Iamgold Corporation · TSX:IMG
Iamgold — Corporate Update (May 2012)
37 slides from Iamgold's corporate update, May 18, 2012
Slide 1: Rosebel Gold Mines N.V. – Tour of Rosebel Gold Mines Suriname
ROSEBEL GOLD MINES N.V. May 18th , 2012 Tour of Rosebel Gold Mines Suriname TSX: IMG NYSE: IAG
Slide 2: Cautionary Statement
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 rega
Slide 3: Tour Introduction
Tour Introduction Presenter Thomas Ohrling General Manager Program 10:15 – 11:15 Introduction & Presentation 11:15 – 11:45 Lunch 12:00 – 13:30 Pit Tour 13:30 – 14:30 Mill & Refinery Tour 14:45 – 15:40 Wrap up – Q & A 15:45 Departure to the Airport 3
Slide 4: Location
Location KEY FACTS Suriname is a Democratic Republic neighboring to Guyana in the West, French Guiana in the East and Brazil in the South. The official language is Dutch and the population is approximately 540,000 people. Rosebel is located in the District Brokopondo, 100 km from the Capital c
Slide 5: Rosebel History
Rosebel History Mineral Agreement Rep. Sur.–Grassalco–Goldenstar Feasibility Study and IAMGOLD acquires Environmental Impact Amending Agreement Cambior Provisional Agreement Rep. Sur.–Grassalco–Goldenstar Rep. Sur.–Grassalco–Goldenstar Statement ‘92 ‘93 ‘94 ‘95 ‘96 ‘97 ‘98 ‘99 ’00 ’01 ’02 ’03 ’04 ’0
Slide 6: Focus on Growth
Focus on Growth Mine Explore Optimization Expansion and additional Expansion resources › 4th expansion in 7 years › Reserves outpace depletion › On-going discussions with Government to unlock further value › Large land area still to be explored 6
Slide 7: Current Rosebel Expansion
Current Rosebel Expansion Attributable production Attributable Q1’12: 93,000 ozs Tonnes Grade Contained As at December 31, 2011 (millions) (g/t) ounces 2011: 385,000 ozs (000s oz) Expansion will increase capacity to treat Proven Reserves 102.4 1.0 3,155 harder ore H2’12 Probable Reserves 84.0 1.0 2,
Slide 8: Exploration
Exploration Brownfield exploration program: Transfer Resources into Reserves at Overman (Charmagne area) Add the new East Tailings Road (ETC) deposit to Reserves Continue to expand the Rosebel deposit to the East (Rosebela area) and at depth Continue to expand the Mayo deposit laterally and
Slide 9: Future Expansion Potential at Rosebel is Significant
Future Expansion Potential at Rosebel is Significant ROSEBEL Suriname Rosebel resources Areas being considered for next expansion: Charmagne West Charmagne Headley’s Reef Heads of Agreement with Government of Suriname Dec. ’11 to support significant expansion at Rosebel Definitive agreement expected
Slide 10: Capital Expenditures
Capital Expenditures Capital Expenditures 2012-16: $550 million Includes project capital, sustaining capital and capitalized stripping: › To maintain gold production in the range 400,000 oz/y › Increasing hard rock processing ratio › Additional mining/processing equipment › Include Rosebel Pit 10
Slide 11: Mill Expansions
Mill Expansions Phase I Phase II Phase III Phase IV 2004 2006 2009 2011 Commercial Increase Increase Increase Production capacity capacity to gold 5.8Mtpa 12Mtpa recovery • Design Capacity • Addition of • Addition of 2nd • Addition of 4 4.8Mtpa Gyratory Ball mill, leach tanks Crusher for pebble circ
Slide 12: Mill – Flow Sheet Including SUGR-K (Gravity) / SUGR-N (BM3)
Mill – Flow Sheet Including SUGR-K (Gravity) / SUGR-N (BM3) 12
Slide 13: Mill – Pre Crush
$V1532 Separation size: 150 mm 239 mtph | Nachine Load: 67% (589 miph) C612 CSS: 180 mm Machine Load: 97% (339 mtpt $C2462 2decke Separation size deck 1: 120.0 mm Separation size deck 2; 38.0 mm Average Load: 84% (1188 mtph) Max Load: 54% (1167 miphi 569 miph £89 miph £IAMGOLD CORPORATION
Slide 14: Mill – Mill Pebble Crush
\ £1AMGOLD’ CORPORATION Source Feed Material: Gneiss Maximum feed amount: 300 mtph Actual feed amount: 300 mtph Work Index: 20 Bulk density: 1.6 ton/m3 Abrasion Index: 0.48 300 mtph 300 mtph 300 mtph 0-27.0mm CH660 MF HC Throw: 44 mm CSS: 19.2 mm Machine Load: 99% (300 mtph) ‘Stockpile Dis.1 P[%] [m
Slide 15: Mill – Construction Optimization
Mill – Construction Optimization Gravity › Current capacity 200tph ,<15% feed rate - Increase capacity 600tph >30% feed › Table recovery limited - Acacia recovery total gold reporting to gravity › Gravity recovery limited to <20% - Audits indicate recoveries ~45% Third Ball Mill › Current Grinding l
Slide 16: Top 10 Operating Costs
Top 10 Operating Costs Where are the opportunities to save on costs? Lime, 1% Grinding Other, 9% Potential for large impacts: media 3% Liners, 3% Fuel & Power Labour, 22% Explosives, Labour 3% Maintenance Cyanide, 4% Contractors Mining Potential for small impacts: Contractor excluding fuel, Reagents
Slide 17: Key Highlights Production & Cost
Key Highlights Production & Cost Ownership: IMG 95% -Gov 5% Reserves (oz) Year End 2011 (100%) Attributable Reserves (oz) Year End 2011 (95%) P&P Reserves 6,031,000 P&P Reserves 5,730,000 Gold Production (oz) Attributable Gold Production (oz) 2012 (E) 390-415 2012 (E) 370-395 2011 406,000 2011 385,0
Slide 18: Rosebel Q1 2012 Results
ROSEBEL Q-1 – 2012 results Q1 2012 Actual Budget Accelerated OPERATING RESULTS (100%) Ore mined 000 t production 3,499 3,301 Waste mined 000 t reduces 10,505 10,394costs Total tonnes mined 14,004 13,695 Strip ratio and 2.96 brings 3.15 cash flow Throughput (Ore Milled) 000 t 3,131 3,167 Grade g/t fo
Slide 19: Reserves and Resources 2003 - 2011
Reserves and Resources 2003 - 2011 9,105 8,870 7,236 320 6,031 000s oz 5,446 6,202 4,870 4,737 5,094 3,947 Mineral Reserves (In Situ) 3,716 2,926 3,817 3,403 2,401 3,212 Cumulative Production 2,537 3,073 2,382 2,668 2,142 1,730 1,053 1,371 19 735 389 2003 2004 2005 2006 2007 2008 2009 2010 2011 19
Slide 20: Relationship with Government
Relationship with Government Structure Rosebel Government Supervision Supervisory Board 6 directors 1 director Quarterly meeting Annual Shareholders Meeting IAMGOLD Republic of Suriname Yearly Monitoring Committee Representatives from Monthly Ministries of: ATM- Labor Natural Resources Finance/Ta
Slide 21: Applicable Royalties
Applicable Royalties Gold price $/oz 1,000 1,200 1,400 1,600 1,800 2,000 Royalty in kind 2.25% 2.25% 2.25% 2.25% 2.25% 2.25% Excess Royalty 6.5% (gold 3.74% 4.20% 4.53% 4.77% 4.97% 5.12% price in excess of $425) Total effective royalty 5.99% 6.45% 6.78% 7.02% 7.22% 7.37% percentage No Maximum Royalt
Slide 22: Royalty Payments ($/oz)
Cumulative Royalty Payments Based on rates of 2.25% production royalties, plus 6.5% royalties for prices in excess of $425/oz 120 $111.94 100 $98.94 Royalty Payments ($/oz) $85.94 80 $72.94 60 $59.94 $46.94 40 $33.94 20 $20.94 $9.00 $4.50 0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,0
Slide 23: Direct Financial Contribution Government 2007-2011
Direct Financial Contribution Government 2007-2011 180 $160M 160 140 $137M 120 $Millions 100 Corporate Taxes $92M Royalties 80 Payroll Taxes Dividends 5% 60 $56M 40 $16M 20 0 2007 2008 2009 2010 2011 23
Slide 24: Strong Supply Chain Policy
Strong Supply Chain Policy Goods & Services: Competitive - quality – quantity - continuity Policy: Maximize locally purchased goods and services Engagement: Vendor’s event (annual) Encourage & support local entrepreneurship Support production of quality goods Example: RGM serves approx
Slide 25: Suriname vs. Non-Suriname Suppliers
Suriname vs. Non-Suriname Suppliers 160 140 $ millions 120 100 80 Suriname Suppliers Non-Suriname Suppliers 60 40 20 0 2005 2006 2007 2008 2009 2010 2011 25
Slide 26: Total Employment
Total Employment Empowering People: Number of Employees 2000 1,911 1,952 Training & Development 1800 1,734 1,718 › Supervisory Leadership 1600 Development Program 1,497 1400 1,311 Talent Management 1200 1,081 Shift schedule review ongoing 1000 Social Recreation: 800 › Sport Facility 600 › Healthy Li
Slide 27: Health, Safety & Sustainability
HEALTH, SAFETY & SUSTAINABILITY ZERO HARM VISION IAMGOLD’s commitment to protect the people, the environment and surrounding communities Health & Environment Safety Community Relations 27
Slide 28: Community Relations
Community Relations Engagement and Consultation Managing surrounding communities (7) and other stakeholder ‘social effects’ by: Developing and implementing a Community Relations Management System (CRMS). March 2012: RGM was the first international operation to achieve a AAA level rating for Com
Slide 29: Community Development Projects
Community Development Projects Heavy equipment Scholarship 9 new Teacher Poultry Project Eye Care training Accommodation CAPACITY BUILDING 29
Slide 30: Occupational Health & Safety
OCCUPATIONAL HEALTH & SAFETY No Fatalities Target: Triple Zero ( Lost Time, Medical Aid, or Modified Duty) RGM Objective: 2012 DART* rate of 0.45 (10% reduction from 2011) OHSAS 18001 Certification (Nov 2011) Framework for an effective occupational health & safety management system Significant Risk
Slide 31: Safety Chart
Safety Chart Between 2007 – 2011 lost-time incidents have decreased by nearly 75 % 32
Slide 32: DART Rate 2007 - 2012
*DART Rate 2007 - 2012 *DART = Days Away, Restricted or Job Transfer 33
Slide 33: Environment
ENVIRONMENT Environmental Management System ISO14001:2004 certified since 2005 Development and implementation of our Environmental Management System (EMS) i.e. Environmental policy, Significant Environmental Aspects, and Monitoring Programs. progressive reclamation & mine closure; keeping the qual
Slide 34: Illegal Small Scale Miners (SSM)
Illegal Small Scale Miners (SSM) SSM exists at Rosebel Concession Mercury Exploitation Damage Hazards Pollution Concession H&S 35
Slide 35: Corporate Social Responsibility
Corporate Social Responsibility Highlights projects 2012: Sponsorships and Donations IAMGOLD – Rosebel Foundation $1,200,000 Brownsweg Sport complex $1,000,000 Hospital Brokopondo partnership with Ministry of Health $800,000 Master’s degree in Geosciences – ADEK $600,000 Children’s Book Fe
Slide 36: Challenges and Opportunities
Challenges and Opportunities Challenges: Opportunities: COSTS COSTS Power, Fuel, Wages and Reagents Power options High sustaining capital requirements Explore alternative power sources High royalty payments Benefit from economies of scale WORKFORCE PARTNERSHIP WITH STAKEHOLDERS Shift Schedules • Loc
Slide 37: Thank You
THANK YOU Legal and Corporate Affairs Sharmila Jadnanansing TSX: IMG NYSE: IAG