Iamgold Corporation · TSX:IMG
Iamgold — Investor Presentation (June 2011)
47 slides from Iamgold's investor presentation, June 2011
Slide 1: Brownfields Presentation
BROWNFIELDS PRESENTATION June, 2011 Gord Stothart Executive Vice President and Chief Operating Officer
Slide 2: Cautionary Statement
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 rega
Slide 3: Zero Harm
Zero Harm IAMGOLD’s Health, Safety and Sustainability performance ranks 3rd in top 60 Canadian companies Underpins all Brownfield Development Projects TSX: IMG NYSE: IAG 3
Slide 4: Evolving Strategic Priorities
Evolving Strategic Priorities Sadiola (41%) Exploration & Yatela (40%) Acquisitions Essakane Exploration & Rosebel Acquisitions Sadiola Investor Essakane (90%) Tarkwa Westwood Interest Rosebel (95%) Damang Westwood (100%) (35% - 45%) IAMGOLD Niobec (55% to 65%) Brownfield Greenfield Niobium Mine Nio
Slide 5: High Quality Existing Asset Base with Natural Extensions
High Quality Existing Asset Base with Natural Extensions Westwood, Canada Niobec, Canada (100% owned) (100% owned) Doyon Division, Canada (100% owned) Yatela, Mali (40% interest) Sadiola, Mali (41% interest) Essakane, Burkina Faso (90% interest) Rosebel, Suriname (95% owned) Quimsacocha, Ecuador Mup
Slide 6: Brownfield Development Makes Good Business Sense
Brownfield Development Makes Good Business Sense ► More Cost Effective No acquisition cost Leverages existing infrastructure Economies of scale Zero to minimal permitting issues ► Faster Execution IAMGOLD in control Established operating team ► Lower Risk Higher confidence in mineraliz
Slide 7: Project Development Team
Project Development Team Gordon Stothart Renaud Adams Mike Donnelly Denis Miville-Deschênes Executive Vice President & Senior Vice President, Senior Vice President, Senior Vice President, Chief Operating Officer Operations, Americas Exploration Project Development Key Performance Measure: ROCE 12% H
Slide 8: IMG-operated Mines have Lower Extraction Costs
IMG-operated Mines have Lower Extraction Costs ► We focus on managing unit operating costs ► Unit costs will rise in a bullish gold price environment as lower grades become economical to mine ► We keep strategic options open to adapt to changing variables IAMGOLD Mining Costs versus Regional Peers 5
Slide 9: Strong Balance Sheet Provides Financial Flexibility
Strong Balance Sheet Provides Financial Flexibility Funding Brownfield Growth Strong Balance Sheet (2011-2014) ($ Millions) $ Millions 4,000 Operating Cash Flow* 3,500 @$1800/oz 350 3,000 350 Capital @$1500/oz 2,500 Expenditures 332 350 621 350 2,000 411 Niobec** 1,500 281 228 243 @$1200/oz 1,000 We
Slide 10: Brownfield Development is Cost Effective
Brownfield Development is Cost Effective ► Ounces added at a low cost per ounce ► Rosebel ► District scale land packages at $10/oz Au historically Essakane and Rosebel ► Essakane New resource model Q3 ‘11 Early days on exploration program ► Westwood Steady growth and increased confidence Opp
Slide 11: Ongoing Asset Optimization
Ongoing Asset Optimization ► Unconstrained re-engineering of life-of-mine plan ► Parallel analysis of a matrix of development opportunities Resource scenarios Process scenarios ► Provides discipline to the operation ► Distinct from Continuous Improvement ► Proven successful approach for IAMGOLD
Slide 12: IAMGOLD's In-house Development and Construction Team
IAMGOLD’s In-house Development and Construction Team ► Alignment with business goals ► Proven expertise ► Reduces uncertainty ► Shortens development timeline ► Enables flexibility in allocating resources ► Facilitates sharing of best practices Provides a Significant Competitive Advantage TSX: IMG NY
Slide 13: Balanced Risk Profile
Balanced Risk Profile ► Experienced in different political environments ► In depth knowledge of multiple mining jurisdictions ► Strong partnerships with local governments ► Important contributor to local economies ► Actively managing risks Distribution of Operating Cash Flow by Region 2011 2014 * In
Slide 14: Rosebel Suriname
Rosebel Suriname IMG Ownership: 95% Attributable Reserves & Resources (oz) P&P Reserves1 5,892,000 M&I Resources2 7,531,000 Inferred Resources 609,000 Attributable production (oz) 2010 395,000 Cash Cost ($/oz) 2010 $484 Estimated Mine Life (years) 12+ 1 Reserves as at Dec. 31, 2010 2 M&I Resources i
Slide 15: Brownfield Development Drives Continued Growth
Brownfield Development Drives Continued Growth Net Reserve Growth Outpaces Cumulative ounces of Gold Mined 2010 Brownfield exploration program: ► 94,000+ m drilled 6.20 ► Important extensions to Koolhoven & Royal Hill ► 1.1 Moz added to reserves net of depletion 5.09 Millions 3.72 3.82 3.40 3.21 2.5
Slide 16: Rosebel Expansion Production
Current Rosebel Expansion *Based on 2010 SRDP Base Case Expansion Mine Life 18 Years 11 Years Accelerated production Processing Rate 12 Mtpa declining to 6 Mtpa 12-14 Mtpa reduces fixed costs Nominal Mining Rate 55 Mtpa declining to 35 Mtpa 70-75 Mtpa and brings cash flow Strip Ratio (Waste:Ore) 4.0
Slide 17: Rosebel SRDP 2011
Rosebel SRDP 2011 Based on ► Expanded resource ► Higher gold price ► New economic model ► Agreement with Suriname government Status ► Assessment reported completed in July’11 ► Final decision on strategy in Q3’11 ► Feasibility study planned for Q3’11-Q2’12 Reserve/resource update ► Charmagne Delin
Slide 18: Essakane Burkina Faso
Essakane BURKINA FASO IMG Ownership: 90% Attributable Reserves & Resources (oz) P&P Reserves1 4,015,000 M&I Resources2 4,351,000 Inferred Resources 1,503,000 Attributable production (oz) 2010 122,000 LOM(E) 315,000 Cash Cost ($/oz) 2010 $429 Estimated Mine Life (years) 12+ 1 Reserves as at Dec. 31,
Slide 19: Essakane Expansion
Current Essakane Expansion Based on 2010 SRDP Expanded Original Concept Study Concept Study Feasibility Base Case Expansion Case Mine Life 15 years 21 years 14 years Accelerated Processing Rate 9 Mtpa (soft rock) first 3 yrs, 9 Mtpa (soft rock) first 3 yrs, 9 Mtpa (soft rock) first 3 yrs, production
Slide 20: Sadiola Mali
Sadiola MALI Sadiola Sulphide Project IMG Ownership: 41% JV Partner: AngloGold Ashanti (41%) Attributable Reserves & Resources (oz) P&P Reserves1 2,297,000 M&I Resources2 3,481,000 Inferred Resources 991,000 Attributable production (oz) 2010 118,000 Cash Cost ($/oz) 2010 $653 1 Reserves as at Dec. 3
Slide 21: Sadiola Expansion Plan
Sadiola Expansion Plan Base Case Expansion Mine Life 8 Years 15 Years Processing Rate 4.6-5.0 Mtpa 7.5-8.5 Mtpa (after expansion) Nominal Mining Rate 25-30 Mtpa 50-60 Mtpa declining to 20 Mtpa Strip Ratio (Waste:Ore) 4.5 3.4 Annual Gold Production 300-325 koz declining to 250-275 koz 350-450 koz (af
Slide 22: Denis Miville-Deschênes
Denis Miville-Deschênes Senior Vice President Project Development
Slide 23: Westwood Canada
Westwood CANADA IMG Ownership: 100% Resources (oz) Indicated Resources1 269,000 Inferred Resources1 3,467,000 Estimated annual production (oz) LOM average 186,000 Cash Cost ($/oz) LOM average2 $358 Estimated Mine Life (years) 16 1 Indicated and Inferred Resources as at Dec. 31, 2010 2 Based on gold
Slide 24: Development of Westwood
Development of Westwood Production start - 2013 Q1’11 - Expenditures $27.5M Shaft sinking began Jul. ‘09 ► Shaft sinking to 1,157 m ► Underground development 2,106 m of lateral and vertical excavation ► Significant infrastructure preparation and construction completed ► On track for 2013 start-up 77
Slide 25: Westwood Mineralization
Westwood Mineralization ► Long-life, low risk asset ► Metallurgy well understood ► Minimum development costs ► Open at depth and along strike ► Leverage for further regional expansion TSX: IMG NYSE: IAG 25
Slide 26: Westwood Ore Body Animation
Westwood Ore Body Animation TSX: IMG NYSE: IAG 26
Slide 27: Niobec: Long Life, High Margin Producer
Niobec: Long Life, High Margin Producer Niobec Consistent Operating Results $/kg Mkg $40 1.6 $35 1.4 $30 1.2 $25 1.0 $20 0.8 $15 0.6 $10 0.4 $5 0.2 $0 0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 ‘09 ‘10 ‘11 Cost ($/kg sold) Margin ($/kg sold) Production (Mkg Nb) ► ~ 9% share of global niobium market ► Over 30 ye
Slide 28: Independent Technical Report Confirms Potential Value of Niobec
Independent Technical Report Confirms Potential Value of Niobec Preliminary Economic Assessment (NI 43-101 Compliant) ► 691% increase in M&I mineral resource to 1.93 Bkg ► Potential increase in annual production to 15 Mkg ► Remaining mine life 40+ yrs at triple current production ► Potential for > 5
Slide 29: Niobec Monetization Plan
Niobec Monetization Plan ► Sell 10 – 20% to a strategic buyer ► Partial spin-off / IPO; IAMGOLD retains over 50% Most leverage to Niobium in capital markets TSX: IMG NYSE: IAG 29
Slide 30: Planned Capital Expenditures
Planned Capital Expenditures 25 191 54 132 millions $ 92 23 146 139 38 98 95 13 20 13 39 5 16 22 4 15 Essakane Westwood Sadiola Rosebel Niobec Mupane Other 2011 2012 2013 TSX: IMG NYSE: IAG 30
Slide 31: Project Timelines
Project 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 Construction GRINDING CIRCUIT Commissioning/ Production SRDP Feasibility Essakane 2011 2012 2013 2014 2015 Expansion Q1 Q2 Q
Slide 32: Westwood Canada – Project Timeline
Westwood CANADA – Project 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 Hydrostatic Plug to Doyon Doyon Mill refurbishment 1,560 2,000 Shaft Sinking m m Construction of Paste Backfill Plant Commissioning/ Full Production Pr
Slide 33: Gold Production Profile
Gold Production Profile 3-Year Attributable Production Profile of IAMGOLD-Operated Mines 000 ounces 1,000 900 800 380-400 700 370-390 600 310-330 Essakane 122 Rosebel 500 Westwood 400 360-380 Mouska Mupane 300 395 360-380 395-410 200 130-150 100 33 25-30 57 55-60 30-35 40-45 15-25 0 2010 Actual 2011
Slide 34: Mike Donnelly, Exploration Highlights
Mike Donnelly Senior Vice President Exploration Exploration Highlights
Slide 35: Rosebel Exploration
Rosebel Exploration J-Zone 2010 Greenfield exploration focused on Ore Bodies Koolhoven J-Zone Pay Caro & E. Pay Caro Charmagne Discovery: Koolhoven Rosebel ► Aggressive exploration program Pay Caro & E. Pay Caro Royal Hill 10,387 m of core drilling in 76 holes Rosebel Roma Royal Hill ► 329 koz inf
Slide 36: Koemboe Prospect near Rosebel
Koemboe Prospect near Rosebel ► 10 kilometres south of Rosebel infrastructure ► Mapping revealed small outcrops in a large area of thick alluvial cover ► Quartz vein mineralization and host rocks similar to southern Rosebel mine trend ► Trench results: Mineralized shear vein - plan Mineralized shear
Slide 37: Koemboe Drilling Results
Koemboe Drilling Results DDH Drilling late 2010 ► Nine holes (1,203m) drilled to date BG10-05: ► Mineralized quartz vein 1.65m @ 2.91 g/t BG10-01: systems intersected 3.0m @ 1.75 g/t RC Drilling BG10-02: ► Identified bedrock 6.0m @ 9.18 g/t 1.5m @ 7.34 g/t anomalies beneath 1.9m @ 2.23 g/t alluvial
Slide 38: IAMGOLD Exploration in West Africa - 2011
IAMGOLD Exploration in West Africa - 2011 ► $25.9M Greenfields Exploration* ► 173,000m drilling in 2011 ► >20 years exploration experience and know how in West Africa ► Aggregate land position of 3,020 km2 ► Sadiola - Yatela $15M planned (capitalized and MALI expensed) Sadiola-Yatela Essakane SENE
Slide 39: Essakane Exploration
Essakane Exploration EMZ north extension EMZ East Dump Au≥ 117 ppb (in soils) West Dump Lay down Offices Air Strip Falagountou TSF EMZ South extension TSX: IMG NYSE: IAG 39
Slide 40: Essakane Mining Lease - 2011 Targets & Results
Essakane Mining Lease - 2011 Targets & Results EMZ north extension (exploration) Gorouol Target Lao Target Falagountou Resource Drilling Falagountou North Trend (exploration) EMZ Falagountou Resource Drilling Gourare Target EMZ Trend ► IP Infill aircore programs on satellite targets EMZ south extens
Slide 41: EMZ North Extension near Essakane
EMZ North Extension near Essakane 2010-2011 Drill Program: ► Compilation of 2009/2010 EDD0337: 3m 1.02g/t from 331.5 results to finalize EMZ geological model EDD0338: 3m 1.39g/t from 222.5m ► Data provided to Resource EDD0335: 10.5m 0.41g/t from 275m Development for modeling EDD0334: 6m 2.54g/t from
Slide 42: EMZ South Extension near Essakane
EMZ South Extension near Essakane 2010-2011 Drill Program: ERC1888: 2m @ 0.65g/t from1m ► 2011 DDH program completed – 5m @ 0.88g/t from 9m 14 holes for 3,374.5 m ► Objective: Improve geological understanding and assess the resource potential on wide-spaced drill fences (800m) ► Most holes intersect
Slide 43: Essakane Regional Exploration
Essakane Regional Exploration 1,383 km2 of prospective lands Takabangou ► Budget - US$4M expensed and US$12M capitalized ► Exploration Tin Taradat 50.0 km infill and delineation drilling Tin Zoubaratan 51.1 km DD and RC Bom Kodjele exploration drilling 34.5 km Air Core drilling over sand cover
Slide 44: Essakane Exploration Known Satellite Targets
Essakane Exploration Known Satellite Targets Takabangouc - 3,718 m Historic RC and TKC0975: 6m @ 5.12g/t Au Diamond Drilling TKC0965: 5m @ 3.54g/t Au Tin Taradat - 1,460 m TTC1699: 2m @ 1.35g/t Au Tin Zoubaratan - 726 m Gossey - 6,732 m TZC1629: 4m @ 0.86g/t Au GRC0980: 12m @ 1.01g/t Au GRC0982: 31m
Slide 45: Essakane Regional Exploration - 2011 Objectives
Essakane Regional Exploration - 2011 Objectives Tin Zoubaratan Historical results - Gossey ► Complete regional Aircore (6,732 m): Gossey GRC0980: 12m @ 1.01g/t Au drilling on 400 x 100m grids, GRC0982: 31m @ 1.10g/t Au reducing to 200 x 50m grids in GRC0985: 17m @ 3.94g/t Au Lao Gountouré 2 anomalou
Slide 46: Investment Highlights
Investment Highlights ► Aggressive, balanced growth agenda ► Cost effective ► Low technical risk ► Well managed political risk ► Faster execution ► High return on investment ► Proven development expertise ► Substantial exploration potential TSX: IMG NYSE: IAG 46
Slide 47: Contacts
Contacts: 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 IAMGOLD Corporation 410 Bay Street, Suite 3200 Toronto, ON M5H 2Y4 Canada E: info@iamgold.com