Iamgold Corporation · TSX:IMG
Iamgold — Q4 2012 Earnings Presentation
24 slides from Iamgold's earnings presentation, Feb 21, 2013
Slide 1: 2012 Fourth Quarter and Full Year Results
2012 Fourth Quarter and Full Year Results February 21st, 2013 TSX: IMG NYSE: IAG
Slide 2: Management Participants
Management Participants STEVE LETWIN President & CEO GORD STOTHART EVP & Chief Operating Officer CAROL BANDUCCI EVP & Chief Financial Officer CRAIG MACDOUGALL SVP, Exploration JEFFERY SNOW SVP, General Counsel BOB TAIT VP, Investor Relations 2
Slide 3: 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 4: Introductory Remarks – 2012
Introductory Remarks 2012 Year ended with strong gold and niobium production Costs were higher than targeted for gold operations and need to improve as hard rock and inflationary pressures continue Resources increased significantly with Côté Gold project, delineation drilling largely replaced produc
Slide 5: Introductory Remarks – 2013
Introductory Remarks 2013 Gold production expected to increase due to startup of Westwood Costs per ounce due to rise significantly in 2013 as: Step change at Rosebel and Essakane to process harder rock Mouska and Yatela wind down with higher than average costs Westwood has low production, higher un
Slide 6: Action Plan – Assault on Costs and Focus on Reserve Growth
Introductory Remarks Action Plan – Assault on Costs and Focus on Reserve Growth No project to proceed until acceptable ROCE is shown Costs per ounce under constant review across the company Cost reduction initiatives have been identified at all operations All-in sustaining costs have always been an
Slide 7: Revenues
Revenues 2012 revenues flat with 2011 reflecting... 7% increase in average realized gold price to $1,667 per ounce 8% decline in attributable gold sales to 827,000 ounces 2% higher Niobium sales volume 1673.2 1670.0 $millions Gold 2011 Change 2012 Price 1,555 7% 1,667 ($/oz) Gold Sales* 896 (8
Slide 8: Adjusted Net Earnings
Adjusted Net Earnings* (In $ millions, except for per share amounts) Q4'11 Q4'12 2011 2012 $1.08 per share Net earnings from continuing operations 133.6 84.6 391.3 334.7 attributable to equity holders Interest expense on senior unsecured notes - 11.2 - 11.2 $0.84 per share Foreign exchange (gain) lo
Slide 9: Operating Cash Flow before Changes in Working Capital
Operating Cash Flow before Changes in Working Capital (In $ millions, except for per share amounts) Q4’11 Q4’12 2011 2012 $1.75 per share Cash flow generated from continuing operating activities per the 205.5 118.9 592.8 441.0 consolidated financial statements Adjusting items from non-cash working $
Slide 10: Ended year with strong fourth quarter
Ended year with strong fourth quarter Gold Attributable gold production of 214,000 ounces in Q4 actual annual production at 830,000 ounces Attributable gold sales of 232,000 ounces in Q4 actual annual sales of 827,000 ounces Total cash costs for gold of $731 /oz in Q4 full year average cash costs of
Slide 11: Gold Margin
Gold Margin Gold Operating Q4’11 Q4’12 2011 2012 Results* Gold 973 952 production 253 214 896 830 995 919 (000soz) $/oz Realized price 1,638 1,704 1,555 1,667 ($/oz) Cash cost 731 715 643 731 636 715 643 636 ($/oz) Gold margin 995 973 919 952 Q4'11 Q4'12 2011 2012 ($/oz) cash costs gold margin *From
Slide 12: Niobium Revenue
Niobium Revenue Q4’11 Q4’12 2011 2012 22% Niobium production 1.2 1.2 4.6 4.7 (Mkg Nb) $millions 190.5 177.8 Niobium sales 1.3 1.1 4.6 4.7 (Mkg Nb) 47.7 46.0 Operating margin 16 15 15 15 ($/kg) Q4'11 Q4'12 2011 2012 12
Slide 13: Strong Liquidity
Strong Liquidity Sept. 30, Dec. 31, 2012 2012 $millions 2,007 1,886 Cash & cash 250 1,787 *$897 *$814 250 equivalents 1,613 250 $millions 500 1,365 350 Gold bullion 500 $239 $223 500 at market 250 211 224 239 Unused 223 $500 $500 500 credit facility 1,052 1,033 215 Unused Niobec 897 814 $250 $250 fa
Slide 14: Rosebel
Rosebel Attributable Gold Production (95%) 2012 › Almost 50% of ore was transitional, 20% hard rock (000’s oz) 93 94 95 100 › Higher labour, fuel and power costs › Upgraded gravity circuit was positive Q1'12 Q2'12 Q3'12 Q4'12 › Improved recoveries to 96% 2013 Initiatives › Optimize fleet management
Slide 15: Essakane
Essakane Attributable Gold Production (90%) 2012 › Much improved levels of operating stability, (000s oz) 80 81 77 77 although grade and mill recovery lower › Over 30% of ore was transitional › Mill throughput increased Q1'12 Q2'12 Q3'12 Q4'12 › Water management plans successful 2013 Initiatives › E
Slide 16: Sadiola
Sadiola Attributable Gold Production (41%) 2012 › Lower throughput and grade (000s oz) 25 26 27 › Graphitic ore impacted recoveries 22 › Operations unaffected by unrest in northern Mali Q1'12 Q2'12 Q3'12 Q4'12 2013 Initiatives Outlook › Improve crushing and screening to pre-condition mill feed › Imp
Slide 17: Niobec
Niobec Niobium Production 2012 › Higher realized prices (Mkg Nb) 1.1 1.2 1.2 offset by higher costs for 1.2 labour and consumables, and lower grades Q1'12 Q2'12 Q3'12 Q4'12 › Increased throughput 2013 Initiatives › Change planned maintenance to improve plant availability › Optimize FeNb batches to r
Slide 18: Westwood Development
Westwood Development 2012 Production to start up as planned › Doyon Division (Mouska) mill refurbished at end of Q1 2013 Production combined with 2012 › Shaft sunk to interim target, now at 1,958m and 2013 ore from Mouska › Six-year labour contract signed effective from December 2011 › To produce 13
Slide 19: 2012 Exploration Program
2012 Exploration Program Q2 152.3M Drilling: 682 km Q1 Q4 Quebec Ontario Exploration activity at 20 projects 19
Slide 20: 2013 Exploration Program
2013 Exploration Program Overall budget of $142M Near-mine exploration: $39M Greenfield exploration: $52M Brownfield exploration: $25M Scoping and feasibility studies: $26M $24M of this planned for Côté Gold Less planned in West Africa, more planned in Brazil, Colombia and Canada Capitalized portion
Slide 21: Balanced Growth via Expansion and New Development
Balanced Growth via Expansion and New Development (attributable to IAMGOLD) 1,400-1,600 875-950 830 000s oz // 2012 2013E 2017E Forecasting 80% growth in production 21
Slide 22: 2013 Guidance
2013 Guidance Rosebel (000s oz) 365 – 385 gold production Essakane (000s oz) 255 – 275 Attributable Doyon division - Westwood & Mouska (000s oz)1 130 - 150 Total owner-operated production (000s oz) 750 - 810 Joint ventures (000s oz) 125 - 140 Total attributable production (000s oz) 875 - 950 Owner-o
Slide 23: Return on Capital
Return on Capital 40% 34% 35% 30% IAMGOLD 25% 23% Peers 21% Including: 20% 18% AEM-T ELD-T 15% G-T K-T 13% YRI-T 14% 10% 10% 8% 5% 0% 2009 2010 2011 2012 23
Slide 24: 2012 Fourth Quarter and Full Year Results
2012 Fourth Quarter and Full Year Results February 21st, 2013 Investor Relations Bob Tait Laura Young VP, Investor Relations Director, Investor Relations T: 416-360-4743 T: 416-933-4952 E: info@iamgold.com E: info@iamgold.com TSX: IMG NYSE: IAG