Slide 1: 2015 Second Quarter Results
2015 Second Quarter Results August 6, 2015 TSX: IMG NYSE: IAG
Slide 2: Management Participants
Management Participants STEVE LETWIN President & CEO GORD STOTHART EVP & Chief Operating Officer CAROL BANDUCCI EVP & Chief Financial Officer CRAIG MACDOUGALL SVP, Exploration JEFF SNOW General Counsel & SVP, Business Development BOB TAIT VP, Investor Relations 2
Slide 3: Cautionary Statement on Forward-Looking Information
Cautionary Statement on Forward-Looking Information 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 state
Slide 4: The Gold Price: An Industry Challenge
The Gold Price: An Industry Challenge 4
Slide 5: Financial Strength: Advantages in a Tough Market
Advantages in a Tough Market Financial Success in Intense focus Strength reducing on mine $836M costs by optimization Cash, Cash Equiv. & Bullion $175M since 2013 5
Slide 6: IAMGOLD's Plan
IAMGOLD’s Plan Revisit LOMs at $1,000/oz. and $900/oz. gold price Reduce operating costs and sustaining capital Review all capital programs, including future development projects › Negotiations related to AGA’s share of Sadiola suspended Continue to optimize performance at Essakane and Rosebel 1
Slide 7: Q2/15 Operating Highlights
Q2/15 Operating Highlights AISC of $1,076/oz is 3% below Q1/15 Capital spending YTD is 33% lower than 2014 Mining commences at Essakane’s Falagountou deposit Westwood production reflects localized ground fall following seismic event on May 26, 2015 Positive exploration results continue 7
Slide 8: Financial Review
Financial Review CORPORATION
Slide 9: Adjusted Net Earnings
Adjusted Net Earnings1 (In $ millions, except for per share amounts) Q2'14 Q2'15 Net loss including discontinued operations attributable to equity holders (16.0) (19.7) Changes in estimates of asset retirement obligations at closed sites 3.1 (4.2) Unrealized derivative gain (4.6) (15.0) Write-down o
Slide 10: Revenues from Continuing Operations
Revenues from Continuing Operations1 Revenue Q2 2014 Change Q2 2015 Impact 231.4 226.5 Gold Price2 1,288 (7%) 1,194 ($15.1M) ($/oz.) Gold Sales3 Owner-Operator 177 7% 189 $12.3M (000s oz.) Year-over-year Change in Gold Sales3 by Site $millions (000s oz.) 305.3 Q2 2014 Q2 2015 Change Essakane 94 86 (
Slide 11: Cost of Gold Sales
Cost of Gold Sales ($ Millions) Q2 2014 Q2 2015 Variance Mainly Due to Impact Total Operating Costs 149.5 153.3 • Commencement of commercial production at 27.5 Westwood in Q3’14 Partially offset by: • Lower mining and milling costs at Essakane and (21.4) 3.8 Rosebel • Mouska closure (2.5) • Other (0
Slide 12: Net Cash From Operating Activities
Net Cash From Operating Activities (In $ millions, except for per share Q2’14 Q2’15 amounts) Net cash from operating activities per $0.19 consolidated interim financial 96.8 31.7 per share statements Adjusting items from non-cash working capital items and non-current ore stockpiles 70.1 Receivable
Slide 13: Strong Financial Position
Strong Financial Position (Millions) $1,336 Million As at June 30, 2015 $836M cash, cash equivalents and gold bullion $158M Bullion $645M long-term debt due 2020 1 (at market) $678M $191M net cash position Cash & Cash Equivalents $500M Unused Net debt/EBITDA2 0x Credit Facility3 1 $644.6 millio
Slide 14: Attributable Gold Production
Attributable Gold Production1 Due to Change (oz.) 206 202 Mouska – Closure in Q3/14 -11,000 Sadiola – Lower grades -7,000 Essakane – Lower throughput partially 000s oz. offset by higher grades -3,000 Partially offset by Westwood1 ramps up production +14,000 Rosebel – higher grades and recoveries par
Slide 15: Attributable Gold Production
Attributable Gold Production1 300 250 241 Mining lower 200 225 grade lenses Improving at Westwood 208 202 206 as planned 000’s oz. grades at Lower Rosebel and throughput at 150 Essakane Lower grades Rosebel at Rosebel reflecting Westwood in due to mine rainy season commercial sequencing 100 producti
Slide 16: All-In Sustaining Costs
All-In Sustaining Costs1,2 1,400 All figures in $/oz. sold 1,288 1,272 1,201 1,221 1,194 1,200 1,136 1,124 1,1133 1,0763 1,000 1,028 800 600 400 200 ` 0 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 1 Total Cash Costs 1,2 Average Realized Gold Price 1 This is a non-GAAP measure. Refer to the non-GAAP perf
Slide 17: Operations Review
Operations Review £IAMGOLD
Slide 18: Westwood – Canada
Westwood – Canada 40 1600 30 1200 Commercial production July 1, 2014 20 800 Q2/15 production of 23,000 ounces below (000s oz.) 10 35 35 22 23 400 expectation due to localized ground fall following seismic event on May 26, 2015 0 Q3'14 Q4'14 Q1'15 Q2'15 0 Q2/15 cash costs $837/oz and AISC $1,04
Slide 19: Rosebel – Suriname
Rosebel – Suriname 100 1250 Multiple open-pit mine with declining soft rock 80 83 94 76 1000 Hard rock comprises 32% of ore mix; expected to reach 60 71 750 80% by 2018 68 (000s oz.) Q2’15 Highlights ($/oz.) 40 500 20 250 › Head Grade: .8 g/t Au 0 0 › Cash costs $864/oz. Q2'14 Q3'14 Q4'14 Q1'1
Slide 20: Essakane – Burkina Faso
Essakane – Burkina Faso 100 1250 Open-pit mine in 5th year of production; 80 89 89 89 1000 10 years remaining 92 60 83 750 Mill expansion completed in 2013 to 40 500 accommodate increasing proportion of hard rock (000s oz.) ($/oz.) 20 250 Hard rock comprises 64% of ore mix 0 0 Falagountou de
Slide 21: Sadiola – Mali
Sadiola – Mali 30 25 1200 1000 Open-pit mine has produced 7M ozs. over 20 years 20 24 800 21 Expansion to accommodate hard rock would (000s oz.) 15 20 19 17 600 ($/oz.) 10 400 extend mine life for ~10 more years 5 0 200 0 Continuing to look for additional oxide reserves Q2'14 Q3'14 Q4'14 Q1'15
Slide 22: Exploration Review
Exploration Review IAMGOLD
Slide 23: Boto Gold Project (Senegal)
Boto Gold Project (Senegal) Estimated indicated resource of 1.2 Moz. @ 1.7 g/t Au; and inferred resource of 635,000 oz @1.8 g/t Au Infill drilling at Malikoundi deposit completed. Final 2014 assay results include: Deposit › 40 m at 3.24 g/t Au (including 11 m at 8.15 g/t Au) › 9 m at 10.5 g/t
Slide 24: Siribaya (Mali) – JV with Merrex Gold
Siribaya (Mali) – JV with Merrex Gold Focused on Diakha prospect - Fekola -B2Gold extension of trend hosting Boto 3.9Moz @ 1.91 g/t Au* Gold deposit Boto-Malikoundi Highlights from 2014 final assay Mali 1.2Moz @ 1.7 g/t Au** results include1: Guinea › 6 m at 10.53 g/t Au › 3 m at 15.01 g/t Au
Slide 25: Pitangui Project (Brazil)
Pitangui Project (Brazil) Focused on upgrading resources at the São Sebãstio deposit April 2014 – maiden inferred resource estimate of 0.64 M oz at 4.88 g/t Au Infill drilling program completed in Q2/15 > 40M oz. historical production in Brazil’s Assay results highlights reported July 7, 201
Slide 26: Eastern Borosi (Nicaragua) – JV with Calibre Mining
Eastern Borosi (Nicaragua) – JV with Calibre Mining 176km land package with 2 gold and silver deposits and 2 series of exploration targets Drilling program in 2015 focused on further testing discoveries from 2014 as well as exploring additional vein systems May 6, 2015 – Blag vein system drill
Slide 27: Monster Lake (Quebec) – JV with TomaGold
Monster Lake (Quebec) – JV with TomaGold Located in prolific Abitibi Greenstone belt High-grade intervals (25 to 30+ g/t Au) Monster Lake from previous drilling Highlights from 2014 final drilling results include: › 9.18 m at 46.33 g/t Au › 3.42 m at 18.68 g/t Au › 7.1 m at 6.74 g/t Au Westwoo
Slide 28: 2015 Production and Cost Guidance
2015 Production and Cost Guidance1 Rosebel (000s oz.) 290 - 300 Essakane (000s oz.) 360 - 370 Westwood (000s oz.) 60 - 75 Total owner-operated production (000s oz.) 710 - 745 Joint ventures (000s oz.) 70 Total attributable production (000s oz.) 780 - 815 Total cash costs2,3 – owner-operator ($/oz.)
Slide 29: Investor Relations
Bob Tait VP, Investor Relations T: 416-360-4743 Laura Young Director, Investor Relations T: 416-933-4952 Investor Relations info@iamgold.com TSX: IMG NYSE: IAG