Iamgold Corporation · TSX:IMG
Iamgold — European Gold Forum April 2010
32 slides from Iamgold's conference presentation, April 2010
Slide 1: IAMGOLD The Transformation
September 15, 2009 IAMGOLD THE TRANSFORMATION Denver Gold Forum Joseph F. Conway President & CEO 2010 EUROPEAN GOLD FORUM APRIL 2010 Peter C. Jones President & Chief Executive Officer
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: Why IAMGOLD?
3 Why IAMGOLD? Sustainable Profitable Growth Growing Production and Reserves • Essakane LOM annual output at 315k oz • Higher production in early years • Aggressive exploration program with key targets • Gold reserves up 17% YoY Strong Financial Position IAMGOLD Profile •1 million oz gold produc
Slide 4: Corporate Strategy
4 Corporate Strategy Focus on Profitability Grow Gold Production & Reserves • Successful development of existing projects • Aggressive exploration for organic growth • Accretive acquisitions Reduce Costs and Improve Efficiencies • Operations & development project optimization Maintain Financia
Slide 5: Global Operations & Growth
5 Global Operations & Growth FOCUS DISCIPLINE RESULTS Long Standing Presence, Long Term Future MOUSKA NIOBEC WESTWOOD YATELA ROSEBEL ESSAKANE DAMANG SADIOLA QUIMSACOCHA TARKWA MUPANE 7 GOLD MINES 3 ADVANCED DEVELOPMENT PROJECTS 1 NIOBIUM OPERATION
Slide 6: 2010 Key Objectives
6 2010 Key Objectives Raising the Bar BUILD financial strength - increased credit capacity to $400M Deliver ESSAKANE by August ROSEBEL Growth Review NIOBEC expansion Advance WESTWOOD Committed to EXPLORATION Continue COMMITMENT to Zero Harm
Slide 7: Growth Profile
7 Growth Profile* Positive Impact of Lower Cost Mines Lower cost mines SADIOLA Additional coming into DEEPS ~800 production in the QUIMSACOCHA thousand next few years ounces Adding 800,000 lower cost ounces WESTWOOD ESSAKANE *Assumes: • Essakane startup August 2010 • Sadiola Deeps startup mid 20
Slide 8: Solid Reserves Growth
8 Solid Reserves Growth 17% increase in Au Reserves 14.5 Moz Record Gold Reserves Creating value by converting 2.1 Moz net resources to reserves addition 3.1 Moz 12.4 Moz addition Gold reserves up 17% to 1.0Moz depletion 14.5Moz 2008* 2009 Record Niobium Reserves Niobium reserves up 32% to 181
Slide 9: Superior Production Growth Profile
9 Superior Production Growth Profile* Continued Growth 1,500 (000’s ounces) 1,000 500 0 2004 2005 2006 2007 2008 2009 2010F 2011F 2012F 2013F 2014F Africa Canada South America *Assumes: • Essakane startup August 2010 • Sadiola Deeps startup mid 2012 • Quimsacocha startup early 2013 • Westwood startu
Slide 10: Rosebel Suriname
10 Rosebel SURINAME Flagship and Further Expansion Potential 500 (000 oz) Production Profile 400 300 200 100 IMG Ownership 95% 0 2007 2008 2009 2010E Location Suriname 2009 M&I Resources (oz)* 6,870,000 Inferred Resources (oz) 894,000 Record 2009 production Increased throughput 34% Production (0
Slide 11: Essakane Burkina Faso
11 Essakane BURKINA FASO Poised to Produce Commercial production by August 2010 Increased Reserves by 38% or 1.1M oz Mining Proceeding ~5M tonnes stockpiled Final equipment (some pumps and valves) being delivered in April IMG Ownership 90% Unit commissioning is underway Location Burkina Fa
Slide 12: Essakane Burkina Faso Exploration Targets
12 Essakane BURKINA FASO Exploration Targets Exploration Drilling Structural Trend Lines Takabangou F1 Fold Axis F2 Fold Axis Sand Dune Cover Mining Permit Exploration Concession Tin Taradat Tin Zoubaratan Bom Kodjele Mining Concession Gossey-Korizena 100.2 km2 Essakane Falangountou New Exploration
Slide 13: Exploration & Development Projects
13 Exploration & Development Projects Solid Growth Pipeline PRODUCTION Essakane BURKINA FASO Westwood CANADA CONSTRUCTION Sadiola Deeps MALI FEASIBILITY Quimsacocha ECUADOR Brownfields EXPLORATION Greenfields
Slide 14: Westwood Quebec
14 Westwood QUEBEC Long Life, Low Cost 14 kms Planned Exploration shaft Bousquet 2kms 10 m / 11.5 g/t Au 5 m / 23 g/t Au IMG Ownership 100% Resources Resourc La Ronde Location Quebec, Canada 2009 ACCOMPLISHMENTS es Indicated Resources (oz)* 98,000 oz Shaft advanced beyond 500m Inferred Resources (
Slide 15: Westwood Composite Longitudinal Section
15 WESTWOOD 2009 Composite Longitudinal Section 14th Level – Doyon Mine 2009 RESOURCE ESTIMATE 3 431 000 oz @ 11.4 g/t Au 15 (cut‐off 6.0 g/t Au) Resources > 15 g/t Au Resources of 6-15 g/t Au
Slide 16: Exploration Program Overview
16 Exploration Program Overview Aggressive Organic Growth REGIONS OF EXPLORATION ACTIVITY 2010 Greenfields expenditures of $35M Brownfield expenditures of $43M Drilling +329,000 metres Focus on advanced exploration acquisitions KALANA, MALI SIRIBAYA, MALI Greenfield Projects Active in 10 c
Slide 17: West Africa Exploration
17 West Africa Exploration West Africa Geology and Location of Key Projects 1. Essakane BURKINA FASO Neo/Mesoproterozoic and Phanerozoic 2. Kalana MALI Birimian Sediments Birimian Volcanics 3. Siribaya MALI Granite / Gneiss 4. Boto SENEGAL Archaean Archaean Granite / Gneiss Sadiola/Yatela IAMGOLD Da
Slide 18: Kalana JV Mali
18 Kalana JV MALI IAMGOLD – Avnel Resources JV IAMGOLD may earn a 51% interest in Avnel’s share of SOMIKA (80%); Malian Government owns the remaining 20% o IMG must spend US$11M in 3 years o Deliver a NI 43-101 Compliant Resource of 2Moz US$1M paid to Avnel; 3 yr term can be extended by 1 yr I
Slide 19: Siribaya JV Mali
19 Siribaya JV MALI IAMGOLD – Merrex Gold JV Transaction closed December, 2008 IAMGOLD to earn 50% by incurring Cdn$10.5M Zone 1B over 4 years IAMGOLD made private placement in Merrex and exercised warrants in November 2009 (8.9% shares fully diluted) 127km2 land package in prolific Birimian
Slide 20: 2010 Guidance
20 2010 Guidance Targeting 1 Million Ounces PRODUCTION CASH COST NUMBER OF REGION Ounces (estimate) MINES % of 2010 (‘000s) Africa 540-570 57% 5 Canada 20-30 3% 1 South America 380-400 40% 1 TOTAL 940-1,000 100% $490 - $510 7 Non-gold Niobium Operating Margin / kg (million kg) Niobec 4.2 - 4.4 $17 -
Slide 21: Health, Safety & Sustainability
21 Health, Safety & Sustainability Continuing Commitment to Zero Harm 2009 HIGHLIGHTS SAFETY 31% decrease in both days away injury rate and total accident rate ENVIRONMENT “Toward Sustainable Mining” award for Rosebel Tailings Management COMMUNITY Successful village relocations at Essakane CERTIFICA
Slide 22: Investment Highlights
22 Investment Highlights Sustainable Profitable Growth Adjusted Net Earnings(1) / share ($) Delivered outstanding results in 2009 0.60 Continued focus on disciplined & profitable growth 0.08 Strong Project Pipeline Operating Cash Flow / share ($) Financial strength to leverage future 0.73 gr
Slide 23: Management and Chairman Quote
Peter C. Jones President & Chief Executive Officer Carol T. Banducci “...outstanding share price performance, Executive Vice President & Chief Financial Officer continued solid operating results, a well P. Gordon Stothart funded pipeline and strong financial Executive Vice President & Chief Operatin
Slide 24: Appendix
CORPORATION 24
Slide 25: IAMGOLD Operations
25 IAMGOLD Operations DOYON DIVISION MUPANE IMG Ownership 100% 100% Location Quebec Botswana M&I Resources (oz)* 398,000 266,000 Inferred Resources (oz) 633,000 80,000 2009 2008 2009 2008 Production (oz) 109,000 118,000 51,000 101,000 Cash Cost ($/oz) $524 $548 $735 $367 Updates • Mouska extended in
Slide 26: West African Joint Ventures
26 West African Joint Ventures SADIOLA YATELA TARKWA DAMANG IMG Ownership 41% 40% 18.9% 18.9% JV: AngloGold Ashanti JV: AngloGold Ashanti JV: Goldfields Ltd. JV: Goldfields Ltd. Location Mali Mali Ghana Ghana M&I Resources (oz)* 2,596,000 126,000 2,573,000 551,000 Inferred Resources (oz) 1,159,000 1
Slide 27: Niobec Mine Canada
27 Niobec Mine CANADA Expansion on Track Niobium Margin ($/kg) IMG Ownership 100% Location Quebec M&I Resources (Mkg Nb2O5)* 181.3 Inferred Resources (Mkg Nb2O5) 219.1 Increased Reserves 32% to 181M kg Nb2O5 Production(million kg Nb) 2010E 4.2-4.4 Paste Backfill & Mill Expansion projects due for
Slide 28: Financials
Financials CORPORATION 28
Slide 29: 2009 Operating Results
29 2009 Operating Results Solid Production, Increased Margin Gold Margin ($/oz) 2009 2008 Gold Operating Results (1) Gold production 939 997 (000 oz) Gold price realized 960 855 ($/oz) Cash cost 461 459 ($/oz) Niobium Margin 20 ($/kg) Non-gold Operating Results Niobium production 4.1 4.4 (million kg
Slide 30: 2009 Financial Results
30 2009 Financial Results Earnings from Operations up 35% Earnings from Operations 400 ($ millions) (US$ millions) 2009 2008 350 Revenues 914.3 869.6 300 Earnings from 349.7 272.3 250 operations 200 (1) Adjusted net earnings 212.2 107.5 150 Adjusted net earnings 100 0.60 0.36 per share (fully dilute
Slide 31: Exceptional Balance Sheet
31 Exceptional Balance Sheet Net Cash Positive and Positioned for Growth Five Year Estimated Accumulated Cash Flow vs. (US$ millions) As at Capital Needs ($Billions) Dec. 31, ~$2.1B 2009 ~$1.8B (1) @$900/oz Cash & bullion $300 ~$1.4B Operations ~$1.2B (2) Sadiola Deeps @$700/oz Credit facility avail
Slide 32: Management and Contact Information
Peter C. Jones President & Chief Executive Officer Carol T. Banducci “...outstanding share price performance, Executive Vice President & Chief Financial Officer continued solid operating results, a well P. Gordon Stothart funded pipeline and strong financial Executive Vice President & Chief Operatin