Iamgold Corporation · TSX:IMG
Iamgold — Merger or Acquisition (October 2006)
32 slides from Iamgold's merger presentation, October 2006
Slide 1: IAMGOLD – A Unique Opportunity
IAMGOLD A Unique Opportunity… Financial Management Project Development Exploration Focus Operations = NEW IAMGOLD
Slide 2: Cautionary Statements
IAMVISION IAMGROWTH IAMVALUE IAMGOLD Cautionary Statements Safe Harbor Statement under the United States Private Securities Litigation Reform Act of 1995 Certain statements in this document constitute "forward looking statements" within the meaning of Section 27A of the US Securities Act of 1933 and
Slide 3: IAMGOLD – Overview
IAMVISION IAMGROWTH IAMVALUE IAMGOLD IAMGOLD – Overview • Publicly traded since 1996 • Ownership interests in four producing mines – West Africa • 100% ownership and operator of one mine – East Africa • 2 advanced stage exploration properties 600 Gallery Gold Acquisition 500 Repadre merger GROWTH 40
Slide 4: Background
IAMVISION IAMGROWTH IAMVALUE IAMGOLD Background IAMGOLD Focused on evolving the Company to become a major gold producer and operator with production of 1 million ounces by 2008 Gallery Gold acquisition was first step Acquisition of Cambior achieves this objective Cambior Sought alternatives to expan
Slide 5: Transaction Summary
IAMVISION IAMGROWTH IAMVALUE IAMGOLD Transaction Summary • Plan of Arrangement Structure: • Share for share exchange Exchange Ratio: • 0.42 IAMGOLD shares for each Cambior share • C$4.83 per share Consideration Offered: • Premium of 31.5% to last close • US$3 billion transaction • Due diligence comp
Slide 6: Transaction Timetable
IAMVISION IAMGROWTH IAMVALUE IAMGOLD Transaction Timetable Transaction Announcement – September 14, 2006 Circular Mailed – Early October 2006 Shareholder Vote –November 7 2006 Anticipated Closing – Mid November 2006 6
Slide 7: Pro Forma Capitalization
IAMVISION IAMGROWTH IAMVALUE IAMGOLD Pro Forma Capitalization New (millions except share price and hedge book) IAMGOLD Cambior IAMGOLD (1) (1) (2) Shares Outstanding 176 276 313 (3) Share Price C$9.74 C$4.04 C$9.74 (2) Market Capitalization C$1,710 C$1,120 C$3,050 Debt – June 30, 2006 - US$60 US$60
Slide 8: Transaction Highlights
IAMVISION IAMGROWTH IAMVALUE IAMGOLD Transaction Highlights Creates: – A million ounce plus gold producer – The leading mid-tier gold company – The next senior gold producer Significant increase in production, resources and reserves Existing financial strength and technical skills to develop the com
Slide 9: Diversified Operations
IAMVISION IAMGROWTH IAMVALUE IAMGOLD Diversified Operations Westwood Mooshla Doyon Division Yatela Sleeping Giant Sadiola Niobec Diavik Diamond Mine Val d’Or Buckreef Damang Omai Tarkwa Rosebel Camp Caiman Mupane Quimsacocha Office Royalty Interests La Arena Gold Mines Non Gold Mines Exploration / D
Slide 10: Sadiola
IAMVISION IAMGROWTH IAMVALUE IAMGOLD Sadiola Sadiola - IMG Attributable prodcution & costs • 38% IAMGOLD • 2005 production - 442,000 ozs @ $270 /oz 250 $350 $300 200 $250 2006 150 $200 00 0 oz s • Focus on optimization of 100 $150 Sadiola Deeps Pre-feasibility $100 • Production – 480,000 ozs 50 $50
Slide 11: Yatela
IAMVISION IAMGROWTH IAMVALUE IAMGOLD Yatela • 40% IAMGOLD Yatela - IMG Attributable production & costs • 2005 production - 245,000 ozs @ $269 /oz 140 $300 2006 120 $250 100 • Pit deepening to extend life $200 80 • Production – 290,000 ozs 60 $150 • Costs - $250 /oz $100 40 • Mine Life – 3+ years 20
Slide 12: Tarkwa
IAMVISION IAMGROWTH IAMVALUE IAMGOLD Tarkwa Tarkwa - IMG Attributable production & costs • 18.9% IAMGOLD • 2005 production – 725,000 ozs @ $268 /oz 160 $350 140 $300 2006 120 $250 • Decision on 2nd phase mill expansion 100 $200 0 00 ozs 80 expected $150 60 • Production – 750,000 ozs 40 $100 • Costs
Slide 13: Damang
IAMVISION IAMGROWTH IAMVALUE IAMGOLD Damang Damang - IMG Attributable production & costs • 18.9% IAMGOLD 70 $400 • 2005 production – 229,000 ozs @ $247 /oz 60 $350 50 $300 $250 40 0 0 0 's o z 2006 $200 30 $150 • Production – 205,000 ozs 20 $100 • Costs - $365 /oz 10 $50 • Mine Life – 5+ years - $-
Slide 14: Mupane Gold Mine Geology & Resources
IAMVISION IAMGROWTH IAMVALUE IAMGOLD Mupane Gold Mine Geology & Resources Mupane - Resources* 612,000 oz Reserves 6.0 Mt @ 3.2 g/t Measured & 1.0 Moz Indicated 11.2 Mt @ 5.8 g/t 300,000 oz Inferred 2.1 Mt @ 4.9 g/t IAMGOLD 85 -100 % Ownership Open Pit Graphitic and ferruginous cherts/shales (BIF) Ma
Slide 15: Mupane – 1H 2006
IAMVISION IAMGROWTH IAMVALUE IAMGOLD Mupane – 1H 2006 9000 $600 8000 $500 7000 G old oz P rod u c e d 6000 $400 U S $ / oz 5000 $300 4000 3000 $200 2000 $100 1000 0 $0 Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 oz's Produced US$/oz 15
Slide 16: Future Production Profile
IAMVISION IAMGROWTH IAMVALUE IAMGOLD Future Production Profile 1,400 $420 1,200 $360 Total Cash Costs (US$ / oz) 1,000 $300 Production (kozs) 800 $240 600 $180 400 $120 200 $60 0 $0 2006 2007 2008 2009 2010 Sadiola/Yatela Tarkwa/Damang Mupane Quimsacocha Rosebel Buckreef Sleeping Giant / Doyon Caima
Slide 17: Doubling of Reserves & Resources
IAMVISION IAMGROWTH IAMVALUE IAMGOLD Doubling of Reserves & Resources Inferred Resources 8.1 M&I Resources Proven & Probable Reserves 11.1 3.4 4.8 6.5 4.7 9.7 4.7 5.0 IAMGOLD Cambior New IAMGOLD 17
Slide 18: Robust Project Pipeline
IAMVISION IAMGROWTH IAMVALUE IAMGOLD Robust Project Pipeline 2010 Development Projects La Arena Advanced Exploration Quimsacocha 2009 Doyon (Westwood) 2008 Caiman Buckreef Project pipeline ensures a stable platform for 18 additional growth
Slide 19: Production and Resource Base
IAMVISION IAMGROWTH IAMVALUE IAMGOLD Production and Resource Base 1,575 1,249 1,102 2007E Production (000’s oz)(1) 674 650 600 502 500 360 250 LD a LD s ra e n do or rra os an gl ia tu O bi O ra Ea id te nr m en G am G do er en Ki Ya M o- M av M C El IA C c IA en ni ew Ag Bu N $4,464 $4,032 $3,318 $
Slide 20: Reserves & Resources
IAMVISION IAMGROWTH IAMVALUE IAMGOLD Reserves & Resources 35.0 2.9 30.0 Reserves & Resources (mm oz) 6.1 25.0 8.1 20.0 8.2 15.0 11.1 7.7 3.7 24.7 3.4 1.4 2.8 4.8 1.9 10.0 5.0 3.8 15.0 6.5 4.7 5.0 10.4 1.0 5.0 9.7 7.2 7.2 3.1 4.7 5.0 5.4 2.1 0.0 a or LD rra LD a e n s do r ia gl an os tu bi te O ra O
Slide 21: Value Creation for Cambior's Shareholders
IAMVISION IAMGROWTH IAMVALUE IAMGOLD Value Creation for Cambior’s Shareholders 31.5% premium to Cambior’s closing price of C$3.67 on the TSX Benefit from the financial strength of IAMGOLD: – Strong cash flow, debt free and cash balance of US$193 million Track record of aggressive exploration Partici
Slide 22: Buckreef
IAMVISION IAMGROWTH IAMVALUE IAMGOLD Buckreef Situated in prolific gold belt in Tanzania 22
Slide 23: Target Generation through Geophysics
IAMVISION IAMGROWTH IAMVALUE IAMGOLD Target Generation through Geophysics Untested Resistor/ Structural Targets 23
Slide 24: Quimsacocha Preliminary Assessment
IAMVISION IAMGROWTH IAMVALUE IAMGOLD Quimsacocha Preliminary Assessment • Preliminary Assessment by SRK Consultants released May 11, 2006 • Mining options economically viable ($400 au, $1.50 cu, $5.50 ag) Open Pit Underground Capital Cost $264 million $137 million Annual Production Au (oz) 281,159 2
Slide 25: Quimsacocha
IAMVISION IAMGROWTH IAMVALUE IAMGOLD Quimsacocha Quimsacocha Oeste Rio Falso Sur Loma Tasqui Jordanita 25 Quimsacocha is a premium development asset
Slide 26: Value Creation for IAMGOLD's Shareholders
IAMVISION IAMGROWTH IAMVALUE IAMGOLD Value Creation for IAMGOLD’s Shareholders Achieves goal of becoming 1 million ounce producer by 2008 Accretive transaction on key market metrics NAV 2% 2007E Production 5% Total Reserves & Resources 15% P&P Reserves 19% 2007E CFPS 21% Increase in NAV, production,
Slide 27: Value Creation for IAMGOLD's Shareholders
IAMVISION IAMGROWTH IAMVALUE IAMGOLD Value Creation for IAMGOLD’s Shareholders Advantage of scale: – Platform for additional growth through acquisitions – Diversification of geographic risk Ownership of long-life Rosebel mine Exposure to Cambior’s promising exploration and development projects – Cam
Slide 28: Camp Caiman
IAMVISION IAMGROWTH IAMVALUE IAMGOLD Camp Caiman RN-2 to Cayenne Cacao Trésor 4.5 m @ 11.8 g/t 4.5 m @ 2.1 g/t 6.0 m @ 7.5 g/t Sainte Marie 7.5 m @ 7.7 g/t 9.0 m @ 3.2 g/t Camp Caiman Patawa 9.0 m @ 3.5 g/t 16.5 m @ 9.2 g/t Mining Concession Orapu Kaw Changement Montagne Guadeloupe Maripa 10.5 m @ 1
Slide 29: Rosebel
IAMVISION IAMGROWTH IAMVALUE IAMGOLD Rosebel 345000E 350000E 355000E 360000E 890000N Koolhoven 890000N J Ros 0 5 Granite ebe l Pr Rosebel Sediments ope km rty Lim Thu Armina Volcanics its Armina Sediments Mill Spin nde r Mo unt ain Paramaka Volcanics Pay Caro Exp lora tion Diabase Dykes C onc Camp P
Slide 30: IAMGOLD – Strategic Direction
IAMVISION IAMGROWTH IAMVALUE IAMGOLD IAMGOLD – Strategic Direction “Focused on the goal of increasing long term production and cash flow”(1) Complete the sale of Omai Bauxite Undertake an aggressive exploration program on Cambior’s properties Focus on the Americas and Africa Optimize the combined as
Slide 31: Transaction Highlights
IAMVISION IAMGROWTH IAMVALUE IAMGOLD Transaction Highlights Creates: – A million ounce plus gold producer – The leading mid-tier gold company – The next senior gold producer Significant increase in production, resources and reserves Existing financial strength and technical skills to develop the com
Slide 32: Investor Relations Contact
IAMVISION IAMGROWTH IAMVALUE IAMGOLD Lisa Doddridge - Investor Relations ldoddridge@iamgold.com 416 360 4740 (www.iamgold.com)