Iamgold Corporation · TSX:IMG
Iamgold — Denver Gold Forum 2009
28 slides from Iamgold's conference presentation, Sep 15, 2009
Slide 1: IAMGOLD: The Transformation
September 15, 2009 IAMGOLD THE TRANSFORMATION Denver Gold Forum Joseph F. Conway President & CEO DENVER GOLD FORUM 2009 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: The IAMGOLD Transformation
3 The IAMGOLD Transformation Ideally The Best Positioned Intermediate Gold Producer Positioned for the Next Consistent Breakthrough Delivery 120% of Results Solid, Disciplined Industry Growth Leading Shareholder Value TSX: IMG NYSE: IAG Shares outstanding: 367 million Market Capitalization: $5.1 bil
Slide 4: Disciplined Corporate Strategy
4 Disciplined Corporate Strategy Focus on Creating Shareholder Value Grow Gold Production & Reserves • Successful development of existing projects • Aggressive exploration for organic growth • Accretive acquisitions Reduce Costs • Operations & development project optimization • Low cost acquisit
Slide 5: Operating Results
Operating Results 5 Solid Production, Lower Costs 500 Increasing Gold Margin Q2 H1 2009E ($/oz) 2009 2009 400 300 Gold Operating Results 200 Gold production 249 461 910–920 (000 oz) 100 Gold price realized $898 $892 0 ($/oz) 2006 2007 2008 2009 H1 Cash cost $437 $450 $460–$470 ($/oz) Increasing Niob
Slide 6: Financial Results
Financial Results 6 Increased Earnings (US$ millions) Q2 Q2 H1 H1 120 Adjusted Net Earnings 2009 2008 2009 2008 ($ millions) 100 Revenues 225.3 225.1 413.9 433.1 80 Earnings from 86.7 66.9 159.9 137.0 Operations 60 Net earnings 44.1 33.2 96.6 67.6 40 Earnings per share 0.12 0.11 0.28 0.23 (fully dil
Slide 7: Exceptional Balance Sheet
7 Exceptional Balance Sheet Positioned for Growth (US$ millions) 300 June 30, Operating Cash Flow ($ millions) 2009 250 1 Cash & bullion $395 200 2 Credit facility availability $84 150 100 Available funds $479 50 Long term debt $46 0 2005 2006 2007 2008 1 Bullion at market value as at June 30, 2009
Slide 8: Global Operations & Growth: Focus, Discipline, Results
8 Global Operations & Growth FOCUS DISCIPLINE RESULTS West Africa, Guiana Shield and Quebec ROSEBEL SURINAME DOYON QUEBEC MUPANE BOTSWANA NIOBEC QUEBEC SADIOLA MALI YATELA MALI TARKWA GHANA DAMANG GHANA ESSAKANE BURKINA FASO WESTWOOD QUEBEC
Slide 9: Solid Reserves & Resources Growth
9 Solid Reserves & Resources Growth Record Gold Resources 30 (Millions of Ounces) 25 ESSAKANE QUIMSACOCHA 20 CAMP CAIMAN OTHERS CANADA 15 ROSEBEL 10 MUPANE 5 DAMANG TARKWA YATELA SADIOLA 0 2004 2005 2006 2007 2008 • Resources include reserves, but not inferred resources as at Dec. 31, 2008 includes
Slide 10: Superior Production Growth Profile
10 Superior Production Growth Profile* Continued Growth 1,500 (000‟s ounces) ($/ounce) 500 450 400 QUIMSACOCHA 350 1,000 SLEEPING GIANT ESSAKANE 300 DOYON WESTWOOD 250 ROSEBEL 200 500 MUPANE 150 DAMANG TARKWA 100 YATELA 50 SADIOLA 0 0 2004 2005 2006 2007 2008 2009E 2010F 2011F 2012F 2013F *Assumes:
Slide 11: Growth Fully Funded
11 Growth Fully Funded Disciplined Growth Five Year Accumulated Cash Flow vs. Capital Needs (Billions of $) Available funds and cash flow exceed estimated capex to fund ~$1.7B growth (does not include cash & bullion) @$1,000/oz ~$1.4B Capital requirements include OPERATIONS estimated constructio
Slide 12: 2009 Gold Production Guidance
12 2009 Gold Production Guidance Production Guidance by Region, by Mine 2009 Production Guidance Gold Production: 910,000 to 920,000oz Cash Costs: $460 to $470 per oz Estimated 2009 Production by Region Estimated 2009 Production by Mine (Thousands oz) QUÉBEC DOYON 11% 102k oz TARKWA 130k oz DAMANG 3
Slide 13: Rosebel, Suriname
13 Rosebel SURINAME Record Production, Lower Costs (000 oz) (US$/oz) Production & Cash Costs $600 200 $500 $400 $300 100 $200 $100 IMG Ownership 95% 0 $0 H1 2008 H2 2008 H1 2009 H2 2009E Location Suriname M&I Resources (oz)* 9,656,000 PROJECT Inferred Resources (oz) 216,000 • Mill expansion and op
Slide 14: Doyon Division, Canada
14 Doyon Division CANADA Continuing to Deliver OPERATIONS • 2008 production 118,000 ounces • Acquisition of royalty reduced costs • H1 2009 Production of 55,000 oz on track with guidance 2009 OUTLOOK • Doyon mine originally scheduled to close in May 2009 – Current mine plan is extended to Q4 200
Slide 15: Mupane, Botswana
15 Mupane BOTSWANA Hedge Retired OPERATIONS • Record 2008 production 101,000 oz • 2008 transition from contractor mining to owner mining reduced cash costs by 33% to $367/oz • Hedge retired PROJECT • Assessing engineering & metallurgical options to improve recoveries & increase tonnage IMG Owner
Slide 16: West African Joint Ventures
16 West African Joint Ventures SADIOLA YATELA TARKWA DAMANG IMG Ownership 38% 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)* 2,348,000 313,000 2,462,000 407,000 Inferred Resources (oz) (as at Dec.
Slide 17: Niobec Mine, Quebec
17 Niobec Mine QUEBEC High Margin, Long Life Asset OPERATIONS • Continues to provide significant cash flow to fuel growth strategy (15-20% of overall Corporate operating cash flow) • 2008 Reserves increased 36%, Inferred Resources increased 72% • Operating margin continues to strengthen PROJECTS
Slide 18: Essakane, Burkina Faso: Ahead of Schedule & On Budget
18 Essakane BURKINA FASO Ahead of Schedule & On Budget Ahead of Schedule Commercial Production August 2010 Accelerated Early Production Increased Reserves
Slide 19: Essakane, Burkina Faso: Ahead of Schedule & On Budget
19 Essakane BURKINA FASO Ahead of Schedule & On Budget OVERVIEW • Production within 12 months • Increased Reserves by 8% to 3.37 million oz at 1.54g/t (June 15, 2009) • Accelerated production in early years CONSTRUCTION UPDATE • Equipment onsite includes: crusher, ball mill, 10 trucks, 2 drills,
Slide 20: Essakane, Burkina Faso: Accelerated Production
20 Essakane BURKINA FASO Accelerated Production OVERVIEW Estimated Accelerated Schedule* • Increase throughput during early years September 2009 • Stockpile lower grade saprolite during pre-production • Allowing access to higher grade increasing gold production Gold • Effectively transferring cost
Slide 21: Westwood, Quebec: Long Life, Low Cost
21 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 Resources Resourc La Ronde es Adjacent to Doyon On Schedule for Production 2013 Increased Resources
Slide 22: Westwood, Quebec: Long Life, Low Cost
22 Westwood QUEBEC Long Life, Low Cost PROJECT OVERVIEW • Adjacent to Doyon mine • Inferred Resources increased by 9%, with a 31% increase in grade to 3.4 million oz at 11.4 g/t • Plus Indicated Resource of 28,000 oz in Zone 2-30 and 70,000 oz at Warrenmac • Utilizes Doyon Division 3,500 MTPA mill
Slide 23: Quimsacocha, Ecuador: Ready to Resume Development
23 Quimsacocha ECUADOR Ready to Resume Development OVERVIEW • Large deposit located in southern Ecuador • Provides medium term production of over 200k oz per year UPDATE • Environmental permits approved • Awaiting permit from Ministry of Mines IMG Ownership 100% • New mining law ratified, not le
Slide 24: Greenfields Exploration
24 Greenfields Exploration Aggressive Organic Growth UPDATE • 2009 budget $34 million • Kalana Gold Project announcement • Q2 Exploration Update Released: – Sarakreek 4,000m drill program underway – Minas Gerias 5,000m drill program commenced – Eagle Mountain 587,800 oz Inferred Resource estimate
Slide 25: Health, Safety & Sustainability
25 Health, Safety & Sustainability Continuing Commitment to Zero Harm H1 2009 HIGHLIGHTS SAFETY 53% reduction in accident severity and frequency, Zero fatalities ENVIRONMENT Zero significant incidents, continued environmental management COMMUNITY Five Essakane communities successfully relocated, com
Slide 26: Significant Progress
26 Significant Progress 2009 Delivering Results Increased Guidance - 910,000 to 920,000 oz Rosebel Expansion & Improved Productivity Essakane Ahead of Schedule & Increased Reserves Essakane Accelerated Production Schedule Westwood Shaft Sinking & Increased Resources Niobec Mill Expansion & Paste Bac
Slide 27: Investment Highlights
27 Investment Highlights The Best Positioned Intermediate Gold Producer Adj. Net earnings/share Cash Flow/share 0.36 Industry leading shareholder value 0.86 Consistent operating results 0.08 0.09 2004 2008 2004 2008 Outstanding cost reduction Reserves1/1000 shares M&I Resources2/1000 shares
Slide 28: Contact
Joseph Conway President & Chief Executive Officer Gordon Stothart “….outstanding share price Executive Vice President & Chief Operating Officer performance, continued solid operating Carol Banducci Executive Vice President & Chief Financial Officer results, a well funded pipeline and strong financia