Iamgold Corporation · TSX:IMG
Iamgold — Q2 2022 Earnings Presentation
33 slides from Iamgold's earnings presentation, Aug 4, 2022
Slide 1: Q2 2022 Financial & Operating Results
SECOND QUARTER 2022 RESULTS Q2 2022 Financial & Operating Results TSX: IMG l NYSE: IAG August 4, 2022 Conference Call www.iamgold.com TSX: IMG l NYSE: IAG l www.iamgold.com
Slide 2: Cautionary Statement
SECOND QUARTER 2022 RESULTS Cautionary Statement CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION All information included in this presentation, including any with respect to the Company’s future financial or operating performance and other statements that express management’s expectations
Slide 3: Technical Information and Qualified Persons
SECOND QUARTER 2022 RESULTS Technical Information and Qualified Persons CAUTIONARY NOTE TO U.S. INVESTORS REGARDING DISCLOSURE OF MINERAL RESERVE AND MINERAL RESOURCE ESTIMATES The mineral resource and reserve estimates contained in this presentation have been prepared in accordance with NI 43-101 a
Slide 4: Q2 2022 Highlights
SECOND QUARTER 2022 RESULTS Q2 2022 Highlights CORPORATE & STRATEGIC Q2 mine-site free cash flow1 of $42.8 million and adjusted EBITDA1 of $110.0 million Cash, cash equivalents and short-term investments of $452.9 million2 and liquidity1 of $801.6 million Completed the review of the Côté Gold projec
Slide 5: Operations
SECOND QUARTER 2022 RESULTS Operations 5
Slide 6: Operations
SECOND QUARTER 2022 RESULTS Operations OPERATING RESULTS 2022 STRONG PRODUCTION PERFORMANCE IN Q2 Q2/22 Q1/22 2022 YTD Guidance Gold production of 170,000 ounces (attributable) Essakane (90%) koz 107 112 219 360 – 385 • Essakane continues to outperform and improvements at Rosebel Rosebel (95%) koz 4
Slide 7: Essakane
SECOND QUARTER 2022 RESULTS Essakane KEY OPERATING STATISTICS Q2/22 Q1/22 YTD 2022 STRONG PERFORMANCE IN Q2, CHALLENGES REMAIN (100% basis, unless otherwise stated) Ore mined kt 3,803 3,832 7,635 Attributable production of 107,000 ounces (119,000 ounces 100% basis) Material mined – total kt 11,405 1
Slide 8: Rosebel
SECOND QUARTER 2022 RESULTS Rosebel KEY OPERATING STATISTICS (100% basis, unless otherwise stated) Q2/22 Q1/22 YTD 2022 MINE PLAN IMPROVEMENTS TAKING HOLD Ore mined1 kt 1,500 1,588 3,088 Attributable production of 49,000 ounces, benefiting from improved recoveries and Material mined – total1 kt 15,4
Slide 9: Westwood Complex
SECOND QUARTER 2022 RESULTS Westwood Complex KEY OPERATING STATISTICS RAMP UP OF UNDERGROUND CONTINUES (100% basis, unless otherwise stated) Q2/22 Q1/22 YTD 2022 Attributable production of 14,000 ounces Underground lateral development metres 1,207 848 2,055 Ore mined – underground kt 53 63 116 Under
Slide 10: Côté Gold Project
SECOND QUARTER 2022 RESULTS Côté GoldProject Côté Gold Côté Pit – July 2022 Processing plant interior – June 2022 Processing plant – July 2022 994K Loaders – July 2022 Assay Lab – July 2022 CAT assembly laydown – July 2022 10
Slide 11: Côté Gold: Updated LOM Plan Highlights
SECOND QUARTER 2022 RESULTS Côté Gold: Updated LOM Plan Highlights Côté Gold3,4 Côté Gold3,4 @ 100% @ 100% Operations Operating Costs US$ Mine Life years 18 Cash costs2 $/oz Au $699 Total Ore Tonnes Mined kt 236,000 Cash costs2 (Years 1 – 6) $/oz Au $591 Total Waste Tonnes Mined kt 568,000 AISC2 $/o
Slide 12: Côté Gold: Mining
SECOND QUARTER 2022 RESULTS Côté Gold: Mining MATERIAL MOVEMENT 80,000 OVERVIEW 70,000 Open-pit drill, blast, load and haul averaging 60 Mtpa over LOM 60,000 • Drill/Blast: Autonomous Epiroc PV-231 blasthole drills 50,000 Tonnes (000 t) • Load: CAT 6060 electric/hydraulic shovels & CAT 994K high lif
Slide 13: Côté Gold: Processing
SECOND QUARTER 2022 RESULTS Côté Gold: Processing OVERVIEW THROUGHPUT & GRADE 37,200 tpd Crush/HPGR/Grind/Leach/CIP Processing Plant 16,000 1.60 • Average recoveries of 91.8%, recovery by gravity of 23% 14,000 1.40 • HPGR and grinding target final product size of P80 100 μm 12,000 1.20 • Class A cus
Slide 14: Côté Gold: Operating Costs
SECOND QUARTER 2022 RESULTS Côté Gold: Operating Costs OPERATING & UNIT COSTS OPERATING COSTS LOM $/tonne $/tonne $/oz Mining costs (gross) of $2.62/t material mined $M material processed sold Mining costs (net, excluding CWS) of $6.20/t processed ore Mining (gross costs incl. CWS)1 $2.62 • Net mini
Slide 15: Côté Gold: Project Costs @ 100%
SECOND QUARTER 2022 RESULTS Côté Gold: Project Costs @ 100% PROJECT COSTS (US$ million)1 REMAINING SPEND TO COMPLETE Procurement 343 Earthworks 575 as of May 1, 2022 as of July 1, 2022 Process 519 43-101 IAMGOLD Infrastructure 162 Costs to complete attributable Remaining spend to complete Indirects
Slide 16: Côté Gold: Upcoming Milestones
SECOND QUARTER 2022 RESULTS Côté Gold: Upcoming Milestones 2022 2023 2024 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 TMF Phase I Q2/23 Earthworks TMF Phase II Q3/23 Overburden Removal Q3/23 AHS Control Room Q4/22 Mining IAG Fleet Usage to Support Earthworks Q2/23 Ore Stockpile Build-Up (3.5 Mt) Q4/23 HPGR Fou
Slide 17: Côté Gold: 43-101 Summary
SECOND QUARTER 2022 RESULTS Côté Gold: 43-101 Summary OPERATIONS ECONOMICS1 Mine life of 18 years with initial production expected in early 2024 2024/2025 $1,700 Average annual production of 495,000 ounces (347,000 ounces attributable) Gold Price $1,400 $1,500 $1,600 $1,700 $1,800 $1,900 during the
Slide 18: Côté Gold: Gosselin
SECOND QUARTER 2022 RESULTS Côté Gold: Gosselin Côté Gold Project – Mineral Reserves & Resources (2022)2,3 • Gosselin zone adjoins the Côté deposit to the northeast with potential to further expand district-scale resources Attributable Tonnes Grade Contained Classification Contained (millions) (g/t
Slide 19: Financial Review
SECOND QUARTER 2022 RESULTS Financial Review Photo: Wärtsilä, Hybrid Solar/Thermal Plant at Essakane 19
Slide 20: Financial Results
SECOND QUARTER 2022 RESULTS Financial Results QUARTERLY FINANCIAL HIGHLIGHTS Q2 FINANCIAL PERFORMANCE (In $ millions, unless otherwise stated) Q2 2022 Q1 2022 Q1 2021 Gold revenues of $334.0 million ($690.6 million YTD) from sales of 185,000 ounces (170,000 attributable) at an average price of $1,79
Slide 21: Liquidity Outlook
SECOND QUARTER 2022 RESULTS Liquidity Outlook LIQUIDITY CÔTÉ REMAINING TO SPEND Total liquidity1 of $802 million as at June 30, 2022 As of July 1, 2022, the remaining attributable spend to complete the construction of the Côté Gold project is estimated to be between $1.2 – $1.3 billion Cash and equi
Slide 22: Q&A
SECOND QUARTER 2022 RESULTS Q&A 22
Slide 23: Appendix
SECOND QUARTER 2022 RESULTS Appendix 23
Slide 24: Côté Gold: Quarterly Progress Report
SECOND QUARTER 2022 RESULTS Côté Gold: Quarterly Progress Report as at Jun 30, 2022 ~57% ~99% $149M $766M $667M project completion detailed engineering incurred in Q2 incurred to date1 expended to date1 ACTIVITIES UPDATE • Expended $172.4 million (incurred $148.9 million) in Q2 2022 • Mining prepara
Slide 25: Côté Gold: Supertrend Cost Drivers
SECOND QUARTER 2022 RESULTS Côté Gold: Supertrend Cost Drivers IMPACTS DRIVING UPDATED ESTIMATE1 The estimated remaining attributable spend to completion, resulted from additional costs and schedule impacts ESTIMATED COST INCREASE DRIVERS in the general project cost categories noted below and includ
Slide 26: Côté Gold: Fuel Assumptions
SECOND QUARTER 2022 RESULTS Côté Gold: Fuel Assumptions WTI Consensus & WTI Consensus & Assumptions Assumptions Construction Period 5 Year View • Diesel price assumptions aligned with WTI consensus forecast prices: H2 2022: $93/bbl 2023: $82/bbl 2024+: $69/bbl Note: Consensus estimates provided by C
Slide 27: Gold Mineral Reserves – Attributable
SECOND QUARTER 2022 RESULTS Gold Mineral Reserves – Attributable As at December 31, 2021 PROVEN PROBABLE TOTAL RESERVES Effective Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces DEPOSIT Location Ownership (000’s) (g/t) (000’s) (000’s) (g/t) (000’s) (000’s) (g/t) (000’s) Rosebel 1 95% Sur
Slide 28: Gold Mineral Resources – Attributable
SECOND QUARTER 2022 RESULTS Gold Mineral Resources1,2 – Attributable (Measured & Indicated Resources are inclusive of Proven & Probable Reserves) As at December 31, 2021 MEASURED INDICATED MEASURED + INDICATED INFERRED Effective Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grad
Slide 29: Notes to the Gold Mineral Resources Statement
SECOND QUARTER 2022 RESULTS Notes to the Gold Mineral Resources Statement 1. In mining operations, Measured Mineral Resources and Indicated Mineral Resources that are not Mineral Reserves are considered uneconomic at the price used for Mineral Reserve estimations but are deemed to have a reasonable
Slide 30: Hedge Portfolio: Foreign Currency and Oil Derivatives
SECOND QUARTER 2022 RESULTS Hedge Portfolio: Foreign Currency and Oil Derivatives (as at June 30, 2022) 2022 2023 2024 Foreign Currency1 Canadian dollar contracts2 (millions of C$) 306 188 120 Rate range (USDCAD) 1.28 – 1.48 1.30 – 1.46 1.32 Hedge ratio3 38% 13% 14% Commodities4 Brent oil contracts
Slide 31: Hedge Portfolio: Gold Bullion Contracts
SECOND QUARTER 2022 RESULTS Hedge Portfolio: Gold Bullion Contracts (as at June 30, 2022) Put Call 2022 2023 2024 $/ounce 000s of ounces Zero cost collars (1) $1,708 $2,335 19 93 – Zero cost collars (2) $1,850 $1,990 – 75 – Zero cost collars (3) $1,850 $2,175 – 15 – Zero cost collars (4) $1,850 $2,1
Slide 32: Gold Prepayments – Illustrative Impact
SECOND QUARTER 2022 RESULTS Gold Prepayments – Illustrative Impact PREPAYMENT ARRANGEMENT STRUCTURE GOLD PREPAY RECOGNITION • Cash proceeds received up front in return for obligation to unit 2019 2022 2024 deliver ounces at a later date Illustrative gold price US$/oz $1,300 $1,800 $1,800 • Settlemen
Slide 33: Graeme Jennings, VP, Investor Relations; Philip Rabenok, Manager, Investor Relations
SECOND QUARTER 2022 RESULTS Graeme Jennings, VP, Investor Relations Philip Rabenok, Manager, Investor Relations 416-388-6883 647-967-9942 TSX: IMG l NYSE: IAG l www.iamgold.com