Slide 1: 2011 1st Quarter Results
2011 1st Quarter Results May 12, 2011 TSX: IMG NYSE: IAG
Slide 2: Management Participants
Management Participants STEVE LETWIN President & Chief Executive Officer GORD STOTHART Executive Vice President & Chief Operating Officer BRIAN TRNKUS Vice President & Corporate Controller TIM BRADBURN Associate General Counsel & Corporate Secretary BOB TAIT Vice President, Investor Relations 2
Slide 3: 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 4: Q1 2011 Highlights
Q1 2011 Highlights RECORD quarterly net earnings of $162.3M, up 170% Operating cash flow of $205.8M, up 177% Gold production of 290,000 ounces, up 41% 691% potential increase in mineral resources at Niobec Announced sale of Tarkw a & Damang interests for $667M in Q2’11 Memorandum of Unde
Slide 5: Q1 2011 Record Net Earnings
Q1 2011 Record Net Earnings Millons $ Q1'10 Q1'11 millions $ 180 Q1’11 160 140 162.3 120 144.9 Net earnings 162.3 100 +170% +163% 80 Foreign exchange loss 5.2 60 40 60.2 55.0 Unrealized derivative gain on gold Mupane (4.9) 20 hedging and warrants held as investments 0 Net Earnings Adj. Net Earnings
Slide 6: Q1 2011 Attributable Gold Production and Sales
Q1 2011 Attributable Gold Production and Sales 000s oz 350 300 250 200 315 331 309 150 290 256 100 206 216 190 188 210 50 0 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Gold Produced Gold Sold 41% increase in production 19,000 ounces more sold than produced 6
Slide 7: Q1 2011 Revenues
Q1 2011 Revenues millions $ Q1’11 revenues up 80% vs. Q1’10 $500 Due to: 50% increase in attributable gold sales $400 26% increase in realized gold prices at owner-operated mines and joint ventures $300 +80% Non-gold sales remain constant 432.5 $200 240.1 $100 $0 Q1'10 Q1'11 7
Slide 8: Q1 2011 Margins
Q1 2011 Margins $/oz Gold Gold margin Operating Results Q1’10 Q1’11 $1,600 Gold production $1,200 821 206 290 (000 oz) 587 $800 Gold price realized 1,111 1,396 $400 524 575 ($/oz) $0 Cash cost Q1'10 Q1'11 524 575 ($/oz) cash cost margin Niobium Operating Q1’10 Q1’11 $/kg Results Niobium margin 19 Ni
Slide 9: Q1 2011 Operating Cash Flow
Q1 2011 Operating Cash Flow Millions $ Cash Flow 250 Increase mainly due to: 200 150 Higher gold sales 177% 100 205.8 Higher gold prices 50 74.3 Partially offset by higher mining 0 Q1'10 Q1'11 cost and income and mining taxes $/sh Cash Flow/ share 0.60 0.50 0.40 175% 0.30 0.55 0.20 0.10 0.20 0
Slide 10: Solid Financial Position
Solid Financial Position millions $ Financial Position Millions $ Dec. 31, Mar. 31, $971 2010 2011 $1,000 $900 Cash & Cash 270.8 477.5 $800 $761 350 Equivalents $700 $613 Gold Bullion at $578 $593 140.6 143.9 $600 350 market $500 332 Unused credit $400 350 350 350.0 350.0 facility $300 621 $200 411
Slide 11: Essakane BURKINA FASO
Essakane BURKINA FASO IMG Ownership: 90% Attributable Reserves & Resources (oz) P&P Reserves1 4,015,000 Indicated Resources2 4,351,000 Inferred Resources 1,503,000 Attributable production (oz) Q1’11 95,000 Q4’10 80,000 Cash Cost ($/oz) Q1’11 $428 Estimated Mine Life (years) 12+ Attributable Gold Pro
Slide 12: Rosebel SURINAME
Rosebel SURINAME IMG Ownership: 95% Attributable Reserves & Resources (oz) P&P Reserves1 5,892,000 M&I Resources2 7,531,000 Inferred Resources 609,000 Attributable production (oz) Q1’11 100,000 Q1’10 93,000 Cash Cost ($/oz) Q1’11 $544 Q1’10 $456 Estimated Mine Life (years) 12+ 000 ozs Attributable g
Slide 13: Sadiola MALI
Sadiola MALI IMG Ownership: 41% JV Partner: AngloGold Ashanti (41%) Attributable Reserves & Resources (oz) P&P Reserves1 2,297,000 M&I Resources2 3,481,000 Inferred Resources 991,000 Attributable production (oz) Q1’11 30,000 Q1’10 30,000 Cash Cost ($/oz) Q1’11 $724 Q1’10 $538 Estimated Mine Life (ye
Slide 14: Niobec CANADA
Niobec CANADA IMG Ownership: 100% Reserves & Resources (Mkg Nb2O5) P&P Reserves1 243.8 M&I Resources2 243.8 Inferred Resources 316.3 Production (Mkg Nb) Q1’11 1.1 Q1’10 1.2 Operating Margin ($/kg Nb) Q1’11 $16 Q1’10 $19 Estimated Mine Life (years) 25+ Mkg Niobium production 6 The processing of dev
Slide 15: Westwood CANADA
Westwood CANADA IMG Ownership: 100% Production start - 2013 Resources (oz) Shaft sinking Indicated Resources1 269,000 began Jul. ‘09 Inferred Resources1 3,467,000 Q1’11 - Expenditures $27.5M Estimated annual production (oz) Shaft sinking to 1,157 m LOM average 186,000 Underground development 2,1
Slide 16: 2011 Revised Guidance
2011 Revised Guidance Initial Guidance Revised Guidance Issued Jan., 2011 Issued May, 2011 Gold Production (000 oz) 1,100-1,200 950-1,050 Cash Costs ($/oz) 565-595 590-620 Niobium Production (Mkg) 4.5-5.0 4.5-5.0 Niobium operating margin ($/kg) 15-17 15-17 16
Slide 17: Planned Capital Expenditures
Planned Capital Expenditures 3-Year Capital Expenditures Profile 2011 Planned Capital Expenditures $460M Westwood - $146M millions $ Deepening shaft $500 Developing drift levels for future mining $500 Start mill refurbishment $460 132 Essakane - $139M Expansion construction to start in Q4’11
Slide 18: Strategic Focus
Strategic Focus BROWNFIELD GREENFIELD OPPORTUNITIES OPPORTUNITIES ESSAKANE (90%), EXPLORATION AT MINES WE OPERATE ROSEBEL (95%) & & FUTURE WESTWOOD (100%) ACQUISITIONS TARKWA & NIOBEC (100%) DAMANG (18.9%) SADIOLA (41%) NIOBIUM MINE & YATELA (40%) WORKING INTERESTS IN GHANA JOINT VENTURES IN MALI OP
Slide 19: 2011 1st Quarter Results
2011 1st Quarter Results May 12, 2011 Investor Relations: Bob Tait VP, Investor Relations T: 416 360 4743 E: bob_tait@iamgold.com