Iamgold Corporation · TSX:IMG
Iamgold — Investor Day (February 2005)
76 slides from Iamgold's investor day presentation, Feb 23, 2005
Slide 1: Analyst Workshop February 2005
ANALYST WORKSHOP February 2005
Slide 2: 1
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Slide 3: Cautionary Statements
CAUTIONARY STATEMENTS Safe Harbor Statement under the United States Private Securities Litigation Reform Act of 1995 Certain statements in this document constitute "forward looking statements" within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exc
Slide 4: Corporate Overview
Corporate Overview Common shares outstanding = 146 million million,, float = 136 million* 52 week hi- C$10.77 - $5.75 / Spot (15/02/05) = C$9.17 hi-lo = C$10.77 C$9.17 Market cap - $1.1 billion Listings - TSX : IMG AMEX : IAG Liquidity - 2,000,000 shs shs/day /day * as at Sept. 30/2004 2
Slide 5: Corporate Overview
Corporate Overview Diavik Diamond Mine Toronto Head Office Yatela Mine Sadiola Mine Damang Mine Tarkwa Mine LEGEND Office Gold Mines Royalty Interests Exploration Proj ects 3
Slide 6: Corporate Objectives
CORPORATE OBJECTIVES Address the 2008 production decline Increase long term production to at least 600,000/year Reduce cash costs below US$250/ounce Enhance the exploration portfolio Establish operating expertise 4
Slide 7: Strategic Alternatives
STRATEGIC ALTERNATIVES Focus on cost reduction Acquire non core assets Acquire/invest in late stage development assets A merger of “Equals” Exploration success 5
Slide 8: Operations Review
OPERATIONS REVIEW
Slide 9: Sadiola
SADIOLA 7
Slide 10: Sadiola Reserves
SADIOLA Reserves - sufficient reserves for a 5 year mine life at current annual production rates Reserves ---------------- December 2004 --------------- -------------- December 2003 -------------- Contained Gold Contained Gold Tonnes Grade 100% IMG Share Tonnes Grade 100% IMG Share (Mt) (gpt) (000’s
Slide 11: Sadiola Resources
SADIOLA Global resources remain significant as they are converted to higher confidence categories Resources December 31, 2004 December 31, 2003 Contained Gold Contained Gold T onnes Grade 100% IMG Share Tonnes Grade 100% IMG Share (Mt) (g/t) (000’ s oz) (0 00’s oz) (Mt) (g/t) (0 00’s oz) (000 ’s oz)
Slide 12: Sadiola Tonnes Mined
SADIOLA Greater tonnage mined in 2005 due to higher strip ratio TONNES MINED S.R. 2.3 S.R. 3.6 20 S.R. 1.3 S.R. 1.8 TONNES (million) 15 19.4 10 18.7 16.8 15.5 5 0 2002 2003 2004 2005 Actual Outlook 10
Slide 13: Sadiola Tonnes Treated
SADIOLA More oxide material in 2005 vs 2004 due to FE3, FE4 mining TONNES TREATED 6 6 5 TONNES (million) 5 1.7 4 4 3 3 5.3 5.1 5.0 3.6 2 2 1 1 0 0 2002 2003 2004 2005 Actual Budget Oxide Budget Sulphide 11
Slide 14: Sadiola Head Grade
SADIOLA Head grade to decline by 26% as lower grade oxide material from FE3 & FE4 satellite deposits are mined in 2005 HEAD GRADE 5.0 3.8 4.0 3.5 3.0 G/TONNE 2.8 3.0 2.0 1.0 0.0 2002 2003 2004 2005 Actual Outlook 12
Slide 15: Sadiola Recovery
SADIOLA Addition of FE3 & FE4 oxide material results in higher recoveries RECOVERY 100% 88% 87% 84% 76% 80% G/TONNE 6 0% 4 0% 20% 0% 2002 2003 2004 2005 Actual Outlook 13
Slide 16: Sadiola Gold Produced
SADIOLA Gold production is expected to decline by 5% vs 2004 GOLD PRODUCED 600 600 480 458 452 435 500 500 OUNCES (000) 400 400 300 300 200 200 100 100 0 0 2002 2003 2004 2005 Actual Outlook 14
Slide 17: Sadiola Cash Cost
SADIOLA GI cash costs increase by 10% in 2005 vs 2004 GOLD INSTITUTE CASH COST* $3 50 $350 $3 00 $300 $2 50 $250 $/ounce $200 $200 $271 $150 $246 $150 $213 $164 $1 00 $100 $50 $50 $0 $0 2002 2003 2004 2005 Actual Outlook * IMG cost includes 1.0% NSR management fee 15
Slide 18: Sadiola Diesel Costs
SADIOLA Diesel fuel costs are expected to increase by 19% in 2005 vs 2004 DIESEL COSTS 20,000 $18,377 $15,477 15,000 U S$ 000's $9,936 10,000 $7,569 5,000 - Actual Actual Actual Outlook 2002 2003 2004 2005 16
Slide 19: Sadiola Mining Contractor Cost
SADIOLA Mining contractor costs to increase by 5% in 2005 vs 2004 MINING CONTRACTOR COST 3.50 $3.05 $3.19 $2.88 3.00 $2.63 $/B C M M in e d 2.50 2.00 1.50 1.00 0.50 - Actual Actual Actual Outlook 2002 2003 2004 2005 17
Slide 20: Sadiola Labour Costs
SADIOLA Labour costs are expected to increase by 6% in 2005 vs 2004 LABOUR COSTS 3.50 $3.11 $2.94 3.00 $/Tonne Treated $2.49 2.50 $1.92 2.00 1.50 1.00 0.50 - Actual Actual Actual Outlook 2002 2003 2004 2005 18
Slide 21: Sadiola Reagent Costs
SADIOLA Reagent costs are reduced by 32% as more oxide material is treated and through better process control (new automated detox. circuit) REAGENT COSTS 6.00 $4.88 $ /T o n n e Tre ate d 5.00 4.00 $3.22 $3.32 $2.76 3.00 2.00 1.00 - Actual Actual Actual Outlook 2002 2003 2004 2005 19
Slide 22: Sadiola Cash Cost Breakdown by Item
SADIOLA 2005 est. cash costs at Sadiola are broken down among the following categories as follows CASH COST BREAKDOWN BY ITEM G & A and Other, 20% Mining, 37% Processing, 43% “Other” includes environmental, social, community and other related expenses. Royalties and taxes are not included in above.
Slide 23: Sadiola
SADIOLA 2005 est. CapX* ~ $15M ($9M for expansion of mine village) 2005 est. Exploration* - $8M ($6M capitalized + $2M expensed) 2005 est. D & A* ~ $27M (Book Value (31/12/05) = $110M) Taxes / Royalties* = 35% tax rate / 6% NSR royalty to government Currency Exposure: Other 10% US$ 45% Euro 45% * 10
Slide 24: Sadiola
SADIOLA Numerous cost savings and efficiency projects are underway Neither these cost savings nor the Sadiola Deep project is included in any proforma forecasts for Sadiola EST. COST $10M $15M 22
Slide 25: Sadiola Tonnage Mined and Grade
SADIOLA 5 yr tonnage mined and grade (includes FE3 & FE4, no Sadiola Deep) TONNES MINED AND GRADE 25 4.0 Tonnes Mined (Mt) S.R. 3.6 S.R. 1.5 3.5 20 S.R. 3.4 S.R. 7.0 3.0 Grade (gpt) S.R. 1.8 15 2.5 S.R. 7.0 2.0 10 1.5 1.0 5 0.5 0 0.0 2004A 2005E 2006F 2007F 2008F 2009F Total Material Mined Grade 23
Slide 26: Sadiola Annual Production and Cost
SADIOLA 5 yr average annual production of 436,000 oz at cash cost of $275/oz ANNUAL PRODUCTION AND COST* 500 $500 GI Cash Cost (US$/oz) Production (000's oz) 400 $400 300 $300 200 $200 100 $100 0 $0 2004A 2005E 2006F 2007F 2008F 2009F Production GI cash cost * IMG cost includes annual management fee
Slide 27: Yatela
YATELA
Slide 28: Yatela Reserves
YATELA Reserves sufficient reserves for a 3 year mine life at forecast annual production rates Reserves --------------- December 2004 ---------------- -------------- December 2003 --------------- Contained Gold Contained Gold Tonnes Grade 100% IMG Share Tonnes Grade 100% IMG Share (Mt) (gpt) (000’s
Slide 29: Yatela Resources
YATELA Currently known resources have limited potential to substantially extend mine life Resources ------------ December 31, 2004 ----------- ------------ December 31, 2003 ---------- Contained Gold Contained Gold Tonnes Grade 100% IMG Share Tonnes Grade 100% IMG Share (Mt) (g/t) (000’s oz) (000’s
Slide 30: Yatela Tonnes Mined
YATELA 35% fewer tonnes will be mined in 2005 vs 2004 TONNES MINED 25 S.R. 8.7 S.R. 4.7 S.R. 7.3 TONNES (million) 20 S.R. 8.3 15 10 22.1 18.8 21.1 13.7 5 0 2002 2003 2004 2005 Actual Outlook 28
Slide 31: Yatela Tonnes Treated
YATELA Similar tonnes will be treated in 2005 vs 2004 as a result of stockpiles TONNES TREATED 4.0 4.0 TONNES (million) 2.8 2.9 2.9 3.0 2.6 3.0 2.0 2.0 1.0 1.0 0.0 0.0 2002 2003 2004 2005 Actual Outlook 29
Slide 32: Yatela Head Grade
YATELA Head grade will decline only slightly relative to 2004 HEAD GRADE 5.0 4.0 3.6 3.4 3.3 G/TONNE 2.8 3.0 2.0 1.0 0.0 2002 2003 2004 2005 Actual Outlook 30
Slide 33: Yatela Gold Produced
YATELA 2005 gold production will increase slightly relative to 2004 GOLD PRODUCED 300 269 300 242 250 250 218 250 OUNCES (000) 200 200 150 150 100 100 50 50 0 0 2002 2003 2004 2005 Actual Outlook 31
Slide 34: Yatela Cash Cost
YATELA GI cash costs will increase by 13% in 2005 vs 2004 GOLD INSTITUTE CASH COST* $296 300 $263 300 $244 25 0 250 $177 200 20 0 $/ounce 150 150 10 0 100 50 50 0 0 2002 2003 2004 2005 Actual Outlook * IMG cost includes 1.0% NSR management fee 32
Slide 35: Yatela Cash Cost Breakdown by Item
YATELA 2005 est. cash costs at Yatela are broken down among the following categories as follows CASH COST BREAKDOWN BY ITEM G & A and Other, 10% Processing Mining 26% 61% “Other” includes environmental, social, community and other related expenses. Royalties and taxes are not included in above. 33
Slide 36: Yatela
YATELA 2005 est. CapX* - $7M ($6.7M of which is for leach pads) 2005 est. D & A ~ $28M (Book Value (31/12/04) = $70M Taxes / Royalties = tax free / 6% NSR royalty to government 2005 Exploration* - minimal Currency Exposure: Other 10% US$ 35% Euro 55% * 100% basis 34
Slide 37: Yatela Projects
YATELA Projects The current mine life at Yatela goes until 2007 Yatela Gold Mine Exploration continues on prospects within the Yatela concessions No additional reserve potential has been taken into account at Sadiola Gold Yatela Mine Bamako 35
Slide 38: Yatela Tonnes Mined and Grade
YATELA 2007 is the end of the current mine life at Yatela TONNES MINED AND GRADE 24.0 4.0 S.R. 4.7 Tonnes Mined (Mt) 18.0 3.0 Grade (gpt) S.R. 8.3 S.R. 5.0 12.0 2.0 6.0 1.0 0.0 0.0 2004A 2005E 2006F 2007F 2008F 2009F Total Material Mined Grade 36
Slide 39: Yatela Annual Production and Cost
YATELA 3 yr average annual production of 240,000 oz at cash cost of $262/oz ANNUAL PRODUCTION AND COST* 400 $400 GI Cash Cost (US$/oz) Production (000 's oz) 300 $300 200 $200 100 $100 0 $0 2004A 2005E 2006F 2007F 2008F 2009F Production GI cash cost * IMG cost includes annual management fee 37
Slide 40: Tarkwa
TARKWA
Slide 41: Tarkwa Reserves and Resources
TARKWA Reserves and Resources - sufficient reserves for a X year mine life at current annual production rates Reserves ------------------ Jun e 2 00 4 ------------------ ------------------- J une 20 03 ---------------- Conta ine d Go ld Conta ine d Go ld T onne s Grade 1 00 % IM G sha re Ton nes Gra
Slide 42: Tarkwa Tonnes Mined
TARKWA Greater tonnage mined at a lower strip ratio in 2005 vs 2004 as material is supplied to the mill TONNES MINED S.R. 3.2 S.R. 2.7 80 70 TONNES (million) 60 S.R. 1.9 50 76.2 74.3 40 48.5 30 43.3 20 10 0 2002 2003 2004 2005 Actual Outlook 40
Slide 43: Tarkwa Tonnes to Heap Leach
TARKWA 6% fewer tonnes to the heap in 2005 vs 2004 TONNES to HEAP LEACH 20 20 17.0 15.6 16.1 TONNES (million) 15.1 15 15 10 10 5 5 0 0 2002 2003 2004 2005 Actual Outlook 41
Slide 44: Tarkwa Heap Leach Head Grade
TARKWA A 14% decline in heap leach head grade in 2005 vs 2004 HEAD GRADE – HEAP LEACH 2.0 1.6 1.4 1.4 1.5 1.2 G/TONNE 1.0 0.5 0.0 2002 2003 2004 2005 Actual Outlook 42
Slide 45: Tarkwa Heap Leach Recovery
TARKWA Heap leach recoveries are expected to increase to 82% in 2005 RECOVERY – HEAP LEACH 100% 78% 82% 76% 74% 8 0% G/TONNE 60% 40% 2 0% 0% 2002 2003 2004 2005 Actual Outlook 43
Slide 46: Tarkwa Tonnes Milled
TARKWA Following commissioning of the new mill in 2004, 4.4 Mt are expected to be processed in 2005 TONNES MILLED 5 4.4 5 TONNES (million) 4 4 3 3 2 2 0.8 1 1 0 0 2002 2003 2004 2005 Actual Outlook 44
Slide 47: Tarkwa Mill Head Grade
TARKWA Head grade will climb 19% to 1.9 gpt HEAD GRADE - MILL 2.5 1.9 2.0 1.6 G/TONNE 1.5 1.0 0.5 0.0 2002 2003 2004 2005 Actual Outlook 45
Slide 48: Tarkwa Mill Recovery
TARKWA Mill recoveries are expected to increase to 96% in 2005 RECOVERY - MILL 96% 100% 80% 70% G/TONNE 60% 40% 20% 0% 2002 2003 2004 2005 Actual Outlook 46
Slide 49: Tarkwa Gold Produced
TARKWA Gold production will increase 36% to 750,000 ounces in 2005 GOLD PRODUCED 800 750 555 OUNCES (000) 600 523 553 400 200 0 2002 2003 2004 2005 Actual Outlook 47
Slide 50: Tarkwa Cash Cost
TARKWA Cash cost will decline 9% in 2005 vs 2004 GOLD INSTITUTE CASH COST* 300 $250 250 $224 $227 200 $187 $/ounce 150 100 50 0 2002 2003 2004 2005 Actual Outlook * IMG cost includes 2.5% NSR management fee 48
Slide 51: Tarkwa Cash Cost Breakdown by Item
TARKWA 2005 est. cash costs at Tarkwa are broken down among the following categories as follows CASH COST BREAKDOWN BY ITEM G & A and Other, 14% Mining 38% Processing 48% “Other” includes environmental, social, community and other related expenses. Royalties and taxes are not included in above. 49
Slide 52: Tarkwa
TARKWA 2005 est. CapX ~ $25M ($6M for tailings expansion, $5M for pre- stripping) 2005 est. D & A ~ $47M (Book Value (31/12/04) = $445M) Taxes / Royalties = 35% tax rate / 3% NSR royalty to government 2005 Exploration - minimal Currency Exposure: Other 20% US$ 80% * 100% basis 50
Slide 53: Tarkwa Cost Savings and Efficiency Projects
TARKWA Numerous cost savings and efficiency projects are underway Optimization of new fleet Mill throughput and efficiency Concrete work was completed at time of original plant construction permitting expansion of mill to twice its current capacity Investigation of expansion scenario at Tarkwa mill
Slide 54: Tarkwa Tonnage Mined and Grade
TARKWA 5 yr tonnage mined and grade (heap and mill) TONNES MINED AND GRADE 120 2.0 S.R. 4.0 Tonnes Mined (Mt) S.R. 3.6 100 S.R. 3.1 S.R. 2.9 1.5 Grade (gpt) S.R. 3.2 S.R. 2.7 80 60 1.0 40 0.5 20 0 0.0 2004A 2005E 2006F 2007F 2008F 2009F Total Material Mined Leach Grade Mill Grade 52
Slide 55: Tarkwa Annual Production and Cost
TARKWA 5 yr average annual production of 675,000 oz at cash cost of $245/oz ANNUAL PRODUCTION AND COST* 800 $400 GI Cash Cost (US$/oz) Production (000 's oz) 600 $300 400 $200 200 $100 0 $0 2004A 2005E 2006F 2007F 2008F 2009F Production GI cash cost * IMG cost includes annual management fee 53
Slide 56: Damang
DAMANG
Slide 57: Damang Reserves and Resources
DAMANG Reserves and Resources - sufficient reserves for a 4 year mine life at current annual production rates Reserves ------------------ June 2004 ------------------ ------------------ June 2003 ----------------- Contained Gold Contained Gold Tonnes Grade 100% IMG share Tonnes Grade 100% IMG share
Slide 58: Damang Tonnes Mined
DAMANG Similar tonnage mined in 2005 vs 2004, at a slightly higher strip ratio TONNES MINED 20 S.R. 2.3 S.R. 2.8 TONNES (million) 15 S.R. 1.6 S.R. 1.8 10 17.5 16.4 12.3 12.2 5 0 2002 2003 2004 2005 Actual Outlook 56
Slide 59: Damang Tonnes Treated
DAMANG Similar tonnes treated in 2005 vs 2004 TONNES TREATED 6 5.4 5.4 5.1 5 4.6 TONNES (million) 4 3 2 1 0 2002 2003 2004 2005 Actual Outlook 57
Slide 60: Damang Head Grade
DAMANG Head grade declines by 21% in 2005 vs 2004 as ore is depleted from the main pit and feed is supplemented from satellite pits HEAD GRADE 2.3 2.5 2.1 1.9 2.0 1.5 G/TONNE 1.5 1.0 0.5 0.0 2002 2003 2004 2005 Actual Outlook 58
Slide 61: Damang Recovery
DAMANG Recoveries remain at 90% RECOVERY 95% 91% 91% 90% 90% G/TONNE 90% 85% 80% 2002 2003 2004 2005 Actual Outlook 59
Slide 62: Damang Gold Produced
DAMANG As a result of the lower head grade processed, production is expected to decline by 23% to 229,000 ounces in 2005 GOLD PRODUCED 350 302 303 296 300 250 229 OUNCE S (000) 200 150 100 50 0 2002 2003 2004 2005 Actual Outlook 60
Slide 63: Damang Cash Cost
DAMANG Primarily as a function of lower grades mined and higher haulage costs, cash costs are expected to increase to $327/oz in 2005 GOLD INSTITUTE CASH COST* 400 400 350 350 300 300 250 $/ounce 250 200 200 150 150 100 100 $226 $230 $221 $327 50 50 0 0 2002 2003 2004 2005 Actual Outlook * IMG cost
Slide 64: Damang Cash Cost Breakdown by Item
DAMANG 2005 est. cash costs at Damang are broken down among the following categories as follows CASH COST BREAKDOWN BY ITEM G & A and Other, 14% Mining 41% Processing 44% “Other” includes environmental, social, community and other related expenses. Royalties and taxes are not included in above. 62
Slide 65: Damang
DAMANG 2005 est. CapX ~ US$4M ($2.5M for preparation of satellite deposits for production) 2005 est. D & A ~ $14M (Book Value (31/12/04) = $18M) Taxes / Royalties = 35% tax rate / 3% NSR royalty to government 2005 est. Exploration ~ US$2M ($0.5M capitalized, $1.5M expensed) Currency Exposure: Other
Slide 66: Damang Tonnes Mined and Grade
DAMANG Current reserves call for mining until 2007. Rex, Amoanda satellite and below pit resources could extend the mine life to 2010 TONNES MINED AND GRADE 14 S.R. 2.3 2.0 S.R. 1.6 S.R. 1.8 Tonnes Mined (Mt) 12 1.5 Grade (gpt) 10 8 1.0 6 4 S.R. 1.8 0.5 2 0 0.0 2004A 2005E 2006F 2007F 2008F 2009F To
Slide 67: Damang Annual Production and Cost
DAMANG 3 yr (2005 – 2007) average annual production of 210,000 oz at a cash cost of $307/oz ANNUAL PRODUCTION AND COST* 400 $400 GI Cash Cost (US$/oz) Production (000 's oz) 300 $300 200 $200 100 $100 0 $0 2004A 2005E 2006F 2007F 2008F 2009F Production GI cash cost * IMG cost includes annual managem
Slide 68: Damang Exploration Work Continues
DAMANG Exploration work continues Exploration & resource DAMANG definition drilling continues PLANT along strike of known DAM DAMANG DAMANG ANG EXISTING satellite mineralization (Rex, DAMANG PITS Amoanda) and below the S WATER & SE DIMENT SSA SAM AMP SA SAMMPLE AMPPLE LE MPLE PLE LE NYAM NY NYAM AM
Slide 69: Damang Exploration Work Continues
DAMANG Exploration work continues Pushback within the current Damang pit plus mining of satellite pits have the potential to extend the life of the Damang Mine by 1 to 2 yrs HIGH GRADE POD IK10 PIT DESIGN CURRENTLY UNDERWAY 67
Slide 70: Damang Extended Production Scenario
DAMANG With satellite and below pit reserves, average annual production could extend for 5 years at 225,000 oz with cash costs of $280/oz ANNUAL PRODUCTION AND COST* 400 $400 GI Cash Cost (US$/oz) Production (000 's oz) 300 $300 200 $200 100 $100 0 $0 2004A 2005E 2006F 2007F 2008F 2009F Production G
Slide 71: Consolidated Corporate Outlook
Consolidated Corporate Outlook
Slide 72: Corporate Status Quo Production and Cost
CORPORATE IAMGOLD Status quo, IMG 5 year average annual production is 385,000 oz at cash cost of $260/oz ANNUAL PRODUCTION AND COST* 500 $500 GI Cash Cost (US$/oz) 450 Production (000 's oz) 400 $400 300 $300 200 $200 100 $100 0 $0 2004A 2005E 2006F 2007F 2008F 2009F Production GI cash cost * IMG co
Slide 73: Corporate Status Quo Production Profile
CORPORATE IAMGOLD Under status quo scenario annual production falls below 300,000 oz in 2008 PRODUCTION PROFILE 500 Production (000 's oz) 400 300 200 100 0 2004A 2005E 2006F 2007F 2008F 2009F Sadiola Tarkwa Yatela Damang 71
Slide 74: Corporate Expansion Scenario Production and Cost
CORPORATE IAMGOLD 5 year “in-the-pipeline” expansion scenario (Damang and Tarkwa), average annual production is 415,000 oz at cash cost of $255/oz ANNUAL PRODUCTION AND COST* 500 $500 GI Cash Cost (US$/oz) Production (000 's oz) 400 $400 300 $300 200 $200 100 $100 0 $0 2004A 2005E 2006F 2007F 2008F
Slide 75: Corporate Expansion Scenario Production Profile
CORPORATE IAMGOLD Under Damang-Tarkwa expansion scenario annual production remains above 350,000 oz to at least 2010 PRODUCTION PROFILE 500 Production (000 's oz) 400 300 200 100 0 2004A 2005E 2006F 2007F 2008F 2009F Sadiola Tarkwa Yatela Damang 73
Slide 76: Production and Cumulative Cash
CORPORATE IAMGOLD Cumulative cash has the potential to grow from $100M at YE2004 to $350M - $420M by YE2009* (based on $400/oz - $440/oz gold price) PRODUCTION AND CUM. CASH 1000 $500 Cumulative Cash (US$M) Production (000's oz) 800 $400 600 $300 400 $200 200 $100 0 $0 2004A 2005E 2006F 2007F 2008F