Iamgold Corporation · TSX:IMG
Iamgold — Investor Day (June 2008)
32 slides from Iamgold's investor day presentation, Jun 2, 2008
Slide 1: Simplifying the Platform for New Opportunities
June 2, 2008 TSX: IMG NYSE: IAG Simplifying the Platform for New Opportunities Paul Olmsted Senior Vice President Corporate Development
Slide 2: Rationalization Program
2 CORPORATE DEVELOPMENT Rationalization Program • Objectives Simplify asset base Demonstrate value Management focus • Results Over 15 transactions to date $120M of realized value Enhanced cash position by $83M
Slide 3: Asset Rationalization
3 CORPORATE DEVELOPMENT Asset Rationalization in US$ million Asset Cash Shares Other Value Omai Bauxite 28.0 - 18.0 46.0 La Arena 47.6 3.3 - 50.9 Sleeping Giant 0.3 5.5 1.0 6.8 Exploration 5.4 6.5 3.8 15.7 Properties Non-Core 1.6 1.8 - 3.4 Non-Gold Total 82.8 17.1 22.8 122.6 2006 Acquisition Costs 1
Slide 4: Creating New Possibilities
4 CORPORATE DEVELOPMENT Creating New Possibilities Rationalization allows for: • Use of enhanced cash position • Renewed focus on acquisitions Management alignment New discipline Focus on results
Slide 5: Creating New Possibilities – Disciplined Approach
5 CORPORATE DEVELOPMENT Creating New Possibilities – Disciplined Approach Acquisition Criteria: • Minimum production of 100,000 ounces • Cash cost $390/oz • Regions we are in Relationships established Established infrastructure Knowledge • Reduce corporate political risk below 40 points on IMG
Slide 6: Achieving Zero Harm
TSX: IMG NYSE: IAG Achieving Zero Harm Ross Gallinger Senior Vice President Health, Safety & Sustainability
Slide 7: Raising the "Bar" ....
7 Raising the “Bar” …. Zero Harm is IAMGOLD’s commitment to maintain the highest standards in human health, minimizing our impact on the environment and working cooperatively with our host communities Zero Harm Means: • No fatalities, no lost time accidents, no medical aids/modified duty accidents •
Slide 8: On the Road To Zero Harm - Success To Date
8 On the Road To Zero Harm - Success To Date Systems, Policies & Procedures Achieved • Policies revised and aligned with leading practices, incorporate 20 international codes, guidelines and codes • Developed benchmarking and guidance allow for integration of new acquisitions • Deliver by June 2008,
Slide 9: Zero Harm and Our Growth Strategy
9 Zero Harm and Our Growth Strategy • Partnerships with communities in Ecuador and Tanzania have yielded support for our exploration programs • Engagement with stakeholders, community development and risk communications has positioned IAMGOLD as a valued member of the communities where we operate •
Slide 10: Zero Harm - Our Continued Success
Zero Harm - Our Continued Success Objectives Achieved in 2008: No fatalities, a 25% improvement in safety performance No significant environmental impacts No significant community incidents • To date, no fatalities, Sleeping Giant achieves 2 + years without a lost time accident • Q1 – Mupane a
Slide 11: Achieving Zero Harm
Achieving Zero Harm Zero Harm is IAMGOLD’s commitment to our employees, our communities and to the environment.
Slide 12: Ounce by Ounce Program
June 2, 2008 TSX: IMG NYSE: IAG Ounce by Ounce Program Karen Jury Director, Communications
Slide 13: Ounce by Ounce
Communications 13 Ounce by Ounce Developed and delivered an annual company-wide Business Literacy Program “Ounce by Ounce” that: • Establish IAMGOLD as a performance driven and knowledge based culture where all employees are accountable for our future growth • Engage and enrol employees to participa
Slide 14: Ounce by Ounce
Communications 14 Ounce by Ounce Ounce by Ounce allows for: • Accelerate on-boarding of new employees through acquisition, resulting in turn-key productivity • From the ground-up, employees move into action their cost-saving initiatives and production solutions to achieve our goal of doubling our pr
Slide 15: Appendix A: Operating & Capital Cost Data
APPENDIX A: OPERATING & CAPITAL COST DATA
Slide 16: Rosebel: Operating Cost Structure
16 OPERATION Rosebel: Operating Cost Structure Based on Q1 2008 Energy & Fuel 24% Consumables Labour 21% 28% Corp: 21% 6% Other: 9% Other Royalties
Slide 17: Rosebel Royalties Structure
17 OPERATIONS Rosebel Royalties Structure Per Mineral Agreement with Gov’t of Suriname • 2%: in-kind royalty • 6.5%: price participation on market price in excess of $425 • 0.25%: Charitable Surinamese foundation To Euro Ressources • 10% of market price above $300 for soft / transitional rock and ab
Slide 18: Rosebel: 2008 Capital Investment Program
18 Rosebel: 2008 Capital Investment Program (100% Basis) 2008 Capital Investment Program Mill Optimization (2007 carryover) + Expansion $33.5 M Sustaining Capital $23.4 M Replacement Mine Equipment Road Access to New Pits Tailings Reserves Development $9.9 M Capitalized Exploration $1.2 M Safety & E
Slide 19: Yatela: Operating Cost Structure
19 OPERATION Yatela : Operating Cost Structure Based on Q1 2008 Consumables Other 7% 13% Royalties Energy & Fuel (includes contractor diesel) 14% 15% 10% Labour 41% Mining Contractor
Slide 20: Yatela: 2008 Capital Investment Program
20 Yatela: 2008 Capital Investment Program (100% Basis) 2008 Capital Investment Program Sustaining Capital Leach Pads $3.3 M Other $0.9 M Capital Exploration $2.0 M Reserve Extensions on Strike Condemnation Drilling Total $6.2 M
Slide 21: Sadiola: Operating Cost Structure
21 OPERATION Sadiola: Operating Cost Structure Based on Q1 2008 Energy & Fuel Consumables 30% (includes contractor diesel) 20% 7% 12% Other Labour 14% 17% Royalties Mining Contractor
Slide 22: Sadiola: 2008 Capital Investment Program
22 Sadiola: 2008 Capital Investment Program (100% Basis) 2008 Capital Investment Program Sadiola Deep Feasibility $2.6 M Sustaining Capital Pit Dewatering $2.2 M Tailings System $2.4 M Other (12 items) $2.0 M Capital Exploration $2.2 M Total $11.4 M
Slide 23: Tarkwa: Operating Cost Structure
23 OPERATION Tarkwa: Operating Cost Structure Based on Q1 2008 Consumables Energy 59% 8% 10% Labour 11% 6% 6% Mining Contractor (includes mining fuel) Other Royalties
Slide 24: Tarkwa: 2008 Capital Investment Program
24 Tarkwa: 2008 Capital Investment Program (100% Basis) 2008 Capital Investment Program CIL Plant Expansion $74.1 M Sustaining Capital Mining & Support Equipment $14.9 M Capital Stripping $37.2 M Heap Extensions $36.0 M Sub-station Relocation $10.0 M Replacement Mobile Crane $1.3 M Other $9.3 M Safe
Slide 25: Damang: Operating Cost Structure
25 OPERATION Damang: Operating Cost Structure Based on Q1 2008 Consumable Other s 5% Royalties 25% 5% Energy 10% 6% 49% Labour Mining Contractor (includes mining diesel)
Slide 26: Damang: 2008 Capital Investment Program
26 Damang: 2008 Capital Investment Program (100% Basis) 2008 Capital Investment Program Sustaining Capital Pushback Stripping $12.2 M Mill Equipment $3.0 M Tailings System $4.9 M Other (6 items) $1.2 M Capital Exploration $2.4 M Total $23.7 M
Slide 27: Mupane: Operating Cost Structure
27 OPERATION Mupane: Operating Cost Structure Based on Q1 2008 Energy Consumable 11% s 33% 19% Labour 11% Royalties 26% Mining Contractor
Slide 28: Mupane: 2008 Capital Investment Program
28 Mupane: 2008 Capital Investment Program 2008 Capital Investment Program Process Improvement (8 Items) $0.5M Sustaining Capital $0.7 M Mining Fleet Redeployment $2.4 M Total $3.6 M
Slide 29: Doyon Div.: Operating Cost Structure
29 OPERATION Doyon Div.: Operating Cost Structure Based on Q1 2008 Energy & Fuel Labour 47% 10% Consumables 25% 14% 4% Royalties Other
Slide 30: Doyon Division Royalties
30 OPERATION Doyon Division Royalties • 2.2% NSR at Mouska • Doyon Property Royalty to Barrick • 24.75% price participation in annual average market price over $375 • Capped (1.1 million ounces remaining at 12/07 or $15.2 million) • Will impact on initial ounces from Westwood until Dollar cap is rea
Slide 31: Sleeping Giant: Operating Cost Structure
31 OPERATION Sleeping Giant: Operating Cost Structure Based on Q1 2008 Labour Energy & Fuel 8% 45% 11% Consumables 7% Other 29% Stockpile
Slide 32: Niobec: 2008 Capital Investment Program
32 Niobec: 2008 Capital Investment Program Process Improvement Kelsey Jig Pilot $0.8 M Mill Equipment $0.9 M Mining Equipment $0.7 M Other $0.5 M Sustaining Capital Shaft Deepening $10.7 M U/G Pumps & Infrastructure $0.9 M Filtration Plant $2.4 M Other $1.8 M Safety & Environmental $2.3 M U/G Develo