Iamgold Corporation · TSX:IMG
Iamgold — Investor Presentation (March 2009)
100 slides from Iamgold's investor presentation, Mar 27, 2009
Slide 1: Analyst Luncheon: Essakane & Westwood
Analyst Luncheon ESSAKANE & WESTWOOD March 27, 2009
Slide 2: Cautionary Statement
2 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 re
Slide 3: Introductions
INTRODUCTIONS 3 Denis Miville-Deschenes – SVP Project Development Rejean Sirois – Manager, Mining Geology Daniel Vallières - Manager, Underground Projects- Technical Services
Slide 4: Recent Events
Recent Events 4 Closed public offering & greenshoe for gross proceeds of Cdn$ 345 million Financial position Cash + gold bullion (at market) +credit facility ~US$ 530 million
Slide 5: Essakane Ground Breaking Ceremony
5 Essakane Ground Breaking Ceremony • Historical IAMGOLD event held on March 19, 2009 • 6,000 attendees present to officially launch the construction of Essakane • The goal is to partner with the government, people and communities of Burkina Faso to build a mutually Prime Minister Tertius Zongo offi
Slide 6: Essakane, Burkina Faso
ESSAKANE, BURKINA FASO The following information is a summary of detailed technical information provided in the NI 43-101 report filed on www.sedar.com under “Technical Reports” and on edgar on www.sec.gov/edgar.shtml, and also within a final prospectus dated March 18, 2009.
Slide 7: West Africa, new Eldorado for mining sector?
West Africa, new Eldorado for mining sector ? 7 Essakane
Slide 8: Location
Location J iBurki na Faso| ' 70 ee s MALI péla . Diapaga, ~*rada-N Gourma odoga. cong) — ew #) IAMGOLD
Slide 9: Essakane Project
Essakane Project 9 IAMGOLD is overall Project Manager Total: $422.1 M Owner: $275.3 M Minproc: $146.8 M Schedule (original): 18 months from construction release Construction release February 25 2009
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Slide 11: Capital Budget Summary
Capital Budget Summary 11 Infrastructure $59.5 M Processing Facilities $134.1 M Plant & Equipments $100.7 M Construction Indirects $ 50.7 M General Services $ 34.4 M Pre-Production $ 16.8 M Corporate ESA $ 0.3 M Contingency $ 25.4 M TOTAL $422.1 M
Slide 12: Introduction – Feasibility Study Addendum
Introduction – Feasibility Study Addendum 12 1. Changed economics Higher gold price environment Higher costs for supplies, equipment and labor Exchange rate fluctuations 2. Increased mill throughput for saprolite and transition ore 3. Reduced risks Primary crushing Production buildup Tai
Slide 13: Market Prices
Market Prices 13 Market Prices DFS Addendum IAMGOLD Gold Price (US$/oz) Reserves $500 $600 $700 Economics $580 $800 $700 Fuel Price (US$/Unit Brent $50/bbl $84/bbl $65/bbl Diesel $0.65/l $0.96/l HFO $0.65/l $0.77/l $0.77/l Other consumables 2Q 2007-15% 1Q 2008 1Q 2008
Slide 14: Currencies
Currencies 14 Basis DFS Addendum Actual Base currency USD USD USD USD/EUR 1.10 1.48 1.35 USD/GBP 1.93 2.00 1.46 Rand/USD 7.29 7.40 9.4 CAD/USD - 1.00 1.22 USD/AUD - 0.90 0.70 Burkina Faso (FCFA) Euro 1 EUR = 656 FCFA (Fixed)
Slide 15: Geology
15 Geology
Slide 16: Regional Geology
Regional Geology 16 • The Essakane Main Zone (EMZ) project occurs in folded sedimentary Birimian rocks (wackes, arenites, argillites and minor tuffs) which are intruded locally by intermediate and mafic sills. • EMZ is characterized by quartz veining system in folded arenite and argillite.
Slide 17: Exploration concessions
Exploration concessions 17 1620000 mmN Takabangou 180000 mmE EMZ 200000 mmE Markoye DEMBAM DEMBAM DEMBAM • Exploration lease : Approx. 1,500km2 Tin-Taradat • Essakane structure is 15 km long GOSSEY GOSSEY Bom Kodjelé Tin-Zoubaratan East • Three prospective areas: Gossey Essakane Main Zone (EMZ) :
Slide 18: Mining permit
Mining permit 18 • Mining permit = 100.2km2
Slide 19: Property Geology
Property Geology 19 1594000 mN LEGEND 1592000 mN Mafic Dykes Faults N Fold axis Intrusive - Sills Main Arenite 1590000 mN Sandstone Conglomerate Turbidite 182000 mE 184000 mE 186000 mE 188000 mE 1588000 mN 1586000 N
Slide 20: Essakane Main Zone Orebody
Essakane Main Zone Orebody 20
Slide 21: Resource Estimate
Resource Estimate 21 Basis : May 2007 Resource Model Jan 2007 May 2007 May 2007 Res. Model Res. Model Whittle Contained (COG = 0.5 g Au/t) (COG = 0.5 g Au/t) $650/oz (COG = 0.5 g Au/t) Indicated Tonnage (Mt) 68.7 78.4 73.4 Grade (g Au/t) 1.56 1.58 1.62 In-situ (M oz) 3.45 3.99 3.82 Inferred Tonnag
Slide 22: Resource Validation
Resource Validation 22 • Resource model was validated in-house. • Independently reviewed by an external consultant. • Resource model estimate was judged acceptable. • No issues in the assay database used for the estimate and the block grade interpolation processes. • Opinion that the current Selecti
Slide 23: Mining Reserves
Mining Reserves 23 Total Weathering Type COG Au (g/t) Au (koz) g/t Au Tonnage (kt) Rec In-situ Rec In-situ Saprolite 0.441 13,915 1.313 1.363 587 610 Reserve Saprock 0.547 12,389 1.506 1.581 600 630 Material Fresh Rock 0.656 31,817 1.733 1.839 1,773 1,881 Total 58,121 1.584 1.670 2,960 3,121 Non- Sa
Slide 24: Sensitivity of Mining Reserves
Sensitivity of Mining Reserves 24 • From Whittle results (Indicated resources only): Gold Price Ore Ore Grade (g Au/t) Waste Total tonnes Strip Rec. Gold US$/oz Mt Rec. Diluted Mt Mt Ratio oz 300 18,295 2.43 2.54 66,760 85,055 3.65 1,429 360 27,091 2.17 2.27 86,939 114,030 3.21 1,889 480 44,572 1.82
Slide 25: Pit Design & Mine Plan
Pit Design & Mine Plan 25 • Mine life of 8.7 years / Mill schedule of 9.3 years • Mine capacity of 32Mt/y plus stockpile reclaim Period Ore Tonnes Ore Grade Waste Ore Total Strip Reclaim Moved (kt) (g Au/t) (kt) Ratio (kt) (kt) Pre-prod 1,989 1.258 6,010 7,999 3.02 1 8,519 1.613 23,482 32,001 2.76 2
Slide 26: Mine Operating Costs
Mine Operating Costs 26 Mining costs are based on a site fuel price of 0.81 US$/liter. – Derived from US$80/bbl – Fuel represents 26% of operating cost. Average mining cost of 1.60 US$/t. Operating cost breakdown for base case: – Fuel = 26% – Labor = 18% – Other consumables and parts = 56%
Slide 27: Process Plant
Process Plant 27 Conventional Carbon-In-Leach (CIL) gold recovery plant Capacity 7.5Mtpa with oxides and transition ore, 5.4Mtpa with fresh ore Average Gold Recovery 94.8% (varies with ore type and grade) High gravity recovery (40-80% in lab work), estimated at 40% feasibility study
Slide 28: Gold Recovery
Gold Recovery 28 Rock Type Recovery Saprolite 96.3% Transition 95.0% Fresh 94.2%
Slide 29: Mill Operating Costs
Mill Operating Costs 29 Varies by ore type with saprolite requiring more cyanide but significantly less grinding media and wear parts. Mill operating costs excluding power: Cost Component Saprolite Transition Fresh Rock Reagents 2.55 3.33 4.10 Maintenance 0.29 0.34 0.39 Assay & Lab 0.06 0.06 0.0
Slide 30: Mill Schedule
Mill Schedule 30 Mill Feed Mill feed composition: – 24% Saprolite, 21% Transition, 55% Rock Average LOM mill recovery of 94.8% Gold production of 2.96M ounces Feed In-situ Rec. Period Sap. Tran. Rock Total grade Gold Rec. Gold kt kt kt kt g/t k ozs % k ozs 1 6,237 1,263 - 7,500 1.649 398 96.3%
Slide 31: Power Supply
Power Supply 31 HFO 380 Plant 1. 5 units x 5.5 MW + 1 unit x 2.0 MW = 29.5 MW 2. Operating cost = 0.17 US$ per KWh 3. Power Cost: 3.93 US $ per tonne milled
Slide 32: Water Balance Schematic
Water Balance Schematic 32 Pit dewatering Domestic wells Goroum wells Dust control Surface drainage Process water Off-channel reservoir Tailings pond
Slide 33: Water Sources
Water Sources # IAMGOLD Ki AC | b. mle ry) |) = \ “hy, + y < Se Y $s \S=3 Y SA = Z 4 BR 2 Fi 7) Ma AY c & 4 2
Slide 34: General Services Costs
General Services Costs 34 The average LOM G&A cost is 1.57 $/t Includes the following aspects: All administrative and support personnel; Local employee transportation; Food & lodging for camp (340 people during operations); Insurance; Purchasing and warehousing; Accounting and auditing f
Slide 35: Environment
ENVIRONMENT
Slide 36: Arid Climate
Arid Climate 36 500 mm precipitation per year in 4 months 67 rainy days per year 2,5 m evaporation per year
Slide 37: Community Engagement
COMMUNITY ENGAGEMENT: a key to the success of the Essakane Mining Project
Slide 38: Communities within the mining project area
Communities within the mining project area 38 Challenge 3: Alternatives / cohabitation with artisanal mining N
Slide 39: Memorandum of Understanding
Memorandum of Understanding 39 Community consultations, including extensive discussions on resettlement packages (Aug – Dec 2007), culminating in signature of a Resettlement Memorandum of Agreement between the project-affected communities and Essakane S.A. in December 2007. The agreement defines:
Slide 40: Example of Existing and Replacement Houses
Example of Existing and Replacement Houses 40 Residential building – Essakane Site Replacement building
Slide 41: Financials
FINANCIALS
Slide 42: Financial Model Assumptions
Financial Model Assumptions 42 Government take: Royalties: 3% Equity interest: 10% (NPI) Withholding tax on interest and dividends: 6.25% Corporate income tax: 20% Tax on outside services: 10% Charge on labor (taxe d’apprentissage): 4% (2nd half mine life) Duties and tax on supplies an
Slide 43: Financial Model Assumptions
Financial Model Assumptions 43 Gold Price and Fuel Price – Gold: US$700/oz – Fuel: US$80/bbl Initial CAPEX: US$420M Sustaining CAPEX: US$12M
Slide 44: Implementation Plan
Implementation Plan 44 IAMGOLD is overall Project Manager Mill: Minproc EPCM Power plant: Supplier-EP/EPCM/O&M Mine plant: IMG & Sub-contractors Camp: IMG & Sub-contractors Relocation Village: IMG/Re Plan – Local contractor Major Earthwork: IMG/Golder (Eng. + QA/QC) Mine Pre-Production
Slide 45: Financial Model – Base Case Scenario
Financial Model – Base Case Scenario 45 Low Base Gold Price $600/oz $800/oz Brent Price (US$/bbl) 65 84 Diesel Essakane Price (US$/l) 0.82 0.96 HFO Essakane Price (US$/l) 0.68 0.77 Cash costs Excl. royalties & charges 307 321 Incl. royalties & charges 335 355 Project Cash Flow ($M) 461.56 1,011.23 G
Slide 46: Construction Update
Construction Update 46 Progress (as of March 2009) Old camp site and offices refurbished Mine village, truck shop, kitchen, rec hall and adm office ordered Foundations: mine village, truck shop, offices, tower cranes by a local contractor
Slide 47: Construction Update
Construction Update 47 Laydown area prepared Construction power and water finalized Ten prefab modules being erected in the Mine Village Mine Village to be completed by the end of April 2009 Truckshop being erected ESA workforce increased (expats & nationals) to reflect the change of sco
Slide 48: Construction Update: Mill Area
Construction Update 48 Relocation: 5 villages relocated with success Construction of 450 houses at Essakane Village started in January 2009 MILL AREA Earthwork contract awarded to BCM Minproc mandate changed from EPCM to EP in Jan.2009 ESA Construction Team is reviewing Minproc engineering
Slide 49: Construction Update
Construction Update 49 Most of major equipment ordered Budget being reviewed to reflect change of mandate On critical path: - process water: BWS, pumping & piping arrangement - complete review of equipment selection in the plant - tailings disposal: piping, thickeners, pumping - PO to be place
Slide 50: Construction Update: Mine Operations
Construction Update 50 Mine Operations: Mine equipment ordered, some has been delivered In pit stripping has started Material used for road construction or stockpiled in the mill area if suitable Construction of roads, airstrip Water and Tailings: - Off Channel Reservoir completed (650,000
Slide 51: IAMGOLD
“hi. IAMGOLD CORPORATION
Slide 52: IAMGOLD
ON CORPORA IAMGOLD
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Slide 54: IAMGOLD
#1AMGOLD
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Slide 56: General Services
General Services 56 Oracle implementation Completed Audit Procurement and Logistics Risk Assessment Exploration program Hiring and Training
Slide 57: Westwood Development Project
WESTWOOD DEVELOPMENT PROJECT The following information is a summary of detailed technical information provided in the NI 43-101 report filed on www.sedar.com under “Technical Reports” and on edgar on www.sec.gov/edgar.shtml, and also within a final prospectus dated March 18, 2009.
Slide 58: Introduction
58 INTRODUCTION OVERVIEW GEOLOGY MINING OPERATING COSTS FINANCIAL ANALYSIS COMPARISON OF WESTWOOD OPERATING COSTS WITH DOYON PROJECT STRENGTHS QUESTIONS
Slide 59: Summary 2008 Activities
59 Summary 2008 Activities Drilling 68,000m Resources evaluation June 30th Development in Ore (5,000 tonnes bulk sample) Raise boring & Shaft sinking decision Revised Scoping Expenditures US$ 38.6M
Slide 60: Summary 2009 Budget
60 Summary 2009 Budget Drilling 73,000 meters Complete shaft raise boring (840m by March) Start shaft sinking in June (500 meters by year end) Ventilation raise 6m diam. by year end Development work will 2,000 meters horizontal development Drift trough Bousquet fault Additional 5,000 t
Slide 61: Geology
GEOLOGY
Slide 62: Regional and Local Geology
62 Regional and Local Geology Mouska Doyon IAMGOLD IAMGOLD Mouska Mic Mac 0.8 Moz Westwood-Warrenmac Doyon Bousquet-Laronde Agnico-Eagle El-Coco Agnico-Eagle Westwood 6.6 Moz Warrenmac Ellison 3.3 Moz 3.9 Moz 10 Moz Légende géologique Autres Groupe de Blake River Basalte et tuf Groupe de Piché Schis
Slide 63: Schematic Plan View of the 14th Level
Schematic Plan View of the 14th Level 63 Westwood Gold Corridors (from south to north) 1. Westwood (& Warrenmac) - within altered felsic volcanics 2. North Corridor - within mafic volcanics 3. Zone 2 - within altered intermediate to felsic volcanics
Slide 64: Cross-Section 4400E (looking west)
64 Cross-Section 4400E (looking west) Westwood Gold Corridors (from south to north) 1. Westwood (& Warrenmac) - within altered felsic volcanics 2. North Corridor - within mafic volcanics 3. Zone 2 - within altered intermediate to felsic volcanics
Slide 65: Resources (June 2008)
65 Resources (June 2008) Inferred Resources by Cut-Offs Cut-off Tonnes Grade Ounces g Au/t (000's) g Au/t (000's) 1 19,894 6.0 3,817 2 16,390 6.9 3,658 3 14,182 7.6 3,482 4 11,283 8.7 3,154 5 9,052 9.7 2,836
Slide 66: Resources (June 2008)
Resources (June 2008) 66 • 34 zones within the three mineralized corridors were interpreted using minimum true thickness of 3.0 meters • 0.5 and 1 meter length composites (capped before interpolation) • Only composite within same zones are used (hard boundary) • Method = inverse distance square tech
Slide 67: Resources (June 2008): Warrenmac
Resources (June 2008) 67 Warrenmac (West of Bousquet fault) Accessible by ramp Currently in mine plan for years 14 and 15 but will be accelerated should zinc-copper prices improve sooner Requires mill modifications that would take about 14 months and $12 million Indicated Resources and Proba
Slide 68: Resources (June 2008)
68 Resources (June 2008) Inferred Resources - Lens WW25 (Cut-off = 4 g Au/t or NSR = $80/tonne) Au Ag Zn Cu Tonnes Lens Corridor Cut-off (000's) Ounces Ounces g/t g/t % Tonnes % Tonnes (000's) (000's) 4 g Au/t 856 6.0 164 WW25 Westwood $80 NSR 1,294 5.0 207 25.0 1,039 1.98 25,639 0.12 1,567 Diff. 43
Slide 69: Ore Continuity
69 Ore Continuity SILL ZONE 2-30 Average Grade (g Au/t) Surface Ore stockpile 6.4 Muck sampling 7.5 Chip sampling 5.1 Drill Holes (over 3m) 5.5 Average grade 6.1 Tonnes Ore Stockpile 5,695 SILL ZONE 2-62
Slide 70: Budget 2009 – Exploration ($4.7M)
70 Budget 2009 – Exploration ($4.7M)
Slide 71: Budget 2009 – Valuation + Definition Drilling ($4.0M)
71 Budget 2009 – Valuation + Definition Drilling ($4.0M)
Slide 72: Mining
MINING CORPORATION
Slide 73: Resources Used in Scoping Study
73 Resources Used in Scoping Study Inferred and indicated resources were used for the study Mining resources (includes > 4.0 g Au/t grade and > 80$/t NSR) Resources affected by bousquet fault were taken out Resources calculated to a minimum width of 3 meters were recalculated on 2.5meters To
Slide 74: Operating Costs
OPERATING COSTS # IAMGOLD
Slide 75: Operating Costs (C$000)
75 Operating Costs (C$000) Operating Costs (C$000) $/t milled Total 2009 2010 2011 2012 2013 2014 2015 2016 2017 + Exploitation Definition Drilling 2.50 29,824 375 0 0 1,750 2,000 2,000 2,000 2,000 19,699 Stope Preparation 14.41 171,872 0 609 2,332 10,358 11,989 11,708 14,512 24,317 96,047 Extractio
Slide 76: Construction and Capital Expenditures
CONSTRUCTION AND CAPITAL EXPENDITURES
Slide 77: Site Plan
Site Plan PERMANENT ‘SUB STATION \ t # IAMGOLD
Slide 78: Capital Cost Summary (C$000)
78 Capital Cost Summary (C$000) Capital Cost Summary (C$000) Capital Sustaining Exploration phase II 7,000 Valuation Drilling 17,900 Deferred Development 108,989 195,277 Construction Surface 84,551 15,541 Studies 1,440 Shaft 62,760 Stationary Equipment 2,887 4,120 Constructions 5,820 3,110 Surface M
Slide 79: Construction Site Overview
79 Construction Site Overview
Slide 80: Project Economics
=-CONOMICS iO) CORPORATION
Slide 81: Global Assumptions
81 Global Assumptions Prices Gold (US$/oz) 700 Silver (US$/oz) 8.00 Copper (US$/lb) 2.50 Zinc (US$/lb) 1.00 Exchange (US$/C$) 1.25
Slide 82: Economic Evaluation (C$000)
82 Economic Evaluation (C$000) Tonnes Mined 11,929,742 Tonnes Milled 11,929,742 Gold Production (oz) 2,809,289 Copper Production (000 lb) 2,476 Zinc Production (000 lb) 43,118 Gold Revenues (C$000) 2,512,185 $/t milled (C$000) Mining 62.46 745,133 Processing 19.12 228,081 Administration 6.19 73,815
Slide 83: Westwood Project Sensitivity
83 Westwood Project Sensitivity (C$ 000) NCF Sensitivity BEFORE TAX vs GOLD PRICE 1,600,000 1,400,000 Base Case Gold Price : $700/oz. 1,200,000 0.0% 5.0% 1,000,000 7.5% 10.0% 800,000 600,000 400,000 200,000 0 -200,000 $500 $550 $600 $650 $700 $750 $800 $850 $900 BASE GOLD $500 $550 $600 $650 $700 $7
Slide 84: Doyon vs Westwood
DOYON vs WESTWOOD # IAMGOLD
Slide 85: Cost Difference Doyon - Westwood
85 Cost Difference Doyon - Westwood Annual Tonnage Equipment Performance Pillar recovery Strike length Simpler geological comprehension Automation Start on new bases Dilution
Slide 86: Impact of Annual Tonnage (C$/t)
86 Impact of Annual Tonnage (C$/t) 000 tonnes/year 1200 Doyon Westwood 1000 $57.46 $60.34 $87.77 800 600 $76.16 $81.73 400 $107.25 $136.23 200 000 2003 2004 2005 2006 2007 2008
Slide 87: Equipment
87 Equipment Westwood vs Doyon New equipment compared to 20 years old equipment Standardization Reliability / Availability Operating costs per hour Performance
Slide 88: Performance
88 Performance Westwood vs Doyon Introduction of Automation: » Development and production drilling » Hoisting » Tramming » Ventilation on demand Next generation communication system: » Fleet tracking devices » Personnel tracking and communication device
Slide 89: Doyon 9th Level
89 Doyon 9th Level • Significant development at Doyon was needed due to more complex orebody than Westwood 900m 630m
Slide 90: Westwood Project – Level 1320
90 Westwood Project – Level 1320 Less development required at Westwood as compared with Doyon
Slide 91: Pillar Recovery
91 Pillar Recovery Achieved 2008 Doyon mine plan 1,570 m Depth (1,022m)
Slide 92: Westwood Longitudinal Section
92 Westwood Longitudinal Section 1.6km
Slide 93: Production: Expected Dilution
93 Production: Expected Dilution Innovative Design for an Inclined Drift to allow 2.5 metre mining width Common Proposed method method Expected Dilution Expected Dilution
Slide 94: Ore Development: Quantity vs Quality
94 Ore Development: Quantity vs Quality TEST REAL CONDITIONS Narrow feature of the deposit: Minimum thickness Doyon (4.0m) Westwood (2.5m)
Slide 95: Doyon Mill Complex: Modifications Required
Doyon Mill Complex 95 Modifications Required for Westwood • Increase the copper flotation circuit capacity • Relocate and add more capacity to the cyanide destruction process (detox) • Add a desulphuration circuit (reclaiming of Doyon tailings) • Relocate the existing paste backfill plant near the W
Slide 96: Doyon Mill Complex
Doyon Mill Complex 96 Two kilometres west of Westwood
Slide 97: Milestones
97 Milestones Production begins in first quarter 2013 Schedule 2009 2010 2011 2012 2013 2014 2015 Doyon Mine Exploration Program Studies Surface Work Shaft Phase I (above 1,080m) Shaft Phase II (below 1,080m) Development above 1,080m Production above 1,080m Development below 1,080m Production belo
Slide 98: Strengths
Strengths 98 • Well established mining camp with several multi-million ounce gold deposits • Skilled and experienced manpower in the Abitibi area • Low-cost power • Low/no-risk mining jurisdiction and well defined regulations • Simple relatively predictable geology • Robust grades at 8 g Au/t • Doyo
Slide 99: Questions
RPORA #/IAMGOLD ep) Cc 2 —_ Y) ®o =) Oo
Slide 100: Thank you!
z ° bE < a ° a as ° jas) Thank you!