Iamgold Corporation · TSX:IMG
Iamgold — Corporate Update (June 2015)
62 slides from Iamgold's corporate update, Jun 3, 2015
Slide 1: CIBC Westwood Mine Tour
CIBC Westwood Mine Tour June 3, 2015 TSX: IMG NYSE: IAG
Slide 2: Cautionary Statement on Forward-Looking Information
Cautionary Statement on Forward-Looking Information All information included in this presentation, 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 state
Slide 3: Agenda
Agenda Westwood introduction and history Westwood geology Ground stability Mining Metallurgy and Process 3
Slide 4: Westwood Introduction
Westwood Introduction Gordon Stothart Sylvain Lehoux TSX: IMG NYSE: IAG 4
Slide 5: IAMGOLD's Gold Assets
IAMGOLD’s Gold Assets Four Operating Gold Mines: 2015 Production Guidance 820k – 860k oz. 5
Slide 6: 2015 Production and Cost Guidance
2015 Production and Cost Guidance1 Guidance Rosebel (000s oz.) 290 – 300 Essakane (000s oz.) 360 – 370 gold production Attributable Westwood (000s oz.) 110 – 130 Total owner-operator production (000s oz.) 760 – 800 Joint ventures (000s oz.) 60 Total attributable production (000s oz.) 820 – 860 Total
Slide 7: 2015 Capital Expenditure Outlook
2015 Capital Expenditure Outlook Development/ ($ millions) Sustaining1 Expansion Total (Non-sustaining) Rosebel 70 10 80 Essakane 55 5 60 Westwood 30 50 80 Total gold segments 155 65 220 Côté Gold - 5 5 Total consolidated 155 70 225 Joint ventures 5 - 5 Total (±10%) 160 70 230 1 Includes capitalized
Slide 8: Project Comparisons in West Africa, Europe and the Americas
Project Comparisons in West Africa, Europe and the Americas 20 exploration Brucejack Westwood 11 g/t Au Yaramoko 10 Monster >12 g/t Au Grade Au (g/t) – Logarithmic Scale Ellipse = 75% of deposits Major axis = 1.1 g/t Au 5 exploration Minor axis = 2.25 Moz Pitangu i 4.9 g/t Au Morelos Fekola Hounde H
Slide 9: Westwood Face Sample: > 100 ounces per tonne
Westwood Face Sample: > 100 ounces per tonne 9
Slide 10: Project History (Doyon and Westwood)
Project History (Doyon and Westwood) 2008 2009 2010 2011 2012 Project Shaft sinking Surface U/G U/G 2007 acceleration startup (519 m) construction development development 2006 1st scoping • U/G Development • Head frame, hoist mostly done • Shaft sinking • Shaft sinking 2013 study shows 2014 • Engine
Slide 11: Westwood – Canada
Westwood – Canada 40 1200 High-grade, low-cost underground gold mine with an 35 estimated 20 year mine life 1000 30 › Avg. resource grade ~10g/t Au 800 25 Commercial production July 1, 2014 (000s oz.) 20 35 35 600 15 22 400 Q1 performance 10 › Production light as expected due to mine 5 200 seq
Slide 12: Quarterly DART Results 2006 – 2015
Quarterly DART Results 2006 – 2015 25 20 15 1st quarter 2nd quarter 3rd quarter 10 4th quarter Quebec mining average 5 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 13
Slide 13: Westwood – Production and Cost Profile 2015-2019
Westwood – Production and Cost Profile 2015-2019 250 1,200 200 1,000 Westwood to ramp up to LOM level of production in 800 2019 150 Total cash costs and AISC expected to trend 000s oz. $/oz. 600 downwards as production ramps up 100 400 Gradual increase in production allows for required undergr
Slide 14: Westwood Geology
Westwood Geology Ronald G Leber TSX: IMG NYSE: IAG 15
Slide 15: Location
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Slide 16: Location
Location 2,799 hectares Westwood Mouska Mic Mac Mooshla A/B Doyon Warrenmac Ellison Bousquet Bousquet La Ronde Penna La Ronde 1 2 1 Shaft 2 14 kms 17
Slide 17: Westwood Project geological history
Westwood Project geological history Westwood M+I 1.65 Mt @ 11.2 g/t 0.595 Moz Au Bousquet 2- Mouska Bousquet 1 Dumagami LaRonde Penna 2.44 Mt @ 13 g/t Doyon Inferred: 22.7 Mt 17.6 Mt 71 Mt @ 3.9 g/t 1 Moz Au 34.1 Mt @ 5.45 g/t 9.73 Mt @ 10.9 g/t @ 3.5 g/t @ 7.5 g/t 9 Moz Au (+ Cu) 6.0 Moz Au 3.4 Moz
Slide 18: Geology and Mineralization
Geology and Mineralization Doyon-Bousquet - LaRonde Mining Camp Upper greenschist / lower amphibolite Bousquet Fm. : 2699-2696 Ma From Mercier-Langevin et al. (2012) 19
Slide 19: Location
Location Doyon Mine Westwood Mine Warrenmac discovery outcrop 3 20
Slide 20: Westwood Geology: Level Plan View
Westwood Geology: Level 084 Plan View 21
Slide 21: Westwood Geology: Cross-Section
Westwood Geology: Cross-Section 22
Slide 22: After addition of drilling the deposit has significantly changed
21 000 m DDrilling 458 000 m DDrilling After addition of 437,000m drilled the deposit has significantly changed 23
Slide 23: DDrilling (April 2015)
458 000 m DDrilling 638 763 m DDdrilling (April 2015) 24
Slide 24: 28 mineralized ore veins
28 mineralized ore veins 135 mineralized ore veins 25
Slide 25: 135 mineralized ore veins
135 mineralized ore veins 167 mineralized ore veins 26
Slide 26: 25y – 6M Oz
Doyon Mine Westwood 25y – 6M Oz 20 year potential 27
Slide 27: 2014 Reserves and Resources
2014 Reserves and Resources 31 December, 2014 RESOURCES – DEC. 31, 2014 (INCLUDING MEASURED, INDICATED AND INFERRED; 0% DILUTION, 100% RECUPERATION) CATEGORIES Tons Grade_Au Grams_Au Ounces_Au Measured 199 000 11.7 2 333 000 75 000 Indicated 1 455 000 11.1 16 174 000 520 000 Inferred 9 730 000 10.9
Slide 28: Geological resources evolution
Geological resources evolution 29
Slide 29: Ground Stability
Ground Stability Christian Juteau Émilie Williams TSX: IMG NYSE: IAG 30
Slide 30: Mining in Quebec
Mining in Quebec • We are experienced operating underground mines. Our people have more than 20 years experience operating underground mines – Doyon, Mouska, Niobec. Many of those workers at Doyon and Mouska now work at Westwood. It is common to modify mining methods to adapt to ground conditions wh
Slide 31: January 22nd 2015
January 22nd 2015 • Seismic Event: 12:55 PM Magnitude 2.1 Richter • Rock fall 104-6 • Damages to the floor level 104-8 • 3 miners trapped for 6 hours 32
Slide 32: Level 104-06
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Slide 33: Rockburst Location – 104-06
Rockburst Location – 104-06 34
Slide 34: January 22nd 2015 Rockburst – Takeaways
January 22nd 2015 Rockburst – Takeaways • Water management is of critical importance Presentation to all employees • Geotechnical investigation in progress • Changes to the mine design going forward • Upgrade of seismic network in progress Increased information on seismic mechanisms to be available
Slide 35: May 26th 2015 Rockburst
May 26th 2015 Rockburst • Two significant events from 3:28 – 3:38 AM Level 104-6 2.7 Richter Level 104-3 2.3 Richter • Fall of Ground on five sub-levels in 104 horizon • 9 miners trapped, 8 of them for 18 hours • No injuries • Safe approach to rescue • We continue to assess clean up costs and mitiga
Slide 36: May 26th 2015 Rockburst – Current Status
May 26th 2015 Rockburst – Current Status • Affected areas under temporary halt; further development plan to be determined • Underground operations have resumed, except the localized area directly affected by the fall of ground on May 26, 2015 • We have options to mitigate risk in the future, investi
Slide 37: Mining
Mining Christian Juteau Émilie Williams TSX: IMG NYSE: IAG 38
Slide 38: Westwood Working Faces
Westwood Working Faces Current mining is concentrated on Sector 1 Production ramp-up strategy is to increase development allowing us to operate in more than 2 sectors concurrently Mining of multiple sectors allows for increased operating flexibility Blending ore from multiple lenses in multi
Slide 39: Westwood Development Performance – Average Advance
Westwood Development Performance – Average Advance Meters / Day / Crew 10 9.2 8.8 8.8 Exceptional improvement 9 8.7 8.4 8 in 2014 quarter-over- quarter in average 7 advance meters/day Tonnage and grade Average Meters/Day 6 5.7 reconciliation to date has been positive 5 4.2 Underground developm
Slide 40: Typical Production Stope – Plan View
Typical Production Stope – Plan View 41
Slide 41: Typical Production Stope – Longitudinal
Typical Production Stope – Longitudinal 42
Slide 42: Typical Production Stope – Section
Typical Production Stope – Section 43
Slide 43: Westwood Team
Westwood Team • 2015 Action Plan includes several projects designed to improve communication and develop a working culture aligned with values and objectives • Key Focus Items: Continuous Improvement, Efficiency and Diligence. • Initiatives in progress: Development of KPI communication system; Deplo
Slide 44: Improvement Targets – Safety
Improvement Targets – Safety Area of Improvement Plan Site Security Electronic chip policy Increased security at refinery Increased security for explosives Health Application non-smoking policy Hygiene Heat Management Plan Hygiene Action Plan Joint HSS Committee Improve efficiency Communication Pres
Slide 45: Improvement Targets – Operations
Improvement Targets – Operations Area of Improvement Plan Cycle time WW-10 zone (30% Development of hybrid approach to production budget – 6 months delay in ore development (BLADe) start-up) Seismicity Development of water management plan Analysis of seismic trends; upgrade of seismic network Less a
Slide 46: Improvement Targets – Operations
Improvement Targets – Operations Area of Improvement Plan Backfill Productivity below Plan Improvements mill and backfill plant (delays in cycle time) Portable CRF plant Ore Handling/Hoisting Development of additional raises Modifications to existing facility Equipment Cost/Availability Improved pla
Slide 47: Improvement Targets – Development
Improvement Targets – Development • Development performance has stabilized at approximately 8 m/d/jumbo • Schedule changes in Q1 to account for fewer development headings Currently 5 jumbo teams on continuous schedule (Operating Sector – Blocks 1-2) • Production bonus revised • Development objective
Slide 48: Improvement Target – Production Cycle Optimisation
Improvement Target – Production Cycle Optimisation • The measurement and analysis will focus on the following: 1. Engineering process 2. Transfer of information from engineering to drillers through supervisors 3. Process standardization 4. Clarification and understanding of certain tasks 5. Immediac
Slide 49: Ore Handling Network
Ore Handling Network 2016 2015 50
Slide 50: Improvement Target – Cemented Rockfill
Improvement Target – Cemented Rockfill • Alternative method for stope backfilling • Allows reuse of waste underground • Plan B in case of problem with the paste fill network • The concept is to have a portable plant that can be used where needed • Now in testing 51
Slide 51: Mechanical Services – Equipment Availability
Mechanical Services – Equipment Availability 91.4 91 89.5 88.9 89 87.9 86.7 87 86.1 86 86 85 84.4 82.9 83 81.6 81.6 81.5 81.3 81 79 77 75 2013 2014 2015 Bolters Trucks Scooptrams Drills Scissors 52
Slide 52: Mechanical Services – Mobile Equipment cost/hr
Mechanical Services – Mobile Equipment cost/hr 180 160 155 140 130 123 120 97 100 80 68 66 66 56 58 60 50 45 40 33 20 2013 2014 2015 Bolters Trucks Scoops Scissors 53
Slide 53: Improvement Targets – Labour and Efficiency
Improvement Targets – Labour and Efficiency Area of Improvement Plan Employee Accountability Revision of Production Bonus Annual objectives (staff) on Values Identification of 20% - PACT Absenteeism Rigorous management Bonus calculation Workforce Restricted hiring Increased pre-screening Contractor
Slide 54: Metallurgy and Process
Metallurgy and Process Gilles Landry Marc-Olivier Lacombe TSX: IMG NYSE: IAG 55
Slide 55: Metallurgy and Process
Metallurgy and Process • Plant presentation • General Operation Parameters • Operational Improvements 56
Slide 56: Plant Presentation - History
Plant Presentation - History • In the early 1970s, La Mine Doyon first sent its ore to Noranda’s Horne smelter as flux • It later sent its ore to East Malartic Mill • Decision to build a mill for La Mine Doyon made in 1981 • Start-up of the original Doyon Mill in November 1982 with a capacity of 1 1
Slide 57: Plant Presentation - Mill Flowsheet
Plant Presentation - Mill Flowsheet 58
Slide 58: General Operation Parameters
General Operation Parameters Availability • Throughput 100% Current: 800 000 t/y 95% Current Max: 900 000 t/y 90% 85% Potential Max: 1 200 000 t/y 80% • Availability Target: 95.0 % Recovery Actual (YTD): 94.2 % 98% 97% • Recovery 96% 95% Target: 96.0 % 94% 93% Actual (YTD): 95.9 % 92% 59
Slide 59: Operational Improvements – Paste Backfill Plant
Operational Improvements – Paste Backfill Plant t/h Paste Backfill Plant Throughput • Throughput increase 90 80 Around 50 t/h in 2014 70 Current average of 80 t/h 60 Daily peak of 100 t/h 50 40 2015/01 2015/02 2015/03 2015/04 2015/05 Slag • Reagent consumption kg/t Reagent Consumption Cement 40 Slag
Slide 60: Improvement Targets – Paste Backfill
Improvement Targets – Paste Backfill • Completed: Increased % solids of feed to backfill plant Improved operation of the 10-m thickener at backfill plant Improvements to flocculant dosages Improved humidity control at disk filters (cake) Inspection and maintenance schedule • In progress: Testing of
Slide 61: Operational Improvements – Reagent Consumption
Operational Improvements – Reagent Consumption • Over $225k in reagent cost reduction YTD 2015 • Significantly lower than budget consumption for cyanide, lime, and SO2 62
Slide 62: Investor Relations
Investor Relations info@iamgold.com Bob Tait Laura Young Penelope Talbot-Kelly VP, Investor Relations Director, Investor Relations Analyst, Investor Relations T: 416-360-4743 T: 416-933-4952 T: 416-933-4738 TSX: IMG NYSE: IAG