Iamgold Corporation · TSX:IMG
Iamgold — Q4 2015 Earnings Presentation
33 slides from Iamgold's earnings presentation, Feb 17, 2016
Slide 1: 2015 Fourth Quarter Results
2015 Fourth Quarter Results February 17, 2016 TSX: IMG 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 Senior Vice President, General C
Slide 3: 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 4: Key Messages
Key Messages Met production and cost guidance Improved cost structure Reduced capital spending Strong liquidity Positive exploration results Robust, updated mine plans 4
Slide 5: 2016 Production and Cost Guidance
2016 Production and Cost Guidance1,3 1 Guidance Rosebel (000s oz.) 285 – 295 Essakane (000s oz.) 365 – 375 Westwood (000s oz.) 50 – 60 Total owner-operated production (000s oz.) 700 -730 Joint ventures (000s oz.) 70 Total attributable production (000s oz.) 770 – 800 Total cash costs2,3 – owner-opera
Slide 6: Financial Review
Financial Review 6
Slide 7: Significant Items Impacting Q4/15
Significant Items Impacting Q4/15 $580M non-cash after-tax impairment charge related to Côté Gold and Westwood Impact of fuel and currency derivative contracts $86.5M cash payment for 2016 & 2017 early terminated contracts and 2015 settled contracts ($128.3M for full year) $15.6M net loss ($
Slide 8: Revenues from Continuing Operations
1,2 Revenues from Continuing Operations Revenue 2014 Change 2015 Impact Gold Price3 1,259 (8%) 1,158 (78.8) ($/oz.) $1,008 Gold Sales4 Owner-Operator 793 - 790 (3.9) $917 (000s oz.) $millions Year-over-year Change in Gold Sales4 by Site (000s oz.) 305.3 2014 2015 Change Essakane 363 424 61 279.3 Wes
Slide 9: Cost of Gold Sales
Cost of Gold Sales ($ Millions) 2015 Included Operating Costs 672.0 • $16.8M Currency hedge losses1 • $16.7M Stockpile and other write-downs • $28.2 Normalization of Westwood’s costs Depreciation 260.9 • Full year of straight-line depreciation at Westwood Royalties 38.7 Cost of Sales 971.6 1 Does no
Slide 10: Net Cash From Operating Activities
Net Cash From Operating Activities Q4’15 (in $ millions) 2015 Net cash from (used in) operating activities per $(45.5) $26.0 consolidated financial statements Includes: $72.5 2016 & 2017 early terminated derivative contracts $72.5 $14.0 2015 settled derivative contracts $55.8 10
Slide 11: Adjusted Net Earnings from Continuing Operations
Adjusted Net Earnings from Continuing Operations1 (In $ millions, except for per share amounts) Q4'15 2015 Net loss from continuing operations attributable to equity holders (675.9) (797.1) Impairment of Property, plant, equipment & Exploration and evaluation assets 621.3 621.3 Impact of the product
Slide 12: Strong Liquidity
Strong Liquidity1 → $548M in cash, cash equivalents and restricted cash → 143M in gold bullion (at market value) $691M → $250M credit facility, including: - $100M fully committed and available - Option to further add $150M → $635M long-term debt2 due October 2020 → 70M short-term debt 1 As at Decemb
Slide 13: Attributable Gold Production
Attributable Gold Production 900 844 Main Drivers: 806 800 Record production at Essakane – up 15% 700 600 Offset by: 500 Lower grades at Rosebel and Sadiola 000s oz. 400 300 Closure of Mouska 200 Production interruption at Westwood 100 0 2014 2015 Essakane Rosebel Westwood 1 Sadiola Yatela 1 Attribu
Slide 14: Quarterly Attributable Gold Production
Quarterly Attributable Gold Production 300 250 241 200 208 000’s oz. 202 197 199 150 100 50 0 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Improving grades at Mining lower grade Lower throughput at Higher production at Westwood production Rosebel and Essakane lenses at Westwood as Rosebel reflecting rain
Slide 15: All-In Sustaining Costs
1,2 All-In Sustaining Costs Q4 2015 Full Year 2015 Total Total Rosebel Essakane Westwood $/ounce Rosebel Essakane Westwood IAMGOLD IAMGOLD $1,420 $1,024 $1,265 $1,202 Reported AISC $1,165 $1,010 $1,292 $1,118 (58) (55) (130) (59) Hedge losses pertaining to 2015 (46) (75) (93) (63) (382) - - (123) Le
Slide 16: All-In Sustaining Costs – Adjusted for Unusual Items
All-In Sustaining Costs – Adjusted for Unusual Items 1,2 1,400 All figures in $/oz. sold 1,201 1,221 1,194 1,200 1,121 1,101 1,000 1,049 3 1,051 3,4 3,4 3,4,5 1,021 1,034 1,056 800 600 400 200 0 Q4 2014 Q1 2015 Q2 2015 ` Q3 2015 Q4 2015 1 1,2 AISC Avg Realized Gold Price 1 This is a non-GAAP measure
Slide 17: Operations Review
Operations Review £IAMGOLD
Slide 18: 2015 Reserves and Resources
2015 Reserves and Resources 1 Contained Gold (000s attributable oz.) 2015 Change 2014 As of December 31, 2015 Total proven and probable mineral reserves 7,690 (11%) 8,608 Total measured and indicated mineral resources 2,3 23,482 10% 21,412 Total inferred resources 6,733 (4%) 7,018 • Gold reserves ha
Slide 19: Essakane – Burkina Faso
Essakane – Burkina Faso 120 1250 Record production of 383,000 attributable ounces for 2015, up 15% from 2014 due to mill optimization, 15% grade increase and mining at Falagountou 100 988 1022 1024 Mill expansion completed in 2013 to accommodate increasing 955 1000 proportion of hard rock: 922 ›
Slide 20: Rosebel – Suriname
Rosebel – Suriname 100 1420 Production of 287,000 attributable ounces for 2015, below 2014 due to lower grades & throughput; proportion of soft rock fell from 38% to 25% 90 1250 › Q4/15 production down due to eleven day work-stoppage 80 1104 1111 AISC of $1,165 in 2015 – included one-time purcha
Slide 21: Westwood – Canada
Westwood – Canada 40 1751 Production of 60,000 attributable ounces for 2015 due to seismic event 35 1507 1600 Focus continues to be on underground development to expand number of mining areas and remedial work › Development work will open up access to multiple mining 30 blocks for future years a
Slide 22: Westwood 5-Year Plan : Development Summary
Westwood 5-Year Plan : Development Summary 30,000 25,000 20,000 Metres 15,000 10,000 5,000 0 2016 2017 2108 2019 2020 Vertical Trackless Drift (Jumbo) Tracked Drift 22
Slide 23: Sadiola – Mali
Sadiola – Mali 25 1200 1100 Production of 69,000 attributable ounces in 2015 1010 › Decline from 2014 due to lower grades 20 914 1000 AISC of $839/oz. for 2015, 23% lower than previous year 1 due to lower fuel and consumable prices and favourable FX rates 706 800 Results from RC drilling progr
Slide 24: 2016 Capital Expenditure Outlook
2016 Capital Expenditure Outlook 1 Development/ ($ millions) Sustaining 1 Expansion Total (Non-sustaining) Rosebel 50 15 65 Essakane 85 0 85 Westwood 15 65 80 Total gold segments 150 80 230 Corporate & Development Projects2 - 10 10 Total consolidated 150 90 240 Joint ventures 5 5 10 Total 3 (±10%) 1
Slide 25: Exploration Review
Exploration Review # IAMGOLD
Slide 26: Boto Gold Project (Senegal)
Boto Gold Project (Senegal) Deposit Open at Depth • Infill drilling at Malikoundi deposit completed • Updated estimated indicated resource of 1.6 M oz in 27.7 Mt at 1.8 g/t Au and inferred resource of 125,000 oz in 2.9Mt at 1.3 g/t Au1 › Final 2015 assay results reported include (Jul 20, 2015): • 36
Slide 27: Siribaya (Mali) – JV with Merrex Gold
Siribaya (Mali) – JV with Merrex Gold • Focused on Diakha prospect - extension of trend hosting Boto Gold deposit • Initial 43-101 compliant mineral resource estimate Fekola -B2Gold completed and announced February 9, 2016 4.3Moz 61.6mt @ 2.2 g/t Au* › Indicated resource of 129,000 oz. in 2.1Mt at 1
Slide 28: Pitangui Project (Brazil)
Pitangui Project (Brazil) • Infill diamond drilling program within the core area of the São Sebastião deposit completed resulting in a more robust geological model to support a revised resource estimate › Inferred resource estimate increased to 679,000 > 40M oz. historical ounces at 5.0 g/t Au1 prod
Slide 29: Monster Lake (Quebec) – JV with TomaGold
Monster Lake (Quebec) – JV with TomaGold • In 2015, 11,700 metres of diamond drilling was completed on the Megane-325 zone and other priority targets on the property • June 25, 2015 - Highlights from 2015 winter Monster Lake drilling results include: › 1.5 m at 18.80 g/t Au › 10.7 m at 3.64 g/t Au •
Slide 30: Eastern Borosi (Nicaragua) – JV with Calibre Mining
Eastern Borosi (Nicaragua) – JV with Calibre Mining • Drilling program in 2015 focused on diamond drilling to test selected gold and silver vein systems • Results to date confirm multiple vein systems with high grades • May 6, 2015 – Blag vein system drilling1: Bonanza E. Borosi Project › Included h
Slide 31: Concluding Remarks
Concluding Remarks CORPORATION
Slide 32: IAMGOLD Leads with its Torque Potential
IAMGOLD Leads with its Torque Potential % Change in NAV for a $100/oz Increase in Gold Price Gold equities will price in higher gold prices. Gold has risen past our price deck of US$1,150/oz and while we will resist for now raising our price assumptions, we provide the torque potential from our univ
Slide 33: Thank you
Thank you TSX: IMG NYSE: IAG