Iamgold Corporation · TSX:IMG
Iamgold — Investor Day (October 2011)
122 slides from Iamgold's investor day presentation, Oct 12, 2011
Slide 1: Investor Day
Investor Day October 12, 2011 TSX: IMG NYSE: IAG
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: Agenda
3 Agenda CORPORATE OVERVIEW Steve Letwin, President & Chief Executive Officer CORPORATE AFFAIRS & CORPORATE DEVELOPMENT Paul Olmsted, Senior Vice President, Corporate Development FINANCIAL REVIEW Carol Banducci, Executive Vice President & Chief Financial Officer GOLD OPERATIONS Gord Stothart, Execut
Slide 4: Corporate Overview
4 Corporate Overview October 12, 2011 Steve Letwin President and Chief Executive Officer TSX: IMG NYSE: IAG
Slide 5: Investment Highlights
5 Investment Highlights Diversified portfolio of long-life gold assets Proven operating, exploration and development expertise Unique niobium asset Demonstrated CSR leadership Return on capital driven growth strategy Strong balance sheet
Slide 6: IAMGOLD's Platform – High Quality, Long-Life Assets
6 IAMGOLD’s Platform – High Quality, Long-Life Assets YATELA SADIOLA Senegal ESSAKANE Mali Boto Val d’Or Siribaya Burkina Faso NIOBEC Westwood Kalana Suriname MOUSKA Colombia ROSEBEL Quimsacocha Peru MINE Brazil Development Project Advanced Exploration Exploration Office Natural extensions with sign
Slide 7: Unlocking Shareholder Value
7 Unlocking Shareholder Value Objective Initiative What we did Focus on mines we own Sell Tarkwa and Sold to Goldfields for $667M in cash and operate Damang Divest non-core assets Sell Mupane Sold to Galane Gold in a $34M transaction that are not a strategic fit Eliminated hedges Confirm real va
Slide 8: Strategic Focus
8 Strategic Focus SHAREHOLDER VALUE Potential IPO ~25% IAMGOLD ~55% Strategic Buyer ~20% Increasing return on capital
Slide 9: Gold Production
9 Gold Production Gold production attributable to IAMGOLD 965 997 967 939 Discontinued operations 326 214 239 311 Essakane 000s oz 392 122 263 315 395 Rosebel 260 Sadiola & 238 224 Yatela 178 Mouska 131 118 109 '07 '08 '09 '10 Sustainable gold production profile
Slide 10: Attributable Gold Reserves and Resources
10 Attributable Gold Reserves and Resources Proven and Probable Measured & Indicated Inferred Resources Reserves Resources1 18.1 16.5 Million ounces Million ounces 14.0 Million ounces 11.9 8.1 7.2 2009 2010 2009 2010 2009 2010 1M&I Resources include Reserves Reserves and Resources based on continuin
Slide 11: Corporate Affairs/Corporate Development
11 Corporate Affairs/Corporate Development October 12, 2011 Paul Olmsted Senior Vice President, Corporate Development TSX: IMG NYSE: IAG
Slide 12: Global Corporate Affairs
12 Global Corporate Affairs Our Global Corporate Affairs Program brings together a deeply experienced team of in-country leads, with head office direction and support, to drive government aspects of our business.” - Benjamin Little, Senior Vice President, Corporate Affairs Niobec Mine, Canada Rosebe
Slide 13: Core Strengths of our Corporate Affairs Program
13 Core Strengths of our Corporate Affairs Program Global program dedicated to managing political risk Established relationships with Canadian and foreign governments In-country expertise and regular on the ground presence of senior executives Award-winning, internationally recognized Corporate Soci
Slide 14: Corporate Development
14 Corporate Development Successful history of growth through accretive acquisition Track record of building value Restructured asset mix to focus on new opportunities Strategy governed by discipline Flexibility to pay with cash
Slide 15: Acquisition Criteria
15 Acquisition Criteria Canada West Africa Production Development South America Exploration ESTABLISHED PRESENCE 150,000+ oz of gold/yr VARIOUS STAGE > Regional continuity PROJECTS > Social and fiscal stability 2,000,000+ oz Reserves > Long-term prospectivity and opportunities Targeting growth in sh
Slide 16: Proven Acquisition Strategy
16 Proven Acquisition Strategy Acquisitions from 2003-2009 Essakane Cost of Capital Rosebel Acquisitions Spend Doyon/Mouska/Westwood $1.9B $1.1B Niobec Mupane Tarkwa & Damang Prospective exploration lands Asset Operating 2011 Analyst Consensus NAV of Assets acquired by IAMGOLD Sales Cash Flow $0.9B
Slide 17: Financial Review
17 Financial Review October 12, 2011 Carol Banducci Executive Vice President and Chief Financial Officer TSX: IMG NYSE: IAG
Slide 18: Financial Highlights
18 Financial Highlights Robust cash flow profile Considerable financial flexibility $667M Sale of minority interest in Ghana mines Sale of Mupane mine Increase in annual dividend US$0.20/sh, up 233%
Slide 19: Strong Operating Cash Flow
19 Strong Operating Cash Flow 500 500 Adjusted Operating Cash Flow from Continuing Operations 415 400 400 368 300 $ Millions 300 $ Millions 258 257 200 200 182 119 100 100 75 0 0 '06 '07 '08 '09 '10 H1'10 H1'11
Slide 20: Gold Price Assumptions
20 3 Year Average Annual Operating Cash Flow Forecast 3 Year Average Annual Operating Cash Flow Forecast* (2012-2014) $ 1,800/oz $1.0 Billion/year Gold Price Assumptions $ 1,500/oz $0.8 Billion/year $ 1,200/oz $0.5 Billion/year *Notes: Includes Niobec, with price assumption average of $42/kg. In
Slide 21: Well Positioned to Fund Growth Initiatives
21 Well Positioned to Fund Growth Initiatives Gold Operations Niobium Operation $2.7B @ $1,800/oz $2.1B @ $1,500/oz IPO $0.9B Strategic Sale $0.8B Westwood $0.2B $1.2B Essakane @ $1,200/oz $840M Credit Facility $0.2B Sadiola Expansion $0.2B Cash Flow Sustaining Capex (2012E-2014E) Rosebel $0.1B $40M
Slide 22: Improving Gold Margins
22 Improving Gold Margins Gold Margin and Cost ($/oz) $1,447 $834 $1,252 $678 $960 $855 $499 $396 $693 Gold Margin $270 $613 $574 Cash cost* $459 $461 $423 *Cash cost per ounce is a non-GAAP measure '07 '08 '09 '10 H1'11 Gold Margin + Cash Cost = Average Realized Price
Slide 23: Niobium Margin
23 Niobium Margin Niobium Operating Margin ($/kg) $20 $19 $18 $15 $10 '07 '08 '09 '10 H1'11
Slide 24: Considerable Financial Flexibility
24 Considerable Financial Flexibility $1.7B available at end of Q2 1,654 Significant positive cash flow 350 Credit Facility available 1 107 Marketable 2 $1B shelf prospectus Securities $ Millions 1,198 Cash & Bullion 3 Zero debt at Q2'11 1 Available undrawn portion, credit facility expiring April 20
Slide 25: Gold Operations
25 Gold Operations Gord Stothart Executive Vice President & Chief Operating Officer TSX: IMG NYSE: IAG
Slide 26: IAMGOLD's Platform – High Quality, Long-Life Assets
26 IAMGOLD’s Platform – High Quality, Long-Life Assets YATELA SADIOLA Senegal ESSAKANE Mali Boto Val d’Or Siribaya Burkina Faso NIOBEC Westwood Kalana Suriname MOUSKA Colombia ROSEBEL Quimsacocha Peru MINE Brazil Development Project Advanced Exploration Exploration Office Natural extensions with sig
Slide 27: Shifting towards a more balanced geographic profile
27 Shifting towards a more balanced geographic profile Operating Cash Flow by Region (Continuing Gold Operations and Niobium Operation) 13% North America 36%* 58 % 29% 40% North America Africa Africa South America 24% South America IAMGOLD has: Experience in different political environments Knowledg
Slide 28: Expanding and Optimizing Existing Mines
28 Expanding and Optimizing Existing Mines Essakane More Cost Effective Leverages existing infrastructure Economies of scale Zero to minimal permitting issues Westwood No acquisition costs Sadiola Faster Execution EXPAND AND OPTIMIZE Established operating team Known metallurgy Rosebel Lower Risk Hig
Slide 29: Ongoing Asset Optimization
29 Ongoing Asset Optimization Unconstrained re-engineering of life- of-mine plan Parallel analysis of a matrix of development opportunities Resource scenarios Process scenarios Provides discipline to the operation Distinct from Continuous Improvement Proven approach Strategic Resource Development Pl
Slide 30: IAMGOLD's In-house Development and Construction Team
30 IAMGOLD’s In-house Development and Construction Team Alignment with business goals Proven expertise Reduces uncertainty In-house development and Shortens development timeline construction team Enables flexibility in allocating resources Facilitates sharing of best practices Provides a significant
Slide 31: Operating Model Focused on Cost Management
31 Operating Model Focused on Cost Management Mining Costs per Tonne Joint Ventures 5.21 3.72 $/tonne IAMGOLD- owned 2.74 2.90 2.52 2.58 1.80 1.91 Sadiola 1.60 1.60 1.70 Yatela 1.35 1.50 Essakane 0.93 Rosebel 0.85 Regional Competitors‟ Mines Estimates based on IAMGOLD data and publicly available dis
Slide 32: Conduct Governed by Zero Harm Framework
32 Conduct Governed by Zero Harm Framework Highest standards in Health and Safety Minimizing Environmental Footprint Partnering with Host communities Highest standards of corporate social responsibility
Slide 33: Highly Acclaimed CSR Program
33 Highly Acclaimed CSR Program IAMGOLD receives 2011 Syncrude Award 2011 PDAC Environmental & Social Responsibility Award 2011 Maclean‟s/Jantzi-Sustainalytics Top 50 most responsible corporations in Canada 1st in mining industry in Canada‟s best 50 Corporate Citizens CSR publication Corporate Knigh
Slide 34: Prevention is Key to Health and Safety
34 Prevention is Key to Health and Safety Number of Preventative Activities Completed 48,100 5,800 2,300 '08 '09 '10 Targets are Site Specific
Slide 35: Accident Rate Trending Downward
35 Accident Rate Trending Downward 4.0 3.5 Days Away Accident Rate 3.0 Per 100 employees 2.5 2.0 1.5 1.0 0.5 0.0 '06 '07 '08 '09 '10 Q1'11 Q2'11 Excludes Tarkwa and Damang
Slide 36: West Africa
36 West Africa TSX: IMG NYSE: IAG
Slide 37: West Africa – Business Environment
37 West Africa – Business Environment More than 20 years of experience West Africa Office Strategically focused in mining friendly jurisdictions
Slide 38: Agenda for West Africa
38 Agenda for West Africa OPERATION > Essakane > Sadiola > Yatela DEVELOPMENT > Essakane expansion > Sadiola sulphide expansion YATELA Senegal SADIOLA ESSAKANE ADVANCED EXPLORATION Mali > Kalana Burkina Faso > Siribaya Kalana GREENFIELD EXPLORATION Presence MINE > Burkina Faso Development Project >
Slide 39: Political Environment: Burkina Faso
39 Political Environment: Burkina Faso Essakane is largest foreign investment in the country Operations not impacted by social unrest earlier in 2011 Essakane viewed as a model for large-scale foreign investment Member of President`s Investment Council Population (2009): 15.8 million Languag
Slide 40: Essakane Gold Mine
40 Essakane Gold Mine Brought into production by IAMGOLD development team Burkina Commenced production July „10 Faso Expansion feasibility study expected Q4‟11 Expansion construction expected to begin Q1‟12 IAMGOLD: 90% Ownership Attributable production 340-360 P&P Reserves1 (000 oz) 4,015 M&I Resou
Slide 41: Essakane Expansion
41 Current Essakane Expansion Based on 2010 SRDP Base Case Expansion Processing Rate Soft rock: 9 Mtpa first 3 yrs, then Soft rock: 9 Mtpa first 3 yrs, then Accelerated Hard rock: 5.4 Mtpa Hard rock: 10.8 Mtpa production 30 Mtpa 40 Mtpa Nominal Mining Rate declining to 14 Mtpa declining to 20 Mtpa r
Slide 42: Sadiola Gold Mine
42 Sadiola Gold Mine Produced > 7 Moz gold since 1996 Mali Operated as a joint venture with AngloGold Sulphide expansion feasibility study in final stages IAMGOLD: 41% Ownership Attributable production P&P Reserves1 (000 oz) 2,297 145-160 M&I Resources2 (000 oz) 3,481 Inferred Resources (000 oz) 991
Slide 43: Sadiola Sulphides Expansion Plan
43 Sadiola Sulphides Expansion Plan Based on Interim FS Base Case Expansion IAMGOLD initiated Mine Life 8 years 15 years the sulphide Processing Rate 4.6-5.0 Mtpa 7.5-8.5 Mtpa project which will Nominal Mining Rate 25-30 Mtpa 50-60 Mtpa increase the declining to 20 Mtpa throughput, Strip Ratio annua
Slide 44: South America
44 South America TSX: IMG NYSE: IAG
Slide 45: Agenda for South America
45 Agenda for South America OPERATION Suriname Colombia > Suriname ROSEBEL POTENTIAL DEVELOPMENT > Ecuador Quimsacocha > French Guiana GREENFIELD EXPLORATION Presence Peru > Suriname > Brazil Brazil > Peru > Colombia Interest, No presence > Chile > Guyana > Argentina > Paraguay > Uruguay MINE No Int
Slide 46: Political Environment: Suriname
46 Political Environment: Suriname Suriname Colombia ROSEBEL Quimsacocha Peru Brazil Population: 531,000 Dutch Language; widely spoken English Governance: Constitutional Democracy GDP: $3.68 billion The economy is dominated by the mining industry, with exports of alumina, gold, and oil accounting fo
Slide 47: Rosebel in Suriname
47 Rosebel in Suriname Ore Bodies Rosebel J-Zone Suriname Koolhoven Pay Caro & E. Pay Caro Rosebel Royal Hill Roma Mayo
Slide 48: Rosebel Gold Mine
48 Rosebel Gold Mine Suriname 4th expansion in 7 years Large land area still to be explored Reserves outpace depletion On-going discussions with Government to unlock further value IAMGOLD: 95% Ownership P&P Reserves1 (000 oz) 5,892 Attributable production M&I Resources2 (000 oz) 7,531 395 360-380 In
Slide 49: Reserves Outpace Depletion at Rosebel
49 Reserves Outpace Depletion at Rosebel 10 Cumulative Ounces Mined and Reserves (100% basis) 8 1.2 Moz reserve growth in 2010 (after depletion) 94,000+ m drilling Koolhoven and Royal Hill extensions Million ounces 6 6.2 5.1 4 3.7 3.8 3.4 3.2 2 2.5 2.4 2.7 2.1 1.4 1.7 1.1 0.4 0.7 .02 0 '03 '04 '05 '
Slide 50: Rosebel Expansion
50 Current Rosebel Expansion Based on 2010 SRDP Base Case Expansion Mine Life 18 years 11 years Accelerated Processing Rate 12 Mtpa 12-14 Mtpa production declining to 6 Mtpa reduces costs 55 Mtpa Nominal Mining Rate declining to 35 Mtpa 70-75 Mtpa and brings Strip Ratio (Waste:Ore) 4.0 4.0 cash flow
Slide 51: Project Development Timelines
51 Project Development Timelines Rosebel 2011 2012 2013 2014 2015 Expansion Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Construction GRAVITY CIRCUIT Commissioning/ Production GRINDING Construction CIRCUIT Commissioning/ Production EXPANSION SRDP 2011 FUTURE Prefeasibility Essakane 20
Slide 52: Canada
53 Canada TSX: IMG NYSE: IAG
Slide 53: Westwood
54 Westwood TSX: IMG NYSE: IAG
Slide 54: Location
54 Location 2,799 hectares Westwood Mouska Mic Mac Mooshla A/B Doyon Warrenmac Ellison Bousquet Bousquet La Ronde Penna La Ronde 1 2 1 Shaft 2 14 kms
Slide 55: Westwood Development - Highlights
55 Westwood Development - Highlights > Prolific mining camp > Existing mill adjacent to Doyon open pit > Good mineralization continuity > Minimum development costs > Metallurgy well understood > Leverage for further regional expansion > Open at depth and along strike > Experienced workforce > Long-l
Slide 56: Westwood Development Project
56 Westwood Development Project 2011 Expenditures $146M 82,000 m exploration drilling Complete ventilation raise boring Infill and step-out drilling LOM design review Quebec Cash costs IAMGOLD: 100% Ownership Indicated Resources1 269,000 oz Inferred Resources1 3,467,000 oz LOM Average Annual Product
Slide 57: Westwood Resource Progression
57 Westwood Resource Progression
Slide 58: Westwood – Composite Longitudinal Section A-A'
58 Westwood – Composite Longitudinal Section A-A’ 2 cm PyQz vein : VG 13cm PyQz vein: Hole in progress R14200-11 (from 2nd South bay) Target planned at ±2,000m el. (out of figure)
Slide 59: Westwood Project – Composite Longitudinal Section C-C'
59 Westwood Project – Composite Longitudinal Section C-C’
Slide 60: Westwood Ore Body Animation
60 Westwood Ore Body Animation
Slide 61: Westwood Project Development Timeline
61 Westwood Project Development Timeline 2011 2012 2013 2014 2015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ventilation Shaft Waste Silo Doyon Mill refurbishment Shaft Sinking 1,560 2,000 m m Construction of Paste Backfill Plant Commissioning/ 120,000-160,000 ozs Production 3-4 yr
Slide 62: Upside Potential
62 Upside Potential Resource growth Unexplored sectors ~300,000 ounces inferred transferred to indicated in 2010 Bousquet fault (300,000 oz) potential Reduced dilution Reduced manpower through increased automation Integration of Mouska/Westwood management Mill capacity (1,100,000 tpy) Mining friendl
Slide 63: Planned Capital Expenditures
63 Planned Capital Expenditures 2011 Capital Expenditure 380 383 25 51 25 54 191 217 132 5 $ Millions 185 92 29 23 38 81* 139 146 98 9 13 50 95 20 39 22 Essakane Westwood Sadiola Rosebel Niobec Other *Does not include $840M expansion 2011 2012 2013 2014 CAPEX related to Niobec expansion Significant
Slide 64: Niobec
65 Niobec Carol Banducci Executive Vice President & Chief Financial Officer Gord Stothart Executive Vice President & Chief Operating Officer TSX: IMG NYSE: IAG
Slide 65: Strategic Focus
65 Strategic Focus SHAREHOLDER VALUE Potential IPO ~25% IAMGOLD ~55% Strategic Buyer ~20% Increasing return on capital
Slide 66: Niobec Niobium Mine
66 Niobec Niobium Mine Saguenay region has strong industrial base, sound infrastructure 395 employees Quebec 30 year history of reserve renewal Operated by IAMGOLD since 2006 IAMGOLD: 100% Ownership P&P Reserves1 (Mkg Nb2O5) 243.8 M&I Resources2 (Mkg Nb2O5) 1,927.4 Inferred Resources3 (Mkg Nb2O5) 1,
Slide 67: Niobium Production Profile
67 Niobium Production Profile Annual production growth of 7.3% per year since 2000, with an average grade of 0.66% 4,500 4,300 4,396 4,400 0.80 4,163 4,106 4,000 3,750 3,339 3,344 3,417 3,500 Production (tonnes) 0.60 Grade (%Nb2O5) 3,006 3,000 2,500 2,170 0.40 2,000 1,500 0.20 1,000 500 0 0.00 '00 '
Slide 68: Niobec Historical Summary
68 Niobec Historical Summary 2007A 2008A 2009A 2010A 2011F Expansion Tonnage („000t) 1,530 1,801 1,773 1,792 Grade Milled (%) 0.65% 0.62% 0.61% 0.61% Niobium Production („000 kg) 4,300 4,396 4,106 4,400 4,500 - 5,000 15,000 Niobium Sales („000 kg) 4,337 4,201 4,347 4,300 Revenue ($M) 107.7 143.1 159
Slide 69: Niobium: Rare Metal with Unique Properties
69 Niobium: Rare Metal with Unique Properties Using niobium to enhance steel has many benefits: Adds strength Lightens weight Enhances flexibility Improves durability Reduces costs Niobium is used to produce high-quality steel
Slide 70: Niobium Applications: Ferroniobium
70 Niobium Applications: Ferroniobium (mix of niobium and iron) World Consumption of Ferroniobium by End-use (2010) STRUCTURAL 29% other 13% PIPE 24% 10% STAINLESS STEEL AUTO 24% Source: Niobec management and Roskill
Slide 71: Niobium Provides Significant Cost Benefits
71 Niobium Provides Significant Cost Benefits 5% km/l 100 kg reduction in weight Increased Fuel efficiency $25 M 15,000 t reduction in weight Cost Reduction Stronger, lighter weight, more durable and flexible
Slide 72: Niobium Supply
72 Niobium Supply (% of global production) CBMM 83% Reserves: 438 tonnes CATALÃO 8% Reserves: 5.1 tonnes NIOBEC 8% Reserves: 45.7 tonnes Other 1%
Slide 73: Niobium Demand is Rapidly Growing
73 Niobium Demand is Rapidly Growing Ferroniobium Demand 145,000 Growing at 10% CAGR 2,000 125,000 1,800 FeNb consumption (tonnes) 105,000 1,600 Steel Production (Mt) 85,000 1,400 65,000 1,200 45,000 1,000 25,000 800 5,000 600 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '
Slide 74: Niobium Pricing
74 Niobium Pricing Pricing expected to remain above $30/kg in short term Longer term average price expected to be $45/kg $45 $45 $45 $45 $45 $45 $45 $45 $45 $40 $37 $36 $35 $33 $15 '06 '07 '08 '09 '10 '11E '12E '13E '14E '15E '16E '17E '18E '19E '20E Base Case Forecast Prices estimated by an indepen
Slide 75: Potential Value of Niobec Confirmed
75 Potential Value of Niobec Confirmed Preliminary Economic Assessment* (NI 43-101) Plan to convert underground mine to bulk mining 691% increase in M&I mineral resource to 1.93 Bkg (2010: 244 Mkg) Potential tripling of annual production to 15 Mkg (2010: 4.4 Mkg) Remaining mine life 40+ years at tri
Slide 76: Niobium Reserves and Resources
76 Niobium Reserves and Resources Proven and Probable Measured & Indicated Inferred Resources Reserves Resources* 1,927.4 Contained Nb2O5 (MKg) Contained Nb2O5 (Mkg) Contained Nb2O5 (MKg) 1,240.4 243.8 243.8 316.3 181.3 181.3 219.1 2009 2010 2009 2010 PEA - 2011 2009 2010 PEA - 2011 1M&I Resources i
Slide 77: Potential Funding Sources for Niobec Expansion
77 Potential Funding Sources for Niobec Expansion After-tax NAV of Niobec: $1.6B-$2.0B $830M-$840M Free Cash Flow (2011-2014) > Assuming Nb price $42-$45/kg > Assuming sale of 10-20% $ Millions Sale of 10-20% minority interest 3 Niobec credit facility Niobec IPO Expansion Capital Niobec expansion wi
Slide 78: Niobec Mine Expansion
78 Niobec Mine Expansion Strategic Resource Development Plan: 5-year drilling program REE Zone Full delineation of niobium resource Assess alternate mining methods Goals: Shaft Reduce extraction costs Increase annual production Grow mineral resources Niobec Mine Extend mine life beyond 40 years
Slide 79: Underground Deep Diamond Drill Hole Program
79 Underground Deep Diamond Drill Hole Program Surface Niobec 3D Resources Mined out model Blocks 1 to 3: Reserves (looking NE) Blocks 4 to 6: Reserves & resources Blocks 7 to 9: Resources Blocks 10 to 12 Proposed DEEP Exploration Program: 7 DDH for 6,000 m Total cost of $420,000 including assays at
Slide 80: Niobec: Open Pit Potential
80 Niobec: Open Pit Potential To process 380 Mt at ~10 Mtpa Increase mine life beyond 40 years Significant cost advantage Proven mining technology in known ore body reduces risk
Slide 81: Niobec: Block Caving Potential
81 Niobec: Block Caving Potential Attractive opportunity to extract the ore in upper part of mine Recovers most of the pillars left behind by previous mining Block caving has been used in large scale mining projects throughout the world
Slide 82: Financial Analysis
82 Financial Analysis Open Pit Block Caving Tonnes processed (millions) 380 380 Strip ratio 3.9 Estimated average annual mill throughput (tonnes) 10 million 10 million Estimated average annual production (tonnes of kg Nb) 15 13 Operating margin after expansion ($/kg) 28 28 Estimated capital expendit
Slide 83: Rare Earth Element Potential at Niobec
83 Rare Earth Element Potential at Niobec Rare earth elements > 4 hole drill program completed March 2011 > Elevated Light Rare Earths > Historic drill results confirmed > 18 additional holes drilled – assays pending > Preliminary Metallurgical test work shows 58-70% recovery Niobium exploration pot
Slide 84: REE Drill Hole Results
84 REE Drill Hole Results 2009 MARCH 2011 REE Grade Price Gross Value Price Gross Value Element % $/kg $/t $/kg $/t Cerium (Ce) 0.84 4 34 95 798 Lanthanum (La) 0.49 6 29 94 460 Praseodymium (Pr) 0.12 16 19 140 168 Neodymium (Nd) 0.37 16 59 152 562 Samarium (Sm) 0.05 5 3 92 46 Dysprosium (Dy) 0.01 10
Slide 85: Niobec Value Crystallization
85 Niobec Value Crystallization Complete pre-feasibility study to determine optimum mining method Sell a 10 – 20% minority stake Continue testing remaining REE drill samples Assess if and how REEs would be mined and processed
Slide 86: Exploration
86 Exploration October 12, 2011 Mike Donnelly Senior Vice President, Exploration TSX: IMG NYSE: IAG
Slide 87: Active Exploration Areas
87 Active Exploration Areas 2011 Exploration Budget Greenfields $43.5M $97M Brownfields $53.3M Mali Quebec Senegal Burkina Colombia Suriname Faso Peru Brazil Exploration Office Planned near-mine and greenfields drilling 500,000+ metres
Slide 88: 2011 Exploration
88 2011 Exploration Exploration – A cornerstone of IAMGOLD’s growth strategy Proven track record 70 Professionals in 8 countries Empowered Teams – decentralized structure + 20,000 km2 strategically located lands + 500,000 m drilling
Slide 89: 2011 Exploration: South America
89 2011 Exploration: South America Suriname Colombia $15M Capitalized ROSEBEL Quimsacocha $17M Expensed 115,000 m drilling Peru Brazil MINE Development Project Exploration Office
Slide 90: Suriname: 2011 Exploration Budget
90 Suriname: 2011 Exploration Budget - $21.4 M Reserves increased >1 Moz net of depletion1 2010 Results1 Charmagne preliminary resource estimate and scoping study $14.8M – Resource delineation 2011 Budget $6.6M – Exploration 95,000 m – Resource delineation 2011 Drilling 10,000 m – Exploration 1100%
Slide 91: Rosebel Exploration
91 Rosebel Exploration Charmagne 2011 Program Charmagne Assist Mine Department to advance feasibility study Evaluate near-mine targets Koemboe Kraboe Doin Aggressively pursuing new opportunities Koemboe Kraboe Doin
Slide 92: Rosebel Exploration: Koemboe Prospect
92 Rosebel Exploration: Koemboe Prospect BG10-01: 3.0 m @ 1.75 g/t Project Overview 10 km south of Rosebel BG10-02: 6.0 m @ 9.18 g/t infrastructure KO11-24: Multiple gold bearing 6.0 m @ 1.77 g/t KO11-29: 4.6 m @ 1.35 g/t 8.6 m @ 10.65 g/t structures identified beneath alluvial cover KO11-22: BG10-0
Slide 93: Rosebel Exploration: Kraboe Doin Prospect
93 Rosebel Exploration: Kraboe Doin Prospect Project Overview Auger sampling and mapping highlighted two main targets (A & B) within an ~8 km long gold-anomalous trend 2010 - 16 scout diamond drill holes (2,498.5 m) on Anomaly A Kraboe Doin 2011 - 3,900 m drilling program in progress to provide Sara
Slide 94: Suriname Exploration: Tapanahony Project
94 Suriname Exploration: Tapanahony Project Project Overview ~560 km2 concession, Aigaigone 100 km south of Rosebel Sanvisi 2008 – 2011 Stream sediment sampling Poketi Kankantrie returned five significant anomalies Followed up with auger drilling programs High resolution airborne geophysical survey
Slide 95: Brazil: 2011 Exploration Budget
95 Brazil: 2011 Exploration Budget - $4.1 M Brazil Projects Minas Gerais (Pitangui) Project Generation 2010 - Significant geochemical / geophysical anomalies generated 2,000 m diamond drilling in progress South Para South Para (Vila Estrela) 2010 reconnaissance drilling confirmed bedrock gold minera
Slide 96: Peru: 2011 Exploration Budget
96 Peru: 2011 Exploration Budget - $4.0 M ECUADOR Peru Projects BRASIL Exploring seven greenfields projects in northern and southern Peru Disciplined approach to project generation Leverage IAMGOLD‟s commitment to Corporate Social Responsibility Project Kilometers 0 50 100 200 CHILE
Slide 97: Colombia Exploration Strategy
97 Colombia Exploration Strategy Promising gold potential – 95 Moz historic production (1500-2010) Little modern day exploration – currently producing only 1+ Moz pa Robust greenfields opportunities for IAMGOLD to gain an early position in a highly endowed gold terrain Pursue prioritized district-sc
Slide 98: 2011 Exploration: West Africa
98 2011 Exploration: West Africa $12M Capitalized $30M Expensed 271,000 m drilling YATELA Senegal SADIOLA ESSAKANE 20+ yrs exploration Mali experience and Boto Siribaya Burkina Faso know-how in West Kalana Africa Blue sky at MINE Development Project Sadiola-Yatela JV Advanced Exploration Exploration
Slide 99: Burkina Faso: 2011 Exploration Budget
99 Burkina Faso: 2011 Exploration Budget - $18.4 M $8.8M – Resource delineation 2011 Budget $9.6M – Exploration 72,000 m – Resource delineation 2011 51,100 m – Exploration Drilling 46,000 m – Aircore drilling over sand covered areas
Slide 100: Essakane Mining Lease - 2011 Targets & Results
100 Essakane Mining Lease - 2011 Targets & Results EMZ North extension EMZ extensions Gourouol Lao Aircore/BLEG anomalies EMZ Falagountou Falagountou EMZ South extension South
Slide 101: Essakane Exploration
101 Essakane Exploration As > 100ppm Takabangou 1,383 km2 of prospective lands Diamond and RC drilling campaigns in progress over Gossey – Korizena trend Tin Taradat Excellent early results Tin Zoubaratan Other satellite prospects being advanced Bom Kodjele Gossey - Korizena Essakane Falagountou Exp
Slide 102: Essakane Exploration: Gossey - Korizena
102 Essakane Exploration: Gossey - Korizena Korizena Permit KRC0562: 24m @ 0.78 g/t from 7m 10 km long gold-anomalous KRC0566: 5m @ 0.57 g/t from 40m zone KRC0561: 12m @ 0.40 g/t from 4m KRC0565: 4m @ 0.73 g/t from 7m 6m @ 1.08 g/t from 56m Completed ~15,500 m aircore drilling KRC0563: 13m @ 0.42 g/
Slide 103: Kalana Project, Mali: 2011 Exploration Budget
103 Kalana Project, Mali: 2011 Exploration Budget - $7.9 M Kalako Kalanako West 26,500 m DD and 20,000 m RC drilling planned Kalana Mine Kalana Mining Permit (387 km2) + Kalako West (21 km²) Avnel - IMG Option Agreement (Aug 2009) Initiate resource modelling in 2012 Kalana Priority satellite targets
Slide 104: Siribaya Project, Mali: 2011 Exploration Budget
104 Siribaya Project, Mali: 2011 Exploration Budget - $4.1 M Land Package 848 km2 Merrex-IMG Option Agreement IAMGOLD can earn 50% interest for C$10.5M spend over 3 years Boto Work Completed Zone 1B Regional geochemistry: gold Zone 1A anomalies coincident with major structural corridors Zone 1A & 1B
Slide 105: 2011 Exploration: Canada
105 2011 Exploration: Canada MINE Development Project $2.7M Expensed Exploration Office 11,500 m drilling planned 3 key greenfields projects on major trends in the Abitibi Val d’Or NIOBEC Renewed focus on Westwood growth in Quebec- MOUSKA Ontario
Slide 106: Quebec: 2011 Exploration Budget
106 Quebec: 2011 Exploration Budget - $2.7 M Simplified Geology of the Abitibi Volcanic Belt GÉMINI-TURGEON PORCUPINE-LÉPINE Cadillac Fault ROUYN-MERGER BOUSQUET-ODYNO
Slide 107: Outlook and Strategy Review
107 Outlook and Strategy Review Steve Letwin President and Chief Executive Officer TSX: IMG NYSE: IAG
Slide 108: Why Gold?
108 Why Gold? Lack of confidence in fiat currency .....But not in vending machines Beijing Agricultural Commercial Bank launches the country’s first gold vending machine in September 2011
Slide 109: 2011 Guidance
109 2011 Guidance 2011 Guidance (000s ounces) Attributable gold production Rosebel 360-380 Essakane 340-360 Mouska 25-30 Mines owned and operated by IAMGOLD 725-770 Sadiola and Yatela 145-160 Total from continuing operations 870-930 Discontinued Operations 67 (Mupane, Tarkwa & Damang) Total Producti
Slide 110: Gold Production Forecast
110 Gold Production Forecast Gold production attributable to IAMGOLD 1,120-1,220 Discontinued 997 940-1,000 operations 965 939 967 865-940 67 Westwood 326 239 000s oz 311 214 Essakane 122 263 392 Rosebel 315 395 Sadiola & 260 Yatela 238 224 Mouska 178 131 118 109 '07 '08 '09 '10 '11E '12E '13E Susta
Slide 111: Near Term Catalysts
111 Near Term Catalysts Essakane expansion feasibility study Rosebel expansion agreement with Surinamese government Sale of 10-20% interest in Niobec Sadiola sulphides feasibility study
Slide 112: Growth Strategy
112 Growth Strategy Extend and optimize existing mines Increase focus on mine specific cost reduction measures Pursue exploration plays Evaluate acquisition opportunities Surface full value of Niobec Focused on maximizing return on capital
Slide 113: Investment Highlights
113 Investment Highlights Diversified portfolio of long-life gold assets With significant expansion opportunity Proven operating, exploration and development expertise Unique niobium asset In a fast growing niche market Demonstrated CSR leadership Return on capital driven growth strategy Strong bala
Slide 114: Appendix
114 Appendix TSX: IMG NYSE: IAG
Slide 115: IAMGOLD's Mining Interests
115 IAMGOLD’s Mining Interests 2010 2010 2011 H1 2011 H1 Gold Geographic IAMGOLD Operator Production Cash cost1 Production Cash cost Mines Location Ownership (000 oz) ($/oz) (000 oz) ($/oz) Rosebel IAMGOLD Suriname 95% 395 484 187 618 Burkina Essakane IAMGOLD 90% 122 429 157 501 Faso Doyon IAMGOLD C
Slide 116: Niobec Resources
116 Niobec Resources Tonnes Grade Contained Nb2O5 % Increase in As at December 31, 2010 (000) % Nb2O5 (Mkg) Contained Nb2O5 Measured 16,571 0.54 90.0 Resources Indicated 29,145 0.53 153.8 Measured and Indicated 45,716 0.53 243.8 Inferred 59,672 0.53 316.3 Preliminary Economic Assessment As at April
Slide 117: Mouska
117 Mouska IMG Ownership: 100% Reserves & Resources (oz) P&P Reserves1 73,000 M&I Resources2 272,000 Inferred Resources 529,000 Attributable Production (oz) 2010 33,000 2009 109,000 Began processing stock-piled ore in Sept.’10 Cash Cost ($/oz) Ore mined from Mouska stockpiled for 2010 $655 processin
Slide 118: Yatela
118 Yatela IMG Ownership: 40% JV Partner: AngloGold Ashanti (40%) Attributable Reserves & Resources (oz) P&P Reserves1 78,000 M&I Resources2 129,000 Inferred Resources 49,000 Attributable Production (oz) Q2 YTD ‘11 14,000 2010 60,000 Drilling extended mine life to at least 2011 Cash Cost ($/oz) Expl
Slide 119: Project History (Doyon and Westwood)
119 Project History (Doyon and Westwood) 1910: Exploration begins 1930 -1940: 2008: Project acceleration Development work at Mooshla A and B U/G Development Workings on Westwood occurrence Engineering work, surface road and site preparation Ramping access, shaft collar and raiseboring 1960
Slide 120: IAMGOLD Stock Information
120 IAMGOLD Stock Information TSX: IMG Shares Outstanding 375 million Market Capitalization C$7.6B 52-week high C$23.67 52-week low C$16.37 Closing Price (October 6, 2011) C$20.27 Annual Dividend US$0.20/sh NYSE: IAG Shares Outstanding 375 million Market Capitalization $7.3B 52-week high $23.88 52-w
Slide 121: Management Team
121 Management Team Renaud Adams Steve Letwin Senior Vice President, Operations, Americas President & Chief Executive Officer Michael Donnelly Senior Vice President, Exploration Benjamin Little Senior Vice President, Corporate Affairs Gordon Stothart Denis Miville-Deschênes Executive Vice President
Slide 122: Investor Day
Investor Day October 12, 2011 401 Bay Street, Suite 3200 Toronto, ON M5H 2Y4 Canada 1-888-464-9999 www.iamgold.com INVESTOR RELATIONS Bob Tait, VP Investor Relations T: 416 360 4743 C: 647 403 5520 Laura Young, Director, Investor Relations T: 416 933 4952 C: 416 670 3815 TSX: IMG NYSE: IAG