Iamgold Corporation · TSX:IMG
Iamgold — BMO Capital Markets 2009 Global Metals & Mining Conference
27 slides from Iamgold's conference presentation, Feb 23, 2009
Slide 1: Taking IAMGOLD to the Next Level
February 23, 2009 TAKING IAMGOLD TO THE NEXT LEVEL BMO Capital Markets 2009 Global Metals & Mining Conference Joseph 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 Profile
3 IAMGOLD Profile • 997,000 ounces gold production in 2008 NYSE: IAG TSX: IMG • Growth-driven mid-tier gold producer Shares outstanding: 296 million • 7 operating mines and 4 development projects Market Capitalization: $2.5 billion on 3 continents • Focused on West Africa and Guiana Shield area • Go
Slide 4: Corporate Strategy
4 Corporate Strategy Taking IAMGOLD to the Next Level Target: Production of 1.8 million ounces gold/year by 2012 at cash costs at or below industry average Achieving our Target through: • Expansions and continuous improvement at existing operations • Disciplined approach to maximize value from short
Slide 5: Operations are Delivering Results
5 Operations are Delivering Results Q3 and Nine Month 2008 Financial Highlights US$ millions Revenue *Adjusted Net Earnings Operating Cash Flow 189.3 660 91.1 Record quarterly Record quarterly revenue in Q3 operating cash flow 213% 111% 36% in Q3 484 43.1 71.7 227 60.5 170 19.5 23.4 141% 33% 29.8 20
Slide 6: Operations are Delivering Results: Cash Operating Cost
6 Operations are Delivering Results Cash Operating Cost of Production Q3 2008 vs Q3 2007 US$/oz Au +43% +36% +28% +28% +10% +6% +41% +147% +178% PEER COMPARATIVE – CASH OPERATING COST • IAMGOLD’s 2008 cash cost/oz on target with our original lower guidance of $455-$470/ oz, despite a significant inc
Slide 7: Preliminary 2008 Results & 2009 Outlook
7 Operations are Delivering Results Preliminary 2008 Results & 2009 Outlook 2008 • 2008 gold production of 997,000 ounces exceeded original guidance by 8% • Production at Rosebel increased 20% to 315,000 ounces • Cash costs for 2008 are below most recent guidance and close to industry average • Rese
Slide 8: Three Focus Areas: West Africa, Guyana Shield and Quebec
8 Three Focus Areas: West Africa, Guyana Shield and Quebec NIOBEC Westwood DOYON DIVISION YATELA ROSEBEL DAMANG Quimsacocha SADIOLA Camp Caiman TARKWA Buckreef 7 Gold Operations 4 Advanced Projects MUPANE Niobec Niobium Mine
Slide 9: 2008 Gold Production
9 2008 Gold Production Production by Mine, by Region 4% 12% 31% 7% 17% 12% 10% 7% 2008 Actual Total Production: 997,000 oz
Slide 10: Operations
Operations Focus, Discipline, Results • Rosebel • West African Joint Ventures • Mupane and Doyon Division • Niobec
Slide 11: IAMGOLD's Flagship Mine: Rosebel, Suriname
11 IAMGOLD’s Flagship Mine Rosebel Mine, Suriname • 30% of IAMGOLD’s production • 2008 gold production up 20% from 2007 • Further production increases expected in 2009 and 2010 • Mill expansion and optimization increased throughput from 8.9 Mtpa to 10 Mtpa for 2009 and 11 Mt target IMG Ownership 95%
Slide 12: West African Joint Ventures
12 West African Joint Ventures SADIOLA TARKWA YATELA DAMANG 38% 18.9% 40% 18.9% IMG Ownership (JV: Anglogold (JV: Goldfields (JV: Anglogold (JV: Goldfields Ashanti) Ltd.) Ashanti) Ltd.) Location Mali Ghana Mali Ghana M&I Resources (oz)* 2,348,000 2,462,000 313,000 407,000 Inferred Resources (oz) (as
Slide 13: IAMGOLD Operations
13 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 2008 Production (oz) 101,000 118,000 2009 (est.) 80,000 79,000 2008 Cash Co
Slide 14: Niobec Mine, Quebec
14 Niobec Mine, Quebec High Margin, Long Life Asset • Significant cash flow contributor to fuel IAMGOLD’s growth strategy - 15-20% of corporate operating cash flow • Niobium used in specialty high strength steels • Price in 2009 as strong as 2008 due to niche market and oligopoly with IMG having ~ 7
Slide 15: Development Properties
Development Properties Filling The Production Pipeline • Westwood • Quimsacocha • Camp Caiman • Essakane
Slide 16: Westwood, Quebec
16 Westwood, Quebec 14 kms Planned Exploration shaft Bousquet Historical production of 5 IMG Ownership 100% million ounces 2kms 10 m / 11.5 g/t Au Location Quebec, Canada 5 m / 23 g/t Au La Ronde M&I Resources (oz) 70,000 oz (0.3 million tonnes @ 6.9 g/t) Resources Resourc Inferred Resources (oz) •
Slide 17: Development Projects
17 Development Projects QUIMSACOCHA CAMP CAIMAN IMG Ownership 100% 100% Location Ecuador French Guiana 2,107,000 1,615,000 M&I Resources (oz)* 61,000 249,000 Inferred Resources (oz) (as at Dec. 31, 2008) M&I resources are inclusive of reserves Mine Life (years) (est.) 7.5 7 Annual Production (est.)
Slide 18: Development Projects: Essakane, Burkina Faso
18 Development Projects Essakane, Burkina Faso • Acquisition of Orezone Resources Inc. in an all share deal scheduled to close Feb 25th • Acquiring reserves and resources at $45/oz and $35/oz respectively • Boosts IAMGOLD reserves by 32% • Fully permitted, under construction to provide near-term pro
Slide 19: IAMGOLD's Strategic Presence in West Africa
19 IAMGOLD’s Strategic Presence in West Africa Operating Mine Development Project Exploration Project BOTO MERREX Reinforces IAMGOLD as a leading West Africa producer 20-year history in West Africa 495,000 oz of gold production from Africa in 2008 Creating an African Corporate Office
Slide 20: Essakane Project Summary
20 Essakane Project Summary Essakane June 2008 Feasibility Study - Life of Mine Plan Largest known gold deposit in Burkina Faso: Mill Throughput 7.5 5.4 Mtpa Life of Mine 9.4 years • Mining friendly Average Production 315,000 315,000oz / yr oz/yr • Politically stable democracy • Good infrastructur
Slide 21: Conclusions
Conclusions Conclusions • Positioned for Market Revaluation • 5 year Objective • Strong Financial Position • Taking IAMGOLD to the Next Level
Slide 22: Positioned for a Market Revaluation
22 Positioned for a Market Revaluation Historical Production Market Cap / P&P Reserve Gold Ounce Market Cap/M&I Resource Gold Ounce $450 $400 $389 $346 $350 $300 $273 $262 $250 $205 $199 $200 182 $164 $150 $107 $100 $69 $50 $0 ld LD r do rp e t a s k ffe on gl an os c go co rr i ra O Ea O wm nr m nd
Slide 23: Peer Company Comparison
23 Peer Company Comparison Price / Net Asset Value Historical Production 0.9 M = 2008 gold production (millions of ounces of gold) 2.1X 1.9X 1.9X 1.8X 1.8X 1.8X 1.7X 1.6X 1.6X 1.4X 1.2X 7.7 M 1.1X 1.8 M 5.2 M 0.9 M 4.0 M 0.7 M 0.7 M 1.0 M 0.3 M 0.4 M 0.3 M 0.15 M Source: public filings, IBES Market
Slide 24: Double Production to 1.8 Million Ounces
24 5 Year Objective Double Production to 1.8 Million Ounces (000 oz) Taking IAMGOLD to the Next Level….. • Optimizing existing mines • Minesite and greenfields exploration Goal • Accretive acquisitions with strategic fit Acquisitions, Discoveries IAMGOLD has doubled gold production twice in the past
Slide 25: Strong Financial Position
25 Strong Financial Position • Well positioned with a strong balance sheet, $US millions Operating Cash Flow strong operating cash flow and existing credit facility • Cash & Bullion: $306 million (less $90M Euro transaction) Credit facility: $140 million Operating cash flow: $189 million (9 mos) 9 m
Slide 26: Taking IAMGOLD to the Next Level
26 Taking IAMGOLD to the Next Level • Expanded and experienced management team delivered positive results in 2008, achieving: • Gold production of almost one million ounces exceeding original guidance by 8% • Cost increases less than most peer companies and below most recent guidance • Execution on
Slide 27: Investor Relations
February 23, 2009 Investor Relations: Elaine Ellingham Senior Vice President, Investor Relations & Communications T: 416 360 4743 E: eellingham@iamgold.com
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