Iamgold Corporation · TSX:IMG
Iamgold — 15th Annual Bank of America Merrill Lynch Mining Conference (September 2009)
24 slides from Iamgold's conference presentation, Sep 10, 2009
Slide 1: Taking IAMGOLD to the Next Level
September 10, 2009 TAKING IAMGOLD TO THE NEXT LEVEL 15th Annual Bank of America Merrill Lynch Mining Conference Joseph F. Conway President & CEO
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: Superior Share Price Performance
3 IAMGOLD Superior Share Price Performance NYSE: IAG • Canadian based mid-tier gold mining TSX: IMG company focused in West Africa, Guiana Shares outstanding: 367 million Shield and Québec Market Capitalization:C$5.4billion IMG 52-week high:C$16.09 • 7 profitable gold operations on 3 continents IMG
Slide 4: Corporate Strategy
4 Corporate Strategy Focus on delivering superior stakeholder returns Grow Gold Production & Reserves • Successful development of existing projects • Aggressive exploration for organic growth • Accretive acquisitions Reduce Costs • Operations & development project optimization • Low cost acquisi
Slide 5: Significant Progress
5 Significant Progress 2009: Delivering Results Increased Guidance to 910,000 to 920,000 oz Rosebel Expansion & Improved Productivity Essakane Ahead of Schedule & Increased Reserves Essakane Accelerated Production Westwood Shaft Sinking & Increased Resources Niobec Mill Expansion & Paste Backfill Ag
Slide 6: Reserves Growth
6 Reserves Growth Continued Growth in Q1 2009 (millions ozs) 14 12.4 Moz 12 2.8 Moz Essakane acquisition 10 9.6 Moz 1.6 Moz Net 2.7 Moz 8.0 Moz addition addition 8 1.1 Moz depletion 6 4 2 0 2004 2005 2006 2007 2008 Q1 2009 * As at Dec. 31, 2008 includes Essakane property acquired Feb. 25, 2009
Slide 7: Historical Gold Production by Mine
7 Historical Gold Production by Mine Record Gold Production in 2008 (000’s Gold Ounces) 997,000 oz 1,000 800 Sleeping Giant Doyon Division 600 Rosebel 431,000 oz Mupane Damang 400 Tarkwa Yatela Sadiola 200 0 2004 2005 2006 2007 2008
Slide 8: Strong Financial Position
8 Strong Financial Position Positioned for Growth Operating Cash Flow Cash & Bullion1: $395 million ($ millions) Credit facility2: $84 million Funds Available: $479 million Well funded for existing operations & development 254 projects Base Shelf Prospectus: Provides financial flexibility for
Slide 9: 2009 Gold Production Guidance
9 2009 Gold Production Guidance Production by Region, by Mine 2009 Guidance Gold Production: 910,000 to 920,000 oz Cash Costs: $460 to $470 per oz Estimated Production by Region Estimated Production by Mine (k oz) DOYON QUÉBEC 102k oz 11% TARKWA 130k oz DAMANG ROSEBEL 39k oz AFRICA GUIANA SHIELD 49%
Slide 10: Gold Production Target Profile
10 Gold Production Target Profile* Projected organic growth from existing operations & development projects (000’s Gold Ounces) (Cash Cost Average $/oz) 1,400 500 1,200 480 Quimsacocha 1,000 460 Essakane Doyon/Westwood 800 440 Rosebel Mupane Damang 600 420 Tarkwa Yatela Sadiola 400 400 Costs *Assume
Slide 11: Capital Expenditure Estimates
11 Capital Expenditure Estimates Five Year Accumulated Cash Flow vs. Capital Needs • Cash flows do not include the ~$1.7B current cash, gold bullion (at market @$1,000/oz and available credit facility) of $479 million ~$1.4B ~$1.3B • Operational cash flow based on @$850/oz current operations (plus E
Slide 12: Operations: Focus, Discipline, Results
12 Operations FOCUS DISCIPLINE RESULTS Three Focus Areas: West Africa, Guiana Shield and Quebec 1 2 Doyon Division 3 4 7 Gold Mines Rosebel Mupane Niobec SURINAME CANADA BOTSWANA CANADA Niobec Niobium Mine 2009E 365k oz 2009E 102k oz 2009E 63k oz 2009E 4.2-4.4k t Nb 5 6 Sadiola Yatela MALI MALI
Slide 13: Rosebel Suriname
13 Rosebel SURINAME IAMGOLD’s Flagship Mine OPERATIONS • Rosebel is IAMGOLD’s flagship operation, currently providing around one third of the company’s gold production • Record 2008 Production of 315,000 oz • H1 2009 Production 187,000 oz on track with guidance • Acquisition of royalty reduced cos
Slide 14: Doyon Division Canada
14 Doyon Division CANADA Record Gold Production OPERATIONS • 2008 production 118,000 ounces • Acquisition of royalty reduced costs • H1 2009 Production of 55,000 oz on track with guidance IMG Ownership 100% 2009 OUTLOOK • Doyon mine originally scheduled to close in May 2009 Location Quebec – Cur
Slide 15: Mupane Botswana
15 Mupane BOTSWANA 2008 Change to owner mining reduced costs OPERATIONS • Record 2008 production 101,000 oz • 2008 transition from contractor mining to owner mining reduced cash costs by 33% to $367/oz • Hedge retired IMG Ownership 100% PROJECT • Assessing engineering & metallurgical options to
Slide 16: West African Joint Ventures
16 West African Joint Ventures SADIOLA YATELA TARKWA DAMANG IMG Ownership 38% 40% 18.9% 18.9% JV: Anglogold Ashanti JV: Anglogold Ashanti JV: Goldfields Ltd. JV: Goldfields Ltd. Location Mali Mali Ghana Ghana M&I Resources (oz)* 2,348,000 313,000 2,462,000 407,000 Inferred Resources (oz) (as at Dec.
Slide 17: Niobec Mine Quebec
17 Niobec Mine QUEBEC High Margin, Long Life Asset OPERATIONS • Continues to provide significant cash flow to fuel growth strategy (15-20% of overall Corporate operating cash flow) • 2008 Reserves increased 36%, Inferred Resources increased 72% • Operating margin continues to strengthen IMG Owners
Slide 18: Development Projects
18 Development Projects Filling the Pipeline 1 Essakane 22 Westwood 4 Advanced Stage BURKINA FASO CANADA Development Projects Aggressive Greenfields Exploration August 2010, Est. 315,000 oz Early 2013, Est. 200,000 oz 3 Quimsacocha ECUADOR 2 Est. 202,000 oz 4 1 Camp Caiman FRENCH GUIANA 4 3 Est.
Slide 19: Essakane Burkina Faso
19 Essakane BURKINA FASO Ahead of Schedule & On Budget OVERVIEW • IMG Ownership: 90% • Production within 12 months • Increased Reserves by 8% to 3.37 million oz (June 15, 2009) CONSTRUCTION UPDATE • Q2 2009 capex of $90 million • ISO 14001 certification recently renewed for exploration Location
Slide 20: Westwood Quebec
20 Westwood QUEBEC Long Life, Low Cost PROJECT OVERVIEW • Adjacent to Doyon mine • Inferred Resources increased by 9%, with a 31% increase in grade to 3.4 million oz at 11.4 g/t • Plus Indicated Resource of 28,000 oz in Zone 2-30 and 70,000 oz at Warrenmac • Utilizes Doyon Division 3,500 tonne per
Slide 21: Quimsacocha Ecuador
21 Quimsacocha ECUADOR Ready to Resume Development OVERVIEW • Large deposit located in southern Ecuador • Provides medium term production of over 200K oz per year UPDATE • Environmental permits approved • Awaiting permit from Ministry of Mines IMG Ownership 100% • New mining law ratified, not le
Slide 22: Greenfields Exploration
22 Greenfields Exploration Aggressive Organic Growth UPDATE • Q2 2009 expenditures $8.3 million • 2009 est. expenditures $34 million • Kalana Gold Project announcement • Q2 Exploration Update Released: – Sarakreek 4,000m drill program underway Region/Country Location – Minas Gerias 5,000m drill pr
Slide 23: Taking IAMGOLD to the Next Level
23 Taking IAMGOLD to the Next Level Continuing to Deliver Strong Operating Results Superior share price performance Improving operating results Margin Growth Strong financial position What’s next? Continued focus on disciplined growth Q3 Continued Development Project Optimization Q4 Sadiol
Slide 24: Head Office and Investor Relations
“….outstanding share price performance, continued solid operating results, a well funded pipeline and strong financial position combine to Head Office 401 Bay Street, Suite 3200, PO Box 153 make IAMGOLD an exceptional Toronto, Ontario, Canada M5H 2Y4 investment opportunity….” T 416 360 4710 F 416 36
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