Iamgold Corporation · TSX:IMG
Iamgold — JP Morgan 2019 Global High Yield & Leveraged Finance Conference
48 slides from Iamgold's conference presentation, Feb 25, 2019
Slide 1: JP Morgan 2019 Global High Yield & Leveraged Finance Conference
Saramacca Road Construction, Jan 2019 JP Morgan 2019 Global High Yield & Leveraged Finance Conference Alberto Nunez, VP, Treasurer February 25 – 27, 2019 l TSX: IMG l NYSE: IAG l
Slide 2: Cautionary Statement
Cautionary Statement All information included in this presentation whether in narrative or chart form, 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 s
Slide 3: Technical Information and Qualified Persons
Technical Information and Qualified Persons The mineral resource estimates contained in this news release 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 review and approval of all
Slide 4: Who We Are
Who We Are Attributable gold production IAMGOLD is a TSX-listed intermediate gold 2018 2019 Guidance producer, with four operating mines in Burkina 882,000 810 – 870,000 Faso (Essakane), Suriname (Rosebel), Canada (Westwood) and its 41% JV in Mali (Sadiola) Total cash cost AISC Total cash cost AISC
Slide 5: Our Path: Create Superior Shareholder Value
Create Superior Shareholder Value OUR PATH: Building strong cash flow from current operating assets, and taking a disciplined approach to realizing the value of our portfolio • Operational improvements at our current sites: Current Production • Debottleneck Essakane mill; • Continue Saramacca develo
Slide 6: Balance Geopolitical Risk
Balance Geopolitical Risk NORTH AMERICA Gold Mine Development Project Westwood Advanced Exploration IAMGOLD Attributable Côté Gold Measured and Indicated Nelligan Resources Monster Lake WEST AFRICA As at December 31, 2018 Essakane Sadiola 23% CENTRAL AMERICA South Boto Gold America 42% Eastern Boros
Slide 7: Financial Summary
# IAMGOLD’ CORPORATION Financial Summary
Slide 8: Summary of Financial Results
Summary of Financial Results (In $ millions, except per share amounts) Q4 Q4 FY FY 2018 2017 2018 2017 Revenues1 274.3 291.1 1,111.0 1,094.9 Cost of Sales 250.3 250.0 974.1 942.0 Gross profit 24.0 41.1 136.9 152.9 Adjusted net earnings (loss)2,3 (16.1) (13.8) 29.8 29.3 Adjusted net earnings (loss)2,
Slide 9: Maintain a Strong Balance Sheet
Maintain a Strong Balance Sheet MOODY’S UPGRADES TO BA31 On September 28, 2018, Moody's Investor Services upgraded long-term corporate credit rating to Ba3 from B1 with a stable outlook. CREDIT FACILITY2 On November 15, 2018, amended credit facility to increase the amount to $500 million (from $250
Slide 10: Strong Liquidity Position
Strong Liquidity Position Cash and cash equivalents $615 M Short-term investments $119 M Available credit facility1 $500 M Total Liquidity$1,234 M As at Dec 31, 2018 9
Slide 11: Total Leverage
Historical Debt, Cash, and Net Debt Balances $800 Cash Total Debt Total Leverage (1) 5.0x 4.6x $600 $677 $639 $640 $400 $699 $485 4.0x $392 $399 $200 3.6x $0 3.0x Total Leverage $(222) $(159) $(271) $(763) -$200 $MM $(548) -$400 $(797) $(816) $(758) 2.0x $(1,052) -$600 1.9x -$800 1.1x 1.0x 1.6x 1.2x
Slide 12: Lowest Leverage Amongst Peer Group
Lowest Leverage Amongst Peer Group 8.0x Multiples of EBITDA Average Peer LT Debt 6.0x Debt/EBITDA Liabilities Cash 4.5x Net Leverage 4.0x 2.9x 3.1x 2.9x 2.6x 2.6x 1.8x 2.0x 1.1x 0.0x (2.0x) Cash (4.0x) (6.0x) (8.0x) US$mm Firm Value $1,639 $4,571 $1,316 $2,557 $1,138 $505 $676 $1,794 Availability un
Slide 13: Hedging Summary – Reducing Input Exposure
Hedging Summary – Reducing Input Exposure • Fuel hedges of planned consumption • WTI oil – coverage for 5 years • 2019 – 90% using zero cost collar options with strike prices between $40-$60/barrel • 2020 & 2021 – 75% using zero cost collar options with strike prices between $43-$62/barrel • 2022 &
Slide 14: Leveraging Existing Asset Base
Leveraging Existing Asset Base 13
Slide 15: Ensure a Robust Pipeline of Potential Projects
Ensure a Robust Pipeline of Potential Projects Future Production Opportunities Growth Opportunities Saramacca, Suriname Mill Optimization, Burkina Faso • Monster Lake, Quebec • Nelligan, Quebec • Camp Caiman, French Guiana • Diakha-Siribaya, Mali Côté Gold Project, Canada Boto Gold Project, Senegal
Slide 16: Pipeline of Near Term Catalysts
Pipeline of Near Term Catalysts PENDING MARKET 2018 Executed Catalysts H1 2019 H2 2019 2020 CONDITIONS ✔ ✔$170 Million Gold Saramacca Saramacca Côté Investment Saramacca Gold District Consolidation Prepay Agreement Production Full Production Decision Brokolonko Exploration Rights Acquired (Q1) Saram
Slide 17: 2019 Production and Cost Guidance
2019 Production and Cost Guidance Current Guidance1 Essakane (000s oz) 375 – 390 Rosebel (000s oz) 315 – 330 Westwood (000s oz) 100 – 120 Total owner-operated production (000s oz) 790 – 840 Sadiola Joint Venture (000s oz) 20 – 30 Total attributable production (000s oz) 810 – 870 Cost of sales 2 ($/o
Slide 18: 2019 Capital Expenditure Outlook
2019 Capital Expenditure Outlook Current Guidance $millions Non- Sustaining1 Sustaining Total Essakane $75 $50 $125 Rosebel $70 $75 $145 Westwood $15 $30 $45 Owner-operator $160 $155 $315 Corporate and Development Projects2 – $40 $40 Total owner-operator3 $160 $195 $355 Sadiola (Joint Venture) – – –
Slide 19: Rosebel Gold Mine, Suriname
Rosebel Gold Mine, Suriname 18
Slide 20: Rosebel - Overview
Rosebel - Overview Overview Location • Brokopondo district in north eastern Location Suriname Paramaribo • 95% IAMGOLD, 5% Government of Ownership Suriname Guyana Rosebel Mining Method • Conventional open pit methods French Suriname Guiana • Began commercial production in 2004 Production • Updated 4
Slide 21: Rosebel – Significant Transformational Achievements
Rosebel – Significant Transformational Achievements Increased Reserves & Resources Rosebel’s 39% increase • 39% increase in reserves, bringing in reserves extends attributable Reserves at Rosebel to 4.6 Moz1, mine life to 2033 including 1.0 Moz from Saramacca • M&I resources (incl. reserves) of 9.1
Slide 22: Rosebel - Consolidating a Gold District
Rosebel - Consolidating a Gold District Brokolonko 21
Slide 23: Essakane Gold Mine, Burkina Faso
Essakane Gold Mine, Burkina Faso 22
Slide 24: Essakane – Overview
Essakane – Overview Overview Location Location • North-eastern Burkina Faso, West Africa Ownership • 90% IAMGOLD, 10% Government of Burkina Faso Mining • Conventional drill, blast, load and haul surface Method mining method • Acquired Orezone Resources in February 2009 as project was entering the co
Slide 25: Essakane – Building the Business
Essakane – Building the Business CIL Debottlenecking • Low capital investment opportunity (~$15M in 2019) ~10% Increase in CIL • Improve current throughput of 12 Mtpa (100% hard Mill throughput on rock) to 13.5 Mtpa hard rock 2020+ • Improve gravity recovery • Potential to go to 15 Mtpa later, if ju
Slide 26: Essakane – Regional Exploration Targets
Essakane – Regional Exploration Targets Brownfield Success • ~1 Moz of resources delineated at Falagountou West and East, 8 kilometres east of Essakane; evaluating potential to increase resources at both deposits • During Q4’18, completed approximately 4.2km RC and diamond drilling on the mine lease
Slide 27: Westwood Gold Mine, Canada
Westwood Gold Mine, Canada 26
Slide 28: Westwood – Overview
Westwood – Overview Overview Westwood Mine Location • Northwestern Québec Ownership • 100% IAMGOLD Mining • Underground Method Block 2 Block 1 Production • Commenced commercial production July 2014 Status • Progressing development • 100 – 120koz 2019 • Sustaining capex: $15mm Guidance • Non-sustaini
Slide 29: Westwood – Progressing Development Activities
Westwood – Progressing Development Activities Development Continues Plan under review; • 2019 Production expected to be 100,000 - 120,000 mine life to 2033 oz from three of the six designed mining blocks • Block 3 slated to start up in 2019; Block 4 in 2020 • Unit costs decline as production increas
Slide 30: Côté Gold Project
Côté Gold Project Overview • Gogama, Ontario, 130 km southwest of Location Timmins; 200 km northwest of Sudbury Location • Land package covering 500 km2 Ownership • 70% IAMGOLD / 30% Sumitomo JV • 6km off of a major highway Infrastructure • Close to two main rail lines • Existing power supply within
Slide 31: Boto Gold
Boto Gold Senegal (90%) Feasibility study highlights Mining Capacity 18.2 Mtpa Milling Capacity 2.75 Mtpa LOM Average Annual Gold Production 140,000 oz LOM Average Recovery Rate 89.5% Mine Life 12.8 years LOM Average Total Cash Costs $714/oz LOM Average AISC $753/oz Average Grade 1.71 g/t Au Reserve
Slide 32: Re-seeding the Pipeline
Re-seeding the Pipeline Resources (100%) Production Fala /Fala E > 5 Moz Au Boto Feasibility Study >2 Moz Au Côté Saramacca Sadiola <2 Moz Au Pre-feasibility Study Projects Diakha Monster Lake Saõ Sebastiaõ Gossey Yorbeau Initial Resource / Scoping Brownfield E. Borosi Adv. Greenfield Tassiri Sarama
Slide 33: IAMGOLD: Building a Cash Flow Pipeline
IAMGOLD: Building a Cash Flow Pipeline We are building a cash flow pipeline, by: Creating Superior Shareholder Value: • Through operational improvements at our current sites; • And a disciplined approach to realizing the value of our portfolio. Maintaining a Strong Balance Sheet: • Balance sheet tar
Slide 34: Appendix
# IAMGOLD’ CORPORATION Appendix
Slide 35: Hedging Summary – Reducing Input Exposure
Hedging Summary – Reducing Input Exposure As at December 31, 2018 2019 2020 2021 2022 2023 Foreign Currency Canadian dollars (millions of C$)1 60 – Canadian dollar contracts (millions of C$) 282 186 Rate range ($/C$) 1.25 – 1.39 1.30 – 1.36 Hedge ratio 75% 50% Euros (millions of €)2 100 Euro contrac
Slide 36: Essakane – Debottlenecking CIL Plant
Essakane – Debottlenecking CIL Plant Overview Images • Heap leach planned after CIL operations Primary Screening • A debottlenecking exercise is currently in feasibility study • Objective: increase current CIL plant throughput from 12 Mtpa (at 100% hard rock) to 13.5 Mtpa • Major subprojects: • Repl
Slide 37: Essakane – Heap Leaching
Essakane – Heap Leaching Overview Heap Leach Aerial View • Feasibility Study underway o Heap Leach will use existing CIL crushing facility and add tertiary crushing (HPGR) with recycle o 13.5 Mtpa throughput o New pad designs within existing fence o FS will use agglomeration vs. no agglomeration ass
Slide 38: Côté Gold Project
Côté Gold Project Ontario (64.75%) Summary of Studies FS (2018) PFS (2017) Base Case Extended Mine Plan Mine Plan Project (100% Basis) Mining Capacity 60 Mtpa 62 Mtpa 70 Mtpa Daily Milling Throughput 32,000 t 36,000 t 36,000 t LOM Average Annual Production 320 koz 367 koz 372 koz Recovered Gold 5.4
Slide 39: Côté Gold Project – Reserves & Resources History
Côté Gold Project – Reserves & Resources History Côté Gold - IMG Attributable Reserves & Resources 30% share sold to SMM. Initial Reserve Declared from PFS 14.5 Moz 1 86% Increase from 2016 • CIM NI43-101 Definitions were followed for the classification of Mineral Reserves and Resources. Please refe
Slide 40: Loma Larga – Optionality via Strategic Investment
Loma Larga – Optionality via Strategic Investment Ecuador Project Overview FS Highlights1 • IAMGOLD owns ~36% of INV Metals (TSX:INV) Mine Life ~12 years • FS has robust economics with after-tax IRR of 24.7%, Nameplate Capacity 3,000 tpd NPV@5% of US$356M, payback of 2.6 years Annual Average Gold 13
Slide 41: Diakha-Siribaya
Diakha-Siribaya Mali (90%) Highlights Resource • Located approximately 10km south along strike Tonnes Grade Contained from the Boto Gold Project in Senegal (000) (g/t) ounces (000 Au) • 2018: 14,600 metres of RC & DD drilling completed. Results include: Measured & Indicated1 18,031 1.28 744 o 1.61 g
Slide 42: Pitangui
Pitangui Brazil (100%) Highlights Resource • Banded iron formation hosted deposit Tonnes Grade Contained (000) (g/t) ounces • 25kms from Jaguar’s Turmalina mill (000 Au) • 2017 Drilling program resulted in a 21% increase in inferred resources Inferred1 5,365 4.7 819 • Continuing to test priority tar
Slide 43: Nelligan
Nelligan Quebec (51% JV Interest) Overview Highlights Location • Quebec • Renard Zone drill hole results: o NE-18-84: 82.6 metres grading 3.30 g/t Au • 51% JV Interest, option to earn up to 80% Ownership o NE-18-95: 42.1 metres grading 3.59 g/t Au interest o NE-18-96: 27.8 metres grading 5.69 g/t Au
Slide 44: Monster Lake
Monster Lake Quebec (50% JV Interest) Overview Resource (100% Basis) Location • Quebec Tonnes Grade Contained • 50:50 JV with TomaGold, with option to earn up to a (000) (g/t) ounces Ownership (000 Au) 75% interest • Continuing to better define and extend the 325- Inferred1 1,114 12.14 435 Megane Zo
Slide 45: Eastern Borosi
Eastern Borosi Nicaragua (51% JV interest) Overview Resource1 (100% Basis) Location • Nicaragua Tonnes Grade Contained (000) (g/t) ounces • JV Agreement with Calibre Mining with option to Au/Ag (000 Au) Ownership Au/Ag earn up to a 70% interest Inferred (UG)2 3,219 6.03/104 623 / 10,758 • Multiple h
Slide 46: Notes
Notes #IAMGOLD 45
Slide 47: Notes
Notes #IAMGOLD 46
Slide 48: Investor Relations Contacts
Indi Gopinathan Martin Dumont Investor Relations Lead Senior Analyst, Investor Relations T: 416-360-4743 T: 416-933-5783 l TSX: IMG l NYSE: IAG l
IAMGOLD — JP Morgan 2019 Global High Yield & Leveraged Finance Conference on 6ix