Iamgold Corporation · TSX:IMG
Iamgold — CFA Society Presentation (April 2009)
26 slides from Iamgold's conference presentation, Apr 8, 2009
Slide 1: Taking IAMGOLD to the Next Level
April 8, 2009 TAKING IAMGOLD TO THE NEXT LEVEL CFA Society Presentation Carol Banducci, Chief Financial Officer Gordon Stothart, Chief Operating Officer
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: 2008 was an Excellent Year for IAMGOLD
3 IAMGOLD 2008 was an Excellent Year for IAMGOLD • Record gold production of 997,000 ounces, exceeded guidance by 8% • Record revenues of $870 million, up 28% • Record operating cash flow of $255 million, more than doubled • Reserves increased 55% to 12.4 million ounces* • Resources increased 16% to
Slide 4: Three Focus Areas: West Africa, Guyana Shield and Quebec
Three Focus Areas: 4 West Africa, Guyana Shield and Quebec NIOBEC DOYON DIVISION Westwood ROSEBEL YATELA Essakane Quimsacocha SADIOLA DAMANG TARKWA Camp Caiman 7 Gold Operations 4 Advanced Projects Niobec Niobium Mine MUPANE
Slide 5: 2008 Gold Production
5 2008 Gold Production Production by Mine, by Region 4% 12% 31% 7% 17% 12% 10% 7% 2008 Actual Total Production: 997,000 oz
Slide 6: Operations
Operations Focus, Discipline, Results • Rosebel • West African Joint Ventures • Mupane and Doyon Division • Niobec
Slide 7: IAMGOLD's Flagship Mine: Rosebel Mine, Suriname
7 IAMGOLD’s Flagship Mine Rosebel Mine, Suriname • 30% of IAMGOLD’s production • 2008 gold production up 20% from 2007 • Further production increases expected in 2009 and 2010 • Mill expansion and optimization increased throughput from 8.9 Mtpa to 10 Mtpa for 2009 and 11 Mt target IMG Ownership 95%
Slide 8: West African Joint Ventures
8 West African Joint Ventures SADIOLA TARKWA YATELA DAMANG 38% 18.9% 40% 18.9% IMG Ownership (JV: Anglogold (JV: Goldfields (JV: Anglogold (JV: Goldfields Ashanti) Ltd.) Ashanti) Ltd.) Location Mali Ghana Mali Ghana M&I Resources (oz)* 2,348,000 2,462,000 313,000 407,000 Inferred Resources (oz) (as
Slide 9: IAMGOLD Operations
9 IAMGOLD Operations MUPANE Doyon IMG Ownership 100% 100% Location Botswana Quebec M&I Resources (oz)* Inferred Resources (oz) 598, 000 453, 000 (as at Dec. 31, 2008) 25, 000 570,000 *M&I resources are inclusive of reserves 2008 Production (oz) 101,000 118,000 2009 (est.) 80,000 79,000 2008 Cash Cos
Slide 10: Niobec Mine, Quebec
10 Niobec Mine, Quebec High Margin, Long Life Asset • Significant cash flow contributor to fuel IAMGOLD’s growth strategy - 15-20% of corporate operating cash flow • Niobium used in specialty high strength steels • Price in 2009 as strong as 2008 due to niche market and oligopoly with IMG having ~ 7
Slide 11: Development Properties
Development Properties Filling The Production Pipeline • Essakane • Westwood • Quimsacocha • Camp Caiman
Slide 12: IAMGOLD's Strategic Presence in West Africa
12 IAMGOLD’s Strategic Presence in West Africa Operating Mine Development Project Exploration Project BOTO MERREX Reinforces IAMGOLD as a leading West Africa producer 20-year history in West Africa 495,000 oz of gold production from Africa in 2008 Creating an African Corporate Office
Slide 13: Development Projects: Essakane, Burkina Faso
13 Development Projects Essakane, Burkina Faso • Acquisition of Orezone Resources Inc. in an all share deal closed Feb 25th • Acquired reserves and resources at $45/oz and $35/oz respectively • Boosted IAMGOLD reserves by 30% • Fully permitted, under construction to provide near- term production • A
Slide 14: Essakane Project Summary
14 Essakane Project Summary Essakane June 2008 Feasibility Study - Life of Mine Plan Largest known gold deposit in Burkina Faso: Mill Throughput 7.5 5.4 Mtpa Life of Mine 9.4 years • Mining friendly Average Production 315,000 315,000oz / yr oz/yr • Politically stable democracy • Good infrastructur
Slide 15: Westwood, Quebec
15 Westwood, Quebec 14 kms Planned Exploration shaft Bousquet Historical production of 5 IMG Ownership 100% million ounces 2kms 10 m / 11.5 g/t Au Location Quebec, Canada 5 m / 23 g/t Au La Ronde M&I Resources (oz) 70,000 oz (0.3 million tonnes @ 6.9 g/t) Resources Resourc Inferred Resources (oz) •
Slide 16: Development Projects: Quimsacocha and Camp Caiman
16 Development Projects QUIMSACOCHA CAMP CAIMAN IMG Ownership 100% 100% Location Ecuador French Guiana 2,107,000 1,615,000 M&I Resources (oz)* 61,000 249,000 Inferred Resources (oz) (as at Dec. 31, 2008) M&I resources are inclusive of reserves Mine Life (years) (est.) 7.5 7 Annual Production (est.)
Slide 17: Reserve & Resource Growth
17 Reserve & Resource Growth 12.4 Moz P&P Reserve Proven & Probable Gold Reserves Growth • 55% increase to 12.4 million ounces 2.8 Moz • Essakane acqusition plus Rosebel and Essakane acquisition Quimsacocha main contributors • Reserve replacement achieved at all 9.6 Moz continuing IAMGOLD operations
Slide 18: Taking IAMGOLD to the Next Level: Conclusions
Taking IAMGOLD to the Next Level Conclusions • Corporate Strategy • Positioned for Market Revaluation • 5 year Objective • Strong Financial Position • Taking IAMGOLD to the Next Level
Slide 19: Corporate Strategy
19 Corporate Strategy Taking IAMGOLD to the Next Level Focusing on Growth through: • Expansions and continuous improvement at existing operations • Disciplined approach to maximize value from short life assets • Aggressive minesite and greenfields exploration • Applying disciplined political and cou
Slide 20: Positioned for a Market Revaluation: Cash Flow & Earnings
20 Positioned for a Market Revaluation Peer Comparison – Cash Flow & Earnings 2 0 0 9 E Operat ing Cash Flow Per $ 1 0 0 0 2 0 0 9 E Earnings Per $ 1 0 0 0 Invest ed $120 Invest ed $60 $55 $54 $103 $52 $100 $93 $95 $91 $50 $44 $79 $40 $38 $80 $40 $60 $30 $45 $47 $22 $20 $37 $40 $34 $20 $17 $20 $10 $
Slide 21: Positioned for a Market Revaluation: Reserves & Resources
21 Positioned for a Market Revaluation Peer Comparison – Reserves & Resources Mark et Cap / P& P Reserve Gold Ounce 1 Mark et Cap / M& I Resource Gold Ounce 1 $500 $459 $400 $450 $340 $403 $392 $350 $311 $400 $349 $300 $350 $258 $290 $231 $300 $250 $252 $250 $230 $185 $184 $200 $177 $198 $195 $200 $
Slide 22: Peer Company Comparison
22 Peer Company Comparison Price / Net Asset Value Historical Production 1.0 M = 2008 gold production (millions of ounces of gold) 2.1X 1.9X 1.9X 1.8X 1.8X 1.8X 1.7X 1.6X 1.6X 1.4X 1.2X 7.7 M 1.1X 1.8 M 5.2 M 0.9 M 4.0 M 0.7 M 0.7 M 1.0 M 0.3 M 0.4 M 0.3 M 0.15 M Source: public filings, IBES Market
Slide 23: 5 Year Objective: Double Production to 1.8 Million Ounces
23 5 Year Objective Double Production to 1.8 Million Ounces (000 oz) Taking IAMGOLD to the Next Level….. • Optimizing existing mines • Minesite and greenfields exploration Goal • Accretive acquisitions with strategic fit Acquisitions, Discoveries IAMGOLD has doubled gold production twice in the past
Slide 24: Strong Financial Position
24 Strong Financial Position • Well positioned with a strong balance sheet, $US millions Operating Cash Flow strong operating cash flow and existing credit $200 facility $150 • Cash & Bullion: $269 million 254.5 $100 (bullion at market value) 117.1 Credit facility $80 million $50 75.2 availability:
Slide 25: Taking IAMGOLD to the Next Level
25 Taking IAMGOLD to the Next Level • Expanded and experienced management team delivered positive results in 2008, achieving: • Gold production of almost one million ounces exceeding original guidance by 8% • Better cost control than most peers • Reserve increase of 55% • Successfully executed on st
Slide 26: April 8, 2009
AMGOLD CORPORATION Member of World Gold Council www.gold.org