Iamgold Corporation · TSX:IMG
Iamgold — RBC Conference 2011
48 slides from Iamgold's conference presentation, November 2011
Slide 1: Corporate Presentation
Corporate Presentation November 2011 Steve Letwin President & CEO TSX: IMG NYSE: IAG
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's Platform – High Quality, Long-Life Assets
3 IAMGOLD’s Platform – High Quality, Long-Life Assets YATELA SADIOLA Senegal ESSAKANE Mali Boto Val d’Or Siribaya Burkina Faso NIOBEC Westwood Kalana Suriname MOUSKA Colombia ROSEBEL Quimsacocha Peru MINE Brazil Development Project Advanced Exploration Exploration Office Natural extensions with sign
Slide 4: Unlocking Shareholder Value
4 Unlocking Shareholder Value Objective Initiative What we did Focus on mines we own Sell Tarkwa and Sold to Goldfields for $667M in cash and operate Damang Divest non-core assets Sell Mupane Sold to Galane Gold in a $34M transaction that are not a strategic fit Eliminated hedges Confirm real va
Slide 5: Strategic Focus
5 Strategic Focus SHAREHOLDER VALUE Potential IPO ~25% IAMGOLD ~55% Strategic Buyer ~20% Increasing return on capital
Slide 6: Gold Production Forecast
6 Gold Production Forecast Gold production attributable to IAMGOLD 1,120-1,220 Discontinued 997 940-1,000 operations 965 939 967 865-940 76 Westwood 326 239 000s oz 311 214 Essakane 122 263 392 Rosebel 315 395 Sadiola & 260 Yatela 238 224 Mouska 178 131 118 109 '07 '08 '09 '10 '11E '12E '13E Sustain
Slide 7: Gold Price Assumptions
7 3 Year Average Annual Operating Cash Flow Forecast 3 Year Average Annual Operating Cash Flow Forecast* (2012-2014) $ 1,800/oz $1.0 Billion/year Gold Price Assumptions $ 1,500/oz $0.8 Billion/year $ 1,200/oz $0.5 Billion/year *Notes: Includes Niobec, with price assumption average of $42/kg. Inc
Slide 8: Well Positioned to Fund Growth Initiatives
8 Well Positioned to Fund Growth Initiatives Gold Operations Niobium Operation $2.7B @ $1,800/oz $2.1B @ $1,500/oz IPO $0.9B Strategic Sale $0.8B Westwood $0.2B $1.2B Essakane @ $1,200/oz $840M Credit Facility $0.2B Sadiola Expansion $0.2B Cash Flow Sustaining Capex (2012E-2014E) Rosebel $0.1B $40M
Slide 9: Shifting towards a more balanced geographic profile
9 Shifting towards a more balanced geographic profile Operating Cash Flow by Region (Continuing Gold Operations and Niobium Operation) 13% North America 36%* 58 % 29% 40% North America Africa Africa South America 24% South America IAMGOLD has: Experience in different political environments Knowledge
Slide 10: Considerable Financial Flexibility
10 Considerable Financial Flexibility $1.7B available at end of Q3 1,670 Significant positive cash flow 350 Credit Facility available 1 100 Marketable 2 $1B shelf prospectus Securities $ Millions 1,220 Cash & Bullion 3 Zero debt at Q3'11 1 Available undrawn portion, credit facility expiring April 20
Slide 11: Expanding and Optimizing Existing Mines
11 Expanding and Optimizing Existing Mines Essakane More Cost Effective Leverages existing infrastructure Economies of scale Zero to minimal permitting issues Westwood No acquisition costs Sadiola Faster Execution EXPAND AND OPTIMIZE Established operating team Known metallurgy Rosebel Lower Risk Hig
Slide 12: Rosebel Gold Mine
12 Rosebel Gold Mine Suriname 4th expansion in 7 years Large land area still to be explored Reserves outpace depletion On-going discussions with Government to unlock further value IAMGOLD: 95% Ownership P&P Reserves1 (000 oz) 5,892 Attributable production M&I Resources2 (000 oz) 7,531 395 360-380 In
Slide 13: Reserves Outpace Depletion at Rosebel
13 Reserves Outpace Depletion at Rosebel 10 Cumulative Ounces Mined and Reserves (100% basis) 8 1.2 Moz reserve growth in 2010 (after depletion) 94,000+ m drilling Koolhoven and Royal Hill extensions Million ounces 6 6.2 5.1 4 3.7 3.8 3.4 3.2 2 2.5 2.4 2.7 2.1 1.4 1.7 1.1 0.4 0.7 .02 0 '03 '04 '05 '
Slide 14: Current Rosebel Expansion
14 Current Rosebel Expansion Based on 2010 SRDP Base Case Expansion Mine Life 18 years 11 years Accelerated Processing Rate 12 Mtpa 12-14 Mtpa production declining to 6 Mtpa reduces costs 55 Mtpa Nominal Mining Rate declining to 35 Mtpa 70-75 Mtpa and brings Strip Ratio (Waste:Ore) 4.0 4.0 cash flow
Slide 15: Potential Rosebel Expansion
15 Potential Rosebel Expansion ROSEBEL Suriname Rosebel resources Non-IAMGOLD projects Areas being considered for next expansion: Charmagne West Charmagne Headley’s Reef West Charmagne Charmagne Merian Headley’s Reef Saramacca
Slide 16: Essakane Gold Mine
16 Essakane Gold Mine Brought into production by IAMGOLD development team Burkina Commenced production July „10 Faso Expansion feasibility study expected Q4‟11 Expansion construction expected to begin Q1‟12 IAMGOLD: 90% Ownership Attributable production 340-360 P&P Reserves1 (000 oz) 4,015 M&I Resou
Slide 17: Current Essakane Expansion
17 Current Essakane Expansion Based on 2010 SRDP Base Case Expansion Processing Rate Soft rock: 9 Mtpa first 3 yrs, then Soft rock: 9 Mtpa first 3 yrs, then Accelerated Hard rock: 5.4 Mtpa Hard rock: 10.8 Mtpa production 30 Mtpa 40 Mtpa Nominal Mining Rate declining to 14 Mtpa declining to 20 Mtpa r
Slide 18: Sadiola Gold Mine
18 Sadiola Gold Mine Produced > 7 Moz gold since 1996 Mali Operated as a joint venture with AngloGold Sulphide expansion feasibility study in final stages IAMGOLD: 41% Ownership Attributable production P&P Reserves1 (000 oz) 2,297 145-160 M&I Resources2 (000 oz) 3,481 Inferred Resources (000 oz) 991
Slide 19: Sadiola Sulphides Expansion Plan
19 Sadiola Sulphides Expansion Plan Based on Interim FS Base Case Expansion IAMGOLD initiated Mine Life 8 years 15 years the sulphide Processing Rate 4.6-5.0 Mtpa 7.5-8.5 Mtpa project which will Nominal Mining Rate 25-30 Mtpa 50-60 Mtpa increase the declining to 20 Mtpa throughput, Strip Ratio annua
Slide 20: Project Development Timelines
20 Project Development Timelines Rosebel 2011 2012 2013 2014 2015 Expansion Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Construction GRAVITY CIRCUIT Commissioning/ Production GRINDING Construction CIRCUIT Commissioning/ Production EXPANSION SRDP 2011 FUTURE Prefeasibility Essakane 20
Slide 21: Westwood Development Project
21 Westwood Development Project 2011 Expenditures $146M 82,000 m exploration drilling Complete ventilation raise boring Infill and step-out drilling LOM design review Quebec Cash costs IAMGOLD: 100% Ownership Indicated Resources1 269,000 oz Inferred Resources1 3,467,000 oz LOM Average Annual Product
Slide 22: Westwood Project Development Timeline
22 Westwood Project Development Timeline 2011 2012 2013 2014 2015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ventilation Shaft Waste Silo Doyon Mill refurbishment Shaft Sinking 1,560 2,000 m m Construction of Paste Backfill Plant Commissioning/ 120,000-160,000 ozs Production 3-4 yr
Slide 23: Niobec Niobium Mine
23 Niobec Niobium Mine Saguenay region has strong industrial base, sound infrastructure PEA study highlighted potential for increase in resources, which remain Quebec open ended Operated by IAMGOLD since 2006 REE potential IAMGOLD: 100% Ownership P&P Reserves1 (Mkg Nb2O5) 243.8 M&I Resources2 (Mkg N
Slide 24: Niobium: Rare Metal with Unique Properties
24 Niobium: Rare 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 25: Niobium Provides Significant Cost Benefits
25 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 26: Niobium Demand is Rapidly Growing
26 Niobium Demand is Rapidly Growing Ferroniobium Demand 145,000 Growing at 10% CAGR 2,000 125,000 1,800 FeNb consumption (tonnes) 105,000 1,600 Steel Production (Mt) 85,000 1,400 65,000 1,200 45,000 1,000 25,000 800 5,000 600 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '
Slide 27: Potential Value of Niobec Confirmed
27 Potential Value of Niobec Confirmed Preliminary Economic Assessment* (NI 43-101) Bulk Mining Methods Plan to convert underground mine to bulk mining 691% increase in M&I mineral resource to 1.93 Bkg (2010: 244 Mkg) Potential tripling of annual production to 15 Mkg (2010: 4.4 Mkg) Remaining mine l
Slide 28: Potential Funding Sources for Niobec Expansion
28 Potential Funding Sources for Niobec Expansion After-tax NAV of Niobec: $1.6B-$2.0B $830M-$840M Free Cash Flow (2011-2014) > Assuming Nb price $42-$45/kg > Assuming sale of 10-20% $ Millions Sale of 10-20% minority interest 3 Niobec credit facility Niobec IPO Expansion Capital Niobec expansion wi
Slide 29: Rare Earth Element Potential at Niobec
29 Rare Earth Element Potential at Niobec Rare earth elements > 4 hole drill program completed March 2011 > Elevated Light Rare Earths > Historic drill results confirmed > 18 additional holes drilled – assays pending > Preliminary Metallurgical test work shows 58-70% recovery Niobium exploration pot
Slide 30: Planned Capital Expenditures
30 Planned Capital Expenditures 2011 Capital Expenditure 380 383 25 51 25 54 217 5 $ Millions 259 153 185 92 29 23 92* 63 9 98 13 125 20 50 71 70 50 22 Essakane Westwood Sadiola Rosebel Niobec Other *Does not include $840M expansion 2011 2012 2013 2014 CAPEX related to Niobec expansion Significant i
Slide 31: Active Exploration Areas
Active Exploration Areas 2011 Exploration Budget Greenfields $51.1M $104M Brownfields $53.3M Mali Quebec Senegal Burkina Colombia Suriname Faso Peru Brazil Exploration Office Planned near-mine and greenfields drilling 550,000+ metres
Slide 32: 2011 Exploration: South America
32 2011 Exploration: South America Colombia Suriname ROSEBEL near-mine Colombia Seeking opportunities exploration to expand exploration ROSEBEL Charmagne Discovery portfolio 329,000 oz inferred resource at Quimsacocha 1.02 g/t grade Positive concept study completed Targeting conversion of inferred t
Slide 33: 2011 Greenfield Exploration: West Africa
33 2011 Greenfield Exploration: West Africa Siribaya JV 40,000 m diamond and RC drill program YATELA Essakane Targeting an 8-km long Senegal SADIOLA District scale land package mineralized corridor 8 regional satellite targets Siribaya JV Essakane 37,000 m core and RC drill Boto program Burkina Faso
Slide 34: 2011 Exploration: Canada
34 2011 Exploration: Canada MINE Development Project $2.7M Expensed Exploration Office 11,500 m drilling planned 3 key greenfields projects on major trends in the Abitibi Val d’Or NIOBEC Renewed focus on Westwood growth in Quebec- MOUSKA Ontario
Slide 35: Acquisition Criteria
35 Acquisition Criteria Canada West Production Development Africa South America Exploration ESTABLISHED PRESENCE 150,000+ oz of gold/yr VARIOUS STAGE > Regional continuity PROJECTS > Social and fiscal stability 2,000,000+ oz Reserves > Long-term prospectivity and opportunities Targeting growth in sh
Slide 36: Proven Acquisition Strategy
36 Proven Acquisition Strategy Acquisitions from 2003-2009 Essakane Cost of Capital Rosebel Acquisitions Spend Doyon/Mouska/Westwood $1.9B $1.1B Niobec Mupane Tarkwa & Damang Prospective exploration lands Asset Operating 2011 Analyst Consensus NAV of Assets acquired by IAMGOLD Sales Cash Flow $0.9B
Slide 37: Conduct Governed by Zero Harm Framework
37 Conduct Governed by Zero Harm Framework Highest standards in Health and Safety Minimizing Environmental Footprint Partnering with Host communities Highest standards of corporate social responsibility
Slide 38: Growth Strategy
38 Growth Strategy Extend and optimize existing mines Increase focus on mine specific cost reduction measures Pursue exploration plays Evaluate acquisition opportunities Surface full value of Niobec Focused on maximizing return on capital
Slide 39: Investment Highlights
39 Investment Highlights Diversified portfolio of long-life gold assets Proven operating, exploration and development expertise Unique niobium asset Demonstrated CSR leadership Return on capital driven growth strategy Strong balance sheet
Slide 40: Appendix
40 Appendix TSX: IMG NYSE: IAG
Slide 41: IAMGOLD's Mining Interests
41 IAMGOLD’s Mining Interests Q3‟11 Q3‟11 Q3‟11 Q3‟11 YTD Gold Geographic IAMGOLD YTD Operator Production Cash cost1 Production Mines Location Ownership Cash cost (000 oz) ($/oz) (000 oz) ($/oz) Rosebel IAMGOLD Suriname 95% 94 629 281 622 Burkina Essakane IAMGOLD 90% 86 535 243 513 Faso Doyon IAMGOL
Slide 42: Attributable Gold Reserves and Resources
42 Attributable Gold Reserves and Resources Proven and Probable Measured & Indicated Inferred Resources Reserves Resources1 18.1 16.5 Million ounces Million ounces 14.0 Million ounces 11.9 8.1 7.2 2009 2010 2009 2010 2009 2010 1M&I Resources include Reserves Reserves and Resources based on continuin
Slide 43: Niobium Reserves and Resources
43 Niobium Reserves and Resources Proven and Probable Measured & Indicated Inferred Resources Reserves Resources* 1,927.4 Contained Nb2O5 (MKg) Contained Nb2O5 (Mkg) Contained Nb2O5 (MKg) 1,240.4 243.8 243.8 316.3 181.3 181.3 219.1 2009 2010 2009 2010 PEA - 2011 2009 2010 PEA - 2011 1M&I Resources i
Slide 44: 2011 Guidance
44 2011 Guidance 2011 Guidance (000s ounces) Attributable gold production Rosebel 360-380 Essakane 340-360 Mouska 25-30 Mines owned and operated by IAMGOLD 725-770 Sadiola and Yatela 145-160 Total from continuing operations 870-930 Discontinued Operations 76 (Mupane, Tarkwa & Damang) Total Productio
Slide 45: Kalana Project, Mali: 2011 Exploration Budget - $7.9 M
45 Kalana Project, Mali: 2011 Exploration Budget - $7.9 M Kalako Kalanako West 26,500 m DD and 20,000 m RC drilling planned Kalana Mine Kalana Mining Permit (387 km2) + Kalako West (21 km²) Avnel - IMG Option Agreement (Aug 2009) Initiate resource modelling in 2012 Kalana Priority satellite targets
Slide 46: Siribaya Project, Mali: 2011 Exploration Budget - $4.1 M
46 Siribaya Project, Mali: 2011 Exploration Budget - $4.1 M Land Package 848 km2 Merrex-IMG Option Agreement IAMGOLD can earn 50% interest for C$10.5M spend over 3 years Boto Work Completed Zone 1B Regional geochemistry: gold Zone 1A anomalies coincident with major structural corridors Zone 1A & 1B
Slide 47: Management Team
47 Management Team Michael Donnelly Steve Letwin Senior Vice President, Exploration President & Chief Executive Officer Benjamin Little Senior Vice President, Corporate Affairs Denis Miville-Deschênes Gordon Stothart Senior Vice President, Project Development Executive Vice President & Chief Operati
Slide 48: Corporate Presentation
Corporate Presentation November 2011 401 Bay Street, Suite 3200 Toronto, ON M5H 2Y4 Canada 1-888-464-9999 www.iamgold.com 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 TSX: IMG NYSE: IAG