Iamgold Corporation · TSX:IMG
Iamgold — Conference Presentation (June 2013)
27 slides from Iamgold's conference presentation, June 2013
Slide 1: Cash Preservation, Cost Reduction, Disciplined Capital Allocation
Cash Preservation Cost Reduction Disciplined Capital Allocation Carol Banducci EVP & Chief Financial Officer TSX: IMG NYSE: IAG June 2013
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 High Quality, Long-Life Assets
IAMGOLD’s High Quality, Long-Life Assets YATELA SADIOLA Senegal ESSAKANE Mali Boto WESTWOOD Siribaya NIOBEC Burkina Faso Val d’Or Suriname MOUSKA Colombia Côté Gold ROSEBEL Peru Niobium Mine Brazil GOLD Mines Development Project Advanced Exploration Exploration Office Six Gold Mines: 2013 Production
Slide 4: Balanced Geographic Portfolio
Balanced Geographic Portfolio Gold Mineral Resources 43% 18% North North America 40% America 30% Africa Africa 42% 27% South South America 4 America 20111 20122 Source: Company disclosure, analyst reports 1Based on December 31, 2011 attributable mineral resources. 2Based on IAMGOLD attributable mine
Slide 5: Priorities
Priorities Cash Preservation Cost Reduction Disciplined Capital Allocation 5
Slide 6: Focus on Cash Preservation
Focus on Cash Preservation Liquidity March $1,613 M 31, $millions 2013 Unused 250 Niobec facility We will not Cash & cash equivalents $648 jeopardize a Gold bullion 500 Unused credit facility $215 strong at market Total $863 balance sheet Debt Repayment 215 Gold bullion at market Obligations due in
Slide 7: 2013 Cost Reduction Program
2013 Cost Reduction Program $100 Million Cost Reduction Program Operations $43 M Exploration (Greenfield/Brownfield) $40 M G&A at Site $11 M Corporate G&A $6 M 7
Slide 8: Return on Capital
Return on Capital 40% 34% 35% 30% IAMGOLD 25% 23% Peers 21% Including: 20% 18% AEM-T ELD-T 15% G-T K-T 13% YRI-T 14% 10% 10% 8% 5% 0% 2009 2010 2011 2012 Trumps all other measures 8
Slide 9: Disciplined Capital Allocation Strategy
Disciplined Capital Allocation Strategy Niobec Expansion Expansion decision to be made when feasibility study and permits are in place NIOBEC WILL NOT MOVE FORWARD WITHOUT A PARTNER TO JOINTLY FUND THE PROJECT Rosebel Expansion feasibility study to determine optimum mine plan scenario to be finalize
Slide 10: Rosebel - Suriname
Rosebel - Suriname 2013 Production Guidance Overview 365,000 - 385,000 oz. › Expansion feasibility study to address transition to hard rock › Optimum mine plan scenario depends on power rate › Commissioned third ball mill to increase grinding capacity Cost Savings Initiatives › Replace end-of-life s
Slide 11: Agreement Reached with Government of Suriname
Agreement Reached with Government of Suriname ROSEBEL Suriname Rosebel resources Areas being considered for next expansion: Charmagne West Charmagne Headley’s Reef NEW JV 45 km radius Existing Agreement New JV Agreement 5% gov’t carried 30% gov’t equity on fully equity paid basis 170 km2 up to 200 k
Slide 12: Essakane – Burkina Faso
Essakane – Burkina Faso Overview 2013 Production Guidance › Expansion to increase hard rock processing to be completed by end of 255,000 - 275,000 oz. 2013 › Commissioned new pebble crusher and additional leach tanks › Expect 10-15% lower than LOM grades in 2013 due to processing of lower-grade stoc
Slide 13: Essakane Exploration Focus
Essakane Exploration Focus Falagountou satellite resource • ~225,000 ounces, including soft rock • Community Relocation Action Plan approved in 1,383 km2 March land • Site evaluation drilling commenced in Q2 position • Advancing studies to bring resource into production in 2014 – one year ahead of s
Slide 14: Westwood - Quebec
Westwood - Quebec Overview 2013 Production Guidance › Westwood plant (refurbished Doyon mill) commenced production Q1 130,000 - 150,000 oz.* › Processing stockpiled ore from Mouska Mine › Westwood Mine expected to reach commercial production in October 2013 › Mine plan on track to reach LOM throughp
Slide 15: Westwood – Mineral Reserve and Resource Estimate
Westwood – Mineral Reserve and Resource Estimate As of December 31, 2012: Reserve Estimate Proven reserve of 65 Koz. @ 7.6 g/t Au Probable reserve of 283 Koz. @ 13.1 g/t Au -1,000 m Resource Estimate (includes reserves) Measured resource of 67 Koz. @ 7.5 g/t Au Indicated resource of 466 Koz. @ 13.0
Slide 16: Sadiola – Joint Venture in Mali
Sadiola – Joint Venture in Mali 2013 Production Guidance Overview 125,000 - 140,000 oz.* (attributable) › Transition to hard rock › Portable crushers improving performance › Sulphide expansion required to extend mine life › Expansion depends on agreement with JV partner Outlook › Focused on improvin
Slide 17: Côté Gold – Well Established Infrastructure
Côté Gold – Well Established Infrastructure Mineral Resource Estimate Effective December 31, 2012 Rail Timmins Roads Tonnes Grade Contained Ounces Power lines (millions) (g/t) (million ozs) 500 kV Indicated 101 CN Rail Power line 0.25 g/t Au cut-off 278 0.86 7.68 Côté Gold 144 Chapleau Property 115
Slide 18: Niobec - Quebec
Niobec - Quebec Overview 2013 Production Guidance › One of three major producers in the world 4.7 - 5.1 Mkg Nb › Expansion would triple production and increase mine life to 46 years › Completion of feasibility study Q3 2013 and permitting 2014 Niobium is a scarce metal that strengthens and lightens
Slide 19: 2013 Exploration Program - $99.0 Million
2013 Exploration Program - $99.0 Million* Cost Reductions Greenfield ($16M) Near mine & Brownfield ($19M) Côté Gold – Scoping and Prefeasibility Study ($5M) Renewed focus on: Greenfield Senegal Brazil Côté Gold Brownfield Essakane Rosebel Westwood Niobec *Excluding $3.2M for Sadiola and Yatela Corne
Slide 20: Attributable gold production 2013 Guidance
2013 Guidance Rosebel (000s oz.) 365 – 385 gold production Essakane (000s oz.) 255 – 275 Attributable Doyon division - Westwood & Mouska (000s oz.)1 130 - 150 Total owner-operated production (000s oz.) 750 - 810 Joint ventures (000s oz.) 125 - 140 Total attributable production (000s oz.) 875 - 950 O
Slide 21: Appendices
Appendices TSX: IMG NYSE: IAG
Slide 22: Key Milestones
Key Milestones Essakane Q2 ‘12: Commenced construction of expanded plant Q4 ‘13: Complete expansion Q1 ‘14: Plant commissioning Rosebel Q2 ‘13: Definitive Agreement approved to access new concessions at lower power rates 2013: Feasibility study to determine optimum mining scenario related to hard ro
Slide 23: 2013 Capital Program
2013 Capital Program Development/ ($ millions) Sustaining Expansion Total Rosebel 108 221 130 Essakane 100 200 300 Westwood 20 80 100 Total Gold Segments 228 302 530 Niobec 31 49 80 Corporate and Other 5 - 5 Total Consolidated 264 351 615 Joint Ventures2 20 30 50 Total 284 381 665 1 The Company is p
Slide 24: 2012 Reserves and Resources - Gold
2012 Reserves and Resources - Gold Tonnes Grade Attributable Contained Ounces GOLD OPERATIONS (000s) (g/t) (000 oz) As at December 31, 2012 Proven & Probable Reserves 382,933 1.2 11,327 Measured & Indicated Resources 824,914 1.1 22,603 Inferred Resources2 121,589 1.8 6,093 Notes • Measured and indic
Slide 25: 2012 Reserves and Resources - Niobium
2012 Reserves and Resources - Niobium Tonnes Grade Nb2O5 Contained Nb2O5 NIOBIUM RESERVES & RESOURCES1,2,3,4,5,6 (000s) (%) (million kg) As at December 31, 2012 (100%) Probable Reserves 422,900 0.42 1,768 Measured Resources 291,631 0.44 1,271 Indicated Resources 344,158 0.38 1,292 Inferred Resources
Slide 26: 2012 Resources – Rare Earth Elements
2012 Resources – Rare Earth Elements Tonnes Grade TREO Contained TREO RARE EARTH RESOURCES1,2,3 (000s) (%) (million kg) As at December 31, 2012 (100%) Indicated Resources 531,000 1.64 8,730 Inferred Resources 527,000 1.83 9,652 (1) In mining operations, measured and indicated resources that are not
Slide 27: Investor Relations
Cash Preservation Cost Reduction Disciplined Capital Allocation Investor Relations Bob Tait Laura Young VP, Investor Relations Director, Investor Relations T: 416-360-4743 T: 416-933-4952 E: info@iamgold.com E: info@iamgold.com TSX: IMG NYSE: IAG