Slide 1: Second Quarter 2019 Results
Second Quarter 2019 Results August 8, 2019 – Conference Call TSX: IMG l NYSE: IAG
Slide 2: Management Participants
Management Participants • Steve Letwin President & Chief Executive Officer • Gordon Stothart Executive Vice President & Chief Operating Officer • Carol Banducci Executive Vice President & Chief Financial Officer • Craig MacDougall Senior Vice President, Exploration • Jeff Snow SVP, Corporate Develop
Slide 3: 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 4: Technical Information and Qualified Persons
Technical Information and Qualified Persons The mineral resource estimates contained in this news release have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43- 101"). The "Qualified Person" responsible for the review and approval of al
Slide 5: Q2 2019 Highlights
Q2 2019 Highlights Financial: • Balance sheet strong, with $660 million in cash, cash equivalents and short term investments; • Exploration potential highlighted by drill results from Nelligan and Rouyn, as well as Monster Lake, Gosselin and Rouyn post-quarter; • Continued focus on costs and buildin
Slide 6: Capital Allocation
Capital Allocation UPDATE ON SELF-FUNDING MODEL • Mine sites tasked with free cash flow generation: • Must cover operating, sustaining and site expansion projects • Mine sites additionally fund corporate, exploration and financing. • New growth projects would be funded from the balance sheet. • Only
Slide 7: Self-Funding, Self-Sustaining, Safe & Profitable
Self-Funding, Self-Sustaining, Safe & Profitable Our Operations REINFORCING THE MODEL • Operating cost management to achieve positive cash-flow; • Capital expenditures reflect value-adding initiatives. Operational improvements at our current sites: • Debottleneck Essakane mill; Essakane, Burkina Fas
Slide 8: Financial Review
Financial Review SSS t# IAMGOLD 8
Slide 9: Summary of Financial Results
Summary of Financial Results Q2 Q1 Q2 (In $ millions, except per share amounts) 2019 2019 2018 Revenues1 $ 246.5 $ 251.0 $ 277.4 Cost of Sales $ 239.9 $ 251.9 $ 247.8 Gross profit (loss) $ 6.6 $ (0.9) $ 29.6 Adjusted net earnings (loss)2,3 $ (15.5) $ (2.2) $ 13.1 Adjusted net earnings (loss)2,3 ($/s
Slide 10: Q2 Financials
Q2 Financials KEY NOTES • Strong financial position: › Cash, cash equivalents, short-term investments primarily in money market funds and restricted cash of $688.5 M at June 30, 2019. • Working Capital – lower overall: › Due to increased A/P and decreased A/R (Essakane VAT collections), offset by an
Slide 11: Strong Liquidity $1,160 M + $170 M
Strong Liquidity MAINTAINING LIQUIDITY WELL ABOVE $1 BILLION Cash and cash equivalents $609.7 M Short-term investments $ 50.7 M Available credit facility $499.6 M Total Liquidity As at June 30, 2019 $1,160 M Forward Sale Funds Receipt: Dec. 2019 + $170 M On January 15, 2019, IMG entered into a forwa
Slide 12: Operations Review
Operations Review 12
Slide 13: Focus on Safety
Focus on Safety HISTORICAL GLOBAL DART & TRI RATES PER 200,000 HOURS WORKED 2.40 DART: Q2 2019 – reduction of 11%** TRI: Q2 2019 – reduction of 13%** 1.98 * Without Niobec ** Compared to 2018 (full year) 1.81* 1.76* 1.53* 1.56 1.44* 1.44 1.18 1.13 1.06 1.06 1.00 0.93 0.95 0.85 0.68 0.66 0.53 0.53 0.
Slide 14: Q2 2019 Production & Cost Summary
Q2 2019 Production & Cost Summary Attributable Cost of Total Cash AISC2 Production Sales1 Costs2 ($/oz sold) (000s oz) ($/oz sold) ($/oz produced) Essakane 88 $960 $887 $1,077 Rosebel 72 $944 $915 $1,116 Westwood 24 $869 $849 $990 Sadiola 14 – $934 $937 Total* 198 $941 $896 $1,132 1 Cost of sales, e
Slide 15: Rosebel: Q2 Progress, Adjusted Guidance
Rosebel: Q2 Progress, Adjusted Guidance Suriname (95%) Q2 HIGHLIGHTS Q2/19 Q2 Actual • Production progress vs Q1, despite heavy rainy season Attributable gold production (oz) 72,000 • Sales volume impacted by material still in-circuit • CIC plant contributed 2,100 koz TCC1 $915 • Post-quarter, suspe
Slide 16: Essakane: Building Toward a Strong H2
Essakane: Building Toward a Strong H2 Burkina Faso (90%) Q2 HIGHLIGHTS Q2/19 Q2 Actual • Flat production to Q1; H2 expected stronger; Attributable gold production (oz) 88,000 Continuous Improvement TCC1 $887 • Increasing guidance to reflect positive expectations; • Self-funding yielded optimal NPV a
Slide 17: Westwood: Improved Q2, Steady Outlook
Westwood: Improved Q2, Steady Outlook Quebec (100%) Q2 HIGHLIGHTS Q2/19 Q2 Actual • Q2 production substantially improved from Q1; Attributable gold production (oz) 24,000 • Expect steady throughput, with improved grade Q4; • Normalization Q1 only. TCC1 $849 Review of operations AISC1 $990 Cash Flow
Slide 18: 2019 Production and Cost Guidance
2019 Production and Cost Guidance REFLECTS YTD PROGRESS AND H2 EXPECTATIONS Updated Guidance Previous Guidance1 Essakane (000s oz) 380 – 390 375 – 390 Rosebel (000s oz) 240 – 260 315 – 330 Westwood (000s oz) 95 – 105 100 – 120 Total owner-operated production (000s oz) 715 – 755 790 – 840 Sadiola Joi
Slide 19: 2019 Capex Outlook
2019 Capex Outlook REFLECTS YTD PROGRESS AND H2 EXPECTATIONS Updated Guidance Previous Guidance $millions Non- Non- Sustaining1 Sustaining Total Sustaining1 Sustaining Total $40 $70 $110 Essakane $55 $70 $125 $40 $50 $90 Rosebel $70 $75 $145 $15 $20 $35 Westwood $15 $30 $45 Owner-operator $95 $140 $
Slide 20: Exploration Review
Exploration Review 20
Slide 21: Exploration Highlights
Exploration Highlights Q2 HIGHLIGHTS • Drilling activities at active projects and mine sites totalled approximately 84,000 metres during the quarter. • Evaluate underground potential of Saramacca Deposit • Completed delineation drilling program at Nelligan and Rouyn Gold Project Nelligan, Quebec1 •
Slide 22: Re-seeding the Pipeline
Re-seeding the Pipeline >5 Moz Au Brownfield >2 Moz Au Advance Greenfield <2 Moz Au Greenfield Production Fala/Fala E Côté Boto Saramacca Feasibility Study Sadiola Pre-feasibility Study Monster Lake Diakha Yorbeau Saõ Sebastiaõ Gossey E. Borosi Initial Resource / Scoping Nelligan Tassiri Korizena Je
Slide 23: Near Term Catalysts
Near Term Catalysts H1 2019 $170 Million Gold Prepay Agreement Diahka-Siribaya Updated Resource H2 2019 Essakane CIL and Heap Leach Feasibility Study Saramacca Production Targeted Expect delivery of Boto Mining Permit Nelligan Initial Resource Preliminary Westwood Plan Update 2020 Saramacca Full Pro
Slide 24: IAMGOLD: Building a Cash Flow Pipeline
IAMGOLD: Building a Cash Flow Pipeline Our vision is to be the global leader in generating superior value for our stakeholders through accountable mining. 1 2 3 4 CREATING DIVERSIFYING MAINTAINING ENSURING superior our portfolio a strong a robust shareholder balance sheet pipeline value • Operationa
Slide 25: Appendix
Appendix tf [IAMGOLD 25
Slide 26: Hedge Position – Q2 2019
Hedge Position – Q2 2019 2019 2020 2021 2022 2023 Foreign Currency Canadian dollars (millions of C$)1 20 - - - - Canadian dollar contracts (millions of C$) 141 186 - - - Rate range ($/C$) 2 1.25 - 1.39 1.30 - 1.36 - - - Hedge ratio 72% 50% Euro (millions of €) 3 40 - - - - Euro contracts (millions o
Slide 27: TSX: IMG l NYSE: IAG
Indi Gopinathan Martin Dumont Investor Relations Lead Senior Analyst, Investor Relations T: 416-360-4743 T: 416-933-5783 TSX: IMG l NYSE: IAG27