Slide 1: The New Niobec Niobium Mine
The New Niobec Niobium Mine PDAC March 7, 2012 Gordon Stothart EVP & COO ® ®
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 Overview
3 IAMGOLD Overview IAMGOLD is a leading mid-tier gold mining company Gold production of approximately one million ounces annually from 5 gold mines on 3 continents Head Office located in Toronto, Canada Publicly Listed Company on TSX (IMG) & NYSE (IAG) Market Capitalization of $5.3 Billion
Slide 4: Conduct Governed by Zero Harm Framework
4 Conduct Governed by Zero Harm Framework Highest standards in Health and Safety Minimizing Environmental Footprint Partnering with Host communities ® Highest standard of corporate social responsibility
Slide 5: IAMGOLD's Platform – High Quality, Long-Life Assets
5 IAMGOLD’s Platform – High Quality, Long-Life Assets ® Natural extensions with significant expansion potential
Slide 6: Growth Strategy
6 Growth Strategy Extend and optimize existing mines Increase focus on mine specific cost reduction measures Pursue exploration plays Evaluate acquisition opportunities Surface full value of Niobec ® Focused on maximizing return on capital
Slide 7: Niobec Niobium Mine
7 Niobec Niobium Mine Quebec IAMGOLD: 100% Ownership Saguenay region has strong industrial base, sound infrastructure In operation for 35+ years, operated by IAMGOLD since 2006 Expansion Pre-feasibility confirmed 600%+ increase in probable reserves ® REE potential Only major niobium producer
Slide 8: Niobec History
8 Niobec History Soquem: 50% Teck Corporation: 50% IAMGOLD: Teck Corp. (Copperfield): 25% Cambior: 100% Cambior: 50% 100% Lamaque Mining: 25% 2010: Paste Backfill 7,000 Mill expansion to 6,240 t/d 6,000 2002: ISO 9000:2000 ISO 14.001 5,000 1994: Construction of Ferroniobium convertor Nominal Product
Slide 9: Niobium Production Profile
9 Niobium Production Profile Annual production growth of 10.3% per year since 2000, with an average grade of 0.66% 5,000 0.80 4,632 4,500 4,396 4,343 4,300 4,163 4,106 4,000 3,750 0.60 3,500 3,339 3,344 3,417 Production (tonnes) Grade (%Nb2O5) 3,006 3,000 2,500 0.40 2,170 2,000 1,500 0.20 1,000 500
Slide 10: Niobec Local Geology
10 Niobec Local Geology • St-Honoré Complex Alkaline complex (6 x 8 kms ) The core is comprised of crescent-shaped lenses of carbonatite (calcitite/dolomitite/ ferrocarbonatite) Overlain by younger flat-lying Trenton limestones Niobium (>0.4% Nb2O5) hosted in the southern sector of the carbo
Slide 11: Niobec – Mineralogy
11 Niobec – Mineralogy Group Components % Weight Dolomite, Calcite, Carbonates 64.9 Ankerite, Siderite Zircon, Biotite, Chlorite, Silicates Na-,K-, Feldspars, 21.1 Pyroxenes, Nepheline Phosphates Apatite 6.8 Niobium Oxides Pyrochlore, Columbite 1.1 Magnetite, Hematite, Other Oxides 1.7 Rutile, Ilmen
Slide 12: Ferroniobium Marketing for Niobec
12 Ferroniobium Marketing for Niobec Ferroniobium Niobec’s final product is Ferroniobium = FeNb Niobium content in FeNb is 66% Ferroniobium is sold on its Nb content & traded in US dollars › Revenues are calculated on Nb content Capacity, export, import, consumption quantities for ferroniobi
Slide 13: Niobium: Scarce Metal with Unique Properties
13 Niobium: Scarce Metal with Unique Properties Using niobium to enhance steel has many benefits: Adds strength Lightens weight Enhances flexibility Improves durability Reduces costs ® Niobium is used to produce high-quality steel
Slide 14: Ferroniobium: alloy of niobium and iron
14 Ferroniobium: alloy of niobium and iron World Consumption of Ferroniobium by End-use (2010) STRUCTURAL 29% other 13% PIPE 24% 10% STAINLESS STEEL AUTO 24% ® Source: Niobec management and Roskill
Slide 15: Niobium Provides Significant Cost Benefits
15 Niobium Provides Significant Cost Benefits 5% km/l 100 kg reduction in weight Increased Fuel efficiency $25 M 15,000 t reduction in weight Cost Reduction ® Stronger, lighter weight, more durable and flexible
Slide 16: Ferro-niobium World Consumption by Region
16 Ferro-niobium World Consumption by Region (2011) China 25% Japan 10% CIS 7% Other Asia 11% EU 24% ROW Americas 2% 21% ®
Slide 17: 2011 Niobium Supply (% of global production)
17 2011 Niobium Supply (% of global production) CBMM 84.3% CATALÃO 6.1% NIOBEC 8.6% Other ® 1%
Slide 18: Niobium Demand is Rapidly Growing
18 Niobium Demand is Rapidly Growing Ferroniobium Demand ~ 60% of FeNb growth generated by increased FeNb consumption (tonnes) 145,000 2,000 Growing at 10% CAGR intensity; balance is in growth of crude steel 125,000 1,800 production Steel Production (Mt) 105,000 1,600 20% of steel produced in de
Slide 19: Niobium Pricing
19 Niobium Pricing For Long Term Planning purposes, average price conservatively forecast to be $45/kg SPOT market in 2011 > $45/kg $45 $45 $45 $45 $45 $45 $45 $45 $43 $40 $37 $36 $35 $33 $15 '06 '07 '08 '09 '10 '11E '12E '13E '14E '15E '16E '17E '18E '19E '20E Base Case Forecast ® Prices estima
Slide 20: Niobec Expansion Opportunity: Resources
20 Niobec Expansion Opportunity: Resources Strategic Resource Surface Development Plan: › 5-year drilling program › Full delineation of Blocks 1 to 3: niobium resource Block 1 to 6 Reserves (18% mined out) › Assess alternate considered for pre-feas. mining methods Blocks 4 to 6: Reserves & resourc
Slide 21: Niobec Mining Methods (Pre-feasibility Analysis)
21 Niobec Mining Methods (Pre-feasibility Analysis) Pyramidal Base Case LOM was estimated using the latest information available Open Pit Two additional scenarios were evaluated: Open Pit Block Caving Block Caving All scenarios used the same ® geologic resource model
Slide 22: Niobec – Block Caving chosen as the carry forward scenario
22 Niobec – Block Caving chosen as the carry forward scenario Orebody – Cavability Potential Niobec mine cavability was an action item from the SRDP to be pursued at pre-feasibility. None of the experts consulted have identified any fatal flaws during the exercise. Rock mass good quality could
Slide 23: Niobec Mining
23 Niobec Mining Block Caving Proposed Mining Sectors ®
Slide 24: Niobec – Infrastructure Block Caving
24 Niobec – Infrastructure Block Caving Power station Converter Mill Ore Pile Administration Production Shaft ® Service Shaft
Slide 25: Niobec Expansion Update
25 Niobec Expansion Update 2011 Achievements Positive results from pre-feasibility study on expansion project Established a financing framework to fund expansion ($250M line of credit established February 2012) Transition mine plan instituted to maximize the opportunity of success for expansio
Slide 26: Pre-feasibility Study Results
26 Pre-feasibility Study Results Key Metrics of the Niobec Expansion Pre-Feasibility Study under the Block Cave Scenario Tonnes Grade Contained Nb2O5 Classification (millions) (%Nb2O5) (million kgs) Probable Reserves 419.2 0.42% 1,746 Measured Mineral Resource1 235.3 0.44% 1,028 Indicated Mineral Re
Slide 27: Funding for Niobec Expansion
27 Funding for Niobec Expansion IPO $976M Strategic Sale Credit Facility Cash Flow (2013E-2016E) Capital Expenditures Funding (2013E-2016E) Sources ® 27 Expansion Fully Self Funded
Slide 28: Niobec – Permitting
28 Niobec – Permitting Process, Sequence and Duration Cumulative duration Selection of mining scenario and detailed description 3 months Full environmental and social impact assessment 7 months Provincial Project assessment by provincial environment ministry 18 months MDDEP Public hearings –
Slide 29: Niobec Stakeholder Map
ENVIRONMENTAL GROUPS Niobec Stakeholder Map Niobec Mine Reaional Mediz, Expansion Project INSTITUTIONS
Slide 30: Rare Earth Element Potential at Niobec
30 Rare Earth Element Potential at Niobec Rare earth elements Grade 1.65% Total Rare Earth Oxides (TREO) 7.7 Bkg TREO 98% Light REEs, incl.: › Cerium (47.9%) › Lanthanum (24.5%) › Neodymium (18.4%) 2% Heavy REEs Potential development would be self-funded Niobium exploration potential Shaft
Slide 31: REE Mineral Resource Estimate (Feb. 2012)
31 REE Mineral Resource Estimate (Feb. 2012) REE Mineral Resources by Light REO Main Heavy REO Grade Groups Grade Tonnage Ce2O3 La2O3 Nd2O3 Pr2O3 Sm2O3 Gd2O3 Eu2O3 Dy2O3 Tb2O3 Groups Million % ppm % TREO ppm ppm ppm ppm ppm ppm ppm ppm ppm Tonnes TREO HREO > 2.50 13.2 2.93 550 14,020 7,173 5,384 1,5
Slide 32: Niobec – Going Forward
32 Niobec – Going Forward 2012 Guidance Niobium Production (MKg) 4.6-5.1 Niobium Operating Margin ($/kg) $15-17 /kg Niobec expansion plans remain on track moving into feasibility study and initial permitting steps Several financing options available while maintaining flexibility with respect to
Slide 33: Conclusions
33 Conclusions Niobec remain the second largest FeNb producer in the world Mine life exceeding 40 years Potential to further expand capacity to support market growth › Committed to invest in FeNb Niobec is the only competition outside Brazil › Outstanding track record for over 35 years FeN
Slide 34: The New Niobec Niobium Mine
The New Niobec Niobium Mine PDAC March 7, 2012 INVESTOR RELATIONS Bob Tait, VP Investor Relations T: 416 360 4743 C: 647 403 5520 Laura Young, Director, Investor Relations T: 416 933 4952 C: 416 670 3815 ® ®