Iamgold Corporation · TSX:IMG
Iamgold — Investor Presentation (April 2012)
38 slides from Iamgold's investor presentation, Apr 18, 2012
Slide 1: Maximizing Returns for Investors
Maximizing Returns for Investors April 18, 2012 Gordon Stothart Executive Vice President & Chief Operating Officer TSX: IMG NYSE: IAG
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: IAMGOLD's Platform – High Quality, Long-Life Assets
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 signif
Slide 4: The Transformation of IAMGOLD - Operations
The Transformation of IAMGOLD - Operations 2010’s Transformed Focus on core IAMGOLD IAMGOLD assets we own and operate to 8 Gold Assets Sold Tarkwa & 5 Gold Assets improve Rosebel Sadiola Damang interests productivity and Rosebel Sadiola Essakane Yatela and Mupane in 2011 capital Essakane Yatela Mo
Slide 5: The Transformation of IAMGOLD - Financials
The Transformation of IAMGOLD - Financials 2010’s Transformed Strengthen IAMGOLD IAMGOLD balance sheet to maximize $271M: Cash & Cash Cash balances $1,052M: Cash & Cash financial Equivalents enhanced through Equivalents flexibility $141M: Gold Bullion at sale of non-strategic $211M: Gold Bullion a
Slide 6: Gold Production Forecast
Gold Production Forecast Gold production attributable to IAMGOLD 1,000-1,100 1,000-1,100 939 967 972 76 840-910 Discontinued operations 239 337 Essakane (90%) 214 Rosebel (95%) Sadiola (41%) & Yatela (40%) 000s oz 122 Mouska 392 395 385 224 178 150 109 33 24 '09 '10 '11 '12E '13E '14E Sustaining ann
Slide 7: Planned Capital Expenditures for Gold Operations
Planned Capital Expenditures for Gold Operations 2012 Capital Expenditure 790 Essakane › Additional water storage pond and river diversion › Additional power generation for hard ore Rosebel › Crushing & grinding circuit expansion, resource development › $24M sustaining capital 330 580 › Includes $34
Slide 8: Essakane Update
Essakane Update 2011 Achievements Capital expenditures of $104.5M Attributable production of 337,000 ozs Detailed economic study to expand mine capacity completed Jan.’12 Constructed additional bulk water storage pond Grade Contained Tonnes to mitigate risk of future water shortage As at December 31
Slide 9: Essakane Exploration
Essakane Exploration 210,000+ m of RC and DD drilling planned in 2012 Focus of the drilling program will be split between: a resource definition program at Falagountou An in-fill program at Essakane north 9
Slide 10: Rosebel Update
Rosebel Update 2011 Achievements Capital expenditures of $73M Attributable production of 385,000 ozs Announced mine expansion project Signed Heads of Agreement with Gov’t of Suriname to expand and incorporate satellite resources Attributable Tonnes Grade Contained As at December 31, 2011 (millions)
Slide 11: Future Expansion Potential at Rosebel is Significant
Future Expansion Potential at Rosebel is Significant ROSEBEL Suriname Rosebel resources Areas being considered for next expansion: Charmagne West Charmagne Headley’s Reef Announced Heads of Agreement with Government of Suriname on Dec. 21’11 to support significant expansion at Rosebel Agreement in p
Slide 12: Sadiola/Yatela Update
Sadiola/Yatela Update 2011 Achievements Capital expenditures of $23.2M Attributable production of 121,000 ozs $34M dividend to IAMGOLD Sadiola Sulphide feasibility study completed, awaiting approval by joint venture partner Permits in place to begin construction Attributable Tonnes Grade Contained A
Slide 13: Westwood Update
Westwood Update 2011 Achievements Grade Contained Tonnes Project and exploration expenditures of $134M Classification (g/t Au Au (millions) undiluted) (000s oz) Completion of: fire detection system, new pump Indicated Mineral Resource1 house, waste silo 0.2 8.6 60 (Warrenmac) Commencement of ground
Slide 14: Funding for Growth Initiatives
Funding for Growth Initiatives Gold Operations $2.5B @ $2,000/oz $2.0B $1.8B @ $1,700/oz $0.6B Essakane $1.7B Rosebel @ $1,500/oz $0.6B Westwood $0.3B Sadiola $0.3B Capital Expenditures Operating Cash Flow1 $42M (2012E-2014E) (2012E-2014E) 1Operating Cash Flow net of Corporate G&A and Exploration 14
Slide 15: Niobium Provides Significant Benefits to Steel Industry
Niobium Provides Significant Benefits to Steel Industry 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 steel 15
Slide 16: Niobec Update
Niobec Update Key Metrics of the Niobec Expansion Pre-Feasibility Study under the Block Cave Scenario 2011 Achievements Tonnes Grade Contained Nb2O5 Capital expenditures of $61.3M Classification (millions) (%Nb2O5) (million kgs) Positive results from pre-feasibility study on Probable Reserves 419.2
Slide 17: Funding for Niobec Expansion
Funding for Niobec Expansion Niobium Operation IPO $976M Strategic Sale Credit Facility Cash Flow (2013E-2016E) Capital Expenditures Funding (2013E-2016E) Sources Expansion Fully Self Funded 17
Slide 18: Rare Earth Inferred Resource: 467 Million Tonnes
Rare Earth Inferred Resource: 467 Million Tonnes Rare earth element (REE) zone Grade 1.65% Total Rare Earth Oxides (TREO) 7.7 Bkg TREO 98% Light REEs, including › Cerium (47.9%) › Lanthanum (24.5%) Shaft › Neodymium (18.4%) 2% Heavy REEs Potential development would be self-funded Niobec mine Scoping
Slide 19: Speed to Market Advantage
Speed to Market Advantage Rare Earth Element Zone Adjacent to Niobec St-Honoré N NIOBEC Mining friendly jurisdiction Saguenay Port Excellent community relations Rail Line Very competitive hydro power rates (~$0.045 per kWh) Existing road and rail QUEBEC infrastructure Close proximity to deep water
Slide 20: 2012 Exploration Program
2012 Exploration Program 2012 Exploration Budget Greenfields $54M $131M Brownfields $77M Mali Quebec Senegal Burkina Colombia Suriname Faso Peru Brazil 20 projects various stages Planned drilling: 670 km (core and RC drilling across 20 early to late stage exploration projects and the Exploration Off
Slide 21: Strong Balance Sheet
Strong Balance Sheet Financial Position $2.0B available 2,013 2 2 250 Niobec Significant positive cash flow facility 1 500 Available $1B shelf prospectus $millions credit 211 Bullion Zero debt Cash 1,052 at Q4'11 1Increased to $500M Feb.’12 2New Niobec facility established Feb.‘12 21
Slide 22: Proven Acquisition Strategy
Proven Acquisition Strategy Acquisitions from 2003-2009 Track Record of Building Value Essakane Rosebel Cost of Capital Doyon/Mouska/Westwood Acquisitions Spend Niobec Mupane $1.9B $1.5B Tarkwa & Damang Prospective exploration lands Asset Operating 2011 Analyst Consensus NAV of Assets acquired by IA
Slide 23: Dividends have increased 317% since December 2010
Dividends have increased 317% since December 2010 Dividends paid per Share $0.30 $0.25 $0.25 $0.20 $0.20 $ US $0.15 $0.10 $0.08 $0.06 $0.05 $- Previous Jan 14 2011 Jul 20 2011 Jan 5 2012 First Date Payable Growing dividends while investing in growth 23
Slide 24: Conduct Governed by Zero Harm Framework
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 24
Slide 25: Growth Strategy
Growth Strategy Expand and optimize existing mines Increase productivity Pursue exploration plays Evaluate acquisition opportunities Surface full value of Niobec Exploit rare earth potential Focused on maximizing return on capital 25
Slide 26: Appendix
Appendix TSX: IMG NYSE: IAG
Slide 27: Rare Earths are Integral to a Wide Range of Fast Growing Markets
Rare Earths are Integral to a Wide Range of Fast Growing Markets REO Usage by Industry (2010E) Phosphorous 6% Other Glass 4% Additives 6% Magnets Auto 25% Catalysts 7% Metallurgy, excl. batteries 9% Fluid Cracking Catalysts Polishing 15% Powder 14% Battery Alloy 14% Demand for REEs Growing at 9-15%
Slide 28: 2012 Greenfield Exploration: West Africa
2012 Greenfield Exploration: West Africa Essakane Continued evaluation of near-mine satellite prospects Oxide targets prioritized 92,000 m diamond and RC drill program YATELA 35,000 m air-core drill program SADIOLA Senegal Essakane Siribaya JV (50% IAMGOLD) Boto Mali Burkina Faso 60,000 m diamond an
Slide 29: Kalana Project, Mali: 2012 Exploration Program
Kalana Project, Mali: 2012 Exploration Program Kalako Kalanako West Kalana Mining Permit (387 km2) + Kalako West (21 km²) Avnel - IMG Option Agreement (Aug 2009) Kalana Mine $11.2 M exploration budget Ténintoumanina 20,000 m DD and 40,000 m RC drilling planned Kalana Complete initial resource estima
Slide 30: Siribaya Project, Mali: 2012 Exploration Program
Siribaya Project, Mali: 2012 Exploration Program Land Package 848 km2 Siribaya Maiden Resource Merrex - IAMGOLD Option > Indicated: 308 Koz @ 2.39 g/t Au Agreement > Inferred: 70 Koz @ 2.29 g/t Au IAMGOLD has earned 50% interest by spending C$10.5M over 3 years Zone 1B 2012 Exploration Zone 1A $5.9
Slide 31: 2012 Exploration: South America
2012 Exploration: South America Colombia Suriname Near-Mine Continue to assess Suriname Aggressively test extensions to business development Colombia ROSEBEL known mineralised trends opportunities Assess resource potential of Field evaluation of Quimsacocha Koemboe prospect priority regional targets
Slide 32: 2011 Acquisition of Exploration Interests in Colombia
2011 Acquisition of Exploration Interests in Colombia Recent acquisitions of interest in companies active in Colombia: Bellhaven Copper & Gold Superior grade Au-Cu porphyry A1.5 Moz Aueq Inferred resource in La Cantera deposit A second discovery in the Middle Zone Multiple untested magnetic anomalie
Slide 33: 2012 Exploration: Canada
2012 Exploration: Canada Niobec MINE Complete diamond drilling campaign to Development Project determine lateral limits of niobium Exploration Office mineralization Resource definition drilling on REE Zone Commence Scoping Studies on REE deposit Quebec Exploration Advance exploration on the followin
Slide 34: 2011 Reserves and Resources
2011 Reserves and Resources Tonnes Grade Attributable Contained Ounces GOLD OPERATIONS (000s) (g/t) (000 oz) As at December 31, 2011 Proven & Probable Reserves 413,927 1.3 13,300 Measured & Indicated Resources1 590,594 1.3 18,198 Inferred Resources 95,157 2.4 5,789 Tonnes Grade Nb2O5 Contained Nb2O5
Slide 35: Notes regarding reserves and resources
Notes regarding reserves and resources Cautionary Note to Investors Concerning Estimates of Measured and Indicated Resources This presentation uses the terms "measured resources" and "indicated resources". We advise investors that while those terms are recognized and required by Canadian regulations
Slide 36: 2012 Guidance
2012 Guidance 2012 Guidance (000s ounces) Attributable gold production Rosebel 370-395 Essakane 320-345 Mines owned and operated by IAMGOLD 690-740 Sadiola and Yatela 150-170 Total Production 840-910 Cash Costs ($/oz) $670-695 Niobium Production (MKg) 4.6-5.1 Niobium Operating Margin ($/kg) $15-17 /
Slide 37: Management Team
Management Team Bob Carreau Senior Vice President, Health, Safety & Sustainability Steve Letwin President & Chief Executive Officer Michael Donnelly Senior Vice President, Exploration Benjamin Little Senior Vice President, Corporate Affairs Gordon Stothart Denis Miville-Deschênes Executive Vice Pres
Slide 38: Maximizing Returns for Investors
Maximizing Returns for Investors April 18, 2012 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 N