Slide 1: Third Quarter 2019 Results
Third Quarter 2019 Results November 7, 2019 – Conference Call TSX: IMG l NYSE: IAG
Slide 2: Management Participants
Management Participants • Steve Letwin Chief Executive Officer • Gordon Stothart President & Chief Operating Officer • Carol Banducci Executive Vice President & Chief Financial Officer • Craig MacDougall Senior Vice President, Exploration • Jeff Snow SVP, Corporate Development & General Counsel • In
Slide 3: 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 4: 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 al
Slide 5: Making the Case for IAMGOLD
Making the Case for IAMGOLD Saramacca online Westwood Productivity stabilized Improvements IMPROVED PERFORMANCE Essakane solid Free Cash Flow contributor Generation Exploration Successes: Nelligan Karita Increased R&R 5
Slide 6: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG) Zero Harm remains both a goal and journey: • Respecting the natural environment, building strong community partnerships and putting the health and safety of our employees first. Strong environmental, social, and governance practices have always been part of
Slide 7: Rosebel – Overview of Site
Rosebel – Overview of Site RGM a. Full Haul road: 30 km b. Haul Road & Back road: 20 + 13 KM BROWNSWEG SARAMACCA 7
Slide 8: Saramacca First Ore Delivery – Oct 31, 2019
Saramacca First Ore Delivery – Oct 31, 2019 8
Slide 9: Ceremony & Community Fund
Ceremony & Community Fund ae tf [IAMGOLD 9
Slide 10: Road to Rosebel Mill
Road to Rosebel Mill 10
Slide 11: Self-Funding, Self-Sustaining, Safe & Profitable
Self-Funding, Self-Sustaining, Safe & Profitable Our Operations REINFORCING THE MODEL • Operating cost management to achieve positive cash-flow; • Capital expenditures reflect value-adding initiatives. Operational improvements at our current sites: • Debottleneck Essakane mill; Essakane, Burkina Fas
Slide 12: Financial Review
Financial Review Photo: Wärtsilä 12
Slide 13: Summary of Financial Results
Summary of Financial Results Q3 Q2 Q3 (In $ millions, except per share amounts) 2019 2019 2018 Revenues1 $ 274.4 $ 246.5 $ 244.8 Cost of Sales $ 251.6 $ 239.9 $ 237.3 Gross profit $ 22.8 $ 6.6 $ 7.5 Adjusted net earnings (loss)2,3 $ 0.0 $ (15.5) $ (6.9) Adjusted net earnings (loss)2,3 ($/share) $ 0.
Slide 14: Q3 Financials
Q3 Financials KEY NOTES • Strong financial position: › Cash, cash equivalents, short-term investments primarily in money market funds and restricted cash of $677.2 M at September 30, 2019. • Operating cash flow increases of 28% from Q2 and 354% from Q3-2018. • Gold Margin improvement of 38% from Q2.
Slide 15: Trending Well on Key Operating Metrics
Trending Well on Key Operating Metrics PRODUCTION 195 – 240 koz 185 koz 198 koz 187 koz Q1 Q2 Q3 Q4 Guidance Range ALL-IN SUSTAINING COSTS ($/OZ)1 $1,132 $1,118 $1,086 Q1 Q2 Q3 1 This is a non-GAAP measure. Refer to the non-GAAP performance measures section of the MD&A for more information 15
Slide 16: Trending Well on Key Financial Metrics
Trending Well on Key Financial Metrics OPERATING CASH FLOW, BEFORE CHANGES IN WORKING CAPITAL1 $65.4 M $42.8 M $33.1 M Q1 Q2 Q3 GROSS MARGIN (%) 8.3% 2.7% -0.4% Q1 Q2 Q3 1 This is a non-GAAP measure. Refer to the non-GAAP performance measures section of the MD&A for more information 16
Slide 17: Maintaining a Strong Balance Sheet
Maintaining a Strong Balance Sheet MAINTAINING LIQUIDITY WELL ABOVE $1 BILLION Cash and cash equivalents $ 634 M Short-term investments $ 16 M Available credit facility $ 500 M Total Liquidity As at September 30, 2019 $1,150 M Forward Sale Funds1 +$170 M Receipt: Dec. 2019 Sale: 150,000 oz Au in 202
Slide 18: Operations Review
Operations Review 18
Slide 19: Focus on Safety
Focus on Safety HISTORICAL GLOBAL DART & TRI RATES PER 200,000 HOURS WORKED 2.40 DART: 2019 YTD – reduction of 12%** TRI: 2019 YTD – reduction of 22%** 1.98 * Without Niobec ** Compared to 2018 (full year) 1.81* 1.76* 1.53* 1.56 1.44* 1.44 1.18 1.13 1.06 1.06 1.00 0.93 0.85 0.88 0.68 0.66 0.58 0.53
Slide 20: Q3 2019 Production & Cost Summary
Q3 2019 Production & Cost Summary Attributable Cost of Total Cash AISC2 Production Sales1 Costs2 ($/oz sold) (000s oz) ($/oz sold) ($/oz produced) Essakane 96 $925 $866 $1,021 Rosebel 55 $1,122 $968 $1,198 Westwood 23 $915 $889 $1,033 Sadiola 13 – $915 $891 Total 187 $986 $902 $1,118 Normalization i
Slide 21: Essakane: Q3 Contributing to a Strong H2
Essakane: Q3 Contributing to a Strong H2 Burkina Faso (90%) Q3 HIGHLIGHTS Q3/19 Actual • Strong Q3 on throughput; Q4 stronger grades on similar throughput. Attributable gold production (oz) 96,000 Continuous Improvement TCC1 $866 • CIL/HL FS with self-funding lens: AISC1 $1,021 • In series, optimal
Slide 22: CIL/HL Feasibility Study Highlights
CIL/HL Feasibility Study Highlights PRODUCTION PROFILE 600,000 CIL (FS) HL (FS) CIL (PFS) HL (PFS) 400,000 200,000 - 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 HIGHLIGHTS PFS FS Mining Capacity 70.0 Mtpa 55.0 Mtpa CIL Milling Capacity (100% hard rock equivalent) 10.8 Mtpa 11.7 Mtpa
Slide 23: Essakane – PFS vs FS Reserves
Essakane – PFS vs FS Reserves 59 198 34 13 20 790 319 332 539 58 562 151 4,510 PFS 3,985 FS 3,390 • Reserve waterfall for comparison purposes with the addition of the heap leach material. • For reserves as at December 31, 2018, please refer to IAMGOLD news release dated February 19, 2019 23
Slide 24: Optimizing the Essakane Mill
Optimizing the Essakane Mill 1Primary Screen New screen & dust control 2Primary grinding 1. Primary Screen 1 New liner handler New screen & dust control Pebble conveyor upgrades 2. Primary 3Secondary grindinggrinding New Modifications liner to line A handler underflow cyclones Pebble c
Slide 25: Rosebel: Q3 Ramping Back to Normal
Rosebel: Q3 Ramping Back to Normal Suriname (95%) Q3 HIGHLIGHTS Q3/19 Actual • While mill continuously running, Q3 volumes impacted by reduction of mining activities; Attributable gold production (oz) 55,000 • CIC plant contributed 1,300 ounces TCC1 $968 • Normalized fixed overhead (cash costs, depr
Slide 26: Westwood: On Target for Stronger Q4
Westwood: On Target for Stronger Q4 Quebec (100%) Q3 HIGHLIGHTS Q3/19 Actual • Production progressing; Attributable gold production (oz) 23,000 • Underground tonnage and grade expected to increase in Q4; will exploit excess mill capacity with open pit tonnes. TCC1 $889 Review of operations AISC1 $1,
Slide 27: Projects Update
Projects Update FUTURE OPTIONALITY Boto • Approval of mine lease • Subsequent development decision Côté • Continue to de-risk the project • Maintaining position for a future development decision Nelligan/Monster Lake • Continued exploration to increase and improve resource inventories 27
Slide 28: Exploration Review
Exploration Review 28
Slide 29: Karita – Along Trend to Boto and Diakha
Karita – Along Trend to Boto and Diakha KARITA, GUINEA1 • Strategically located along the prolific Senegal- Mali shear zone between Boto Gold Project in Senegal to the north, and Diakha-Siribaya Project in Mali to the south. • Reported results from 2019 drilling program, comprising 16 reverse circul
Slide 30: Nelligan – Adding to District Potential
Nelligan – Adding to District Potential NELLIGAN GOLD PROJECT, QUEBEC • Project Located 60 kilometres southwest of Chibougamau, Quebec, and 15km south of our Monster Lake Project • Reported remaining results from 2019 delineation diamond drilling program, comprising 28 holes totaling 10,558 metres.
Slide 31: Re-seeding the Pipeline
Re-seeding the Pipeline >5 Moz Au Brownfield >2 Moz Au Advance Greenfield <2 Moz Au Greenfield Production Fala/Fala E Côté Boto Saramacca Feasibility Study Sadiola Pre-feasibility Study Monster Lake Nelligan Diakha Saõ Sebastiaõ Gossey E. Borosi Initial Resource / Scoping Yorbeau Tassiri Korizena Je
Slide 32: Near Term Catalysts
Near Term Catalysts H1 2019 $170 Million Gold Prepay Agreement Diahka-Siribaya Updated Resource H2 2019 Essakane CIL and Heap Leach Feasibility Study Nelligan Initial Resource Saramacca Production Targeted Expect delivery of Boto Mining Permit Preliminary Westwood Plan Update 2020 Saramacca Full Pro
Slide 33: IAMGOLD: Building a Cash Flow Pipeline
IAMGOLD: Building a Cash Flow Pipeline Our vision is to be the global leader in generating superior value for our stakeholders through accountable mining. 1 2 3 4 CREATING DIVERSIFYING MAINTAINING ENSURING superior our portfolio a strong a robust shareholder balance sheet pipeline value • Operationa
Slide 34: Appendix
Appendix tf [IAMGOLD 34
Slide 35: Hedge Position – Q3 2019
Hedge Position – Q3 2019 2019 2020 2021 2022 2023 Foreign Currency Canadian dollar contracts (millions of C$) 71 186 Rate range1 ($/C$) 1.25 - 1.39 1.30 - 1.36 Hedge ratio 63% 50% Euro2 (millions of €) 16 Euro contracts (millions of €) 24 Rate range3 (€/$) 1.14 - 1.20 Hedge ratio 62% Commodities 4 B
Slide 36: TSX: IMG l NYSE: IAG
Indi Gopinathan Martin Dumont Investor Relations Lead Senior Analyst, Investor Relations T: 416-360-4743 T: 416-933-5783 TSX: IMG l NYSE: IAG36