Iamgold Corporation · TSX:IMG
Iamgold — Q2 2021 Earnings Presentation
30 slides from Iamgold's earnings presentation, Aug 4, 2021
Slide 1: Second Quarter 2021 Results
SECOND QUARTER 2021 RESULTS Côté Gold Project, Canada Second Quarter 2021 Results August 4, 2021 – Conference Call TSX: IMG l NYSE: IAG www.iamgold.com
Slide 2: Management Participants
SECOND QUARTER 2021 RESULTS Management Participants • GORDON STOTHART President & Chief Executive Officer • DANIELLA DIMITROV Executive Vice President & Chief Financial Officer • INDI GOPINATHAN Vice President, Investor Relations & Corporate Communications 2
Slide 3: Cautionary Statement
SECOND QUARTER 2021 RESULTS Cautionary Statement CAUTIONARY STATEMENT REGARDING 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 expectatio
Slide 4: Technical Information and Qualified Persons
SECOND QUARTER 2021 RESULTS Technical Information and Qualified Persons QUALIFIED PERSON AND TECHNICAL INFORMATION The technical and scientific information relating to exploration activities disclosed in this document was prepared under the supervision of and verified and reviewed by Craig MacDougal
Slide 5: A Challenging Quarter; 2021 Outlook Updated
SECOND QUARTER 2021 RESULTS A Challenging Quarter; 2021 Outlook Updated HIGHLIGHTS H1 AND 2021 OUTLOOK • Attributable production guidance reduced due to: H1 Updated Prior 2021 Guidance Guidance • Lower actual production in H1 from Westwood and Rosebel and unit their lower anticipated output for H2;
Slide 6: Q2 2021 Overview
SECOND QUARTER 2021 RESULTS Q2 2021 Overview Mine-site FCF $1.9 million / Adjusted net loss $3.6 million or $(0.01) per share ~$830 million in cash and ~$1.3 billion in total liquidity1 Corporate Effectively rolled forward the entire 2019 gold prepay from 2022 to 2024 & Strategic Continued proactive
Slide 7: Environmental, Social and Governance (ESG)
SECOND QUARTER 2021 RESULTS Environmental, Social and Governance (ESG) Since 2007 RECENT HIGHLIGHTS • At Côté Gold, IAMGOLD, the Métis Nation of Ontario and Sumitomo Metal Mining Co. Ltd Zero Harm® is our commitment to continually strive to reach the highest standards in human health & celebrated th
Slide 8: COVID-19 Protocols Embedded in Our Operations and Projects
SECOND QUARTER 2021 RESULTS COVID-19 Protocols Embedded in Our Operations and Projects • Rosebel – increased cases in Suriname during Q2; • Workforce availability and productivity and site leadership were impacted by illness, quarantine requirements for inbound employees on rotation, schedule adjust
Slide 9: Focus on Safety: DART & TRI Tracking Below Target
SECOND QUARTER 2021 RESULTS Focus on Safety: DART & TRI Tracking Below Target Days Away, Restricted or Transferred Duty (DART)1 Total Recordable Injuries (TRI)1 DART 2021 TARGET: 1.44 0.66 0.51 TRI 2021 TARGET: 1.18 0.85 1.13 0.53 0.51 0.46 0.87 0.40 0.67 0.68 0.30 2016 2017 2018 2019 2020 2021 YTD
Slide 10: Operations
SECOND QUARTER 2021 RESULTS Operations 10
Slide 11: Essakane: Strong Anchor Asset Continues to Perform
SECOND QUARTER 2021 RESULTS Essakane: Strong Anchor Asset Continues to Perform Burkina Faso (90% ownership) SUMMARY • Deliver strong results despite ongoing challenges with recoveries in processing ore with high graphitic content; • Attributable production of 106,000 ounces 4% higher than in Q1, pri
Slide 12: Rosebel: Q2 Challenged by Difficult Operating Conditions
SECOND QUARTER 2021 RESULTS Rosebel: Q2 Challenged by Difficult Operating Conditions Suriname (95% Rosebel | 66.5% Saramacca1) SUMMARY • Attributable production of 25,000 ounces 47% lower than in Q1, primarily due to lower mill throughput, mill feed grade and recoveries; • Mining activities at Roseb
Slide 13: Rosebel: Focus Areas for the Remainder of 2021
SECOND QUARTER 2021 RESULTS Rosebel: Focus Areas for the Remainder of 2021 Challenges Mitigations Mandatory antigen testing program implemented & all workers on the 14/7 work rotation being tested to reduce the impact on operations; COVID-19 impacts on workforce availability Towards the end of Q
Slide 14: Westwood: Focus on Safety
SECOND QUARTER 2021 RESULTS Westwood: Focus on Safety Québec, Canada (100% ownership) SUMMARY • Gold production of 8,000 ounces in Q2 14% higher than in Q1, primarily due to higher mill throughput and partially offset by lower grade feed; • Staged recall of underground workers slower than planned du
Slide 15: Construction Review
SECOND QUARTER 2021 RESULTS Construction Review Building Transformational Value in Canada 15
Slide 16: Côté Gold: Costs Updated in July 2021
SECOND QUARTER 2021 RESULTS Côté Gold: Costs Updated in July 20211 SUMMARY PROJECT COSTS UPDATE • Project review identified certain estimated project costs increases; July July • 70% share of updated estimated project costs from July 1, 2020, net of leasing, 2020 2021 now estimated at $1,125 – $1,17
Slide 17: Côté Gold: Construction on Schedule
SECOND QUARTER 2021 RESULTS Côté Gold: Construction on Schedule Q2 2021 ~27% ~82% $193M $1,125 – $1,175M UPDATE1 PROJECT COMPLETION DETAILED ENGINEERING EXPENDED (JULY 2020+) PROJECT COSTS ESTIMATE2 SUMMARY • Procurement and expediting of major equipment contracts are progressing with the logistics
Slide 18: Project Timeline – Key Milestones
SECOND QUARTER 2021 RESULTS Project Timeline – Key Milestones 2020 2021 2022 2023 2024 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Project Completion ~27% Project Costs1 $193M $301M $510 – $540M $120 – $140M Remaining Estimated Allocation of Total Expenditures PROJECT TIMELINE Construction
Slide 19: Côté Pictures: July 2021
SECOND QUARTER 2021 RESULTS Côté Pictures: July 2021 VIEW JULY 2021 PROJECT SITE VIDEO PLANT SITE OVERVIEW CAMP CONSTRUCTION HAUL ROAD CONSTRUCTION STARTER PIT NORTH COFFER DAMS MILL FOUNDATIONS 19
Slide 20: Development and Exploration Projects
SECOND QUARTER 2021 RESULTS Development and Exploration Projects 20
Slide 21: Q2 2021 Activities Update
SECOND QUARTER 2021 RESULTS Q2 2021 Activities Update BOTO GOLD • Progressing an early works package, including a road providing permanent access to the site, engineering for critical plant equipment and sustainability programs targeted to promote cohesion with local communities and to ensure adequa
Slide 22: Financial Review
SECOND QUARTER 2021 RESULTS Financial Review Photo: Wärtsilä 22
Slide 23: Q2 2021 Financial Review
SECOND QUARTER 2021 RESULTS Q2 2021 Financial Review FINANCIAL PERFORMANCE 2021 FINANCIAL RESULTS • Adjusted EBITDA of $84.8 million from sales of 135,000 ounces at an average price of Q2 Q1 H1 $1,800/oz; (In $ Millions, unless otherwise stated) 2021 2021 2021 • Net loss of $4.5 million or ($0.01) p
Slide 24: Q2 2021 Cash Flow
SECOND QUARTER 2021 RESULTS Q2 2021 Cash Flow KEY HIGHLIGHTS ($17.6) Operating activities +$57.2 • Cash generated from earnings ($76.2 million), partially offset by income tax paid ($20.9 million). ($161.7) Working capital • Increase in receivables/current assets ($6.0 million) ($16.0) primarily
Slide 25: Strong Financial Position
SECOND QUARTER 2021 RESULTS Strong Financial Position AVAILABLE LIQUIDITY NET CASH Q2 Q1 Q4 (In $ Millions) 2021 2021 2020 Undrawn Cash, equivalents & STI $829.8 $967.8 $947.5 Credit Facility1 Lease liabilities ($62.2) ($63.8) ($66.8) $500 M Long term debt3 ($473.5) ($475.2) ($478.2) $1.3B Revolving
Slide 26: 2021 Catalysts
SECOND QUARTER 2021 RESULTS 2021 Catalysts1 Updated Target Progress Essakane Completion of mill optimization project Q1 2021 Completed Rosebel Completion of Saramacca non-critical infrastructure H1 2022 Ongoing Westwood Westwood underground re-start2 H2 2021 On track Start of major earthworks Q2 202
Slide 27: Appendix
SECOND QUARTER 2021 RESULTS Appendix 27
Slide 28: Q2 2021 Operating Highlights
SECOND QUARTER 2021 RESULTS Q2 2021 Operating Highlights Attributable Capital Production Cash Costs1 AISC1 Expenditures2 (000s oz) ($/oz sold) ($/oz sold) ($ millions, 100%) Essakane (90%) 106 $890 $1,060 $29.9 Rosebel (95%) 25 $1,755 $2,237 $26.2 Westwood (100%) 8 $2,056 $2,412 $3.3 Project Expansi
Slide 29: Reducing Input Exposure Through Hedging
SECOND QUARTER 2021 RESULTS Reducing Input Exposure Through Hedging 2021 2022 2023 2024 Foreign Currency Canadian dollar contracts1 (millions of C$) 156 330 185 – Rate range1 (USDCAD) 1.28 – 1.47 1.30 – 1.48 1.30 – 1.46 – Hedge ratio2 31% 37% 38% – Commodities3,4 Brent oil contracts (barrels, 000s)
Slide 30: Indi Gopinathan, VP, Investor Relations & Corporate Communications
SECOND QUARTER 2021 RESULTS Indi Gopinathan, VP, Investor Relations & Corporate Communications 416-388-6883 Philip Rabenok, Manager, Investor Relations 647-967-9942