Iamgold Corporation · TSX:IMG
Iamgold — Investor Day (June 2006)
23 slides from Iamgold's investor day presentation, Jun 5, 2006
Slide 1: IAMGOLD
IAMVISION IAMGROWTH IAMVALUE IAMGOLD
Slide 2: Cautionary Statements
IAMVISION IAMGROW TH IAMVALUE IAMGOLD Cautionary Statements Safe Harbor Statement under the United States Private Securities Litigation Reform Act of 1995 Certain statements in this document constitute "forward looking statements" within the meaning of Section 27A of the US Securities Act of 1933 an
Slide 3: Joseph Conway, President & CEO
Joseph Conway President & CEO
Slide 4: Organizational Structure
IAMVISION IAMGROW TH IAMVALUE IAMGOLD Organizational Structure
Slide 5: Overview
IAMVISION IAMGROW TH IAMVALUE IAMGOLD Overview • 52 week range: US$5.77 - $10.60 CAD$7.55 - $11.60 • Average Daily Volume – 1.4M • Common shares outstanding 175.6 million • Fully Diluted Shares 179.0 million • Listings: TSX : IMG NYSE : IAG ASX: IGD BSE: IAMGOLD 24 hours / day trading in IAMGOLD sha
Slide 6: Performance - Share
1/ 1/ 20 -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 01 - 50.0% 0.0% 50.0% 100.0% 150.0% 200.0% 250.0% 300.0% 350.0% 400.0% 1/ 8/ 20 1 /1 /2 0 0 1 1/ 01 15 / 4 /1 /2 0 0 1 20 1/ 01 22 7 /1 /2 0 0 1 /2 00 1/ 1 29 1 0 /1 /2 0 0 1 / 20 01 2/ 1 /1 /2 0 0 2 5/ 20 2/ 01 4 /1 /2 0 0 2 12 /2 00 7 /1
Slide 7: Cumulative Cash Position
IAMVISION IAMGROW TH IAMVALUE IAMGOLD Cumulative Cash Position 450 Cash ($700/oz) Cash ($600/oz) Cash C as h ($ m illion s ) ($500/oz) 250 50 2005A 2006F 2007F
Slide 8: Operational Performance – Overview
IAMVISION IAMGROW TH IAMVALUE IAMGOLD Operational Performance – Overview Total Production 900 800 700 600 (0 0 0 's oz ) 500 400 300 200 100 0 2000 2001 2002 2003 2004 20 05 2006E Sadiola Yatela Tarkwa Damang Mupane Existing Production Buckreef Quimsacocha
Slide 9: Gold Money Policy
IAMVISION IAMGROW TH IAMVALUE IAMGOLD Gold Money Policy Policy: • Introduced, January 2002 • A significant component of discretionary cash in bullion • Unique gold-backed Company • Safe haven against devaluation of US$ • Current holdings: 148,420 oz • Average cost of acquisition - $329 / oz • ROI @
Slide 10: Reserves
Reserves IMG Proven Probable Total Proven and Probable Share Gold Gold Gold Interest Tonnes Grade AU oz Tonnes Grade AU oz Tonnes Grade AU oz (000's oz) (Mt) (g/t) (000's) (Mt) (g/t) (000's) (Mt) (g/t) (000's) Sadiola(1)(2) 38.0% 7.3 2.0 455 13.8 4.1 1,818 21.1 3.4 2,273 864 Yatela(1)(2) 40.0% 1.3 1
Slide 11: Resources
Resources Measured Indicated Inferred Tonnes Gold AU Tonnes Gold AU IMG Tonnes Gold AU IMG Share Intere Measured Share st (Mt) Grade oz (Mt) Grade oz Indicated (Mt) Grade (000's) Inferred (g/t) (000's) (g/t) (000's) (000's oz) (g/t) (000's oz) Sadiola(2)(3) 38.0% 18.4 1.5 885 45.4 2.6 3,779 1,772 33
Slide 12: Reserves and Resources
IAMVISION IAMGROW TH IAMVALUE IAMGOLD Reserves and Resources 16,000 14,000 42% of current 12,000 resources 10,000 discovered by (000's oz) 8,000 IAMGOLD 6,000 Corporate discovery costs to 4,000 date less than $10/oz 2,000 Corporate acquisition costs to date less than $60/oz 0 Inferred 2000 2001 2002
Slide 13: 2006 Objective
2006 OBJECTIVE Remain focused on the goal of increasing long-term production and cash flow. The aim is to achieve attributable production of 1,000,000 ounces by 2008 year end.
Slide 14: Grant Edey, CFO
Grant Edey CFO
Slide 15: First Quarter Review (US$ millions)
First Quarter Review (US$ millions) Three months ended March 31, 2006 March 31, 2005 Revenue: Gold sales $ 42.8 $ 27.2 Royalties 1.7 2.3 44.5 29.5 Expenses: Mining costs 21.0 18.5 Depreciation and depletion 6.1 4.7 Amortization of royalty interests 0.9 1.1 28.0 24.3 16.5 5.2 Earnings from working in
Slide 16: First Quarter Review (US$ millions)
First Quarter Review (US$ millions) As at As at March 31, 2006 December 31, 2005 ASSETS Cash and deposits $ 84.5 $ 61.4 Gold bullion (at cost) 48.9 48.8 Accounts receivable and other 22.2 20.3 Inventories 26.8 12.8 Ore stockpiles 20.3 17.9 Long-term receivables 16.8 13.6 Working interests 89.4 92.8
Slide 17: First Quarter Review (US$ millions)
First Quarter Review (US$ millions) Inflows Sadiola 3.8 Yatela 9.6 Tarkwa 10.3 Damang 1.9 Royalties 1.7 Shares 8.5 Interest 0.9 36.7 Outflows Dividends 8.9 Acqusition Expenses 2.1 Corp. G&A 2.2 Exploration 2.2 Other 0.5 15.9 Net Inflow 20.8 IAMGOLD
Slide 18: Corporate Treasury (as at March 31, 2006)
Corporate Treasury (as at March 31, 2006) Corporate Cash - CAD & Joint Venture Cash, 6% Other, 16% Corporate Cas h - USD, 27% Gold at Market, 51% US$171 million IAMGOLD
Slide 19: Sale Of Gold Royalties
Sale Of Gold Royalties • Completed April 25, 2006 • $21.9 million – $12.9 cash – $2.0 two year convertible debenture – $7.0 in restricted shares • Diavik royalty remains IAMGOLD
Slide 20: Gallery Gold Purchase Price Equation
Gallery Gold Purchase Price Equation (US$ millions) Cash, A/R, Inventories 18.1 Mining Interests 133.6 Expl. & Dev’t 94.0 Goodwill 73.0 A/P & other (10.0) Loans (16.6) Hedge Liability (59.7) Future Tax (31.2) 201.3 IAMGOLD
Slide 21: Debt
Debt Mupane • Lenders: Macquarie Bank Limited Investec Bank (Mauritius) Limited • Principal O/S: $16,150,000 • Interest Rate: LIBOR +2¼% • Repayment: Approx. $2M per quarter Final repayment—mid 2008 Yatela • Principal O/S: $4,950,000 • Repayment: Q2 2006 IAMGOLD
Slide 22: Hedge Liability – Fixed Forwards
Hedge Liability (US$) Fixed Forwards • Amount – 258,000 oz • Distribution – 19,400 ounces per quarter – last quarter (June 09) includes an additional 5,000 ounces at $442 • Price – $402 per ounce • Mark-to-market – $56.1 million Liability • Accounting – expect to be able to use normal sale accountin
Slide 23: Hedge Liability – Call Option
Hedge Liability (US$) Call Option – 14,750 oz • Amount – December 2007 • Term – $3.6 million • Mark-to-market Liability – Mark-to-market • Accounting IAMGOLD