Iamgold Corporation · TSX:IMG

Iamgold — Investor Presentation (2011)

33 slides from Iamgold's investor presentation, 2011

  1. Slide 1: Niobec

    Niobec ....

  2. Slide 2: Carol Banducci, EVP & CFO

    Carol Banducci Executive Vice President & Chief Financial Officer ® ®

  3. Slide 3: Caution concerning forward-looking statements

    Caution concerning forward-looking statements 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 li

  4. Slide 4: IAMGOLD Management

    IAMGOLD Management Name Title Carol Banducci EVP & CFO Denis Miville-Deschênes SVP, Project Development Steve Eddy Director, Corporate Development Réjean Sirois Manager, Mining Geology ® Page 4

  5. Slide 5: Surfacing Value at Niobec

    Surfacing Value at Niobec • Strong niobium market ˃ Growing global demand ˃ Constrained supply ˃ Stable pricing throughout economic cycles and positive outlook • Opportunity to enhance Niobec value ˃ Increase M&I resources by 691% to 1.93 billion kilograms ˃ Triple annual production to 15 million ki

  6. Slide 6: Presentation Overview

    Presentation Overview 1. Niobium Market 2. Niobec Mine 3. Value Enhancement Initiatives ® Page 6

  7. Slide 7: Niobium Applications

    Niobium Applications Ferroniobium (mix of niobium and iron) World Consumption of Ferroniobium by End-Use (2010) 13% 29% 10% 24% • Steel Industry 24% ˃ High-strength, low-alloy (“HSLA”) ˃ Automobile, Pipeline, Structural Structural Pipe Auto Stainless Other • Stainless & Heat Resistant Source: Niobec

  8. Slide 8: Niobium Demand

    Niobium Demand FeNb Steel consumption (tonnes) (Mt) 145,000 2000 2011+ : Growth 10% 125,000 1800 105,000 1600 02-06: + 17.3% 85,000 1400 65,000 1200 93-02 : + 8.3% 45,000 1000 82-93 : Growth 0.2% 25,000 800 5,000 600 '82 '84 '86 '88 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 FeNb Consumptio

  9. Slide 9: Niobium Integral to high-quality steel

    Niobium Integral to high-quality steel Autos ØRESUN Bridge AUTOS ØRESUN $9 Nb 0.022% Nb Weight Weight 100 kg 15,000 t Fuel Efficiency Cost Savings 5% km/l $25 M ® Page 9

  10. Slide 10: Niobium Demand

    Niobium Demand Growth in niobium intensity usage in manufacturing is increasing FeNb/ t steel Steel Production (Mt) 65 63 1,450 62 60 1,350 57 55 55 54 1,250 50 1,150 45 44 44 44 1,050 42 42 40 40 950 35 850 ® 30 750 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 FeNb Intensity Steel Production Page 10

  11. Slide 11: Market update

    Market update FeNb Intensity (g FeNb/t Steel) 140.0 120.0 100.0 80.0 60.0 40.0 20.0 0.0 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 ® North America Japan Europe China Page 11

  12. Slide 12: Niobium Supply (% of global production)

    Niobium Supply (% of global production) CBMM Reserves: 438 tonnes 83 8 Catalão Reserves: 5.1 tonnes 8 Niobec Reserves: 45.7 tonnes 1 ® Other Page 12

  13. Slide 13: Niobium Pricing

    Niobium Pricing • Pricing expected to remain above $30 / kg in short term • Longer term average price expected to be $45 / kg Base Case Forecast $50 $45 40 $40 37 36 45 45 45 45 45 45 45 45 45 35 $35 33 40 $30 $25 $20 15 $15 $10 $5 $0 ® '06 '07 '08 '09 '10 '11E '12E '13E '14E '15E '16E '17E '18E '19

  14. Slide 14: Réjean Sirois

    Réjean Sirois Manager, Mining Geology ® ®

  15. Slide 15: Niobec Mine

    Niobec Mine • Saguenay: strong Industrial base, skilled workforce and sound infrastructure • Quebec ranked as 4th best mining jurisdiction in the world • Niobec employs 395 people Niobec ® Page 15

  16. Slide 16: Niobec Mineralization

    Niobec Mineralization Nb2O REE Zone 5 potential Niobec Mine ® Page 16

  17. Slide 17: UG DEEP DDH Program

    UG DEEP DDH Program Surface Niobec 3D Resources Mined out model Blocks 1 to 3: Reserves (looking NE) Blocks 4 to 6: Reserves & resources Blocks 7 to 9: Resources Blocks 10 to 12 Proposed DEEP Exploration Program: 7 DDH for 6,000 m ® Total cost of $420,000 including assays at the Niobec laboratory Pa

  18. Slide 18: Denis Miville-Deschênes

    Denis Miville-Deschênes Senior Vice President, Project Development ® ®

  19. Slide 19: Niobec Mine

    Niobec Mine ® Page 19

  20. Slide 20: Niobec – Health and Safety Highlights

    Niobec – Health and Safety Highlights Continuing commitment to Zero Harm Injury Rate (DART) Historical performance • Consistent injury reduction over the 12 long term 10 • 2010 experienced a rise in injury rate 8 after fatality 6 Niobec Vision 4 • Become an injury free operation 2 0 Prevention focus

  21. Slide 21: Niobec Production

    Niobec Production Annual production growth of 7.3% per year since 2000, with an average grade of 0.66% Nb Production Grade (tonnes) (% Nb2O5) 6,000 0.8 5,000 0.75 4,300 4,396 4,400 4,163 4,106 4,000 3,750 0.7 3,339 3,344 3,417 3,006 3,000 0.65 2,170 2,000 0.6 1,000 0.55 ® 0 0.5 '00 '01 '02 '03 '04 '

  22. Slide 22: Niobec Production

    Niobec Production Historical Production and Cash Flow Summary 2007A 2008A 2009A 2010A 2011F Tonnage (‘000t) 1,530 1,801 1,773 1,792 Grade Milled (%) 0.65% 0.62% 0.61% 0.61% Niobium Production 4,300 4,396 4,106 4,400 4,500 - 5,000 (‘000 kg) Niobium Sales 4,337 4,201 4,347 4,300 (‘000 kg) Revenue ($M)

  23. Slide 23: Niobec Resources

    Niobec Resources % Increase Contained in Tonnes Grade Nb2O5 Contained (000) % Nb2O5 (Mkg) Nb2O5 IAMGOLD As at December 31, 2010 Measured 16,571 0.54 90.0 Indicated 29,145 0.53 153.8 Measured and Indicated 45,716 0.53 243.8 Inferred 59,672 0.53 316.3 P.E.A. As at April 1, 2011 Measured 288,930 0.43 1

  24. Slide 24: Niobec Mine Expansion

    Niobec Mine Expansion • Strategic Resource Development Plan: ˃ 5-year drilling program ˃ Full delineation of niobium resource ˃ Evaluation of i) Base Case mining method vs. ii) Block Caving and iii) Open Pit • Goals: ˃ Reduce extraction costs ˃ Increase annual production ˃ Grow mineral resources ˃ E

  25. Slide 25: Niobec: Open Pit Potential

    Niobec: Open Pit Potential • To process 380 Mt at approximately 10 Mtpa • Increases mine life beyond 40 years • Significant cost advantage • Proven mining technology in known ore body reduces risk Section View 15,750N Road T.S.F. MILL Limestone 2T 3T 4T 560m Pit wants to go deeper. Could add over 10

  26. Slide 26: Niobec: Block Caving Potential

    Niobec: Block Caving Potential • Attractive opportunity to extract the ore in upper part of mine • Recovers most of the pillars left behind by previous mining • Block caving has been used in large scale mining projects throughout the world ® Page 26

  27. Slide 27: Steve Eddy

    Steve Eddy Director, Corporate Development ® ®

  28. Slide 28: Financial Analysis

    Financial Analysis Block Caving Open Pit Tonnes processed (millions) 380 380 Strip ratio − 3.9 Estimated average annual mill throughput 10 million 10 million (tonnes) Estimated average annual production 13 15 (tonnes of kg Nb ) Operating margin after expansion ($/kg) 28 28 Estimated capital expendit

  29. Slide 29: Réjean Sirois

    Réjean Sirois Manager, Mining Geology ® ®

  30. Slide 30: REE Sample - 1985 drill holes - Average grade

    REE Sample - 1985 drill holes - Average grade 2009 MARCH 2011 Gross Gross REE Grade Price Price Value Value Element % $/kg $/t $/kg $/t Cerium (Ce) 0.84 4 34 95 798 Lanthanum (La) 0.49 6 29 94 460 Praseodymium (Pr) 0.12 16 19 140 168 Neodymium (Nd) 0.37 16 59 152 562 Samarium (Sm) 0.05 5 3 92 46 Dys

  31. Slide 31: Carol Banducci

    Carol Banducci Executive Vice President & Chief Financial Officer ® ®

  32. Slide 32: Niobec Value Crystallization

    Niobec Value Crystallization • Sell a 10 – 20% minority stake • Unlock value by completing the Strategic Resource Development Plan (“SRDP”) • Evaluate strategic alternatives ® Page 32

  33. Slide 33: Niobec

    Niobec ....

IAMGOLD — Investor Presentation (2011) on 6ix