Iamgold Corporation · TSX:IMG
Iamgold — Investor Day (June 2009)
27 slides from Iamgold's investor day presentation, Jun 22, 2009
Slide 1: Taking IAMGOLD to the Next Level
June 22, 2009 TAKING IAMGOLD TO THE NEXT LEVEL ANALYST DAY 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: Presenters
3 Presenters INTRODUCTION & OVERVIEW CORPORATE AFFAIRS Joseph Conway, President & CEO Larry Phillips, EVP, Corporate Affairs Joseph Conway was President & CEO of Repardre Larry was one of the original founders of IAMGOLD when it was acquired by IAMGOLD in 2003. Under and has served as an officer of
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: Delivering Results
5 Delivering Results Targets set and met since last Analyst Day Rosebel Expansion Westwood Shaft Sinking Commencement Project Acquisition – Essakane Reducing Costs – Royalty acquisitions Continuous Improvement Initiatives Improved Corporate Reporting & Transparency Aggressive Exploration Improved HS
Slide 6: Delivering Superior Returns
6 Delivering Superior Returns Stock price appreciation NYSE: IAG TSX: IMG Shares outstanding: 365 million Market Capitalization: $4.1 billion IAG 52-week high: $11.51 IAG 52-week low: $2.22 Closing Price (June 19, 2009): $9.36 Data from June 2, 2008 to June 19, 2009 Peer average data compiled from:
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, Includes Essakane property acquired Feb.
Slide 8: Reserves Growth
8 Reserves Growth Continued Growth in Q1 2009 (millions ozs) 12.4 Moz 2.8 Moz Essakane acquisition 10 9.6 Moz 1.6 Moz Net 2.7 Moz 8.0 Moz addition addition 1.1 Moz depletion 0 2004 2005 2006 2007 2008 Q1 2009 * Includes Essakane
Slide 9: Historical Gold Production by Mine
9 Historical Gold Production by Mine Record Gold Production in 2008 of 997,000oz (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: Gold Production Target Profile
10 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 1,000 460 Quimsacocha Essakane Doyon/Westwood 800 440 Rosebel Mupane 600 420 Damang Tarkwa 400 400 Yatela Sadiola Costs 200 380
Slide 11: Peer Valuation Comparison
11 Peer Valuation Comparison Price / Net Asset Value Price to Net Asset Value – Peer Comparison P/NAV Source: public filings, IBES Market data as of June 19, 2009
Slide 12: Recent Developments
12 Recent Developments Delivering results Guidance Increased • Gold Production 910,000 to 920,000 ounces • Cash Cost $460 to $470 per ounce • Niobec Production 4,200 to 4,400 tonnes Nb2O5 • Niobec Operating Margin $20 to $22 per kilogram Niobec Expansion & Paste Backfill • Mill Expansion increas
Slide 13: Finance Review
June 22, 2009 Finance Review Carol Banducci Chief Financial Officer
Slide 14: Cash and Bullion Position
14 Cash and Bullion Position Positioned for Growth (US$ M) Mar. 31, 2009 Mar. 31, 2008 Change Cash and cash $372 $132 182% equivalents Bullion at market $91 $151 (40%) Ounces held (000‟s) 100 161 (38%) Cash and bullion $463 $283 64% Other available capital Available Credit $90 NIL Facility TOTAL $55
Slide 15: Key Statistics
15 Key Statistics Increased 2009 Guidance Revised Original Comments Guidance1 Guidance Gold Production (000ozs) 910-920 880 Mainly due to Rosebel expansion and Doyon mine life extension Cash Costs $460-$470 $470-$480 Higher production, lower (US$/oz) fuel prices. Capital Expenditures $448 $435 Mainl
Slide 16: Sensitivities
16 Sensitivities Impacts on Revised A Change of „09 cash Guidance cost/oz Gold $900 $50/oz $3 Year average oil $10/barrel – below $64/barrel $5 $55/barrel Price $10/barrel – above $64/barrel $3 Cdn dollar per $1.15 10 cent change $5 US dollar Note: • Approximately 50% of forecasted oil consumption (
Slide 17: Q1 Cash Cost
17 Q1 Cash Cost Cash Costs/oz Decreased Cash Cost $481 On a comparative basis, { • Lower Royalties excluding Sleeping Giant $476 $470 (Euro and Barrick) • Lower Energy Costs $460 • Productivity improvements
Slide 18: Consolidated Operating Costs Breakdown
18 Consolidated Operating Costs Breakdown Q1 2009 Gold Operations Other Energy Royalties 7% 15% 8% Labour 22% Consumables 31% Mining Contractor 17%
Slide 19: Depreciation
19 Depreciation Q1 2009 Annualized Range1 $ Production Depreciation $ (millions) (000oz) ($/oz) (millions) Suriname 9.7 88 110 (100%) Canada 5.8 27 215 Botswana 3.3 14 236 Mali 4.7 49 96 Sub-total 23.5 178 132 104 - 108 Gold Mines Non-Gold 4.9 23 - 26 Other 3.6 13 - 16 Total 32.0 140 - 150 Depreciat
Slide 20: Taxes
20 Taxes Tax pools – IAMGOLD Quebec: • Approximately $400M in tax pools • Pools are being utilized by taxable income realized from Niobec • Cash tax impact only for provincial mining taxes Effective tax rates (“ETR”) • For Q1-09, actual ETR was 31.7%, while expected ETR was 38% • Q1-09 ETR reduc
Slide 21: Capital Expenditure
21 Capital Expenditure 2009 Estimated At June 15, 2009 Outlook (in $millions) 2009 Projects: Westwood, Canada 82.9 Quimsacocha, Ecuador 14.2 Essakane, Burkina Faso 223.2 Other Exploration and development projects 1.4 321.7 Mining operations and capitalized exploration: Rosebel 65.9 Niobec 53.6 Mupan
Slide 22: Capital Expenditure Estimates
22 Capital Expenditure Estimates ($ 000s) 600,000 400,000 200,000 0 2006 2007 2008 2009F 2010E 2011E 2012E 2013E
Slide 23: Five Year Accumulated Cash Flow vs. Capital Needs
23 Five Year Accumulated Cash Flow vs. Capital Needs ~$1.7B • Operational cash flow is based on current operations and Essakane (2010 commercial production) ~$1.4B ~$1.3B includes G&S and exploration expenditures. Operations ~$1.0B • Cash flows do not include the current Essakane Quimsacocha cash, g
Slide 24: Analyst Day Presentation Larry Phillips
June 22, 2009 Analyst Day Presentation Larry Phillips Executive Vice President, Corporate Affairs
Slide 25: Core IAMGOLD Principles on Country Relations
25 Core IAMGOLD Principles on Country Relations • Core principles for Government relations • Current industry challenges and IAMGOLD‟s response • Structure of the IAMGOLD team for Corporate Affairs
Slide 26: Status in French Guiana
26 Status in French Guiana • New Mining Framework long overdue (original target Dec. 2008) • Key stakeholder support developed around “Harmonie” concept • No activity or feasibility work until clear policy framework is determined • Active engagement, dialogue and communication continues at all level
Slide 27: Status in Ecuador
27 Status in Ecuador • New Mining Code with general policies is complete • President Correa clearly affirms support for rapid development of Quimsacocha • Transitional regulations are officially announced • Authorization to recommence drilling and fieldwork is imminent