Iamgold Corporation · TSX:IMG
Iamgold — Investor Presentation (August 2009)
27 slides from Iamgold's investor presentation, August 2009
Slide 1: Taking IAMGOLD to the Next Level
August, 2009 TAKING IAMGOLD TO THE NEXT LEVEL Corporate Presentation Joseph F. Conway President & CEO
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: Superior Share Price Performance
3 IAMGOLD Superior Share Price Performance NYSE: IAG • Canadian based mid-tier gold mining TSX: IMG company focused in W. Africa, Guiana Shield Shares outstanding: 367 million and Québec Market Capitalization: $4.4 billion IAG 52-week high: $12.36 • 7 profitable gold operations on 3 continents IAG 5
Slide 4: Corporate Strategy
4 Corporate Strategy Focus on delivering superior stakeholder returns Grow Gold Production & Reserves • Successful development of existing projects • Aggressive exploration for organic growth • Accretive acquisitions Reduce Costs • Operations & development project optimization • Low cost acquisi
Slide 5: Significant Progress
5 Significant Progress 2009: Delivering Results Increased Guidance to 910,000 to 920,000 oz Rosebel Expansion & Improved Productivity Essakane Ahead of Schedule & Increased Reserves Westwood Shaft Sinking & Increased Resources Niobec Mill Expansion & Paste Backfill Improved Corporate Reporting & Tra
Slide 6: Health, Safety & Sustainability
6 Health, Safety & Sustainability Continuing commitment to Zero Harm H1 2009 HIGHLIGHTS SAFETY 53% reduction in accident severity and frequency, Zero fatalities ENVIRONMENT Zero significant incidents, continued environmental management COMMUNITY Five Essakane communities successfully relocated, comp
Slide 7: Resource Growth
7 Resource Growth Record Gold Resources (000’s ozs) 30,000 26.4 Mozs 25,000 Essakane Quimsacocha 20,000 Camp Caiman Others Canada 15,000 Rosebel Mupane 5.5 Mozs Damang 10,000 Tarkwa Yatela 5,000 Sadiola 0 2004 2005 2006 2007 2008 •Resources include reserves, as at Dec. 31, 2008 includes Essakane pro
Slide 8: Reserves Growth
8 Reserves Growth Continued Growth in Q1 2009 (millions ozs) 14 12.4 Moz 12 2.8 Moz Essakane acquisition 10 9.6 Moz 1.6 Moz Net 2.7 Moz 8.0 Moz addition addition 8 1.1 Moz depletion 6 4 2 0 2004 2005 2006 2007 2008 Q1 2009 * As at Dec. 31, 2008 includes Essakane property acquired Feb. 25, 2009
Slide 9: Historical Gold Production by Mine
9 Historical Gold Production by Mine Record Gold Production in 2008 (000’s Gold Ounces) 997,000 oz 1,000 800 Sleeping Giant Doyon Division 600 Rosebel 431,000 oz Mupane Damang 400 Tarkwa Yatela Sadiola 200 0 2004 2005 2006 2007 2008
Slide 10: Strong Financial Position
10 Strong Financial Position Positioned for Growth Operating Cash Flow Cash & Bullion1: $395 million ($ millions) Credit facility2: $84 million Funds Available: $479 million Well funded for existing operations & development 254 projects Base Shelf Prospectus: Provides financial flexibility for
Slide 11: 2009 Gold Production Guidance
11 2009 Gold Production Guidance Production by Region, by Mine 2009 Guidance Gold Production: 910,000 to 920,000 oz Cash Costs: $460 to $470 per oz Québec Doyon Division, Canada 102k oz 102k oz Tarkwa, Ghana 130k oz Guiana Shield Africa 11% 11% 365k oz 449k oz 14% Damang, Ghana 39k oz 4% 40% 49% 40%
Slide 12: Gold Production Target Profile
12 Gold Production Target Profile* Projected organic growth from existing operations & development projects (000’s Gold Ounces) (Cash Cost Average $/oz) 1,400 500 1,200 480 Quimsacocha 1,000 460 Essakane Doyon/Westwood 800 440 Rosebel Mupane Damang 600 420 Tarkwa Yatela Sadiola 400 400 Costs *Assume
Slide 13: Capital Expenditure Estimates
13 Capital Expenditure Estimates Five Year Accumulated Cash Flow vs. Capital Needs • Cash flows do not include the ~$1.7B current cash, gold bullion (at market @$1,000/oz and available credit facility) of $479 million ~$1.4B ~$1.3B • Operational cash flow based on @$850/oz current operations (plus E
Slide 14: Operations: Focus Discipline Results
14 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 2009E 365k oz 2009E 102k oz 2009E 63k oz 2009E 4.2-4.4k t Nb 5 6 Sadiola Yatela MALI MALI
Slide 15: Rosebel Suriname
15 Rosebel SURINAME IAMGOLD’s Flagship Mine OPERATIONS • Rosebel is IAMGOLD’s flagship operation, currently providing around one third of the company’s gold production • Record 2008 Production of 315,000 oz • H1 2009 Production 187,000 oz on track with guidance • Acquisition of royalty reduced cos
Slide 16: Doyon Division Canada
16 Doyon Division CANADA Record Gold Production OPERATIONS • 2008 production 118,000 ounces • Acquisition of royalty reduced costs • H1 2009 Production of 55,000 oz on track with guidance IMG Ownership 100% 2009 OUTLOOK • Doyon mine originally scheduled to close in May 2009 Location Quebec – Cur
Slide 17: Mupane Botswana
17 Mupane BOTSWANA 2008 Change to owner mining reduced costs OPERATIONS • Record 2008 production 101,000 oz • 2008 transition from contractor mining to owner mining reduced cash costs by 33% to $367/oz • Hedge retired IMG Ownership 100% PROJECT • Assessing engineering & metallurgical options to
Slide 18: West African Joint Ventures
18 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 19: Niobec Mine Quebec
19 Niobec Mine QUEBEC High Margin, Long Life Asset OPERATIONS • Continues to provide significant cash flow to fuel growth strategy (15-20% of overall Corporate operating cash flow) • 2008 Reserves increased 36%, Inferred Resources increased 72% • Operating margin continues to strengthen IMG Owners
Slide 20: Development Projects
20 Development Projects Filling the Pipeline 1 Essakane 22 Westwood 4 Advanced Stage BURKINA FASO CANADA Development Projects Aggressive Greenfields Exploration August 2010, Est. 315,000 oz Early 2013, Est. 200,000 oz 3 Quimsacocha ECUADOR 2 Est. 202,000 oz 4 1 Camp Caiman FRENCH GUIANA 4 3 Est.
Slide 21: Essakane Burkina Faso
21 Essakane BURKINA FASO Ahead of Schedule & On Budget OVERVIEW • Production within 12 months • Increased Reserves by 8% to 3.37 million oz CONSTRUCTION UPDATE • Q2 2009 capex of $90 million • ISO 14001 certification recently renewed for exploration activities, camp and offices IMG Ownership 90%
Slide 22: Westwood Quebec
22 Westwood QUEBEC Long Life, Low Cost PROJECT OVERVIEW • Adjacent to Doyon mine • Inferred Resources increased by 9%, with a 31% increase in grade to 3.4 million oz at 11.4 g/t • Plus Indicated Resource of 28,000 oz in Zone 2-30 and 70,000 oz at Warrenmac • Utilizes Doyon Division 3,500 tonne per
Slide 23: Quimsacocha Ecuador
23 Quimsacocha ECUADOR Ready to Resume Development OVERVIEW • Large deposit located in southern Ecuador • Provides medium term production of over 200K oz per year UPDATE • Environmental permits approved • Awaiting permit from Ministry of Mines IMG Ownership 100% • New mining law ratified, not le
Slide 24: Greenfields Exploration
24 Greenfields Exploration Aggressive Organic Growth UPDATE • Q2 2009 expenditures $8.3 million • 2009 est. expenditures $34 million • Kalana Gold Project announcement • Q2 Exploration Update Released: – Sarakreek 4,000m drill program underway Region/Country Location – Minas Gerias 5,000m drill pr
Slide 25: Taking IAMGOLD to the Next Level
25 Taking IAMGOLD to the Next Level Continuing to Deliver Strong Operating Results Superior share price performance Improving operating results Margin Growth Strong financial position What’s next? Continued focus on disciplined growth Q3 Continued Development Project Optimization Q4 Sadiol
Slide 26: “….outstanding share price performance, continued solid operating results, a well funded
“….outstanding share price performance, continued solid operating results, a well funded pipeline and strong financial position Head Office 401 Bay Street, Suite 3200, PO Box 153 combine to make IAMGOLD an Toronto, Ontario, Canada M5H 2Y4 exceptional investment T 416 360 4710 F 416 360 4750 www.iamg
Slide 27: IAMGOLD Head Office 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