Iamgold Corporation · TSX:IMG
Iamgold — CIBC Whistler Institutional Investor Conference 2019
44 slides from Iamgold's conference presentation, Jan 23, 2019
Slide 1: Building a Cash Flow Pipeline
Saramacca Road Construction, Jan 2019 Building a Cash Flow Pipeline CIBC Whistler Institutional Investor Conference January 23-24, 2019 l TSX: IMG l NYSE: IAG l
Slide 2: Cautionary Statement
Cautionary Statement All information included in this presentation whether in narrative or chart form, 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 s
Slide 3: Building a Cash Flow Pipeline
Building a Cash Flow Pipeline • We are “building a cash flow pipeline” by: • Generating higher free cash flow through operational improvements and growth projects • Balancing geopolitical risk through diversity • Maintaining a strong Balance Sheet to support strategic plans • Ensuring a pipeline of
Slide 4: View on Strategy
View on Strategy • Our Vision is to be a global leader in generating superior value for our stakeholders through accountable mining. • In keeping with our Vision, and as fellow stakeholders, we will: • Engage with all of our stakeholders; • Continually evaluate strategy in light of market conditions
Slide 5: Generate Higher Free Cash Flows
Generate Higher Free Cash Flows Short-Cycle Capacity Long-Cycle Capacity Rosebel Gold Mine Côté Gold Project • Saramacca • Joint-venture agreement with • Mine optimization Sumitomo Metal Mining Co., Ltd. • Continued concession consolidation • Shorter Essakane Gold Mine Boto, Pitangui, • Longer Payba
Slide 6: Balance Geopolitical Risk
Balance Geopolitical Risk NORTH AMERICA Gold Mine Development Project Westwood Advanced Exploration IAMGOLD Attributable Côté Gold Measured and Indicated Nelligan Resources Monster Lake WEST AFRICA As at December 31, 2017 Essakane Sadiola 23% CENTRAL AMERICA South Boto Gold America 42% Eastern Boros
Slide 7: Maintain a Strong Balance Sheet
Maintain a Strong Balance Sheet Cash and cash equivalents $615 M Short-term investments $119 M Available credit facility1 $500 M Total Liquidity $1,234 M As at Dec 31, 2018 IN ADDITION: On January 15, 2019, IMG entered into a forward gold sale arrangement to receive $170 million in exchange for deli
Slide 8: Ensure a Pipeline of Projects
Ensure a Pipeline of Projects 2018 H1 2019 H2 2019 2020 2021 Executed Catalysts $170 Million Gold Saramacca Full Saramacca Gold District Consolidation Saramacca production Côté production Prepay Agreement Production Broklokono Exploration Rights Acquired (Q1) Saramacca Maiden Reserve Declaration (Q3
Slide 9: 2018 Operating Results Achieve Guidance
2018 Operating Results Achieve Guidance Attributable gold production of 882koz; near high end of guidance of 850koz – 900koz Q4’18 production of 231koz Attributable gold sales of 872koz Total cash costs1 expected at near the high end of guidance of $750/oz to $800/oz All-in sustaining cost
Slide 10: 2019 Production and Cost Guidance
2019 Production and Cost Guidance Current Guidance1 Essakane (000s oz) 375 – 390 Rosebel (000s oz) 315 – 330 Westwood (000s oz) 100 – 120 Total owner-operated production (000s oz) 790 – 840 Joint ventures (000s oz) 20 – 30 Total attributable production (000s oz) 810 – 870 Cost of sales 2 ($/oz) $790
Slide 11: 2019 Capex Outlook
2019 Capex Outlook Current Guidance $millions Non- Sustaining1 Sustaining Total Essakane $75 $50 $125 Rosebel $70 $75 $145 Westwood $15 $30 $45 Owner-operator $160 $155 $315 Corporate and Development Projects2 – $20 $20 Total owner-operator3 $160 $175 $335 Sadiola (Joint Venture) – – – Total (±5%)4
Slide 12: Projects Support Cash Flow Pipeline
Projects Support Cash Flow Pipeline Boto Gold Côté Gold Investment Advancing decision to be Westwood towards made development Ramping up production Future Growth Essakane Options Unlocking potential through Further brownfield CIL optimization, expansion and Rosebel Heap Leaching, exploration project
Slide 13: Building a Cash Flow Pipeline
Building a Cash Flow Pipeline • Higher free cash flows: • Operational improvements and potential development projects • 1.2-1.3 Moz/year production at AISC below $850/oz • Balanced geopolitical risk: • Africa, North America, South America • Strong Balance Sheet: • Balance sheet targets set to withst
Slide 14: Operations
Operations 13
Slide 15: Rosebel's Path to Sustaining Growth
Rosebel’s Path to Sustaining Growth 2020 – 2033 2019 Continued consolidation 2018 Saramacca production 2017 51% reserve start increase with 69% reserve declaration at Regional increase through Saramacca exploration mine plan optimization Drilling Saramacca- CREATING A NEW GOLD Saramacca initial reso
Slide 16: Rosebel – Significant Transformational Achievements
Rosebel – Significant Transformational Achievements Suriname (95%) 51% Increase in Total Reserves • 1.6Moz increase in reserves to 4.7Moz1 when compared to December 31, Extends LOM to 2033, 2017, including 1.0Moz declared at the Saramacca Deposit including Saramacca • Potential for further increase
Slide 17: Rosebel – Consolidated Prospective Land Packages
Rosebel – Consolidated Prospective Land Packages Brokolonko Brokolonko Saramacca Trend +20km 16
Slide 18: Essakane's Path to Sustaining Growth
Essakane’s Path to Sustaining Growth 2021- 2030 2020 Heap Leaching at 2019 Potential further CIL end of CIL operations optimization 2018 Oxygen Plant Commissioned (~15Mtpa) Exploration upside with multiple satellite deposits Gossey resource 10-15km from mill estimate De-bottlenecking CIL (~13.5Mtpa)
Slide 19: Essakane – Driving Transformational Change
Essakane – Driving Transformational Change Burkina Faso (90%) CIL Optimization & Heap Leach • 39% increase in reserves based on PFS and higher grade intercepts1 • After encouraging drill results, refocusing Feasibility Study on CIL optimization Extended mine life with Heap Leach Facility planned aft
Slide 20: World's Largest Hybrid Solar/Thermal Plant
World’s Largest Hybrid Solar/Thermal Plant Commissioned in Q1’18 • 15MWp solar plant + 57MW thermal plant • Approximately 130,000 photovoltaic panels • Decreases fuel consumption by ~6 million litres per year • Reduces annual CO2 emissions by 18,500 tons Photo: Wärtsilä 19
Slide 21: Essakane – Regional Exploration Targets
Essakane – Regional Exploration Targets Brownfield Success • ~1 Moz of resources delineated at Falagountou West and East, 8 kilometres east of Essakane; evaluating potential to increase resources at both deposits • During Q4’18, completed approximately 4.2km RC and diamond drilling on the mine lease
Slide 22: Westwood's Path to Sustaining Growth
Westwood’s Path to Sustaining Growth 2020 – 2035 2020 Potential to extend LOM through exploration 2015-2019 Achieve Operating Rate Ramp-up Resource Conversion Ongoing performance optimization RAMPING UP PRODUCTION 21
Slide 23: Westwood – Ramping up to Full Production
Westwood – Ramping up to Full Production Quebec (100%) Ramping Up Continues • Production expected to be between 100,000 and 120,000 oz in 2019 with Achieve operating rate in production planned from three of the six designed mining blocks 2020; • Development of 180-West level – beginning block 3 prod
Slide 24: Development Pipeline
Development Pipeline 23
Slide 25: Track Record of Success on World Class Projects
Track Record of Success on World Class Projects • Project team has a proven track record on world class projects. • Collective experience in development, commissioning and delivery includes1: • Antamina Copper Mine, Peru. Owners: BHP, Glencore, Teck, Mitsubishi. • Polymetallic Open Pit (waste:ore 3.
Slide 26: Track Record of Success on IAMGOLD Projects
Track Record of Success on IAMGOLD Projects • History of Successful Builds – on time, on budget: • Essakane, 2009-2010. • Budget: $443 million. • 5% over budget. Delivered 6 months early. • Designed at 5.4Mtpa hard rock, built to accommodate 9Mtpa soft rock. • Actual Performance: ~11 Mtpa. • Essakan
Slide 27: Advancing One of Canada's Largest Undeveloped Gold Deposits
Côté Gold Development Project 2021 – 2038 2020 Production 2019 Construction Potential to 2018 Construction extend LOM 2017 FS yields decision expected H1’19 Begin pre-strip through exploration significantly PFS confirms low improved operating costs Regional project exploration and attractive returns
Slide 28: Côté Gold
Côté Gold Ontario (64.75%) Feasibility Results Demonstrate Economically IMG Viable Project1 Tonnes Grade Contained Contained Ounces • 23% increase in P&P Reserves and 24% increase in M&I Resources (millions) (g/t) (000) Ounces compared to the 2017 PFS (000) Extended Plan Further Enhances Project (10
Slide 29: De-risking Côté Gold: Funding Perspective
De-risking Côté Gold*: Funding Perspective *(pending construction decision) FUNDING FROM PARTNERSHIP AND PREPAY • Sumitomo buy in = $195 million • Sumitomo contribution for 30% = $345 million • Gold prepay for 150koz = $170 million (could be delivered from Côté) Total outside funding = $710 million
Slide 30: De-risking Côté Gold: Technical Perspective
De-risking Côté Gold*: Technical Perspective *(pending construction decision) • Engineering & Procurement: • 90% of first 5 years of ore from Proven Reserves and at First Quartile1 AISC <$650/oz; • Project engineering: overall design definition at 35%; • Extensive geotechnical evaluations completed;
Slide 31: Côté Gold – What Sets it Apart on Execution Risk?
Côté Gold – What Sets it Apart on Execution Risk? NOTABLE CONCERNS AT OTHER PROJECTS CÔTÉ PROJECT RISK MITIGATION Greenfield build risk Team has history and experience in greenfield builds, large and small. Engineering peer review Reviewed by partner Sumitomo, independent external experts. Insuffici
Slide 32: Boto Gold
Boto Gold Senegal (90%) IMG FS Delivers Robust Project Economics1 Tonnes Grade Contained Contained Ounces (000) (g/t) Ounces • Reserves increased by 36% to 1.9Moz; Indicated (000) (000) Resources increased by 29% to 2.5Moz Probable Reserves1 35,060 1.71 1,926 1,733 • After-tax NPV@5% increased by 15
Slide 33: Exploration – Re-seeding the Pipeline
Exploration – Re-seeding the Pipeline Falagountou Production Fala East 1 M ounce Au plus resource SSP Côté Feasibility Study Boto Gold <1 M ounce Au resource Saramacca Pre-feasibility Study Projects Pitangui-Saõ New Projects Sebastiaõ Scoping Siribaya-Diakha Monster Lake Overman Medium Term: Gossey
Slide 34: Appendix
Appendix 33
Slide 35: Hedging Summary – Reducing Input Exposure
Hedging Summary – Reducing Input Exposure As at November 29, 2018 2019 2020 2021 2022 2023 Foreign Currency Canadian dollars (millions of C$)1 60 Canadian dollar option contracts (millions of C$) 60 Rate range ($/C$) 1.25 – 1.39 Hedge ratio 34% Euros (millions of €)2 100 Euro option contracts (milli
Slide 36: Rosebel's Strengthened Profile
Rosebel’s Strengthened Profile • Total Reserves increase of 51% to 4.7Moz, including 1.0Moz from Saramacca • Extend LOM by 5 years to 2033 • Peak Mining Capacity of 105.0Mtpa, including 30.0Mtpa from Saramacca • 15 year mine life expected with mill throughput of 10.9Mtpa, including 1.9Mtpa from Sara
Slide 37: Saramacca Progressing Towards H2'19 Production
Saramacca Progressing Towards H2’19 Production • Detailed engineering work related to infrastructure and production of the haul road Contained Attributable3 nearly complete Tonnes Grade Ounces Contained (000) (g/t) (000 Au) Ounces (000 Au) • Completed long haul truck selection: 80t Haulmax 3900 Prov
Slide 38: Sadiola - Potential to Revitalize Mine
Sadiola - Potential to Revitalize Mine Mali (41%) Sadiola Sulphide Project • Although committed to the Project, should an agreement not be reached with the Government of Mali, the operation will be Strip Ratio 3.9 placed on suspended operations once stockpiles depleted midway through 2019. Max. Thro
Slide 39: Loma Larga – Optionality via Strategic Investment
Loma Larga – Optionality via Strategic Investment Ecuador Project Overview • IAMGOLD owns ~36% of INV Metals (TSX:INV) FS Highlights1 • FS has robust economics with after-tax IRR of 24.7%, NPV@5% of US$356, payback of 2.6 years Mine Life 12 years • Proven and Probable Mineral Reserves of 2.2M oz of
Slide 40: Diakha-Siribaya
Diakha-Siribaya Mali (100%) • Located approximately 10km south along strike Effective Dec 31, 2017 Tonnes Grade Contained (Diakha & Zone 1B) (000) (g/t) ounces from the Boto Gold Project in Senegal RPA (000 Au) Measured & Indicated1 2,102 1.9 129 • Announced results from 2018 delineation drilling pr
Slide 41: Pitangui and Eastern Borosi
Pitangui Brazil (100%) • Banded iron formation hosted deposit Tonnes Grade Contained Ounces (000) (g/t) (000 Au) • 25kms from Jaguar’s Turmalina mill Inferred 1 5,365 4.7 819 • Completed approx. 10km diamond drilling during 2018 to expand São Sebastião deposit • Focused on extending mineralization b
Slide 42: Monster Lake and Nelligan
Monster Lake Quebec (50% JV Interest) Ownership: 50:50 JV with TomaGold, with option to earn up to a Tonnes Grade Contained Ounces 100% Basis (000) (g/t) (000 Au) 75% interest 1 Inferred 1,110 12.1 433 • Results of 2018 winter drilling program2: › 40.94 g/t Au over 5.3m › 72.17 g/t Au over 2.6m › 39
Slide 43: Technical Information and Qualified Persons
Technical Information and Qualified Persons 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 supervision of the prepara
Slide 44: Investor Relations Contacts
Indi Gopinathan Martin Dumont Investor Relations Lead Senior Analyst, Investor Relations T: 416-360-4743 T: 416-933-5783 l TSX: IMG l NYSE: IAG l
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