Iamgold Corporation · TSX:IMG
Iamgold — Q1 2020 Earnings Presentation
35 slides from Iamgold's earnings presentation, May 5, 2020
Slide 1: First quarter 2020 results
First quarter 2020 results May 5, 2020 – Conference Call TSX: IMG l NYSE: IAG
Slide 2: Management participants
Management participants • Gordon Stothart President & Chief Executive Officer • Carol Banducci Executive Vice President & Chief Financial Officer • Bruno Lemelin Senior Vice President, Operations and Projects • Craig MacDougall Senior Vice President, Exploration • Jeffery Snow SVP, Business Developm
Slide 3: 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 4: Technical information and qualified persons
Technical information and qualified persons The mineral resource estimates contained in this news release 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 review and approval of all
Slide 5: IAMGOLD – Operating from a Position of Strength
IAMGOLD – Operating from a Position of Strength Strong Balance Sheet Geographically Diverse Operations Effective Crisis Management Deep Bench Strength Collaborative Approach 5
Slide 6: IAMGOLD’s COVID-19 response
IAMGOLD’s COVID-19 response Zero Harm© is our commitment to continually strive to reach the highest standards in human health, minimize our impact on the environment, and work co-operatively with our host communities. • Activated cross functional Crisis Committees: • Site operations and combined ope
Slide 7: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG) In place since 2007 Recent highlights: Strong ESG practices • Triangle de l’Eau project: a Public-Private Partnership with Canadian government, the One Drop Foundation, and Cowater, bringing potable water to 200,000 people Zero Harm around the Essakane mine
Slide 8: Strengthening Our Team – Organizational Updates
Strengthening Our Team – Organizational Updates Appointments strengthen leadership, technical and stakeholder engagement talent on our Executive Leadership Team: • Bruno Lemelin, Senior Vice President - Operations and Projects • Oversight of all operational and project development activities across
Slide 9: 2020 production and cost guidance – updated
2020 production and cost guidance – updated REFLECTING COVID-19 IMPACTS ON PRODUCTION AND COSTS UPDATED GUIDANCE1 PRIOR GUIDANCE2 Essakane (000s oz) 350 – 370 365 – 385 Rosebel (000s oz) 250 – 270 245 – 265 Westwood (000s oz) 85 – 100 90 – 110 Total attributable production (000s oz) 685 – 740 700 –
Slide 10: 2020 capex outlook - updated
2020 capex outlook - updated UPDATED PRIOR GUIDANCE Non- Non- $millions Sustaining1 Sustaining2 Total3 Sustaining1 Sustaining2 Total3 Essakane $40 $80 $120 $40 $100 $140 Rosebel $60 $55 $115 $55 $60 $115 Westwood $25 $15 $40 $25 $25 $50 $125 $150 $275 $120 $185 $305 Côté Gold - $45 $45 - $35 $35 Bot
Slide 11: 2021 production and capital guidance under review
2021 production and capital guidance*under review HIGHER VOLUMES & GRADE AT ROSEBEL ♦ WESTWOOD RAMPS ♦ ESSAKANE PUSHBACKS OPEN UP ORE Full Year Guidance1 Essakane (000s oz) 355 – 385 Rosebel (000s oz) 305 – 335 Westwood (000s oz) 100 – 120 Total attributable production (000s oz) 760 – 840 Capital Ex
Slide 12: Catalysts - 2020 sets up improved profile for 2021
Catalysts - 2020 sets up improved profile for 2021 2019 2020 2021* ✓ Diahka-Siribaya Updated Resource o Westwood NI 43-101 o Westwood Expands Production ✓ Gosselin Zone Discovery at Côté o Saramacca Full Production o Rosebel Ramp with Saramacca ✓ Essakane CIL and Heap Leach o Essakane CIL Plant Opti
Slide 13: Financial review
Financial review Photo: Wärtsilä 13
Slide 14: Overview
Overview KEY NOTES • Highlights from the Quarter: • Strong gold margins and operating cash flows achieved. • Revenues negatively impacted by lower sales volumes. • Earnings impacted by embedded derivatives related to the Rosebel power purchase agreement and Senior Notes. • Prudent management of bala
Slide 15: Summary of first quarter 2020 financial results
Summary of first quarter 2020 financial results Q1 Q4 Q1 (In $ Millions, except per share amounts) 2020 2019 2019 Revenues1 $274.5 $293.4 $251.0 Cost of Sales $242.6 $252.3 $251.9 Gross profit $ 31.9 $ 41.1 $ (0.9) Adjusted net earnings (loss) 2,3 - from continuing operations $ (4.9) $ 3.8 $ (6.9) A
Slide 16: Maintaining a strong balance sheet
Maintaining a strong balance sheet LIQUIDITY WELL ABOVE $1 BILLION Cash and cash equivalents1 $795 M Short-term investments $ 7M Available credit facility $500 M $1,302 M Total Liquidity As at December 31, 2019 Senior Notes Outstanding Coupon: 7%; Maturity: April 15, 2025 Corp Rating: B1 (Moody’s) a
Slide 17: Leader among peers: leverage and liquidity
Leader among peers: leverage and liquidity Peer Leverage & Liquidity Comparables 3.3x 3x Debt / EBITDA (2020E) Net Debt / EBITDA (2020E) 2x 1.7x 1.6x 1.6x 1.6x 1.4x 1.4x 1.2x 1.0x 1.1x 1x 0.8x 0.8x 0.8x 0.5x 0.2x 0.3x Net Net 0.1x Net Cash Cash Cash – Centerra Alamos B2Gold IAMGOLD Eldorado Kinross
Slide 18: Operations review
Operations review 18
Slide 19: Focus on safety
Focus on safety HISTORICAL GLOBAL DART & TRI RATES PER 200,000 HOURS WORKED DART: 2020 TARGET – 0.57 2.40 TRI: 2020 TARGET – 0.94 1.98 1.81* 1.76* 1.53* 1.56 1.44* 1.44 1.18 1.13 1.06 1.06 1.00 0.93 0.95 0.85 0.87 0.68 0.66 0.65 0.53 0.53 0.51 0.30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2
Slide 20: Q1 2020 production & cost summary
Q1 2020 production & cost summary Attributable Cost of Sales1 Total Cash Costs2 AISC2 Production ($/oz sold) ($/oz produced) ($/oz sold) (000s oz) Essakane 84 970 909 1,054 Rosebel 64 1,114 1,042 1,248 Westwood 22 1,162 1,176 1,242 Total 170 1,054 993 1,230 1 Cost of sales, excluding depreciation, a
Slide 21: Essakane: impacted by mine sequencing, lower sales volumes
Essakane: impacted by mine sequencing, lower sales volumes Burkina Faso (90%) Q1 NOTES Q1 • Lower tonnes mined than plan due to lower utilization rates and sequencing Attributable gold production (oz) 84,000 • Lower sales as postponed at quarter-end due to global COVID-19 crisis TCC1 $909 COVID-19:
Slide 22: Rosebel: focus on pushbacks, access to Saramacca pit
Rosebel: focus on pushbacks, access to Saramacca pit Suriname (95%) Q1 NOTES Q1 • Royal Hill and Mayo ore drove grade higher than plan; reconciliation improved; Attributable gold production (oz) 64,000 • Supplemented throughput with lower grade stockpiles • CIC Plant - recovered 3,000 ozs at margina
Slide 23: Westwood: performance on target; outstanding crisis response
Westwood: performance on target; outstanding crisis response Quebec (100%) Q1 NOTES Q1 • Achieving production and cost targets ahead of COVID-19 Attributable gold production (oz) 22,000 COVID-19: TCC1 $1,176 • Care & maintenance Mar 25 – April 15 + 10 day ramp up AISC1 $1,242 2020 OUTLOOK 2020 Guida
Slide 24: Shovel Ready Projects: de-risking in Q1 with non-field activities
2 Shovel Ready Projects: de-risking in Q1 with non-field activities Boto Gold, Senegal Côté Gold, Ontario, Canada • Maintained our relationships with stakeholders • ~ 56% complete on detailed project engineering • Received the exploitation permit • Tailings facility • Optimized Project design • Firs
Slide 25: Exploration review
Exploration review 25
Slide 26: Comparison of industry reserves
Comparison of industry reserves 20 17.9M oz 16.7M oz 14.5M oz 15 11.3M oz 10.1M oz 8.6M oz 7.8M oz 10 512M oz 7.7M oz 87 422M oz 5 24 395M oz 19 78 365M oz 349M oz 60 75 328M oz 0 23 69 314M oz 17 26 65 286M oz 62 54 43 20 22 19 23 34 20 20 19 53 -5 156 33 21 31 22 15 119 26 26 22 108 24 107 100 78
Slide 27: Monster Lake & Nelligan
Monster Lake & Nelligan NELLIGAN (75% JV INTEREST) • 15 kilometres south of Monster Lake • Exercised option to increase undivided interest to 75% (from 51%), MONSTER LAKE (Au) following completion of NI 43-101 Technical Report • Completed initial resource estimate1, comprising approximately 97 milli
Slide 28: Exploration potential at Côté
Exploration potential at Côté GOSSELIN, YOUNG-SHANNON 1.5 KM NORTHEAST OF CÔTÉ Gosselin Drill Hole Highlights1 • GOS19-17: 342.5 metres grading 0.98 g/t Au • includes: 225.0 metres grading 1.34 g/t Au • GOS19-24: 412.0 metres grading 1.28 g/t Au • includes: 221.4 metres grading 1.47 g/t Au CONCEPTUA
Slide 29: Boto – Karita – Diakha-Siribaya
Boto – Karita – Diakha-Siribaya BOTO GOLD PROJECT, SENEGAL • Announced the receipt of the exploitation permit for an initial period of 20 years. • Completion of the completion of the Optimization Study1, which confirms robust project economics. DIAKHA-SIRIBAYA GOLD PROJECT, MALI • Resource ounces in
Slide 30: Pitangui (100%, Brazil)
Pitangui (100%, Brazil) RESOURCE • Approximately 110 kilometres northwest of the city of Belo Horizonte, in Minas Gerais State, Brazil. Tonnes Grade Contained Ounces • Banded iron formation hosted deposit (000) (g/t) (000 Au) Highlights • 25 km from Jaguar’s Turmalina mill • 52% of resource ounces c
Slide 31: Re-seeding the pipeline
Re-seeding the pipeline West Africa North America South America Fala/Fala E Saramacca >5 Moz Au Production >2 Moz Au <2 Moz Au Boto Côté Feasibility Study Brownfield Advanced Greenfield Greenfield Pre-feasibility Study Diakha-Siribaya Monster Lake Saõ Sebastiaõ Initial Resource / Gossey Nelligan Eas
Slide 32: IAMGOLD – building a cash flow pipeline
IAMGOLD – building a cash flow pipeline Our vision is to be the global leader in generating superior value for our stakeholders through accountable mining. CREATING DIVERSIFYING MAINTAINING ENSURING superior our a strong a robust stakeholder value portfolio balance sheet pipeline • Operational • Reg
Slide 33: Appendix
Appendix # IAMGOLD 33
Slide 34: Reducing input exposure through hedging
Reducing input exposure through hedging 2020 2021 2022 2023 Foreign Currency Canadian dollar contracts (millions of C$) 191 252 210 120 1 Rate range ($/C$) 1.30 - 1.3950 1.30 - 1.47 1.30 - 1.4750 1.30 - 1.4625 Hedge ratio 87% 81% 65% 36% 2 Commodities Brent oil contracts (barrels) 3 432 588 520 170
Slide 35: Indi Gopinathan, VP, Investor Relations & Corporate Communications
Indi Gopinathan VP, Investor Relations & Corporate Communications 416-360-4743