Iamgold Corporation · TSX:IMG
Iamgold — Q2 2020 Earnings Presentation
38 slides from Iamgold's earnings presentation, Aug 6, 2020
Slide 1: Second Quarter 2020 Results
Second Quarter 2020 Results August 6, 2020 – Conference Call TSX: IMG l NYSE: IAG
Slide 2: Management Participants
Management Participants • Gordon Stothart President & Chief Executive Officer • Carol Banducci Executive Vice President & Chief Financial Officer • Bruno Lemelin Senior Vice President, Operations & Projects • Craig MacDougall Senior Vice President, Exploration • Jeffery Snow Senior Vice President, B
Slide 3: Cautionary Statement
Cautionary Statement All information included in this presentation whether in narrative or chart form, including any information as to the Company’s future financial or operating performance, and other statements that express management’s expectations or estimates of future performance, other than s
Slide 4: Technical Information and Qualified Persons
Technical Information and Qualified Persons The mineral resource estimates contained in this news release have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). The Qualified Person (“QP”) responsible for the review and approval o
Slide 5: Highlights of the Quarter
Highlights of the Quarter Solid Operating Cash Flow Strong Balance Sheet Position Transformational Growth with Côté Gold Project Adapting to Our New Normal with COVID-19 Reset for the Second Half 5
Slide 6: Adapting to Our New Normal: COVID-19 Response
Adapting to Our New Normal: COVID-19 Response Zero Harm© is our commitment to continually strive to reach the highest standards in human health, minimize our impact on the environment, and work co-operatively with our host communities. • COVID-19 in Q2/2020: • Essakane – shift rotation enabled follo
Slide 7: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG) In place since 2007 Recent highlights: Strong ESG practices • Donations to local communities in response to the global COVID-19 crisis: • Cleaning equipment and supplies (hand-washing Zero Harm stands, hand-sanitizing gel) • Protective medical equipment (ma
Slide 8: 2020 Production and Cost Guidance – revised
2020 Production and Cost Guidance – revised REFLECTING COVID-19 IMPACTS ON PRODUCTION AND COSTS REVISED GUIDANCE1 PREVIOUS GUIDANCE2 Essakane (000s oz) 350 – 370 350 – 370 Rosebel (000s oz) 210 – 230 250 – 270 Westwood (000s oz) 85 – 100 85 – 100 Total attributable production (000s oz) 645 – 700 685
Slide 9: 2020 Capex Outlook - revised
2020 Capex Outlook - revised REVISED PREVIOUS GUIDANCE Non- Non- $millions Sustaining1 Sustaining2 Total3 Sustaining1 Sustaining2 Total3 Essakane $40 $65 $105 $40 $80 $120 Rosebel $50 $40 $90 $60 $55 $115 Westwood $25 $18 $43 $25 $15 $40 $115 $123 $238 $125 $150 $275 Côté Gold - $77 $77 - $45 $45 Bo
Slide 10: Catalysts - 2020 Sets Up Improved Profile for 2021
Catalysts - 2020 Sets Up Improved Profile for 2021 2019 2020 2021* ✓ Diahka-Siribaya Updated Resource ✓ Westwood NI 43-101 o Westwood Expands Production ✓ Gosselin Zone Discovery at Côté ✓ Côté Go-ahead o Rosebel Ramp with Saramacca ✓ Essakane CIL and Heap Leach o Saramacca Full Production o Essakan
Slide 11: Financial Review
Financial Review Photo: Wärtsilä 11
Slide 12: Overview
Overview KEY NOTES • Highlights from the Quarter: • Strong operating cash flows on strong margins to gold • In Q2 and subsequently, executed favourable hedges in currency and fuel • Côté hedges on CAD$ and fuel • S&P and Moody’s credit rating agencies re-affirmed IAMGOLD’s stable outlook following C
Slide 13: Summary of Second Quarter 2020 Financial Results
Summary of Second Quarter 2020 Financial Results Q2 Q1 Q2 (In $ Millions, except per share amounts) 2020 2020 2019 Revenues1 $284.6 $274.5 $246.5 Cost of Sales $228.3 $242.6 $239.9 Gross profit $56.3 $31.9 $6.6 Adjusted net earnings (loss) 2,3 - from continuing operations $20.1 ($4.9) ($15.5) Adjust
Slide 14: Maintaining a Strong Balance Sheet
Maintaining a Strong Balance Sheet LIQUIDITY WELL ABOVE $1 BILLION Available Cash & Cash Credit Facility $500 M $832 M Equivalents1 Total Liquidity $1.3B2 Senior Notes Outstanding Short-term $6 M Coupon: 7%; Maturity: April 15, 2025 Corp Rating: B1 (Moody’s) and B+ (S&P) Investments ($400 M) 1. Excl
Slide 15: Leader Among Peers: Leverage and Liquidity
Leader Among Peers: Leverage and Liquidity FAVOURABLY POSITIONED AMONG PRODUCER PEER GROUP 1.9x 1.6x 1.5x Debt / 2021E EBITDA1,2 1.4x 1.4x Net Debt / 2021E EBITDA1,2 1.2x 1.1x 1.1x 0.9x 0.8x 0.8x 0.7x 0.7x 0.7x 0.7x 0.7x 0.4x 0.2x 0.2x 0.2x Net Net Net Cash Cash <0.1x Cash TSX:CG TSX:AGI TSX:BTO TSX
Slide 16: Operations Review
Operations Review 16
Slide 17: Focus on Safety
Focus on Safety HISTORICAL GLOBAL DART & TRI RATES PER 200,000 HOURS WORKED DART: 2020 TARGET – 0.57 2.40 TRI: 2020 TARGET – 0.94 1.98 1.81* 1.76* 1.53* 1.56 1.44* 1.44 1.18 1.13 1.06 1.06 1.00 0.87 0.93 0.85 0.64 0.68 0.66 0.53 0.53 0.51 0.39 0.30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2
Slide 18: Q2 2020 Production & Cost Summary
Q2 2020 Production & Cost Summary Attributable Production Cost of Sales1 Total Cash Costs2 AISC2 (000s oz) ($/oz sold) ($/oz produced) ($/oz sold) Essakane (90%) 83 $1,079 $952 $1,123 Rosebel (95%) 52 $959 $896 $1,150 Westwood (100%) 20 $1,020 $968 $1,133 Total: Q2 2020 155 $1,030 $935 $1,189 1 Cost
Slide 19: Essakane: Higher Grades in Quarter
Essakane: Higher Grades in Quarter Burkina Faso (90%) Q2 NOTES Q2 2020 • Higher grade zones mined and lower capitalized waste stripping Attributable gold production (oz) 83,000 COVID-19 TCC1 $952 / oz • Improved productivity following lifting of administrative quarantine and shift AISC1 $1,123 / oz
Slide 20: Rosebel: Restarted, Reset and Ramp
Rosebel: Restarted, Reset and Ramp Suriname (95%) Q2 NOTES Q2 2020 • Suspension mid-June Attributable gold production (oz) 52,000 • Post Q2: mill online July 24; processing stockpiles and Saramacca ore • Saramacca – resumed construction activities to complete road TCC1 $896 / oz COVID-19 AISC1 $1,15
Slide 21: Saramacca Construction Update
Saramacca Construction Update Infrastructure – In Progress Mindrinetti Bridge – Complete 21
Slide 22: Westwood: Back Online
Westwood: Back Online Quebec (100%) Q2 NOTES Q2 2020 • Solid production despite April ramp up from Care & Maintenance Attributable gold production (oz) 20,000 COVID-19 TCC1 $968 / oz • Protocols working well AISC1 $1,133 / oz • Optimised throughput with Grand Duc while ramping up UG operations 2020
Slide 23: Construction Review
Construction Review This is the master for a divider page. In order to use a different photo in you presentation, copy all the elements from this page (except the logo, date and page number) and paste it onto a new “Blank” slide in your document. Insert your new picture, crop it to the same side as
Slide 24: Transformational Value in Canada
Transformational Value in Canada CÔTÉ GOLD - HIGHLIGHTS • NPV of $2.0B and IRR of 22.4% at US$1,700 / oz gold1,2 ONTARIO QUÉBEC • NPV of $1.1B and IRR of 15.3% at US$1,350 / oz gold1,2 • Annual gold production 469 koz at $693 / oz AISC, first 6 years2 • 18+ year potential mine life2 Kapuskasing Timm
Slide 25: Sensitivity to Gold Price – Project Economics
Sensitivity to Gold Price – Project Economics SIGNIFICANT LEVERAGE TO THE GOLD PRICE After-Tax Net Present Value (NPV5%) – 100% Basis1 After-Tax Internal Rate of Return (IRR) – 100% Basis1 (US$Bn) (%) Spot Gold2 Spot Gold2 $2.8 27.6% Base 25.9% $2.5 Case 24.2% $2.3 22.4% Base Case $2.0 20.5% $1.8 18
Slide 26: Côté Gold – Site Preparation
Côté Gold – Site Preparation CHESTER CAMP - 264 MAN CAMP TREE CLEARING – 456 HECTARES COMPLETED 26
Slide 27: Exploration Review
Exploration Review 27
Slide 28: Comparison of Industry Reserves
Comparison of Industry Reserves 17.9Moz 18 16.7Moz IAMGOLD P&P Reserves 14.5Moz 13 11.3Moz 10.1Moz 8.6Moz +101% Growth in Reserve Base 7.7Moz 7.8Moz 8 512Moz 87 3 422Moz (18%) Decline in Reserve Base 24 395Moz 19 78 365Moz -2 349Moz 60 75 328Moz 23 69 314Moz 17 26 65 286Moz 62 43 20 22 54 -7 19 23 3
Slide 29: Westwood – Hub-and-Spoke Model
Westwood – “Hub-and-Spoke” Model ATTRACTIVE DISTRICT EXPLORATION POTENTIAL1 THAT COULD SUPPLEMENT EXCESS MILL CAPACITY ROUYN GOLD PROJECT (UG) A B FAYOLLE PROPERTY (OP) OPTION TO ACQUIRE 100% FROM YORBEAU RESOURCES 100% ACQUIRED FROM MONARCH GOLD IN JUNE 2020 B Fayolle • 4 km south of Rouyn-Noranda
Slide 30: Monster Lake & Nelligan
Monster Lake & Nelligan NELLIGAN (75% JV INTEREST) • 15 kilometres south of Monster Lake • Exercised option to increase undivided interest to 75% (from 51%), MONSTER LAKE (Au) following completion of NI 43-101 Technical Report • Completed initial resource estimate1, comprising approximately 97 milli
Slide 31: Exploration Potential at Côté
Exploration Potential at Côté GOSSELIN, YOUNG-SHANNON 1.5 KM NORTHEAST OF CÔTÉ Gosselin Drill Hole Highlights1 • GOS19-17: 342.5 metres grading 0.98 g/t Au • includes: 225.0 metres grading 1.34 g/t Au • GOS19-24: 412.0 metres grading 1.28 g/t Au • includes: 221.4 metres grading 1.47 g/t Au CONCEPTUA
Slide 32: Bambouk District: Boto – Karita – Diakha-Siribaya
Bambouk District: Boto – Karita – Diakha-Siribaya BOTO GOLD PROJECT, SENEGAL Gold Price After-tax NPV 6%1 After-tax IRR1 (US$/oz) (US$M) (%) • Announced the receipt of the $2,000 $732 55% exploitation permit for an initial period $1,800 $572 45% of 20 years. $1,500 $329 30% • Optimization Study1 com
Slide 33: Re-seeding the Pipeline
Re-seeding the Pipeline West Africa North America South America Fala/Fala E Grand Duc Saramacca >5 Moz Au Production >2 Moz Au <2 Moz Au Côté Construction Brownfield Advanced Greenfield Greenfield Boto Feasibility Study Diakha-Siribaya Monster Lake Saõ Sebastiaõ Initial Resource / Gossey Nelligan Ea
Slide 34: Geographically Balanced, Lower Cost, Operational Flexibility
Geographically Balanced, Lower Cost, Operational Flexibility GOALS: STRATEGIC FOCUS: • Lower consolidated costs / increase margins • Achieve self-funding at each operating site • Increase gold production • Sequence development of organic growth projects • Increase operational flexibility • Commence
Slide 35: IAMGOLD – Building a Cash Flow Pipeline
IAMGOLD – Building a Cash Flow Pipeline Our vision is to be the global leader in generating superior value for our stakeholders through accountable mining. CREATING DIVERSIFYING MAINTAINING ENSURING superior our a strong a robust stakeholder value portfolio balance sheet pipeline • Operational • Reg
Slide 36: Appendix
Appendix # IAMGOLD 36
Slide 37: Reducing Input Exposure Through Hedging
Reducing Input Exposure Through Hedging 2020 2021 2022 2023 Foreign Currency1 Canadian dollar contracts (millions of C$) 135 252 210 120 Rate range2 ($/C$) 1.30 – 1.40 1.30 – 1.47 1.30 – 1.48 1.30 – 1.46 Hedge ratio 94% 81% 65% 36% Commodities1,3 Brent oil contracts (barrels)4 291 588 520 170 Contra
Slide 38: Investor Relations Contacts
Indi Gopinathan, VP, Investor Relations & Corporate Communications 416-388-6883 Philip Rabenok, Senior Analyst, Investor Relations 647-967-9942