Slide 1: Maximizing Returns for Investors
Maximizing Returns for Investors October 2012 Steve Letwin President & CEO 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: IAMGOLD's Platform – High Quality, Long-Life Assets
IAMGOLD’s Platform – High Quality, Long-Life Assets YATELA SADIOLA Senegal ESSAKANE Mali Boto Westwood Siribaya NIOBEC Burkina Faso Kalana Val d’Or Suriname MOUSKA Colombia Côté Gold ROSEBEL Quimsacocha Peru MINE Brazil Development Project Advanced Exploration Exploration Office Natural extensions w
Slide 4: The Transformation of IAMGOLD – Financials
The Transformation of IAMGOLD – Financials Cash & Cash Equivalent: Cash & Cash Cash balances $400M Equivalents: $271M Strengthen enhanced through balance sheet sale of non-strategic Gold Bullion (at market): Gold Bullion (at market): $215M assets $141M Senior Notes: $650M1 Credit Facility: $350M
Slide 5: The Transformation of IAMGOLD – Operations
The Transformation of IAMGOLD – Operations Sold Tarkwa & Damang interests and Mupane Focus on assets Rosebel Sadiola Rosebel Sadiola in 2011 we own and Essakane Yatela Essakane Yatela operate Mouska Tarkwa Acquired Côté Gold in Mouska/Westwood Mupane Damang June 2012 Côté Gold Expand Niobec to
Slide 6: Balanced Growth via Expansion, New Development and M&A
Balanced Growth via Expansion, New Development and M&A Gold production attributable to IAMGOLD 1,400-1,600 1,100-1,200 1,000-1,100 Westwood begins production 2013 840-910 Impact of Brownfield expansion begins 2014 - 2015 Côté Gold begins 000s oz production 2017 '12E '13E '14E '15E '16E '17E Low risk
Slide 7: History of Creating Significant Value
History of Creating Significant Value Acquisitions from 2003-2012 Côté Gold (2012) Essakane (2009) Rosebel (2006) Doyon / Mouska / Westwood (2006) Niobec (2006) Mupane (2006) Tarkwa & Damang (2003) 2012 Analyst consensus NAV of $7.0B assets acquired by Prospective exploration lands IAMGOLD (as at Se
Slide 8: Essakane – Expanding Mine Capacity
Essakane – Expanding Mine Capacity Development study completed in 2011 Attributable Grade Hard rock processing – from 5.4 to 10.8Mtpa Tonnes Contained As at December 31, 2011 (g/t Au (millions) Ounces undiluted) Mining rate – increase to 50-55 Mtpa by (000s oz) 2014, with gradual decline after 6 yea
Slide 9: Essakane Exploration Focus
Essakane Exploration Focus 210,000+ m of drilling in 2012 • Large strategic land position: 1,283 km2 • Main Zone (EMZ) & Falagountou resource development program (47,000 m) • Numerous prospects and geochemical anomalies identified (10 km Gossey-Korizena trend) 9
Slide 10: Rosebel – Staged Expansion of Hard Rock Processing
Rosebel – Staged Expansion of Hard Rock Processing Hard rock will increase from Attributable 15% to 80% by 2016 Tonnes Grade Contained As at December 31, 2011 (millions) (g/t) Ounces Investing in additional crushing (000s oz) and grinding equipment to maintain Proven Reserves 102.4 1.0 3,155 mill th
Slide 11: Good Expansion Potential at Rosebel
Good Expansion Potential at Rosebel ROSEBEL Suriname Rosebel resources Areas being considered for next expansion: Charmagne West Charmagne Headley’s Reef Announced Heads of Agreement with Government of Suriname in 2011 Definitive agreement expected by end of 2012 Focused on bringing in satellite res
Slide 12: Sadiola – Expansion in Main Pit
Sadiola – Expansion in Main Pit Attributable Tonnes Grade Contained IAMGOLD initiated project to As at December 31, 2011 (millions) (g/t) Ounces Increase throughput and (000s oz) production Proven Reserves 10.4 2.1 280 Mining hard sulphide ore beneath Probable Reserves 96.7 1.6 2,018 oxide zone in m
Slide 13: Westwood Development
Westwood Development Grade Contained Tonnes Classification (g/t Au Ounces (millions) undiluted) (000s oz) Indicated Mineral Resource1 0.2 8.5 60 (Warrenmac) Indicated Mineral Resource1 0.6 13.8 248 (Zone 2 Westwood) Inferred Mineral Resource 9.4 11.3 3,407 Significant infrastructure Total Recovered
Slide 14: Côté Gold – One of Canada's Largest Undeveloped Gold Projects
Côté Gold – One of Canada’s Largest Undeveloped Gold Projects Large Canadian resource creates balanced portfolio Confidence level reflects rigorous due diligence Attractive location with established infrastructure Access to skilled labour Cost benefits through large, bulk tonnage potential
Slide 15: Côté Gold – Well Established Infrastructure
Côté Gold – Well Established Infrastructure ENERGY 5 km to 115 kV power line Timmins Rail 75 km to 500 kV transmission line Roads Power lines ROAD 500 kV CN Rail Close to Hwy 144, 130 km to Timmins, 101 Power line 170 km to Sudbury Côté Gold 144 Chapleau Property 115 kV Gogama Power RAIL line 25km t
Slide 16: Côté Gold
Côté Gold Due diligence and financial modeling exercises focused only on the known deposit and its proximal extensions Property Outline* Rideout Deformation Zone Gold Showings Côté Gold Deposit* Gold Trend* Sources Ontario Geology Survey Map P3511 * IAMGOLD 16
Slide 17: Côté Gold – Indicated Resource Increases 274% with Updated Mineral Resource Estimate
Côté Gold – Indicated Resource Increases 274% with Updated Mineral Resource Estimate Mineral Resource Estimate Effective October 4, 2012 October 4th resource estimate reports 274% increase in Tonnes Grade Contained Ounces indicated resource (millions) (g/t) (million ozs) Percentage of resource in in
Slide 18: Mineral Resource: Economic & Technical Parameter Assumptions
Mineral Resource: Economic & Technical Parameter Assumptions Conceptual Pit Shell: Gold Price: $1600/oz Selling cost: $20/oz Recovery: 93.5% Processing: $10.50/t Mining: $1.75/t ore and $1.90/t waste with $0.013/10m bench cost escalator Pit slope angles: 42º Au g/t Discount rate: 6% 200m Section 930
Slide 19: Côté Gold – Recent Drill Hole Assay Results
Côté Gold – Recent Drill Hole Assay Results E12-198: 19.0 m @ 1.55 g/t Au from 223 m E12-190: 237 m @ 1.61 g/t Au from 377 m & 69 m @ 1.70 g/t Au from 584 m E12-192: 383 m @ 1.54 g/t Au from 204 m Including 285m @ 1.91g/t Au E12-205: 454 m @ 1.46 g/t Au from 139 m 19
Slide 20: Côté Gold – Effective Grade Makes a Compelling Project
Côté Gold – Effective Grade Makes a Compelling Project In g/t Au Reported Grade 1.8 African projects With Power North American projects 1.6 Rate South American projects for in-situ, less recovery & Effective Grade - Adjusted Adjustment 1.4 1.2 royalties 1.03 1.0 0.86 .95 .80 0.8 0.6 0.4 0.2 0.0 1 2
Slide 21: Capital Development Projects - Development Timeline
Capital Development Projects - Development Timeline 2011 Estimated 2012 2013 2014 2015 2016 2017 2017 Attributable Operation Production Attributable (000oz) H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 Production (000oz) Mine optimization - expansion of crushing Rosebel & grinding capacity Staged Expansion o
Slide 22: Balanced Geographic Portfolio
Balanced Geographic Portfolio Gold Production 3% 36% North North America America 54% 35% Africa Africa 43% South 29% America South America 20111 20172,3 Gold Mineral Resources 35% 18% North North America 40% America 32% Africa Africa 33% 42% South South America America 20114 20125 Source: Company di
Slide 23: 2012 Exploration Program
2012 Exploration Program 2012 Exploration Plan Greenfields $79.6M $157.3M Brownfields $77.7M Mali Quebec Ontario Senegal Burkina Colombia Suriname Faso Peru Brazil 20 projects various stages Planned drilling: 750 km (core and RC drilling across 20 early to late stage exploration projects and the Com
Slide 24: Niobec
Niobec Key Metrics of the Niobec Expansion Pre-Feasibility Study under the Block Cave Scenario Tonnes Grade Contained Nb2O5 Classification (millions) (%Nb2O5) (million kgs) Probable Reserves 419.2 0.42% 1,746 Measured Mineral Resource1 235.3 0.44% 1,028 Indicated Mineral Resource1 250.2 0.39% 986 In
Slide 25: Significant Rare Earth Inferred Resource
Significant Rare Earth Inferred Resource Rare earth element (REE) zone 467 Million tonnes- Total Inferred Resource (NI-43-101) REE Zone 1.65%- Total Rare Earth Oxide (TREO) Grade 7.7 Bkg-TREO 98% Light REEs, including › Cerium (47.9%) › Lanthanum (24.5%) Niobec › Neodymium (18.4%) Shaft 2% Heavy REE
Slide 26: Speed to Market Advantage
Speed to Market Advantage Rare Earth Element Zone Adjacent to Niobec St-Honoré N Existing road and rail infrastructure NIOBEC Saguenay Port Close proximity to deep water ports Rail Line with ocean access Very competitive hydro power rates (~$0.045 per kWh) QUEBEC Excellent community relations Mini
Slide 27: Planned Capital Expenditures for Gold Operations
Planned Capital Expenditures for Gold Operations 2012 Capital Expenditure Essakane › Additional water storage pond and river diversion › Additional power generation for hard ore 710 Rosebel › Crushing & grinding circuit expansion, resource development › $24M sustaining capital 620 › Includes $34 mil
Slide 28: Funding for Growth Initiatives
Funding for Growth Initiatives Gold Operations Niobium Expansion $1.7B Essakane $0.6B IPO Rosebel $976M Strategic Minority $1.8B @ $1,500/oz $2.2B @ $1,700/oz $0.6B $2.7B @ $2,000/oz Sale Westwood Capex Credit (2015E-2016E) Facility $666M $250M $0.3B Sadiola Operating Capex Cash Flow(1) $0.2B (2013E
Slide 29: Excellent Financial Position with Cash Flow Growth
Excellent Financial Position with Cash Flow Growth Significant Liquidity Strong balance sheet with $2,015 ample liquidity Senior Notes 1 650 2 Sufficient liquidity / cash Available Niobec facility $millions flow to fund development 250 Available credit 3 of projects 500 Bullion at market value Sizea
Slide 30: 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 30
Slide 31: Appendix
Appendix TSX: IMG NYSE: IAG
Slide 32: Key Milestones
Key Milestones Essakane Expansion July ‘12: Commenced construction of expanded plant End of 2012: Expect final agreement with Gov’t on fiscal terms related to expansion Q1’14: Plant commissioning Rosebel Expansion Temporary pre-crusher installed Q3’12: Larger pebble crusher to be installed Expanded
Slide 33: Key Milestones
Key Milestones Sadiola Sulphides Expansion Q2’12: Signed final agreement on fiscal and power terms with Malian gov’t (details of Power Purchase Agreement under negotiation) Waiting final signature of Malian power utility and approval by AngloGold Board End of 2014: Expect start-up of new plant Westw
Slide 34: Key Milestones
Key Milestones Niobec Expansion Q3’13: Complete feasibility study 2014: Finalize permitting process REE Development Q4’12: Commence pre-feasibility study Early 2013: Complete exploration drift from Niobec 34
Slide 35: 2012 Greenfields Exploration: West Africa
2012 Greenfields Exploration: West Africa West Africa Office Total Exploration Plan: $64.4M Greenfields: $28.6M Brownfields: Drilling: $35.8M 165,500 m Drilling: 204,000 m 35
Slide 36: Mali: Kalana Project
Mali: Kalana Project Resource Estimate Dec. 2008 Estimate (Avnel) Measured and Indicated 2.07 Mt @ 9.9 g/t Au (650,000 contained oz Au) IAMGOLD Resource Target – 2 Million ounces gold Targeting completion of NI 43-101 resource estimate by end 2012 95% complete with significant assay backlogs Mineral
Slide 37: 2012 Exploration: South America
2012 Exploration: South America Suriname Colombia Total Exploration Plan: ROSEBEL $37.5M Quimsacocha Peru Greenfields: Brownfields: $15.0M $22.5M Brazil Drilling: Drilling: 16,000 m 108,000 m MINE Development Project Exploration Office 37
Slide 38: 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 39: Canada: 2012 Exploration
Canada: 2012 Exploration OPERATING MINE Total Exploration Plan: Development Project $55.4M Exploration Office › 3 key greenfields projects on major trends in the Abitibi › Earn-In Option signed with Virginia Mines on Lac Pau › Renewed focus on growth in Quebec-Ontario Greenfields: $36.0M Brownfields
Slide 40: Niobium: Rare Metals with Unique Properties
Niobium: Rare Metals with Unique Properties Using niobium to enhance steel has many benefits: Adds strength Lightens weight Enhances flexibility Improves durability Reduces costs Niobium is used to produce high-quality steel 40
Slide 41: Rare Earths are Integral to a Wide Range of Fast Growing Markets
Rare Earths are Integral to a Wide Range of Fast Growing Markets REO Usage by Industry (2010E) Phosphorous 6% Other Glass 4% Additives 6% Magnets Auto 25% Catalysts 7% Metallurgy, excl. batteries 9% Fluid Cracking Catalysts Polishing 15% Powder 14% Battery Alloy 14% Demand for REEs Growing at 9-15%
Slide 42: 2012 Guidance
2012 Guidance 2012 Guidance (000s ounces) Attributable gold production Rosebel 370-395 Essakane 320-345 Mines owned and operated by IAMGOLD 690-740 Sadiola and Yatela 150-170 Total Production 840-910 Cash Costs ($/oz) $670-695 Niobium Production (MKg) 4.6-5.1 Niobium Operating Margin ($/kg) $15-17 /
Slide 43: Management Team
Management Team Bob Carreau Senior Vice President, Health, Safety & Sustainability Steve Letwin President & Chief Executive Officer Benjamin Little Senior Vice President, Corporate Affairs Craig MacDougall Senior Vice President, Exploration Gordon Stothart Denis Miville-Deschênes Executive Vice Pres
Slide 44: Maximizing Returns for Investors
Maximizing Returns for Investors October 2012 401 Bay Street, Suite 3200 Toronto, ON M5H 2Y4 Canada 1-888-464-9999 www.iamgold.com INVESTOR RELATIONS Bob Tait, VP Investor Relations T: 416 360 4743 C: 647 403 5520 Laura Young, Director, Investor Relations T: 416 933 4952 C: 416 670 3815 TSX: IMG NYS