Iamgold Corporation · TSX:IMG
Iamgold — FY2013 Earnings Presentation
36 slides from Iamgold's earnings presentation, Feb 20, 2014
Slide 1: 2013 Fourth Quarter and Full Year Results
2013 Fourth Quarter and Full Year Results February 20th, 2014 TSX: IMG NYSE: IAG
Slide 2: Management Participants
Management Participants STEVE LETWIN President & CEO GORD STOTHART EVP & Chief Operating Officer CAROL BANDUCCI EVP & Chief Financial Officer CRAIG MACDOUGALL SVP, Exploration JEFFERY SNOW SVP, General Counsel BOB TAIT VP, Investor Relations 2
Slide 3: Cautionary Statement on Forward-Looking Information
Cautionary Statement on Forward-Looking Information All information included in this presentation, including any information as to the Company’s future financial or operating performance, and other statements that express management’s expectations or estimates of future performance, other than state
Slide 4: Delivered on Strategic Priorities
Delivered on Strategic Priorities Exceeded Cost Reduction Target Spent Less Capital than Planned Preserved Cash 4
Slide 5: 2013 Highlights
2013 Highlights Adjusted net earnings1 $0.05 per share for Q4; $0.36 per share for 2013 Attributable gold production - 195,000oz. for Q4; 835,000oz. for 2013 Cost reductions of $125M; surpassing target by 25% Total cash costs1,2 per ounce for 2013: Gold mines3 - $801/oz. IAMGOLD owner-operator mines
Slide 6: 2013 Highlights
2013 Highlights Westwood start-up on time; Doyon Division met 2013 production guidance of 130,000-150,000oz. with 136,000oz. Essakane expansion completed; expect ~25% increase in 2014 production Reduced power costs at Rosebel, 2013 production down due to grade Excellent exploration progress despite
Slide 7: Focused on Economic Returns
Focused on Economic Returns Continuing initiatives to increase operating efficiencies 2014 CAPEX guidance of $400M is 40% less than in 2013 Continuing to optimize LOMs Optionality with expansion projects Deferrals or staged development options Rosebel full expansion deferred to 2015-2016 Continuing
Slide 8: Financial Review
Financial Review CORPORATION
Slide 9: Revenues
Revenues 2012 Change 2013 Gold Price1 1,667 (16%) 1,399 ($/oz.) Gold Sales2 827 (11%) 740 (000s oz.) 1,453.4 1,147.1 Yr/Yr Sales Main Factors Variance $millions (oz.) Mouska +52,000 Ore stockpiled in 2012 and sold in 2013 Rosebel -51,000 Lower production Essakane -81,000 Lower production 1 Average r
Slide 10: Adjusted Net Earnings
Adjusted Net Earnings1 (In $ millions, except for per share amounts) Q4'122 Q4'13 20122 2013 Net earnings attributable to equity holders 84.6 (840.3) 334.7 (832.5) $0.84 Impairment of goodwill and mining assets - 888.1 - 888.1 per share Impairments of marketable securities and associates 3.4 4.9 24.
Slide 11: Operating Cash Flow before Changes in Working Capital
Operating Cash Flow before Changes in Working Capital1 (In $ millions, except for per share amounts) Q4’122 Q4’13 20122 2013 Net cash from operating activities per 100.7 44.0 415.3 246.3 consolidated financial statements Adjusting items from non-cash working capital items and non-current ore stockpi
Slide 12: Attributable Gold Production
Attributable Gold Production Higher production Westwood 73,000 pre-commercial ounces Mouska 63,000 ounces Total 136,000 ounces Partially offset by 000s oz. 830 835 Lower production at Rosebel, Essakane and Sadiola 2012 2013 12
Slide 13: 2013 Gold Production and Sales Reconciliation
2013 Gold Production and Sales Reconciliation 835 762 740 -73 Pre-commercial -18 -4 production Shipment timing 000s oz. 2013 Attributable Westwood 2013 Attributable Essakane & Other 2013 Attributable Gold Production Commercial Gold Rosebel Gold Sales Production 13
Slide 14: Total Cash Costs and All-In Sustaining Costs
Total Cash Costs1 and All-In Sustaining Costs1 $/oz. 2013 2013 Guidance Total Cash Costs2,3 GOLD MINES 801 $790-$840/oz. Gold Mines6 All-In Sustaining Costs2,4 1,232 $1,150-$1,250/oz. Gold Mines6 OWNER-OPERATOR Total Cash Costs2,3 743 $750-$800/oz. Owner-Operator All-In Sustaining Costs2,4 1,174 $1,
Slide 15: Gold Margin
Gold Margin Gold price 1 1,704 1,273 1,667 1,399 ($/oz.) Spot Gold January 1, 2012 to December 31, 2013 $1,900 $1,800 $1,700 973 952 $1,600 598 445 $1,500 $/oz. $1,400 $1,300 $1,200 $1,100 828 801 731 715 1 Q4'12 Q4'13 2012 2013 Total Cash Costs Gold Margin 1 Average realized gold price per ounce so
Slide 16: Niobec
Niobec Higher grades, Q4’12 Q4’13 2012 2013 throughputs and recoveries 22% Niobium production 1.2 1.6 4.7 5.3 (Mkg Nb) $millions 200 191 Niobium sales 1.1 1.3 4.7 4.9 (Mkg Nb) 46 52 Operating margin 15 20 15 18 ($/kg) Q4'12 Q4'13 2012 2013 Revenue Margins up 20% year-over-year 16
Slide 17: Liquidity
Liquidity We are committed to preserving our financial liquidity. $1,134 $millions 250 500 162 222 As at end of 2013 Cash & cash equivalents Gold bullion at market Unused credit facility Unused Niobec credit facility The Company has $650 million of senior unsecured notes due in October 2020. 17
Slide 18: Operations Review
Operations Review #IAMGOLD’ CORPORATION
Slide 19: 2013 Reserves and Resources
2013 Reserves and Resources1 As of December 31, 2013 2013 Change 2012 Gold (000s attributable oz. contained) Total proven and probable mineral reserves 10,127 (11%) 11,327 Total measured and indicated mineral resources 2,3 23,408 4% 22,603 Total inferred resources 6,299 3% 6,093 Niobium (millions of
Slide 20: 2013 Cost Reduction: $125M – 25% Above Target
2013 Cost Reduction: $125M – 25% Above Target $54 Operations $75 $40 Exploration $41 $6 Corporate $9 0 10 20 30 40 50 60 70 80 Target Realized 20
Slide 21: Rosebel
Rosebel 2013 Performance Attributable Gold Production (95%) › Lower production due to grade variations and pit sequencing (000s oz.) 100 89 82 95 › Lower Q4 total cash costs reflect reduced power 70 rate and increased operating efficiency Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 › Focus on equipment availabili
Slide 22: Essakane
Essakane Attributable Gold Production (90%) 2013 Performance › Lower production due to lower grades as planned (000s oz.) › Lower grades, higher energy and reagent costs 77 65 62 64 59 drove cash costs higher Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 2014 Outlook › New hard rock line to be commissioned at the T
Slide 23: Doyon Division
Doyon Division 2013 Performance Westwood / Mouska › 2013 production of 136,000oz. (73,000oz. pre- commercial production from Westwood) › Q4 total cash costs1 were $813/oz. 2014 Outlook › H1 focus will be on underground development work › Access to rehabilitated levels re-opened › 80% of gold product
Slide 24: Sadiola
Sadiola Attributable Gold Production (41%) (000s oz.) 2013 Performance 27 19 24 19 24 › Lower production mainly a result of lower grade Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 › Rebound in Q4 from Q3 had positive impact on cash costs Total Cash Costs1 2014 Outlook › Continuing to assess expansion options ($/o
Slide 25: Niobec
Niobec Niobium Production 2013 Performance › Record year for production and operating margins (Mkg Nb) 1.3 1.6 › Three consecutive quarters of production 1.2 1.2 1.2 growth › Higher recoveries, throughput and grades Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 2014 Outlook Niobium Margin1 › Accelerating undergroun
Slide 26: Exploration Review
Exploration Review #IAMGOLD’ CORPORATION
Slide 27: 2013 Exploration
2013 Exploration Exploration and project studies $93.6M1 Exploration scaled back $41M Reprioritized and deferred greenfield projects 321 km of drilling Advanced greenfield projects in Senegal and Brazil Brownfield – Essakane, Rosebel, Westwood, Niobec Project studies include scoping and prefe
Slide 28: 2014 Exploration Program - $87.7 Million
2014 Exploration Program - $87.7 Million1 ($ millions) Capitalized Expensed Total Exploration projects – greenfield 0.2 38.2 38.4 Exploration projects – brownfield1 18.4 11.6 30.0 18.6 49.8 68.4 Côté Gold studies 15.0 - 15.0 Other scoping and pre-feasibility - 4.3 4.3 studies 15.0 4.3 19.3 Explorati
Slide 29: Resource Development and Brownfield Exploration
Resource Development and Brownfield Exploration ESSAKANE ROSEBEL Focused on the Sokadie Focused on identifying and Tassiri prospects additional transitional and south of the main pit soft rock resources Drilling campaign Assessing drilling results commenced at two priority over several priority
Slide 30: Greenfield: Boto Gold Project, Senegal
Greenfield: Boto Gold Project, Senegal Indicated resource of 1.1Moz. at 1.62 g/t Au Potential to further expand the current resource Completed 13,000 metre drilling program in 2013 Commissioning scoping study Source: Updated Resource Estimate for Boto Gold, effective July 29, 2013. Note: CIM Def
Slide 31: Greenfield: Pitangui Project, Brazil
Greenfield: Pitangui Project, Brazil Completed 14,000 metres of drilling at Sâo Sabastiâo in 2013 Preliminary metallurgical test work encouraging Initial mineral resource estimate nearing completion 31
Slide 32: Priorities
Priorities Cost Reduction Disciplined Capital Allocation Cash Preservation 32
Slide 33: Appendix
Appendix COAPORATION
Slide 34: 2014 Guidance
2014 Guidance Guidance gold production Rosebel (000s oz.) 330 - 350 Attributable Essakane (000s oz.) 315 - 330 Doyon division (000s oz.)1 100 - 120 Total owner-operated production (000s oz.) 745 - 800 Joint ventures (000s oz.) 90 - 100 Total attributable production (000s oz.) 835 - 900 Total cash co
Slide 35: 2014 Capital Expenditure Outlook
2014 Capital Expenditure Outlook1 Development/ ($ millions) Sustaining Expansion Total Rosebel 70 30 100 Essakane 80 25 105 Westwood 35 55 90 Côté Gold - 15 15 Total owner-operated gold 185 125 310 Niobec 20 50 70 Total consolidated 205 175 380 Joint ventures – Sadiola2 10 10 20 Total 215 185 400 1
Slide 36: 2013 Fourth Quarter and Full Year Results
2013 Fourth Quarter and Full Year Results February 20th, 2014 Investor Relations info@iamgold.com Bob Tait Laura Young Penelope Talbot-Kelly VP, Investor Relations Director, Investor Relations Analyst, Investor Relations T: 416-360-4743 T: 416-933-4952 T: 416-933-4738 TSX: IMG NYSE: IAG