Iamgold Corporation · TSX:IMG
Iamgold — 2009 Cormark Precious Metals Conference
22 slides from Iamgold's conference presentation, Jan 14, 2009
Slide 1: Taking IAMGOLD to the Next Level
January 14, 2009 2009 Cormark Precious Metals Conference 2009 TSX: IMG NYSE: IAG Taking IAMGOLD to the Next Level Joseph F. Conway President & CEO
Slide 2: Cautionary Statement
2 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 re
Slide 3: Corporate Profile
3 Corporate Profile 3 • Leading mid-tier gold producer with almost 1 million oz production • 8 operating mines on 3 continents • Focused on expansion in West Africa and Guiana Shield area • Gold production (2008e): 950,000 oz (9 mos at Q3 ‘08) 742,000 oz • Cash cost guidance: $480-$490 / oz (9 mos a
Slide 4: Peer Comparative – Cash Operating Cost
444 Peer Comparative – Cash Operating Cost Cash Operating Cost of Production Q3 2008 vs Q3 2007 US$/oz Au 800 Q3'07 +43% Q3'08 600 +10% +36% +28% +28% +41% +6% 400 +147% +178% 200 - (200) (400)
Slide 5: Mines and Development Projects
Mines and Development Projects 5 North America, South America, West Africa NIOBEC Westwood DOYON DIVISION YATELA ROSEBEL DAMANG Quimsacocha SADIOLA Camp Caiman TARKWA Buckreef 7 Gold Operations 4 Advanced Projects MUPANE Niobec Niobium Mine
Slide 6: 2008 Gold Production
66 2008 Gold Production Production by Mine, by Region Damang, Ghana 36,000 oz Tarkwa, Ghana 118,000 oz 4% Rosebel, Suriname 12% 288,000 oz Suriname, 30% 288,000 oz Yatela, Mali, 65,000 oz 7% 30% Africa, 482,000 oz 51% 18% 19% Sadiola, Mali Quebec, 12% 168,000 oz Doyon Division, Quebec 180,000 oz 10%
Slide 7: Rosebel Mine, Suriname
Rosebel Mine, Suriname 7 • Further production increases expected in 2009 and 2010 • Nine month gold production reached 229,000 oz, up 23% from 2007 • Reached record quarterly mine and mill throughput in Q3, despite the rainy season • $44.4 million mill expansion and optimization in 2008 allows: 8.
Slide 8: West African Joint Ventures
8 West African Joint Ventures SADIOLA YATELA TARKWA DAMANG IMG Ownership 38% 40% 18.9% 18.9% (JV: Anglogold Ashanti) (JV: Anglogold Ashanti) (JV: Goldfields Ltd.) (JV: Goldfields Ltd.) Location Mali Mali Ghana Ghana P&P Reserves (oz) 394,000 200,000 2,307,000 274,000 M&I Resources (oz)* 1,609,000 23
Slide 9: IAMGOLD Operations
9 IAMGOLD Operations MUPANE DOYON DIVISION NIOBEC IMG Ownership 100% 100% 100% Location Botswana Quebec Quebec P&P Reserves (oz) 311,000 151, 000 101,600t Nb2O3 M&I Resources (oz)* 792,000 607, 000 117,100t Nb2O3 Inferred Resources (oz) 7,000 576, 000 96, 500t Nb2O3 (as at December 31st, 2007) * Mea
Slide 10: Niobec Mine, Quebec
Niobec Mine, Quebec 10 High margin, Long Life • Used in specialty high strength steels • Significant cash flow contributor 15-20% of corporate operating cash flow $16.2 million cash flow in Q3 • Long life asset of 20+ years • Demand for niobium rose 25% per annum between 2005 -2008 • Demand driv
Slide 11: Development Projects
11 Development Projects QUIMSACOCHA CAMP CAIMAN IMG Ownership 100% 100% Location Ecuador French Guiana P&P Reserves (oz) 1,682,000 1,114,000 M&I Resources (oz)* 2,075,000 1,615,000 Inferred Resources (oz) - 249, 000 (from 2008 Prefeasibility Study) (as at Dec. 31, 2007) Mine Life (years) (est.) 7.5
Slide 12: Westwood – Canada
Westwood-–Canada Quebec 12 Westwood 12 Development Stage 14 kms Planned Exploration shaft Bousquet 2 kms 10 m / 11.5 g/t Au 5 m / 23 g/t Au • Scoping study (September 2007) La Ronde •15 year mine life Resources Resources • 200,000 oz potential annual production 70,000 oz • cash cost $360/oz M&I 0.3
Slide 13: Double Production to 1.8 Million Ounces
5 Year Objective 13 Double Production to 1.8 Million Ounces Historical Production (000 oz) 2,000 • Focus on West Africa and the Guiana Goal 1,750 Shield Acquisitions, Discoveries 1,500 2x growth 1,250 (3 yrs) 1,000 Productivity Improvements 750 2x growth Development Projects, (3 yrs) 500 Expansions,
Slide 14: Taking IAMGOLD to the Next Level
14 14 Taking IAMGOLD to the Next Level Acquisition Announced Dec. 11, 2008 • Large step towards IAMGOLD’s stated goal of becoming a 1.8 Moz producer by 2012 with cash costs below industry average • Acquiring reserves and resources at $45/oz and $35/oz respectively • Catalyst for a market re-rating d
Slide 15: Transaction Expands IAMGOLD's Strategic Presence in West Africa
Transaction Expands IAMGOLD’s 15 15 Strategic Presence in West Africa Reinforces IAMGOLD as a leading West Africa producer 480,000 oz of gold production from Africa (2008e) Essakane will contribute a further 300,000 oz annual production Creating an African Corporate Office 20-year history
Slide 16: Essakane Project Summary
16 16 Essakane Project Summary Essakane June 2008 Feasibility Study - Life of Mine Plan • Largest known gold deposit in Burkina Mill Throughput 7.5 5.4 Mtpa Faso: Life of Mine 9.4 years Mining friendly Average Production 330,000 oz / yr Average Grade 1.67 g/t Politically stable democracy Recov
Slide 17: Financing Essakane
17 Financing Essakane • Essakane construction cost of $350 million remaining • IAMGOLD is well positioned with a strong balance sheet, strong operating cash flow and existing credit facility • IAMGOLD Resources*: Cash & Bullion: $306 million (less $90M Euro transaction) Credit facility: $140 million
Slide 18: Operating Fit with IAMGOLD
18 18 Operating Fit with IAMGOLD • Aligned with our strategy to expand presence in West Africa • Essakane is one of the largest undeveloped gold reserves in West Africa • Boosts reserves by 32% • Reduces average production cost by $40-50 per ounce by 2010 • A second flagship owned and operated gold
Slide 19: Revaluation Potential
19 Revaluation Potential • IAMGOLD offers potential revaluation of Orezone reserves and resources via mid-tier producer valuation level Mark et Cap / P& P Reserve Gold Ounce 1 ,2 Mark et Cap / M& I Resource Gold Ounce 1 ,2 $450 $300 $275 $411 $400 $250 $235 $350 $200 $191 $300 $274 $270 $200 $260 $1
Slide 20: Revaluation Potential: Cash Flow & Earnings
20 Revaluation Potential: Cash Flow & Earnings • Adding another large scale, high quality project should also result in a re-rating of IAMGOLD’s earnings and cash flow multiples • A potential re-rating to valuations in line with peers would increase IAMGOLD’s share price by 74% and 134%, respectivel
Slide 21: Conclusions
21 Conclusions • Among the strongest net cash positions in peer group • Expanded experienced management team dedicated to executing an aggressive growth strategy: • Maximizing operations through cost reduction initiatives and capital projects with strong IRRs • Pursuing quality acquisitions with sup
Slide 22: Investor Relations Contact
2009 Cormark Precious Metals Conference 2009 TSX: IMG NYSE: IAG Investor Relations Elaine Ellingham Senior VP, Investor Relations T: 416 360 4743 TF: 1 464 9999