Slide 1: 2011 4th Quarter & Full Year Results
2011 4th Quarter & Full Year Results February 24, 2012 TSX: IMG NYSE: IAG
Slide 2: Management Participants
Management Participants STEVE LETWIN President & CEO CAROL BANDUCCI EVP & Chief Financial Officer GORD STOTHART EVP & Chief Operating Officer JEFF SNOW Senior Vice President and 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: Recent News Flow
Recent News Flow 2011 Financial Results Reserves and resources update Capital development projects update Credit facility increased from $350M to $500M and established new $250M line-of-credit for Niobec 4
Slide 5: 2011 Record Financial Performance
2011 Record Financial Performance Record revenue up 53% to $1.7B Total Net Earnings up 207% to $807M Record Net Earnings1 up 81% to $391M Record Operating Cash Flow2 up 66% to $654M Gold Margins up 27% to $919/oz 1From continuing operations attributable to equity shareholders 2From continuing operat
Slide 6: 2011 Reserves and Resources
2011 Reserves and Resources Tonnes Grade Attributable Contained Ounces GOLD OPERATIONS (000s) (g/t) (000 oz) As at December 31, 2011 Proven & Probable Reserves 413,927 1.3 13,300 Measured & Indicated Resources1 590,594 1.3 18,198 Inferred Resources 95,157 2.4 5,789 Tonnes Grade Nb2O5 Contained Nb2O5
Slide 7: 2011 Strategic Highlights
2011 Strategic Highlights Delivered on strategy to divest profitably Moving forward on brownfield expansion projects Uncovering potential value of Niobec Identifying largest rare earth elements deposit outside of China 7
Slide 8: Q4'11 Financial Performance
Q4’11 Financial Performance Net Earnings1 up 22% to $134M Operating Cash Flow2 down 1% to $189M Gold Production3 of 253,000 ozs Operating Gold Margin up 18% to $995/oz 1From continuing operations attributable to equity shareholders 2From continuing operations before changes in working capital 3From
Slide 9: Strong Revenue Growth
Strong Revenue* Growth 2011 revenues up 53% vs. 2010 1,673 23% increase in avg. realized gold price, and 29% increase in gold sales 53% 482 Gold 2010 2011 Q4 Price ($/oz) $1,260 $1,555 1,097 Sales* (000oz) 738 953 $millions Q3 Sales* ($M) $929 $1,482 441 Q4’11 revenues up 9% vs. Q4’10 Q2 19% inc
Slide 10: 2011 Record Net Earnings
2011 Record Net Earnings* YEAR-OVER-YEAR Total Net Earnings Net earnings from continuing operations $millions $millions 81% 207% 807 391 216 263 2010 2011 2010 2011 79% 203% $/sh $/sh 2.15 1.04 0.58 0.71 2010 2011 2010 2011 *attributable to equity shareholders Sale of Tarkwa, Damang & Mupane Bolster
Slide 11: Q4'11 Net Earnings
Q4’11 Net Earnings* QUARTER-OVER-QUARTER Total Net Earnings Net earnings from continuing operations $millions $millions 8% 22% 124 134 134 110 Q4'10 Q4'11 Q4'10 Q4'11 9% 24% $/sh $/sh 0.33 0.36 0.36 0.29 Q4'10 Q4'11 Q4'10 Q4'11 *attributable to equity shareholders 11
Slide 12: Operating Cash Flow from Continuing Operations
Operating Cash Flow from Continuing Operations* 66% 64% $/sh $millions 654 1.74 393 1.06 191 189 0.51 0.50 Q4‘10 Q4‘11 2010 2011 Q4‘10 Q4‘11 2010 2011 *Before changes in working capital 12
Slide 13: Attributable Gold Production
Attributable Gold Production 967 253 972 231 000 oz 198 896 728 290 2010 Q1'11 Q2'11 Q3'11 Q4'11 2011 Continuing operations Discontinued operations 13
Slide 14: Gold Margins
Gold Margins Gold 1,638 Operating Q4’10 Q4’11 2010 2011 1,555 Results* 1,381 Gold production 255 253 728 896 1,260 (000oz) 995 Realized 919 price 1,381 1,638 1,260 1,555 845 ($/oz) 726 $/oz Cash cost 536 643 534 636 ($/oz) Gold margin 845 995 726 919 643 636 536 534 ($/oz) Q4: 2011: Q4'10 Q4'11 2010
Slide 15: Niobium Margin
Niobium Margin Niobium Margin Niobium Operating Q4’10 Q4’11 2010 2011 Results Niobium production 1.0 1.2 4.4 4.6 (MKg Nb) Niobium $/kg $18 sold 1.0 1.3 4.3 4.6 $17 (MKg Nb) $16 $15 Operating margin 17 16 18 15 ($/kg) Notwithstanding a higher average price sold, niobium operating margin was lower due
Slide 16: Strong Balance Sheet
Strong Balance Sheet Financial Position Dec. 31, Dec. 31, 2010 2011 2,013 $millions 2 250 Cash & cash $260 $1,052 equivalents 1 500 $millions Gold bullion $141 $211 211 at market 751 Unused credit $350 $7501,2 facility 350 1,052 141 Total $751 $2,013 260 As at Dec.31 2010 2011 1Increased to $500M Fe
Slide 17: Essakane Update
Essakane Update 2011 Achievements Capital expenditures of $104.5M Attributable production of 337,000 ozs Detailed economic study to expand mine capacity completed Jan.’12 Constructed an additional bulk water storage Grade Contained Tonnes pond to mitigate risk of future water shortage As at December
Slide 18: Rosebel Update
Rosebel Update 2011 Achievements Capital expenditures of $73M Attributable production of 385,000 ozs Announced mine expansion project Signed Heads of Agreement with Gov’t of Suriname to expand and incorporate satellite resources Attributable Tonnes Grade Contained As at December 31, 2011 (millions)
Slide 19: 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 West Charmagne Charmagne Headley’s Announced Heads of Agreement Reef with Government of Suriname on Dec. 21’11 to support signifi
Slide 20: Sadiola/Yatela Update
Sadiola/Yatela Update 2011 Achievements Capital expenditures of $23.2M Attributable production of 121,000 ozs $34M dividend to IAMGOLD Sadiola Sulphide feasibility study completed, awaiting approval by joint venture partner Permits in place to begin construction Attributable Tonnes Grade Contained A
Slide 21: Niobec Update
Niobec Update Key Metrics of the Niobec Expansion Pre-Feasibility Study under the Block Cave Scenario 2011 Achievements Tonnes Grade Contained Nb2O5 Capital expenditures of $61.3M Classification (millions) (%Nb2O5) (million kgs) Positive results from pre-feasibility study on Probable Reserves 419.2
Slide 22: Westwood Update
Westwood Update 2011 Achievements Grade Contained Tonnes Project and exploration expenditures of $134M Classification (g/t Au Au (millions) undiluted) (000s oz) Completion of: fire detection system, new pump Indicated Mineral Resource1 house, waste silo 0.2 8.6 60 (Warrenmac) Commencement of ground
Slide 23: 2012 Exploration Program
2012 Exploration Program 2012 Exploration Budget Greenfields $54M $131M Brownfields $77M Mali Quebec Senegal Burkina Colombia Suriname Faso Peru Brazil 20 projects various stages Planned drilling: 670 km Exploration Office Most ambitious exploration plan in IAMGOLD history 23
Slide 24: Essakane Exploration
Essakane Exploration As > 100ppm 210,000+ m of RC and DD drilling Takabangou planned in 2012 Focus of the drilling program will be split between: Tin Taradat a resource definition program at Falagountou Tin Zoubaratan An in-fill program at Essakane north Bom Kodjele Gossey - Korizena Essakane Falago
Slide 25: 2011 Acquisition of Exploration Interests in Colombia
2011 Acquisition of Exploration Interests in Colombia Recent acquisitions of interest in companies active in Colombia: Bellhaven Copper & Gold Superior grade Au-Cu porphyry A1.5 Moz Aueq Inferred resource in La Cantera deposit A second discovery in the Middle Zone Multiple untested magnetic anomalie
Slide 26: Growth Strategy
Growth Strategy Expand and optimize existing mines Increase productivity Pursue exploration plays Evaluate acquisition opportunities Surface full value of Niobec Exploit rare earth potential Focused on maximizing return on capital 26
Slide 27: Dividends have increased 317% since December 2010
Dividends have increased 317% since December 2010 Dividends paid per Share $0.30 $0.25 $0.25 $0.20 $0.20 $ US/sh $0.15 $0.10 $0.08 $0.06 $0.05 $- Previous 4-Jan-11 20-Jul-11 5-Jan-12 First Date Payable Growing dividends while investing in growth 27
Slide 28: 2011 4th Quarter & Full Year Results
2011 4th Quarter & Full Year Results February 24, 2012 Investor Relations Bob Tait VP, Investor Relations T: 416-360-4743 E: bob_tait@iamgold.com TSX: IMG NYSE: IAG
Slide 29: Appendix
Appendix TSX: IMG NYSE: IAG
Slide 30: Notes regarding reserves and resources
Notes regarding reserves and resources Cautionary Note to Investors Concerning Estimates of Measured and Indicated Resources This presentation uses the terms "measured resources" and "indicated resources". We advise investors that while those terms are recognized and required by Canadian regulations
Slide 31: 2011 4th Quarter & Full Year Results
2011 4th Quarter & Full Year Results February 24, 2012 Investor Relations Bob Tait VP, Investor Relations T: 416-360-4743 E: bob_tait@iamgold.com TSX: IMG NYSE: IAG