Iamgold Corporation · TSX:IMG
Iamgold — Scotiabank Mining Conference 2014
28 slides from Iamgold's conference presentation, Dec 2, 2014
Slide 1: Scotiabank Mining Conference
Scotiabank Mining Conference December 2-3, 2014 Steve Letwin President & CEO . TSX: IMG NYSE: IAG
Slide 2: Cautionary Statement on Forward-Looking Information
Cautionary Statement on Forward-Looking Information All information included in this presentation, 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 state
Slide 3: IAMGOLD's Gold Assets
IAMGOLD’s Gold Assets YATELA SADIOLA Senegal ESSAKANE Mali Boto WESTWOOD Siribaya Burkina Faso Val d’Or Suriname Colombia Côté Gold ROSEBEL Brazil Peru GOLD Mines Development Project Pitangui Advanced Exploration Exploration Office Five Gold Mines: 2014 Production Guidance 835-850K oz. 3
Slide 4: Staying Focused on Strategic Priorities
Staying Focused on Strategic Priorities Cost Reduction Capital Discipline Cash Preservation Focused on Economic Returns 4
Slide 5: All-In Sustaining Costs Continue to Improve
All-In Sustaining Costs1,2,3 Continue to Improve 1,600 All figures in $/oz. sold 1,400 1,334 1,288 1,273 1,286 1,272 1,200 1,207 1,229 1,184 1,000 1,124 1,115 800 600 400 200 0 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 1,3,4 ` Total Cash Costs Average Realized Gold Price 1 This is a non-GAAP measure.
Slide 6: Cost Reduction - Targeting $100/oz by 2015
Cost Reduction - Targeting $100/oz by 2015 80 $72M Operations Cost Reductions (as at Sept 30th) YTD by Site ($M) 70 “Includes 9 sustainable 60 1 savings carried forward from 9 2013” 50 22 $M 40 30 62 $62M 20 23 10 8 0 2014 YTD Operations Total Corporate G&A Exploration Westwood Rosebel Essakane Niob
Slide 7: 2014 CAPEX Expected 46% Lower than 2013
2014 CAPEX Expected 46% Lower than 2013 800 700 $669M 600 CAPEX Outlook for 2014 revised downwards by 10% 500 Previous guidance was $400M 46% $M 400 Exp./Dev. $360M Sustaining 300 200 100 0 2013 2014 7
Slide 8: Agreement to Sell Niobec
Agreement to Sell Niobec Total consideration of $530M, which includes: › $500M payable upon closing › $30M additional payment when the adjacent REE deposit goes into commercial production › 2% gross proceeds royalty payable on REE production Closing expected for Q1’15, subject to regulatory approv
Slide 9: Strong Liquidity Today; Stronger After Niobec Sale
Strong Liquidity Today; Stronger After Niobec Sale $1.3 B $1.1 B 500 250 164 500 671 164 171 As at September 30, 2014 Pro Forma Liquidity with Cash Proceeds from Sale of Niobec Cash & cash equivalents Gold bullion at market Cash & cash equivalents Gold bullion at market Unused credit facility Unused
Slide 10: Use of Proceeds from Sale of Niobec
Use of Proceeds from Sale of Niobec Optimize returns from existing assets Acquire producing/near-producing mine(s) that would improve grade and cost profile and contribute to cash flow 10
Slide 11: Acquisition Criteria
Acquisition Criteria Producing or near-producing mine Predominantly gold Higher grades Lower costs Good mining jurisdiction Potential to produce 100k oz./year 11
Slide 12: Operations Overview
Operations Overview 12
Slide 13: 2014 Production Trend
2014 Production Trend1 250 200 20% 9% 225 206 150 172 Mill expansion Westwood in 000’s oz. at Essakane commercial production 100 Grade improvement and higher 50 throughput at Rosebel 0 Q1 Q2 Q3 1 Attributable gold production includes Westwood non-commercial production 13
Slide 14: Westwood – Canada
Westwood – Canada July 1, 2014: Commenced Strong first quarter of commercial production Commercial Total cash costs expected to trend downwards as Production production ramps up Underground xx development progressing very well; AISC expected higher in Q4//14 with underground development LO
Slide 15: Optimizing Performance at Essakane – Burkina Faso
Optimizing Performance at Essakane – Burkina Faso Attributable Gold Production (90%) (000s oz.) Mill expansion completed in 2013 to accommodate 92 83 increasing proportion of hard rock 64 59 68 H1/14 - robust production ramp-up with mill expansion Q3/14 grades increased 22% to 1.2 g/t Au. from
Slide 16: Resource Development and Brownfield Exploration - Essakane
Resource Development and Brownfield Exploration - Essakane 170000 175000 180000 185000 190000 195000 200000 205000 Legend N 1625000 1625000 Essakane Pit Stratigraphy Takabangou Focused on Finding Soft Rock Drilling continues to upgrade existing 1620000 1620000 AC- Average Au inferred resources and
Slide 17: Improving Performance at Rosebel - Suriname
Improving Performance at Rosebel - Suriname Attributable Gold Production (95%) Power agreement in 2013 reduced rate from $0.21/kWh to $0.14/kWh Q3/14 production up 22% from Q2/14, despite transition (000s oz.) and hard rock up from 55% to 71% 95 80 83 › 14% grade improvement 70 68 › Implementati
Slide 18: Reinventing Rosebel by Targeting Softer Rock – Suriname
Reinventing Rosebel by Targeting Softer Rock – Suriname Hard rock comprises ~33% of ore mix and will increase to 80% by 2017 Softer rock will increase margins and extend mine life Joint venture with Government of Suriname targets higher-grade, softer rock › >$0.11/kWh power rate › 5-year optio
Slide 19: Revitalization Strategy for Sadiola – Mali
Revitalization Strategy for Sadiola – Mali Transitioning to hard rock Expansion required to accommodate hard rock processing Reliable, long-term supply of low-cost power critical to expansion project Outlook Willing partner required to move forward Continuing to look for additional oxide r
Slide 20: Exploration - Greenfield
Exploration - Greenfield IAMGOLD
Slide 21: Greenfield: Boto Gold Project, Senegal
Greenfield: Boto Gold Project, Senegal Boto Project: Resource Areas July 2013 –initial indicated resource estimate of 1.1 Moz at 1.62 g/t Au April 2014 – confirmed continuity of resource / extends mineralization of Malikoundi deposit October 2014 – infill drilling results show wide intervals o
Slide 22: Greenfield: Pitangui Project, Brazil
Greenfield: Pitangui Project, Brazil Infill drilling continues at Sâo Sebastiâo April 2014 –maiden inferred resource estimate of 0.64 Moz at 4.88 g/t Au June 2014 – confirmed continuity of known resource / identified new high- grade intersections in second zone Ongoing delineation drilling f
Slide 23: Joint Venture Project Updates
Joint Venture Project Updates Eastern Borosi (Nicaragua) with Calibre Mining › 176km2 land package Bonanza E. Borosi Project with 2 gold and silver deposits and series of BLAG VEIN exploration targets Siuna BL14-005: 6.4 m @ 4.1 g/t Au › Q3/14- Phase I drilling La India 235.9 g/t Ag focused on 3 d
Slide 24: Joint Venture Project Updates
Joint Venture Project Updates Monster Lake (Quebec) with Tomagold Corporation › High grades and excellent location in Abitibi Greenstone belt › High-grade intervals from previous exploration (25 to +30 g/t Au) › Q3’14- reported remaining results from Phase I DD program (> 4,500m) › Positive result
Slide 25: Why invest in IAMGOLD?
Why invest in IAMGOLD? Diversified portfolio of producing gold mines in friendly mining jurisdictions Strategies focused on optimizing economic returns from existing assets Demonstrated ability to adapt in a volatile gold market More than $1 billion in liquidity Promising exploration pipeline
Slide 26: 2014 Revised Full Year Guidance
2014 Revised Full Year Guidance6 Guidance Revised Guidance gold production Rosebel (000s oz.) 330 - 350 315 - 320 Attributable Essakane (000s oz.) 315 - 330 330 - 335 Doyon division (000s oz.)1 100 - 120 95 - 100 Total owner-operated production (000s oz.) 745 - 800 740 - 755 Joint ventures (000s oz.
Slide 27: 2014 Revised Capital Expenditure Outlook
2014 Revised Capital Expenditure Outlook1 Development/ ($ millions) Sustaining Expansion Total Rosebel 75 25 100 Essakane 60 35 95 Westwood 20 75 95 Côté Gold - 12 12 Total owner-operated gold 155 147 302 Niobec 22 20 42 Total consolidated 177 167 344 Joint ventures – Sadiola2 4 12 16 Total 181 179
Slide 28: Investor Relations
Investor Relations info@iamgold.com Bob Tait Laura Young Penelope Talbot-Kelly VP, Investor Relations Director, Investor Relations Analyst, Investor Relations T: 416-360-4743 T: 416-933-4952 T: 416-933-4738 TSX: IMG NYSE: IAG