Iamgold Corporation · TSX:IMG
Iamgold — European Gold Forum 2017
37 slides from Iamgold's conference presentation, Apr 4, 2017
Slide 1: IAMGOLD Investor Presentation, European Gold Forum
IAMGOLD Investor Presentation European Gold Forum April 4-7, 2017 CAROL BANDUCCI, EXECUTIVE VICE PRESIDENT & CHIEF FINANCIAL OFFICER Empowering People, Extraordinary Performance l TSX: IMG l NYSE: IAG l
Slide 2: Cautionary Statement
Cautionary Statement 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 statements of historical fact, const
Slide 3: Why Invest in IAMGOLD?
Why Invest in IAMGOLD? • Established gold producer with industry leading growth profile • Geographically diversified in three prolific gold producing regions • Optimizing all operations and lowering cost structure • Exploration program driving greenfield and brownfield growth • Balance sheet strengt
Slide 4: Our Vision
Our Vision Growing intermediate gold producer in established mining camps • Become a 1 million ounce gold producer by 2020 • 20-25% organic production growth • Lower AISC to $900 to $950 by 2020 • Targeting 10-15% reduction • Extending mine lives • Add 1 million ounces of Reserves and Resources by 2
Slide 5: Our Strategy
Our Strategy Five Pillars of IAMGOLD Strategy Optimizing all Focus on organic Position Prudent financial Industry leading operations growth company for management CSR performance opportunities long-term and flexibility growth • Focus on cost • Brownfield • Opportunistic • Maintain one of • Maintain
Slide 6: Optimizing Operations & Organic Growth Opportunities
Optimizing Operations & Organic Growth Opportunities
Slide 7: 2017 Production and Cost Guidance
2017 Production and Cost Guidance 2017 Guidance4 Essakane (000s oz.) 370 – 380 Rosebel (000s oz.) 295 – 305 Westwood (000s oz.) 115 – 125 Total owner-operated production (000s oz.) 780 – 810 Joint ventures (000s oz.) 65 – 75 Total attributable production (000s oz.) 845 – 885 Cost of sales1 ($/oz.) $
Slide 8: Essakane – Burkina Faso (90%)
Essakane – Burkina Faso (90%) 2016 Accomplishments 2016 Actuals • Commissioning of intensive leach reactor to further Attributable gold production 377,000 improve recoveries in Q2 AISC1 $977 • Geometallurgical study to improve gold recoveries from ore with high graphite content due in Q2 2017 Total
Slide 9: Rosebel – Suriname (95%)
Rosebel – Suriname (95%) 2016 Accomplishments 2016 Actuals • Major mill improvements: Attributable gold production 296,000 • Commissioning of secondary crusher to increase AISC1 $988 the grinding capacity of hard rock; • Installation of a power flex drive to increase torque Total Measured & Indicate
Slide 10: Westwood – Quebec (100%)
Westwood – Quebec (100%) 2016 Accomplishments 2016 Actuals • Completed nearly 25 km of underground development Attributable gold production 65,000 – averaging 74 meters per day • Underground development continuing to open access AISC1 $1,182 to new mining areas Total Measured & Indicated2 (000s) 1,1
Slide 11: Sadiola – Mali (41%)
Sadiola – Mali (41%) 2016 Accomplishments 2016 Actuals • Consistent year over year production in 2016 Attributable gold production 70,000 • Based on exploration success, extended mine life to AISC1 $1,042 2018 Total Measured & Indicated2 (000s) 2,911 @ 1.7 g/t • Alignment with partner AGA to move Su
Slide 12: Organic Growth Opportunities Across All Sites
Organic Growth Opportunities Across All Sites Essakane Rosebel Westwood Sadiola Falagoutou East Saramacca Development Sulphide & & & Expansion Exploration Saddle Zones Ramp up Project • Potential to add low-cost, • Saramacca - completing • 2017 exploration drill • IAMGOLD has secured near-surface, h
Slide 13: Long-Term Growth
IAMGOLD CORPORATION
Slide 14: Peer-Leading Development/Exploration Growth Pipeline
Peer-Leading Development/Exploration Growth Pipeline Côté Gold Boto Gold Pitangui Loma Larga • One of Canada’s • Expanding Malikoundi • Sao Sebastiao deposit • Project in Equador, largest undeveloped deposit in Senegal in Brazil is an advanced operated by INV gold projects • Evaluation studies green
Slide 15: Clear Criteria Supports Disciplined Approach to M&A
Clear Criteria Supports Disciplined Approach to M&A • Focus is on opportunistic M&A • Comfortable with M&A in jurisdictions where our presence is established • ie. North America, West Africa, Latin America • Projects/Mines capable of producing > 100,000 ounces per year; and adding 1 M ounces of M+I
Slide 16: Timeline For Growth Catalysts – 2017 to 2020
Timeline For Growth Catalysts – 2017 to 2020 2017 Sadiola Boto Gold • Sulphide • Resource update in Expansion Project Q4 and evaluation construction start studies to continue Côté Gold Essakane • PFS to be • Updated released summer 2017 and initiate FS resources at Falagountou satellite deposit 2018
Slide 17: Financial Management
Financial Management
Slide 18: Focused on Maintaining Financial Strength
Focused on Maintaining Financial Strength • One of the strongest balance sheets in the gold industry • Committed to prudent financial management • Sustainable cost reductions across all operations • Improving gold margins • Focused on the “3 C’s”: • Cash preservation/allocation • Cost reduction • Ca
Slide 19: Balance Sheet Strength – Long Term Debt Reduced; Strong Liquidity
Balance Sheet Strength – Long Term Debt Reduced; Strong Liquidity Position (as at December 31, 2016) Actual ($M) Pro Forma ($M) Cash, cash equivalents and Restricted Cash1 763 650 $250M 4-Year Senior Secured Revolving Credit Facility2 3 3 Old 6.75% Senior Unsecured Notes (due 2020) 489 -- New 7% Sen
Slide 20: Appendix
Appendix
Slide 21: Essakane – Falagountou East
Essakane – Falagountou East 20
Slide 22: Rosebel – Saramacca and Saddle Zones
Rosebel – Saramacca and Saddle Zones 21
Slide 23: Saramacca Agreement
Saramacca Agreement • Initial cash payment of US$200,000 on signing • Provided access to the property and historical data • Paid US$10 million and staged share issuance totaling 3.125 million • Shares released over 3 x 1 year intervals • Price Adjustment based on gold oz above 1.0 Moz outlined in MI
Slide 24: Saramacca – 2017 Delineation Campaign
Saramacca – 2017 Delineation Campaign • 2017 infill drilling program on-going; initial phase to complete 15,000 – 17,000 m of diamond drilling • Completed 6,008 m drilling YTD; results from initial 29 diamond drill holes received Highlights include*: › 60.5 m grading 40.91 g/t Au Including: 19.5 m g
Slide 25: Saramacca – Exploration Potential
Saramacca – Exploration Potential Saramacca Deposit Poorly tested Parallel IP Trend 24
Slide 26: Côté Gold – Organic Growth Optionality in World-Class Camp
Côté Gold – Organic Growth Optionality in World-Class Camp Project Highlights Project Economics and Key Parameters1, 2 • One of Canada’s largest undeveloped gold deposits Years 1–3 60 Mtpa • Located in a prolific mining region near Timmins, Mining Capacity Years 4–14 50 Mtpa Years 15–18 15 Mtpa Onta
Slide 27: Boto – Senegal (100% owned)
Boto – Senegal (100% owned) 2016 Accomplishments • Completed drilling at Malikoundi deposit targeting mineralization in footwall and along strike to the north • Initial drill results confirmed wider intervals of mineralization in footwall and extension of high grade mineralization along strike north
Slide 28: Pitangui – Brazil (100% owned)
Pitangui – Brazil (100% owned) 2016 Accomplishments • Diamond drilling confirmed the presence of favourable host iron formations along strike of the São Sebastião deposit • Permits obtained to allow drilling of the Pitangui Project shallow up-plunge extension of the deposit Iron Quadrangle: >40 Moz
Slide 29: Loma Larga – Optionality via Strategic Investment
Loma Larga – Optionality via Strategic Investment See INV news release dated July 14, 2016 Project Overview PFS Highlights* • IAMGOLD owns ~36% of INV Metals (TSX:INV) Mine Life ~11 years • PFS has robust economics with after-tax IRR of 26.3%, NPV@5% of US$300.9M, payback of 2.7 years Nameplate Capa
Slide 30: Monster Lake – Quebec (50-50 Joint Venture with TomaGold)
Monster Lake – Quebec (50-50 Joint Venture with TomaGold) 2016 Accomplishments • Diamond drilling targeted Monster Lake Shear Zone (“MLSZ”) which hosts the 325-Megane zone • Drilling is interpreted to have intersected a new, mineralized structure parallel to the MLSZ structure in an area located 200
Slide 31: Nelligan – Quebec (Earn-In Option with Vanstar Mining)
Nelligan – Quebec (Earn-In Option with Vanstar Mining) 2016 Accomplishments New Discovery – • Exploration drilling to test Induced Polarization (IP) anomalies have discovered new zones of North gold mineralization Sector • Intersections from new discovery area include: • Up to 35.8 metres grading 1.
Slide 32: Eastern Borosi – Nicaragua (Option Agreement with Calibre Mining)
Eastern Borosi – Nicaragua (Option Agreement with Calibre Mining) 2016 Accomplishments • Diamond drilling tested selected gold-silver vein systems • Encouraging drilling results reported from a number of vein systems including a new discovery at Veta Loca, which intersected 6.3 metres grading 10.2 g
Slide 33: Diakha-Siribaya – Mali
Diakha-Siribaya – Mali 2016 Accomplishments • Diamond and reverse circulation drilling: • Extend the deposit at depth below the current Permit limit resource pit shell; • Test for potential northern strike North 70m @1.55 g/t Au extension of Diakha deposit • Reported assay results included: Extensio
Slide 34: 2017 Capex Outlook
2017 Capex Outlook $millions Sustaining Non-Sustaining Total3 Essakane $85 $5 $90 Rosebel $65 $5 $70 Westwood $20 $45 $65 Owner-operator $170 $55 $225 Corporate and Development Projects – $10 $10 Total owner-operator $170 $65 $235 Sadiola (Joint Venture)1 $5 $10 $15 Total2 $175 $75 $250 (±5%) 1. Exp
Slide 35: Mineral Reserves and Resources
Mineral Reserves and Resources 2016 2015 Contained Gold (attributable) Contained Grade Contained Grade As of December 31st Ounces (g/t) Ounces (g/t) Total proven and probable mineral reserves1 7,798 1.4 7,690 1.3 Total measured and indicated mineral resources2,3 23,331 1.1 23,482 1.1 Total inferred
Slide 36: Technical Information and Qualified Person/Quality Control Notes
Technical Information and Qualified Person/Quality Control Notes The mineral resource estimates contained in this presentation 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 super
Slide 37: Empowering People, Extraordinary Performance
Bob Tait Laura Young Shae Frosst VP, Investor Relations Director, Investor Relations Associate, Investor Relations T: 416-360-4743 T: 416-933-4952 T: 416-933-4738 Empowering People, Extraordinary Performance l TSX: IMG l NYSE: IAG l