Iamgold Corporation · TSX:IMG
Iamgold — Deutsche Bank 26th Annual Leveraged Finance Conference (October 2018)
30 slides from Iamgold's conference presentation, Oct 2, 2018
Slide 1: Deutsche Bank 26th Annual Leveraged Finance Conference
Deutsche Bank 26th Annual Leveraged Finance Conference Alberto Nunez, VP & Treasurer October 2, 2018 l TSX: IMG l NYSE: IAG l
Slide 2: Cautionary Statement
Cautionary Statement All information included in this presentation whether in narrative or chart form, including any information as to the Company’s future financial or operating performance, and other statements that express management’s expectations or estimates of future performance, other than s
Slide 3: Geographically Balanced Over 3 Continents
Geographically Balanced Over 3 Continents NORTH AMERICA Gold Mine IAMGOLD Attributable Measured and Indicated Resources Westwood Development Project Côté Gold Advanced Exploration As at December 31, 2011 As at December 31, 2017 Nelligan 3% Monster Lake WEST AFRICA North America Essakane 23% Sadiola
Slide 4: 2018 – Abundance of Catalysts
2018 – Abundance of Catalysts 2018 Q1 Q2 Q3 Q4 2019 2020 2021 ✔ ✔ ✔ Saramacca Gold Essakane Heap Leach Saramacca Reserve Essakane Oxygen Saramacca Essakane HL Côté District Consolidation Pre-feasibility Study declaration plant Commissioning production production production ✔ Boto Pre-feasibility Gos
Slide 5: Structured for Long-Term Growth
Structured for Long-Term Growth 16 14.5 Moz 14 86% Reserve Increases4 12 Increase Côté: +3.8Moz Attributable Reserves (Moz) 1,2,3 Rosebel: +1.4Moz 10 Boto: +1.4Moz 8 7.8 Moz Westwood: +0.2Moz 6 4 2 0 2016 2017 * Reserve numbers included on this slide have been rounded 1 Mineral reserves have been es
Slide 6: Value Creation Through Solid Growth Strategy
Value Creation Through Solid Growth Strategy Short-Cycle Capacity Long-Cycle Capacity Rosebel Gold Mine Côté Gold Project • Saramacca • Joint-venture agreement with Sumitomo • Mine optimization Metal Mining Co., Ltd. • Continued concession consolidation • Shorter Essakane Gold Mine Boto, Pitangui, •
Slide 7: Financial Summary – Credit Review
Financial Summary – Credit Review 6
Slide 8: Operating and Financial Highlights
Operating and Financial Highlights (In $ millions, except where noted) H1’17 H1’18 Variance Attributable production (000s oz) 437 443 1% Attributable sales (000s oz) 431 450 4% Total cash costs ($/oz)1 $751 $773 3% AISC ($/oz)1 $983 $1,012 3% Revenue2 $535 $592 11% Gross profit $71 $105 48% Net oper
Slide 9: 2018 Production and Cost Guidance
2018 Production and Cost Guidance Full Year Guidance 1 Essakane (000s oz.) 380 – 395 Rosebel (000s oz.) 295 – 310 Westwood (000s oz.) 125 – 135 Total owner-operated production (000s oz.) 800 – 840 Joint ventures (000s oz.) 50 – 60 Total attributable production (000s oz.) 850 – 900 Cost of sales 2 ($
Slide 10: 2018 Capex Outlook
2018 Capex Outlook Capital expenditure guidance lowered by $40M to $325M (±5%) Previous Guidance Current Guidance $millions Non- Non- Sustaining1 Sustaining Total Sustaining1 Sustaining Total Essakane $75 $75 $150 $90 $50 $140 Rosebel $45 $85 $130 $45 $45 $90 Westwood $20 $45 $65 $25 $40 $65 Owner-o
Slide 11: Total Leverage
Historical Debt, Cash, and Net Debt Balances $800 5.0x Cash Total Debt Total Leverage (1) 4.6x $600 $677 $639 $640 $400 $699 $485 4.0x $400 $200 3.6x $0 3.0x Total Leverage $(222) $(159) $(271) $(763) -$200 $MM $(548) -$400 $(797) $(816) 2.0x $(1,052) -$600 1.9x -$800 1.0x 1.6x 1.2x -$1,000 0.9x NM
Slide 12: Industry Leading Balance Sheet
Industry Leading Balance Sheet CASH & CASH EQUIVALENTS POSITION (US$MM) $919 $794 $776 $434 $239 $188 $167 $129 $123 $107 Kinross Agnico Eagle IAMGOLD Eldorado Evolution Centerra New Gold OceanaGold Yamana B2Gold NET CASH (DEBT) POSITION (US$MM) $382 IAMGOLD Evolution Centerra OceanaGold Eldorado B2
Slide 13: Lowest Leverage Amongst Peers
Lowest Leverage Amongst Peers 8.0x Multiples of EBITDA Average Peer 5.3x LT Debt 6.0x Debt/EBITDA (3) Liabilities Cash Net Leverage 3.3x 4.0x 2.9x 2.6x 2.0x 2.5x 2.0x 1.4x 1.0x 0.0x (2.0x) Cash (4.0x) (6.0x) (8.0x) 1 2 3 4 5 6 7 8 US$mm Firm Value $1,717 $3,544 $1,036 $2,308 $1,293 $484 $676 $1,557
Slide 14: Leveraging Existing Asset Base
Leveraging Existing Asset Base Optimizing Operations & Organic Growth Opportunities 13
Slide 15: Rosebel's Path to Sustaining Growth
Rosebel’s Path to Sustaining Growth 2020 – 2028 2019 Continued consolidation 2018 Saramacca production 2017 51% reserve start increase with 69% reserve declaration at Regional increase through Saramacca exploration mine plan optimization Drilling Saramacca- CREATING A NEW GOLD Saramacca initial reso
Slide 16: Rosebel – Consolidated Prospective Land Packages
Rosebel – Consolidated Prospective Land Packages Brokolonko 15
Slide 17: Rosebel – Significant Transformational Achievements
Rosebel – Significant Transformational Achievements Suriname (95%) 51% Increase in Total Reserves • 1.6Moz increase in Reserves to 4.7Moz1 when compared to December 31, Extends LOM to 2033, 2017, including 1.0Moz declared at the Saramacca Deposit including Saramacca • Potential for further increase
Slide 18: Saramacca Progressing Towards H2'19 Production
Saramacca Progressing Towards H2’19 Production • Detailed engineering work related to infrastructure and production of the haul road Contained Attributable3 nearly complete Tonnes Grade Ounces Contained (000) (g/t) (000 Au) Ounces (000 Au) • Completed long haul truck selection: 80t Haulmax 3900 Prov
Slide 19: Essakane's Path to Sustaining Growth
Essakane’s Path to Sustaining Growth 2021- 2030 2020 Heap Leaching 2019 Heap Leap running in parallel to existing plant production start 2018 Complete Heap Leach FS & CIL Exploration upside with multiple plant optimization satellite deposits Gossey resource 10-15km from mill estimate study 39% reser
Slide 20: World's Largest Hybrid Solar/Thermal Plant
World’s Largest Hybrid Solar/Thermal Plant Commissioned in Q1’18 • 15MWp solar plant + 57MW thermal plant • Approximately 130,000 photovoltaic panels • Decreases fuel consumption by ~6 million litres per year • Reduces annual CO2 emissions by 18,500 tons Photo: Wärtsilä 19
Slide 21: Essakane – Driving Transformational Change
Essakane – Driving Transformational Change Burkina Faso (90%) Heap Leaching1 • 39% increase in reserves based on PFS and higher grade intercepts Extend mine life to 2026 • Mine life extended to 2026, three years from previously disclosed plan with average annual • Average annual production of 480koz
Slide 22: Essakane – Regional Exploration Targets
Essakane – Regional Exploration Targets Brownfield Success Dembam 2 • ~1 Moz of resources delineated at Falagountou West and East, 8 kilometres east of Essakane Takabangou • During Q2’18, completed nearly 24km RC and diamond drilling on the mine lease and surrounding concessions, inclusive of infill
Slide 23: Westwood's Path to Sustaining Growth
Westwood’s Path to Sustaining Growth 2020 – 2035 2020 Potential to extend LOM through exploration 2015-2019 Full Production Ramp-up Resource Conversion Ongoing performance optimization RAMPING UP PRODUCTION 22
Slide 24: Westwood – Ramping up to Full Production
Westwood – Ramping up to Full Production Quebec (100%) Ramping Up Continues • Production expected to be between 125,000 and 135,000 oz in 2018 with Ramping up to full production planned from two of the six designed mining blocks production by 2020; • Development of 180-West level – beginning block 3
Slide 25: Development Pipeline
Development Pipeline 24
Slide 26: Côté Gold Development Project
Côté Gold Development Project 2021 – 2038 2020 Production 2019 Construction Potential to 2018 Investment extend LOM 2017 Feasibility study decision Begin pre-strip through exploration Construction Pre-Feasibility Study confirms low operating costs and ADVANCING ONE OF attractive returns CANADA’S LAR
Slide 27: Côté Gold
Côté Gold Ontario (64.75%) Joint Venture with Sumitomo Metal Mining3 Attributable 64.75% Tonnes Grade Contained Ounces (000) (g/t) (000 Au) • Sale of 30% interest in Côté Gold Project to SMM for $195M • SMM is well funded with extensive technical expertise Probable Reserves1 126,961 0.9 3,837 • Comm
Slide 28: Boto Gold
Boto Gold Senegal (100%) Pre-feasibility Study Highlights Tonnes Grade Contained Ounces (000) (g/t) (000 Au) • Mine life of 13.5 years with mill throughput of 2.0Mtpa • LOM average annual production of nearly 100,000 oz Probable Reserves1 26,841 1.64 1,415 with higher production in early years Measu
Slide 29: Projects Support a Clear Growth Strategy
Projects Support a Clear Growth Strategy Boto Gold Côté Gold Investment Advancing decision to be Westwood towards made development Ramping up production Future Growth Essakane Options Unlocking potential through Further brownfield Heap Leaching expansion and Rosebel and satellite exploration project
Slide 30: Investor Relations Contacts
Ken Chernin Laura Young Martin Dumont VP, Investor Relations Director, Investor Relations Senior Analyst, Investor Relations T: 416-360-4743 T: 416-933-4952 T: 416-933-5783 l TSX: IMG l NYSE: IAG l
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