Iamgold Corporation · TSX:IMG
Iamgold — Q1 2021 Earnings Presentation
38 slides from Iamgold's earnings presentation, May 4, 2021
Slide 1: First Quarter 2021 Results
First Quarter 2021 Results May 4, 2021 – Conference Call TSX: IMG l NYSE: IAG www.iamgold.com
Slide 2: Management Participants
Management Participants BRUNO LEMELIN GORDON STOTHART Senior Vice President, President & Chief Executive Officer Operations & Projects DANIELLA DIMITROV TIM BRADBURN Executive Vice President & Senior Vice President, General Counsel Chief Financial Officer and Corporate Secretary INDI GOPINATHAN CRAI
Slide 3: Cautionary Statement
Cautionary Statement CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION 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 expectati
Slide 4: Technical Information and Qualified Persons
Technical Information and Qualified Persons CAUTIONARY NON-GAAP PERFORMANCE MEASURES This presentation includes certain non-International Financial Reporting Standards (“IFRS”) measures such as life of mine total cash costs and life of mine average AISC. These measures are not defined under IFRS and
Slide 5: Q1 2021 Overview
Q1 2021 Overview Mine-site FCF $89.5 million / Adjusted earnings $6 million or $0.01 per share ~$968 million in cash and ~$1.5 billion in total liquidity1 Corporate Continued proactive management of COVID-19 with rapid response and strict protocols & Strategic Rosebel Community Funds toward solar LE
Slide 6: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG) Since 2007 Recent Highlights: • Investing $950,000 in a 4-year Giants of Africa program, aimed at encouraging the development of youth through sports in Burkina Faso, Senegal and Mali; Zero Harm® is our commitment to continually strive • Sponsoring the Arte
Slide 7: COVID-19 Update
COVID-19 Update • Health & Safety Protocols Embedded in our Operations and Projects • Essakane – implemented additional measures including thermal screening of all personnel and visitors entering site and Ouagadougou office; 20-bed field hospital and medical confinement house established in Ouagadou
Slide 8: Q1 2021 Operating Highlights
Q1 2021 Operating Highlights Attributable Capital Production Total Cash Costs1 AISC1 Expenditures2 (000s oz) ($/oz produced) ($/oz sold) ($ millions, 100%) Essakane (90%) 102 $934 $1,061 $19.9 Rosebel (95%) 47 $1,288 $1,450 $18.4 Westwood (100%) 7 $1,186 $1,187 $1.0 Project Expansion – – – $63.2 (Cô
Slide 9: Q1 2021 Operating Highlights (cont.)
Q1 2021 Operating Highlights (cont.) Attributable Gold Production Total Cash Costs (TCC)1 (koz Au) (US$/oz) 169 $1,006 $998 $1,052 $935 159 155 156 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2020 Q3 2020 Q4 2020 Q1 2021 All-in Sustaining Costs (AISC)1 Operating Capital Expenditures2 (US$/oz) (US$ millions)
Slide 10: 2021 Catalysts
2021 Catalysts1 Target Progress Essakane Completion of mill optimization project Q1 2021 Completed Return to full mining rates End of Q2 2021 Ongoing Rosebel Completion of Saramacca non-critical infrastructure Q4 2021 Ongoing Westwood Westwood underground re-start and ramp-up2 H2 2021 On track Start
Slide 11: Financial Review
Financial Review Photo: Wärtsilä 11
Slide 12: Q1 2021 Financial Review
Q1 2021 Financial Review FINANCIAL PERFORMANCE Q1 2021 FINANCIAL RESULTS • Revenues $297.4 million from sales of 167,000 ounces at average price of $1,781/oz; Q1 Q4 Q1 • Earnings of $19.5 million or $0.04 per share and adjusted earnings of $6.2 million or $0.01 per 2021 2020 2020 (In $ Millions, unl
Slide 13: Q1 2021 Cash Flow
Q1 2021 Cash Flow KEY HIGHLIGHTS +$19.2 Operating activities ($63.3) • Cash generated from earnings ($87.3 million), partially offset by income tax paid ($7.5 million). +$79.8 Working capital ($14.2) • Cash received from VAT refund net of new claims ($35.8 million), partially offset by timing of
Slide 14: Strong Financial Position
Strong Financial Position AVAILABLE LIQUIDITY NET CASH Q1 Q4 Q1 (In $ Millions) 2021 2020 2020 Undrawn Cash, equivalents & STI $967.8 $947.5 $802.2 Credit Facility1 Lease liabilities $63.8 $66.8 $64.1 $500 M Long term debt $466.7 $466.6 $419.1 $1.5B Revolving credit facility $1.8 $1.7 $0.4 Net cash
Slide 15: Operations
Operations 15
Slide 16: Focus on Safety: DART & TRI Tracking Below Target
Focus on Safety: DART & TRI Tracking Below Target Days Away, Restricted or Transferred Duty (DART) Total Recordable Injuries (TRI) DART 2021 TARGET: 1.44 0.66 0.511 TRI 2021 TARGET: 1.18 0.851 1.13 0.53 0.51 0.46 0.46 0.87 0.67 0.67 0.3 2016 2017 2018 2019 2020 2021 YTD 2016 2017 2018 2019 2020 2021
Slide 17: Essakane: Continued Strong Performance
Essakane: Continued Strong Performance 2021 Burkina Faso (90% ownership) (attributable) Q1/21 Q4/20 Guidance unit Gold Production koz 102 103 365 – 390 • Strong production and sales; Total Cash Costs1 US$/oz $934 $928 – • Higher grades of 1.34 g/t offset by lower recoveries of All-in Sustaining Cost
Slide 18: Rosebel: Q1 Impacted by Heavy Rain; Expecting Stronger H2
Rosebel: Q1 Impacted by Heavy Rain; Expecting Stronger H2 2021 Suriname (95% Rosebel | 66.5% Saramacca1) (attributable) Q1/21 Q4/20 Guidance unit Gold Production koz 47 52 220 – 245 • Production impacted by lower grade stockpile feed and also lower throughput (impacted by heavy rains); Total Cash Co
Slide 19: Westwood: Cautious Approach Targeting Safe UG Re-Start in H2
Westwood: Cautious Approach Targeting Safe UG Re-Start in H2 2021 Québec, Canada (100% ownership) (attributable) Q1/21 Q4/20 Guidance unit Gold Production koz 7 14 45 – 65 • Production impacted by lower grade Grand Duc material Total Cash Costs1 US$/oz $1,186 $1,016 – (1.09 g/t) while underground on
Slide 20: Construction Review
Construction Review CdétéeGold a # IAMGOLD
Slide 21: Côté Gold – Global Tier I Asset
Côté Gold – Global Tier I Asset Ontario, Canada (64.75% ownership1) Tier I Asset Criteria I Mine Life >10 Years I 18+ Year Mine Life based on 7.3Moz2 of P&P with district potential II Annual Production >500,000 ounces II 493,000 ounces / year over the first 5 years2 III Total Cash Costs III $600
Slide 22: Côté Gold: Construction on Track
Côté Gold: Construction on Track unit Q1/21 Guidance Capital Expenditures1,2 US$M $48.4 2021: $355 • Major earthworks commenced ahead of schedule, focused on road widening and overburden stripping; Incurred Costs US$M $67.1 – • Commenced water management infrastructure for the tailings management fa
Slide 23: Project Timeline – Key Milestones
Project Timeline – Key Milestones Construction Process Major Building TMF Phase 1 Commercial Production Approval1 Earthworks Enclosed Complete Major Earthworks Start Construction Start Start2 Commissioning Full Production Completed Achieved 2020 2021 2022 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q
Slide 24: Development and Exploration Projects
Development and Exploration Projects 24
Slide 25: Q1 2021 Exploration Update
Q1 2021 Exploration Update 2021 (US$ millions) Q1/21 Q4/20 Guidance Exploration – Greenfield $5.5 $6.1 $33 Essakane • Air core drilling and sampling program for resource Exploration – Brownfield1 $4.9 $5.1 $23 potential at targets within trucking distance of the mine; • Includes GEM, Korizena and Ta
Slide 26: Gosselin Zone: Exploration Target Potential of 3-5 Moz Near Côté
Gosselin Zone: Exploration Target Potential* of 3-5 Moz Near Côté Ontario, Canada (64.75% ownership1) Q1 2021 HIGHLIGHTS GOSSELIN ZONE • Reported assay results from ongoing delineation (0.5 g/t Au grade shell)* drilling program with highlight intercepts2: • 353.0 metres at 1.04 g/t Au • incl. 46.0 m
Slide 27: Boto Gold: De-risking Activities Progressing
Boto Gold: De-risking Activities Progressing 2021 Senegal (90% ownership) (US$ millions) Q1/21 Q4/20 Guidance Capital Expenditures1 $14.5 $6.2 $60.0 • Advanced access road and permanent camp RIGHT: Saroudia Bridge Formwork & construction, with camp contract award in Q2; Reinforcement in Place on 3 Q
Slide 28: Industry Leading R&R Growth
Industry Leading R&R Growth INDUSTRY RESERVES INDUSTRY M&I RESOURCES 17.9Moz 16.7Moz 27.9Moz IAMGOLD P&P Reserves IAMGOLD M&I Resources 27.2Moz 14.5Moz 13.9Moz 24.7Moz 11.3Moz 23.9Moz 23.4Moz 23.5Moz 23.3Moz +12% Growth in 10.1Moz +79% Growth in 22.6Moz 8.6Moz Reserve Base M&I Resources 7.7Moz 7.8Mo
Slide 29: Robust Exploration Pipeline
Robust Exploration Pipeline West Africa North America South America Essakane Westwood UG Rosebel >5 Moz Au Production Fala/Fala E (Essakane) Grand Duc Saramacca >2 Moz Au <2 Moz Au Côté Construction Brownfield Advanced Greenfield Greenfield Boto Fayolle Feasibility Study Diakha-Siribaya Monster Lake
Slide 30: IAMGOLD – Positioned for Profitable Growth
IAMGOLD – Positioned for Profitable Growth Diversified Operating Compelling Value & I Portfolio II Production Growth Robust Pipeline Strong Strong Financial V of Projects ESG III practices Position Culture of IV Accountable Mining 30
Slide 31: Appendix
Appendix # IAMGOLD 31
Slide 32: Reducing Input Exposure Through Hedging
Reducing Input Exposure Through Hedging 2021 2022 2023 2024 Foreign Currency1 Canadian dollar contracts (millions of C$) 234 210 185 – Rate range2 ($/C$) 1.28 – 1.47 1.30 – 1.48 1.30 – 1.46 – Hedge ratio 40% 29% 33% – Commodities1,3,4 Brent oil contracts (barrels) 441 520 428 270 Contract price rang
Slide 33: Gold Mineral Reserves – 100% Basis
Gold Mineral Reserves – 100% Basis As at December 31, 2020 PROVEN PROBABLE TOTAL RESERVES Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces DEPOSIT Type* Location (000’s) (g/t) (000’s) (000’s) (g/t) (000’s) (000’s) (g/t) (000’s) Rosebel 1 OP Suriname 25,355 0.6 504 88,439 1.0 2,852 113,794
Slide 34: Gold Mineral Reserves – Attributable
Gold Mineral Reserves – Attributable As at December 31, 2020 PROVEN PROBABLE TOTAL RESERVES Effective Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces DEPOSIT Location Ownership (000’s) (g/t) (000’s) (000’s) (g/t) (000’s) (000’s) (g/t) (000’s) Rosebel 1 95% Suriname 24,087 0.6 479 84,017
Slide 35: Gold Mineral Resources – 100% Basis
Gold Mineral Resources1,2 – 100% Basis (Measured & Indicated Resources are inclusive of Proven & Probable Reserves) As at December 31, 2020 MEASURED INDICATED MEASURED + INDICATED INFERRED Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces DEPOSIT Type* Location (000’s)
Slide 36: Gold Mineral Resources – Attributable
Gold Mineral Resources1,2 – Attributable (Measured & Indicated Resources are inclusive of Proven & Probable Reserves) As at December 31, 2020 MEASURED INDICATED MEASURED + INDICATED INFERRED Effective Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces DEPOSIT Location Ow
Slide 37: Notes to the Gold Mineral Resources Statement
Notes to the Gold Mineral Resources Statement 1 In mining operations, Measured Mineral Resources and Indicated Mineral Resources that are not Mineral Reserves are considered uneconomic at the price used for Mineral Reserve estimations but are deemed to have a reasonable prospect of economic extracti
Slide 38: Indi Gopinathan, VP, Investor Relations & Corporate Communications
Indi Gopinathan, VP, Investor Relations & Corporate Communications 416-388-6883 Philip Rabenok, Senior Analyst, Investor Relations 647-967-9942