 1.4x Goldcorp (3) B2 Gold 1.8x 1.9x 1.4x 0.9x Barrick Detour 2.0x 1.5x 0.9x nmf Kinross Eldorado 1.7x 2.6x 0.7x nmf
Slide 32: Industry Leading Leverage Multiples
Industry Leading Leverage Multiples Total Liquidity – Intermediate Producers* Intermediate Producers $1,167 $250 $899 Total Liquidity (US$ mm) $247(1) $579 $917 $178 $350 $321 $652 $292 $150 $201 $401(2) $200 $150 $72 $200(3) $121 $142 $129 Eldorado IAMGOLD New Gold Alamos B2 Gold Tahoe Detour Cash
Slide 33: Commitment to CSR
Commitment to CSR
Slide 34: Industry Leading CSR Performance
Industry Leading CSR Performance • Commitment to CSR drives competitive advantage • Strong host‐country government and community relations • “Zero harm” focus for safety, environment and communities • Committed to maintaining best‐in‐class safety standards • Goal is no fatalities, no level 4 or 5 sa
Slide 35: Why Invest in IAMGOLD?
Why Invest in IAMGOLD? • Established gold producer with industry leading growth profile • Geographically diversified in three prolific gold producing regions • Optimizing all operations and lowering cost structure • Exploration program driving greenfield and brownfield growth • Balance sheet strengt
Slide 36: Appendix
Appendix -
Slide 37: Mineral Reserves and Resources
Mineral Reserves and Resources Contained Gold (000s attributable oz.) As of December 31st 2016 Change 2015 Total proven and probable mineral reserves1 7,798 1.4% 7,690 Total measured and indicated mineral resources2,3 23,331 (0.6%) 23,482 Total inferred resources 6,124 (9.0%) 6,733 • Mineral reserve
Slide 38: 2017 Production and Cost Guidance
2017 Production and Cost Guidance 2017 Guidance4 Essakane (000s oz.) 370 – 380 Rosebel (000s oz.) 295 – 305 Westwood (000s oz.) 115 – 125 Total owner‐operated production (000s oz.) 780 – 810 Joint ventures (000s oz.) 65 – 75 Total attributable production (000s oz.) 845 – 885 Cost of sales1 ($/oz.) $
Slide 39: 2017 Capex Outlook
2017 Capex Outlook $millions Sustaining Non‐Sustaining Total3 Essakane $85 $5 $90 Rosebel $65 $5 $70 Westwood $20 $45 $65 Owner‐operator $170 $55 $225 Corporate and Development Projects – $10 $10 Total owner‐operator $170 $65 $235 Sadiola (Joint Venture)1 $5 $10 $15 Total2 $175 $75 $250 (±5%) 1. Exp
Slide 40: Improving gold margins
Improving gold margins 1,2 Due to: 2015 2016 Higher gold price $1,158 vs. $1,244 7% Lower cash costs $835 vs. $739 11% Gold Margin ($US/oz) $505 $323 2015 2016 1. Consists of Essakane, Rosebel, Westwood and the JVs on an attributable basis. 2. This is a non‐GAAP measure. Refer to the non‐GAAP perfor
Slide 41: 2016 Production and Costs Summary
2016 Production and Costs Summary Attributable Cost of Total Production Sales1 Cash Costs3 AISC3 (oz) ($/oz sold) ($/oz produced) ($/oz sold) Essakane 377,000 $716 $668 $977 Rosebel 296,000 $768 $729 $988 Westwood2 65,000 $1,324 $894 $1,182 Sadiola 70,000 — $970 $1,042 Total 813,000* $794 $739 $1,05
Slide 42: Saramacca – Option Agreement
Saramacca – Option Agreement • Initial cash payment of US$200,000 on signing • Provides access to the property • Staged purchase totaling US$10 million and 3.125 million IAMGOLD shares • Shares released over 3 x 1 year intervals • Price Adjustment based on gold oz above 1.0 Moz outlined in MI resour
Slide 43: Saramacca – 2016 Drill Campaign
Saramacca – 2016 Drill Campaign Targeting a 43‐101 compliant resource estimate mid‐2017 Footwall, hanging wall and geochemical footprint RC drill pattern Historical Drilling 90 diamond drill holes (9,000m) 2016 Planned Drilling 54 DDH ‐ infill holes (9,000 m) 77 RC ‐ Exploration (9,000 m) 100m x 50m
Slide 44: Côté Gold – Evolved Resource Estimate
Côté Gold – Evolved Resource Estimate* Indicated Resources1 Inferred resources1 Estimate Quantity Grade Au Metal Quantity Grade Au Metal (Mt) (g/t Au) (Koz) (Mt) (g/t Au) (Koz) Trelawney 35.0 0.82 930 204 0.91 5,940 IMG 289.2 0.90 8,354 66.9 0.60 1,174 Since IAMGOLD’s acquisition in 2012: • Indicate
Slide 45: Technical Information and Qualified Person/Quality Control Notes
Technical Information and Qualified Person/Quality Control Notes The mineral resource 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” responsible for the super
Slide 46: Empowering People, Extraordinary Performance
Bob Tait Laura Young Shae Frosst VP, Investor Relations Director, Investor Relations Associate, Investor Relations T: 416‐360‐4743 T: 416‐933‐4952 T: 416‐933‐4738 Empowering People, Extraordinary Performance l TSX: IMG l NYSE: IAG l
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