Iamgold Corporation · TSX:IMG
Iamgold — Investor Day (June 2010)
40 slides from Iamgold's investor day presentation, Jun 22, 2010
Slide 1: Investor Day
gi IAMGOLD’ CORPORATION INVESTOR DAY June 22, 2010 Member of World Gold Council www.gold.org
Slide 2: Investor Day - Peter C. Jones, President & CEO
INVESTOR DAY June 22, 2010 Peter C. Jones President & Chief Executive Officer
Slide 3: Cautionary Statement
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 rega
Slide 4: IAMGOLD Delivers Sustainable Profitable Growth
IAMGOLD Delivers Sustainable Profitable Growth Growing Production and Reserves Essakane LOM annual output at 315koz • Higher production in early years Aggressive exploration program with key targets Robust pipeline of projects IAMGOLD Profile 1 million oz gold producer Strong Financial Positio
Slide 5: One Million Ounce Platform
One Million Ounce Platform Positive Impact of Lower Cost Mines One Million Ounce Platform WESTWOOD 200,000 oz ESSAKANE 400,000 oz ROSEBEL 400,000 oz OTHER OPERATIONS Other Operations Include: Sadiola/Yatela JV with AngloGold ; Tarkwa/Damang JV with Gold Fields 5 Mupane, Botswana; Mouska, Quebec
Slide 6: Corporate Strategy
Corporate Strategy Focus on Value Creation Grow Gold Production & Reserves Successful development and expansion of existing projects Aggressive exploration for organic growth Accretive acquisitions Reduce Costs and Improve Efficiencies Operations and development project optimization Maintain
Slide 7: Global Operations & Growth
Global Operations & Growth FOCUS, DISCIPLINE, RESULTS Longstanding Presence, Long Term Future 7
Slide 8: 2010 Key Objectives
2010 Key Objectives Build Financial Strength Increased Credit Capacity to $400M Deliver Essakane by August Start-up June 2010 Committed to Exploration Continue Commitment to Zero Harm Rosebel Growth Review Niobec Expansion Advance Westwood Project 8
Slide 9: Solid Reserves Growth
Solid Reserves Growth 17% Increase in 2009 Au Reserves 14.5 M oz 3.1 M oz Addition 2.1 M oz Record Gold Reserves Net Addition Creating value by 12.4 M oz converting resources to reserves 1.0 M oz Depletion Gold reserves up 17% to 14.5 million oz Record Niobium Reserves Niobium reserves up 32%
Slide 10: The year of Essakane is only the beginning
‘The year of Essakane’ is only the beginning… Continued Growth (000s ounces) 1,200 1,000 800 600 400 200 0 2004 2005 2006 2007 2008 2009 2010F 2011F 2012F 2013F 2014F Africa Canada South America *Assumes: • Essakane start-up June 2010 • Sadiola Sulphides start-up mid-2012 10 • Quimsacocha deferred •
Slide 11: Develop Leaders and Grow the Talent Pipeline
Develop Leaders and Grow the Talent Pipeline IAMGOLD believes in the quality of its people: Senior Management Succession Planning Leadership development at all levels Increase employee engagement levels Build a pipeline of talent through university recruitment and development programs Work
Slide 12: Sustainable, Profitable Growth
Sustainable, Profitable Growth Strong Operating Cash Flows Pipeline of Projects - Exploration and M&A Financial Strength Focus on Cost Discipline and Improved Efficiencies Committed to Exploration Skilled, Multilingual, Mobile Workforce Committed to Zero Harm 12
Slide 13: Financial Review
Financial Review June 22, 2010 Carol Banducci Executive Vice President & Chief Financial Officer
Slide 14: Exceptional Balance Sheet
Exceptional Balance Sheet Net Cash Positive and Positioned for Growth Millions $ as at March 31, 2010 as at December 31, 2009 Cash & Equivalents $169 $191 Bullion at market* $112 $109 Available credit facility** $382 $123 Total available funds $663 $423 * 100,000 ounces held at March 31, 2010 14 **
Slide 15: Improving Margins
Improving Margins Gold Margin and Cost ($/oz) $1,200 $1,000 $800 587 499 396 $600 270 286 $400 524 423 459 461 $200 321 $0 2006 2007 2008 2009 Q1 2010 Cash Cost Gold Margin 15
Slide 16: Strong Operating Cash Flow
Strong Operating Cash Flow Millions $ 16
Slide 17: Positioned for Growth
Positioned for Growth Further Opportunities : 5-Year Estimated Rosebel Optimization, Accumulated Operating Cash Flow vs. Essakane Phase 2, Capital Needs additional organic growth and acquisitions 17
Slide 18: Creating Value for Shareholders
Creating Value for Shareholders Adjusted EPS Operating CF/share $0.60 $0.60 $0.73 + 78% + 200% $0.60 $0.40 $0.41 $0.40 $0.20 $0.20 $0.20 $0.00 $0.00 '07 '09 '07 '09 ounces Gold Reserve Niobium Reserve 40 oz per 1000 shares 39 million kg per 1000 shares + 44% Million kg + 42% 491 30 27 400 346 20 200
Slide 19: Key Statistics – 2010 Guidance
Key Statistics – 2010 Guidance Guidance (1) Gold Production (000ozs) 940-1,000 Cash Costs (US$/oz) $490-$510 Niobium Operating Margin (US$/kg) $17-$19 Capital Expenditures (US$M) (2) $381 Capitalized Exploration & Development (US$M) $252 (included in Capital Expenditures above) Expensed Exploration
Slide 20: Financial Strength
Financial Strength Strong balance sheet Focus on cash generation Solid history of dividend payments Financial flexibility to profitability grow => Deliver per share value 20
Slide 21: Operations and Projects Overview
Operations and Projects Overview June 22, 2010 Gordon Stothart Executive Vice President & Chief Operating Officer
Slide 22: Key Operations Goals 2010
Key Operations Goals 2010 Redouble efforts on the path to Zero Harm • Safety, Environment, Communities Exploit our project development advantage • Deliver/ramp up Essakane early/on budget Meet production/cost commitments and seek sustainable improvements Maximize value at major assets 22
Slide 23: Zero Harm
Zero Harm Our Vision: No fatalities, lost time accidents, modified duty, medical aids No significant impact on environment or host communities 23
Slide 24: Health and Safety
Health and Safety 2009 31% decrease in days away injuries (DART) Doyon’s safety record best in 15 years Improvements at all operations/projects 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 2006 2007 2008 2009 YTD 2010 Dart Rate Trir Rate Dart = Days away injuries rate Trir = Total recordable incide
Slide 25: Development Advantage: Experienced in-house team
Development Advantage: Experienced in-house team 2010 is the ‘Year of Essakane’ • Operational support for startup/commissioning from Doyon Division team Westwood advancing toward 2013 production • Innovative development plan 25
Slide 26: Project Execution
Project Execution Other Projects: • Sadiola Sulphide Feasibility Study • Niobec paste backfill plant • Niobec mill expansion • Additional Rosebel leach tank capacity 26
Slide 27: Maximize Productivity/Manage Costs
Maximize Productivity/Manage Costs Move IAMGOLD into the 2nd quartile of cash costs and maximize productivity Evolve portfolio away from higher cost operations Cost reduction/best practice initiatives at all operations 27
Slide 28: Operating Best Practices
Operating Best Practices Continuous Improvement Programs for productivity enhancements at all operations • Value Stream Mapping to prioritize actions Metallurgical improvement/optimization Maintenance Reliability Programs Energy Management Program began 2010 Value Stream Mapping 28
Slide 29: Operations Strategy
Operations Strategy Maximize the value of our mining assets: Strategic Resource Development Planning for key assets • ‘What-if’ thinking about resource potential based on limited drill data • High level analysis of a matrix of strategic alternatives with the preferred case carried through to detai
Slide 30: One Million Ounce Platform
One Million Ounce Platform Positive Impact of Lower Cost Mines One Million Ounce Platform WESTWOOD 200,000 oz ESSAKANE 400,000 oz ROSEBEL 400,000 oz OTHER OPERATIONS Other Operations Include: Sadiola/Yatela JV with AngloGold ; Tarkwa/Damang JV with Gold Fields 30 Mupane, Botswana; Mouska, Quebec
Slide 31: Global Exploration Priorities
Global Exploration Priorities June 22, 2010 Michael Donnelly Senior Vice President, Exploration
Slide 32: Exploration & Development
Exploration & Development 12 offices worldwide 60 professionals 30+ growth opportunities 2010 Exploration budget Greenfields: $35M Resource Development: $43M 2010 Drilling + 300,000m Strategically located lands +20,000 km2 (+2 M ha) 32
Slide 33: Exploration Overview
Exploration Overview Greenfields Budgets by Region ($M) Opportunity Fund, $2.5 Canada, $2.4 Africa $12.8 Guiana Shield $9.0 Latin America $8.5 Brownfields Budgets by Region ($M) Canada $9.7 Africa $19.8 Guiana Shield $13.0 Discovery 33
Slide 34: Exploration Overview
Exploration Overview West Africa Essakane - District scale land position Exploration offices in 3 countries Sadiola / Yatela - Optimizing the exploration potential 2010 drilling • Greenfields: 37,500m 2 key exploration joint ventures • Resource development: 77,500m • Kalana - Avnel Resources 16 prof
Slide 35: Exploration Overview: A Challenging Exploration Environment
Exploration Overview A Challenging Exploration Environment Today’s Environment The IAMGOLD response Declining discovery rates District scale land holdings Increased competition Seasoned team Difficult M&A environment Identify upside in late-stage exploration plays Obtaining a social li
Slide 36: Corporate Affairs
Corporate Affairs June 22, 2010 Larry Phillips Executive Vice President, Corporate Affairs
Slide 37: Corporate Affairs: the IAMGOLD Approach
Corporate Affairs: the IAMGOLD Approach Listening and learning from our partners Balancing needs and blending cultures 37
Slide 38: Corporate Affairs: Four Core Principles
Corporate Affairs: Four Core Principles 1. Transparency 2. Credibility 3. Consistency Global Corporate Affairs Program (GCAP) 4. Agility 38
Slide 39: Global Corporate Affairs Program: Structure
Global Corporate Affairs Program: Structure LARRY E. PHILLIPS Executive Vice President, Corporate Affairs Corporate BEN LITTLE LAUREN VOPNI Vice President, Research Analyst Corporate Affairs Country Leads French Burkina Faso Canada Ecuador Guiana West Africa Mali Suriname region Quebec 39
Slide 40: Global Corporate Affairs Program: Objectives
Global Corporate Affairs Program: Objectives Corporate Affairs Develop country plans for Department (CA) Access monthly GCAP issues management Council reports, resource Monitor in-country situations Manage Country Leads though materials, country plans, and engage stakeholders country plans a