Iamgold Corporation · TSX:IMG
Iamgold — New York Society of Security Analysts (June 2009)
26 slides from Iamgold's conference presentation, Jun 2, 2009
Slide 1: Taking IAMGOLD to the Next Level
June 2, 2009 TAKING IAMGOLD TO THE NEXT LEVEL New York Society of Security Analysts Larry Phillips Senior Vice President, Corporate Affairs
Slide 2: Cautionary Statement
2 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 re
Slide 3: IAMGOLD Highlights
3 IAMGOLD Highlights NYSE: IAG • Canadian-based mid-tier gold mining TSX: IMG company focused in W. Africa, Guiana Shares outstanding: 365 million Shield and Québec Market Capitalization: $4 billion IAG 52-week high: $11.13 • 7 profitable gold operations on 3 continents IAG 52-week low: $2.22 ~1Moz
Slide 4: Significant Progress: 2008 A Breakthrough Year
4 SIGNIFICANT PROGRESS 2008: A Breakthrough Year • Record gold production of 997K oz • Record revenues of $870M • Record operating cash flow of $254M • Adjusted net earnings up 87% to $108M • Cash operating costs of $459/oz met guidance, in line with industry average • Reserves increased 55% to 12.4
Slide 5: Strong Financial Position
5 Strong Financial Position Ready for continued growth Operating Cash Flow • 2008 Operating cash flow $254 million ($ millions) • Raised $282 million1 in equity financing in Q1 2009 • Cash & Bullion2: $463 million 254 Credit facility3: $90 million Funds Available: $553 million 117 75 • Well position
Slide 6: Gold Production by Mine
6 Gold Production by Mine Record Gold Production in 2008 (000’s Gold Ounces) 997,000 1,000 800 Sleeping Giant 600 Doyon Division Rosebel Mupane 431,000 Damang 400 Tarkwa Yatela Sadiola 200 0 2004 2005 2006 2007 2008
Slide 7: Gold Reserves & Resources Growth
7 Gold Reserves & Resources Growth Industry Leading Growth M oz Proven & Probable Reserves Measured, Indicated & Inferred Resources 15 M oz *12.4 40 Total M&I Resources ** Inf erred Resources Moz *26.4 addition acquisition 35 Moz Essakane 2.8 Moz 9.6 30 7.7M 10 Moz 1.6 2.7 Moz addition 8.0 Net Moz M
Slide 8: Solid Reserve Growth
8 Solid Reserve Growth Peer Reserve change - 2007 to 2008 % Reserve Reserve Change Change • IAMGOLD’s reserve growth outperformed (000s ounces) its peer companies 60% • Including Essakane, acquired Feb. 2009, 4,000 IMG’s reserves grew 55% to 12.4Moz 50% 2,000 40% 0 30% -2,000 20% -4,000 10% 0% -6,00
Slide 9: Health, Safety & Sustainability
9 Health, Safety & Sustainability Continuing commitment to Zero Harm 2008 HIGHLIGHTS SAFETY 24% reduction in total accidents, zero fatalities ENVIRONMENT No significant incidents COMMUNITY Active social programs near our mines CERTIFICATION Seven operations are ISO 14001 certified SUSTAINABILITY Fir
Slide 10: Corporate Strategy
10 Corporate Strategy Taking IAMGOLD to the Next Level Focusing on Growth and Cost Reduction • Continued improvement at existing operations • Disciplined political and country risk management • Maintain a strong balance sheet • Pursue accretive acquisitions in our focus regions • Aggressive explorat
Slide 11: 2009 Gold Production Outlook
11 2009 Gold Production Outlook Production by Region, by Mine 2009 Outlook - Total Gold Production: 880K oz Canada Doyon Division, Canada 9% 79K oz Tarkwa, Ghana Africa 136K oz South America 54% 37% Damang, Ghana 40K oz Sadiola, Mali 132K oz Rosebel, Suriname 325K oz Yatela, Mali 88K oz Mupane, Bots
Slide 12: Double Production, Reduce Costs
12 4 Year Objective Double Production, Reduce Costs (000 oz) Taking IAMGOLD to the Next Level….. 2,000 • Optimizing existing mines Goal • Minesite and greenfields exploration 1,750 • Accretive acquisitions with strategic fit Acquisitions, Discoveries IAMGOLD has doubled gold production twice 1,500 i
Slide 13: Operations: West Africa, Guiana Shield and Quebec
Operations FOCUS DISCIPLINE RESULTS Three Focus Areas: West Africa, Guiana Shield and Quebec 1 2 Doyon Division 3 4 7 Gold Mines Rosebel Mupane Niobec SURINAME CANADA BOTSWANA CANADA Niobec Niobium Mine 315,000 oz 187,000 oz 101,000 oz 4,396,000 kg Nb 5 6 Sadiola Yatela MALI MALI 24 172,000 oz 6
Slide 14: Rosebel, Suriname
14 Rosebel SURINAME IAMGOLD’s Flagship Mine • OPERATIONS • Record 2008 production up 20% to 315K oz • 2008 M&I resources up 17% or 1.7M oz • Acquisition of royalty reduces costs by $50 per oz at $800/oz gold price • $85M capex in 2008 • Q1 2009 production up 16% to 83K oz • Q1 2009 cash costs down 1
Slide 15: IAMGOLD Operations: Mupane and Doyon
15 IAMGOLD Operations MUPANE Doyon IMG Ownership 100% 100% Location Botswana Quebec M&I Resources (oz)* Inferred Resources (oz) 598,000 453,000 (as at Dec. 31, 2008) 25,000 570,000 *M&I resources are inclusive of reserves Production (oz) 2008 101,000 118,000 Q1 2009 14,000 27,000 2009E 80,000 79,000
Slide 16: West African Joint Ventures
16 West African Joint Ventures SADIOLA YATELA TARKWA DAMANG IMG Ownership 38% 40% 18.9% 18.9% JV: Anglogold Ashanti JV: Anglogold Ashanti JV: Goldfields Ltd. JV: Goldfields Ltd. Location Mali Mali Ghana Ghana M&I Resources (oz)* 2,348,000 313,000 2,462,000 407,000 Inferred Resources (oz) (as at Dec.
Slide 17: Niobec Mine, Quebec
17 Niobec Mine QUEBEC High Margin, Long Life Asset • OPERATIONS • Continues to provide significant cash flow to fuel growth strategy • 2008 Reserves increased 36%, Inferred Resources increased 72% • Operating margin continues to increase • 15-20% of overall Corporate operating cash flow IMG Ownershi
Slide 18: Development Projects: Filling the Pipeline
18 Development Projects FILLING THE PIPELINE Three Focus Areas: West Africa, Guiana Shield and Quebec 1 Essakane 22 Westwood 4 Advanced Stage BURKINA FASO CANADA Development Projects Aggressive Greenfields Exploration Late 2010, Est. 315,000 oz Early 2013, Est. 200,000 oz 3 Quimsacocha ECUADOR 2
Slide 19: Essakane, Burkina Faso
19 Essakane BURKINA FASO Near Term Production, On Schedule OVERVIEW • Orezone Resources Inc. acquisition closed Q1 2009 • Provides near term production of over 300K oz per year • Increased Company Reserves by 29% CONSTRUCTION UPDATE • Q1 2009 expenditures of $44M ($25M since acquisition) • Chang
Slide 20: Westwood, Quebec
20 Westwood QUEBEC Long Life, Low Cost OVERVIEW • Large 3 Moz deposit located adjacent to Doyon Division • Provides medium term production of 200K oz per year CONSTRUCTION UPDATE • Construction ahead of schedule • 2008 capex of $38M • January 2009 updated positive scoping study provides further
Slide 21: Quimsacocha, Ecuador
21 Quimsacocha ECUADOR Ready to resume development OVERVIEW • Large deposit located in southern Ecuador • Provides medium term production of over 200K oz per year UPDATE • Pre-feasibility study completed mid 2008 • Apr. 2008: Mining Mandate passed by Ecuador, 180 day moratorium on mining. IMG Ow
Slide 22: Other Development Projects
22 Other Development Projects Updates CAMP CAIMAN GREENFIELDS EXPLORATION IMG Ownership 100% SOUTH AMERICA Location French Guiana Suriname – Sarakreek M&I Resources (oz)* 1,615,000 Suriname – Rosebel Regional Inferred Resources (oz) (as at Dec. 31, 2008) 249,000 Guyana – Eagle Mountain Mine Life (ye
Slide 23: Conclusions
Conclusions Conclusions • Undervalued compared to peers • Taking IAMGOLD to the Next Level
Slide 24: Peer Company Comparison
24 Peer Company Comparison Price / Net Asset Value P/NAV 6.7X 3.6X 3.3X 2.4X 2.4X 2.0X 1.7X 1.7X 1.5X 1.5X 1.3X Randgold Agnico- Newcrest Eldorado Newmont Goldcorp Barrick Kinross Gold Yamana IAMGOLD Eagle Fields P/NAV Source: public filings, IBES Market data as of May 27, 2009
Slide 25: Taking IAMGOLD to the Next Level: Conclusions
25 Taking IAMGOLD to the Next Level Conclusions 2008 was a breakthrough year • Record gold production of 997K oz • Cost containment Q1 2009 was an excellent start to an important building year • Consistent operating results • Dramatic Reserve growth • $550M capital available What is next? • Focus on
Slide 26: IAMGOLD Head Office and Investor Relations Contact
IAMGOLD Head Office Investor Relations Contact 401 Bay Street, Suite 3200, PO Box 153 TAMARA BROWN Toronto, Ontario, Canada M5H 2Y4 Director, Investor Relations T 416 360 4710 F 416 360 4750 T 416 360 4743 F 416 360 4750 W www.iamgold.com E info@iamgold.com E tbrown@iamgold.com
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