Slide 1: 2013 First Quarter Results
2013 First Quarter Results May 8, 2013 TSX: IMG NYSE: IAG
Slide 2: Management Participants
Management Participants STEVE LETWIN President & CEO GORD STOTHART EVP & Chief Operating Officer CAROL BANDUCCI EVP & Chief Financial Officer CRAIG MACDOUGALL SVP, Exploration JEFFERY SNOW SVP, General Counsel BOB TAIT VP, Investor Relations 2
Slide 3: 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 4: Introduction
Introduction CORPORATION
Slide 5: Highlights
Highlights Westwood began production as scheduled Attributable gold production of 188,000 oz. Total cash costs of $787/oz.* lower than guidance $100 million cost reduction program in effect Definitive Agreement with Suriname approved *inclusive of royalties 5
Slide 6: 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 7: Focus on Cash Preservation
Focus on Cash Preservation March 31, Dec. 31, 2013 2012 $millions Cash & cash Current Priorities $648 $797 equivalents Disciplined capital allocation Gold bullion Cost reduction $215 $223 at market Maintain the strength of the Total $863 $1,020 Balance Sheet Debt Repayment ($650) ($650) Obligations
Slide 8: 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 8
Slide 9: 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 9
Slide 10: 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 Optimum mine plan scenario for expansion depends on outcome of discussions with Go
Slide 11: Financial Review
Financial Review CORPORATION
Slide 12: Revenues
Revenues Net Gold 2013 Change 2012 Impact Price 1631 (4%) 1702 ($12M) ($/oz.) Gold Sales* 171 (12%) 195 ($39M) (000s oz.) $millions 354.1 Lower Gold Yr/Yr Sales Main Factor Sales Variance (oz.) 305.3 Essakane (16,000) Lower production Rosebel (4,000) Timing of shipments Mouska (3,000) Timing of ship
Slide 13: Adjusted Net Earnings
Adjusted Net Earnings* (In $ millions, except for per share amounts) Q1'13 Q1'12 Net earnings attributable to equity holders 10.9 119.2 $0.24 per share Impairment of investments 27.4 4.6 Interest expense on senior unsecured notes 7.7 - Foreign exchange (gain) loss 1.6 (11.1) Unrealized (gain) loss o
Slide 14: Operating Cash Flow before Changes in Working Capital
Operating Cash Flow before Changes in Working Capital (In $ millions, except for per share amounts) Q1’13 Q1’12 $0.48 Cash flow generated from operating per share activities per consolidated interim 99.5 149.2 financial statements Adjusting items from non-cash working capital items and non-current o
Slide 15: Attributable Gold Production
Attributable Gold Production Due to: Lower grades at Essakane (15,000 oz.) Lower throughput at Rosebel (4,000 oz.) Lower grades at Sadiola (6,000 oz.) 000’s ozs. 207 Partially offset by: 188 Increased grades drove up production at Yatela +3,000 oz. Westwood began processing Mouska ore +3,000 oz. Q1'
Slide 16: Westwood 2013 Production
Westwood 2013 Production Westwood ~80 koz. Mouska ~60 koz. Q1 - 5 koz. Q2 Q2 Q3 Q3 Q4 Q4 Commercial production 16
Slide 17: Q1'13 Gold Production and Sales Reconciliation
Q1’13 Gold Production and Sales Reconciliation -10 koz. -5 koz. -2 koz. 188 171 000’s ozs. Q1'13 Attributable Rosebel Mouska Sadiola/Yatela Q1'13 Attributable Gold Production Gold Sales Change in refiner for carbon fines and timing of shipments (8 koz.) 17
Slide 18: Gold Margin
Gold Margin Realized gold price ($/oz.) 1,702 1,631 1023 844 $/oz. Gold Margin Cash Costs 787 679 Q1'12 Q1'13 18
Slide 19: Total Cash Costs
Total Cash Costs* $/oz. Q1’13 Q1’12 Variance 2013 Guidance Consolidated Total Cash 787* 679* 16% $850-$925/oz.* Costs Owner- Operated All- $1150- In Sustaining $1250/oz.* Costs Consolidated All-In $1200- Sustaining $1300/oz.* Costs *Includes royalties 19
Slide 20: Niobium
Niobium Revenue Q1’13 Q1’12 22% Niobium production 1.2 1.1 (Mkg Nb) $millions 49.7 Niobium 48.4 sales 1.2 1.2 (Mkg Nb) Operating margin 16 16 ($/kg) Q1'12 Q1'13 20
Slide 21: Liquidity
Liquidity March 31, Dec. 31, 2013 2012 $millions 1,995 1,883 1,770 Cash & cash 250 $648 $797 250 1,613 equivalents 250 $millions 500 1,353 250 Gold bullion 500 $215 $223 500 at market 250 224 500 239 Unused 223 $500 $500 500 credit facility 215 1,021 215 Unused Niobec 894 797 $250 $250 648 facility
Slide 22: Operations Review
Operations Review CORPORATION
Slide 23: Rosebel
Rosebel Attributable Gold Production (95%) 2013 Initiatives (000’s oz) 93 94 95 100 89 › Commissioning third ball mill › In talks with Surinamese government re: power rate for existing concession Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 › Cost Savings Initiatives Q1 Performance › Replace end-of-life small haul
Slide 24: Essakane
Essakane Attributable Gold Production (90%) 2013 Initiatives (000s oz) 80 81 77 77 65 › Commissioning of new pebble crusher and additional leach tanks in April › Plant expansion to be completed by end of Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 2013 Q1 Performance › Cost Savings Initiatives › Deferring ~2 M to
Slide 25: Westwood
Westwood 2013 production guidance 130,000 - Q1 Performance 150,000 oz. (Westwood and Mouska › Westwood plant commenced production mines) › Stockpiled Mouska ore Westwood mine expected to reach › Processing at planned rate of ~2,000 tpd commercial production in October 2013 › Underground development
Slide 26: Sadiola
Sadiola Attributable Gold Production (41%) Q1 Performance › Lower grades, partially offset by (000s oz) 25 26 27 higher recoveries 22 19 › Portable crushers improving performance Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 › Total cash costs were $1,043/ounce 2013 Initiatives Outlook › Cost Savings Initiatives ›
Slide 27: Niobec
Niobec Niobium Production Q1 Performance › Stable mill operations (Mkg Nb) 1.1 1.2 1.2 1.2 1.2 › Operating margin $16/kg Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 2013 Initiatives › Cost Savings Initiatives › Improving reagent consumption › Reducing use of contractors › Improved safety performance 27 27
Slide 28: Exploration Review
Exploration Review CORPORATION
Slide 29: 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 30: 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