Iamgold Corporation · TSX:IMG
Iamgold — Q1 2015 Earnings Presentation
34 slides from Iamgold's earnings presentation, May 6, 2015
Slide 1: 2015 First Quarter Results
2015 First Quarter Results May 6, 2015 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 TIM BRADBURN VP, Legal & Corporate Secretary BOB TAIT VP, Investor Relations 2
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: Opening Remarks
Opening Remarks #I1AMGOLD
Slide 5: Solid Start To The Year
Solid Start To The Year Q1/15 performance delivers across key metrics › Gold production of 208,000 attributable ounces up 21% vs. Q1/14 › AISC of $1,113/oz; down 7% vs. Q1/14 › Net cash from operating activities of $30M; up 7% vs. Q1/14 › CAPEX of $54M down 43% vs. Q1/14 › Cash and bullion of $889M
Slide 6: Foundation for Growth
Foundation for Growth Operational Financial Lower Cost Excellence Flexibility Structure 6
Slide 7: Growth Strategy
Growth Strategy Optimize Returns from Existing Mines Advance Exploration Pursue M&A and JV Opportunities 7
Slide 8: Sadiola – Potential Organic Growth Opportunity
Sadiola – Potential Organic Growth Opportunity Opportunity to Acquire AngloGold’s 41% interest Preservation of balance sheet strength through modified expansion 18% increase in consolidated reserves (full expansion) Average reserve grade 2.1 g/t Au Potential to increase production by up to ~
Slide 9: Financial Review
Financial Review CORPORATION
Slide 10: Adjusted Net Earnings
Adjusted Net Earnings1 (In $ millions, except for per share amounts) Q1'14 Q1'15 Net earnings including discontinued operations attributable to equity holders 3.7 24.1 (Gain) on sale of Niobec - (37.8) (Gain) on sale of assets2 (0.3) (43.0) Changes in estimates of asset retirement obligations at clo
Slide 11: Revenues from Continuing Operations
Revenues from Continuing Operations1 Revenue Q1 2014 Change Q1 2015 Impact Gold Price2 1,286 (5%) 1,221 ($12M) 244.7 ($/oz.) Gold Sales3 217.3 Owner-Operator 167 20% 200 $41.3M (000s oz.) Year-over-year Change in Gold Sales3 by Site $millions (000s oz.) 305.3 Q1 2014 Q1 2015 Change Essakane 72 91 19
Slide 12: Cost of Gold Sales
Cost of Gold Sales ($ Millions) Q1 2014 Q1 2015 Variance Mainly Due to Impact Total • Start-up of commercial production at Westwood in 30.3 Q3’14 Operating • Increased harder rock and lower capitalized 4.2 136.9 159.8 22.9 Costs stripping at Essakane • Partially offset by Mouska closure (4.0) • Lowe
Slide 13: Net Cash From Operating Activities
Net Cash From Operating Activities (In $ millions, except for per share amounts) Q1’14 Q1’15 $0.17 per share Net cash from operating activities per consolidated interim financial 28.1 30.0 statements $0.14 $0.17 per share per share Adjusting items from non-cash working capital items and non-current
Slide 14: Financial Strength
Financial Strength $1,389 500 $821 Unused credit $millions facility 160 Gold bullion at market 500 Cash & cash equivalents 729 162 159 As at December 31, 2014 As at March 31, 2015 IAMGOLD has $644.6 million of senior unsecured notes due October 2020. During Q1’15 the Company repurchased $5.4 million
Slide 15: Attributable Gold Production
Attributable Gold Production1 Due to 208 › Westwood1 ramps up production +21,000 oz. › Essakane – 49% increase in grades +21,000 oz. partially offset by lower throughput 172 000s oz. Partially offset by › Rosebel – lower grades partially offset (4,000) oz. by higher throughput and recoveries › Yat
Slide 16: Attributable Gold Production
Attributable Gold Production1 300 250 241 200 225 206 Westwood in Improving Mining lower 208 grade lenses 000’s oz. commercial grades at at Westwood Mill expansion production Rosebel and 150 as planned 172 at Essakane Essakane Grade Lower grades improvement at Rosebel 100 and higher due to mine thro
Slide 17: All-In Sustaining Costs
All-In Sustaining Costs1,2 - gold mines3 1,400 All figures in $/oz. sold 1,286 1,288 1,272 1,201 1,221 1,200 1,198 1,136 1,000 1,124 1,1134 1,028 800 600 400 200 ` 0 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 1 3 1 Total Cash Costs – gold mines Average Realized Gold Price 1 This is a non-GAAP measure.
Slide 18: Exploration Review
Exploration Review IAMGOLD
Slide 19: Greenfield: Boto Gold Project, Senegal
Greenfield: Boto Gold Project, Senegal As of end of 2014 Boto has: › an indicated resource of 1.2 Moz. at 1.7 g/t Au › an inferred resource of 635,000 oz. at 1.8 g/t Au Approximately 13,300m of infill diamond drilling completed in Q1’15 at the Malikoundi deposit Final assay results from 2014 c
Slide 20: Joint Venture Project Update – Siribaya
Joint Venture Project Update – Siribaya (Mali) with Merrex Gold Inc. Focus on Diakha prospect - extension of trend hosting Boto Fekola -B2Gold Gold deposit 3.9Moz @ 1.91 g/t Au* 9,700m of diamond and reverse Boto-Malikoundi circulation infill drilling completed Mali 1.2Moz @ 1.7 g/t Au** in Q1’1
Slide 21: Greenfield: Pitangui Project, Brazil
Greenfield: Pitangui Project, Brazil April 2014 – maiden inferred resource estimate of 0.64 Moz at 4.88 g/t Au Airborne EM geophysical survey during Q4’14 identified conductive targets to be prioritized in future drilling programs Over 5,400m of diamond drilling was completed in Q1’15 with con
Slide 22: Joint Venture Project Update – Eastern Borosi
Joint Venture Project Update – Eastern Borosi (Nicaragua) with Calibre Mining 176km land package with 2 gold and silver 2 deposits and series of exploration targets January 2015 – JV partner announced final assay results from 17 of 40 holes. Bonanza E. Borosi Project Phase II drilling program
Slide 23: Joint Venture Project Updates - Monster Lake
Joint Venture Project Updates - Monster Lake (Quebec) with Tomagold Corporation Excellent location in Abitibi Greenstone belt High-grade intervals (25 to 30+ g/t Au) from previous drilling February 2015, reported final drilling results from the 2014 program. Monster Lake Highlights included: ›
Slide 24: Operations Review
Operations Review £IAMGOLD
Slide 25: Westwood – Canada
Westwood – Canada 40 1200 High-grade, low-cost underground gold mine with an 35 estimated 20 year mine life 1000 30 › Avg. resource grade ~10g/t Au 800 25 Commercial production July 1, 2014 (000s oz.) 20 35 35 600 15 22 400 Q1 performance 10 › Production light as expected due to mine 5 200 seq
Slide 26: Rosebel – Suriname
Rosebel – Suriname 100 1000 Multiple open-pit mine with diminishing supply of soft 94 rock 80 800 80 83 76 Q1’15 production lower due to: (000s oz.) 60 68 600 ($/oz.) › Lower throughput reflecting a decrease in soft rock 40 400 from 27% to 16% 20 200 › Lower grades due to mine sequencing 0 0 S
Slide 27: Essakane – Burkina Faso
Essakane – Burkina Faso 100 1000 Open-pit mine in 4th year of production › Remaining LOM of 10 years 80 800 92 83 89 89 Mill expansion completed in 2013 to accommodate 60 68 600 increasing proportion of hard rock (000s oz.) ($/oz.) 40 400 Q1’15 production unchanged from Q4’14 › Increase in gra
Slide 28: Sadiola – Mali
Sadiola – Mali 30 1200 25 1000 Open-pit mine in operation for 20 years 20 24 800 Continuing to look for additional oxide reserves (000s oz.) 21 20 19 Q1’15 production of 19,000 oz. ($/oz.) 15 19 600 10 400 › Reflected higher throughput and recoveries offset by lower grades 5 200 › Second conse
Slide 29: Closing Remarks
Closing Remarks #I1AMGOLD
Slide 30: Appendix
Appendix CORPORATION
Slide 31: IAMGOLD’s Gold Assets
IAMGOLD’s Gold Assets Four Operating Gold Mines: 2015 Production Guidance 820k – 860k oz. 31
Slide 32: 2015 Production and Cost Guidance
2015 Production and Cost Guidance1 Guidance Rosebel (000s oz.) 290 – 300 Essakane (000s oz.) 360 – 370 gold production Attributable Westwood (000s oz.) 110 – 130 Total owner-operator production (000s oz.) 760 – 800 Joint ventures (000s oz.) 60 Total attributable production (000s oz.) 820 – 860 Total
Slide 33: 2014 Reserves and Resources
2014 Reserves and Resources1 As of December 31, 2014 2014 Gold (000s attributable oz. contained) Total proven and probable mineral reserves 8,608 Total measured and indicated mineral resources 2,3 21,412 Total inferred resources 7,018 • Gold reserves have been estimated at our owned and operated min
Slide 34: Investor Relations
Investor Relations info@iamgold.com Bob Tait Laura Young Penelope Talbot-Kelly VP, Investor Relations Director, Investor Relations Analyst, Investor Relations T: 416-360-4743 T: 416-933-4952 T: 416-933-4738 TSX: IMG NYSE: IAG