Iamgold Corporation · TSX:IMG
Iamgold — Denver Gold Forum 2011
44 slides from Iamgold's conference presentation, Sep 20, 2011
Slide 1: Denver Gold Forum 2011
Denver Gold Forum 2011 September 20, 2011 Steve Letwin President & CEO TSX: IMG NYSE: IAG
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: Strategic Focus
3 Strategic Focus SHAREHOLDER VALUE Potential IPO ~25% IAMGOLD ~55% Strategic Buyer ~20% Increasing Return on Capital
Slide 4: IAMGOLD's Platform – High Quality, Long-Life Assets
4 IAMGOLD’s Platform – High Quality, Long-Life Assets YATELA SADIOLA Lac Pau JV Bousquet-Odyne Boto Siribaya ESSAKANE NIOBEC Porcupine-Lépine Kalana Westwood MOUSKA ROSEBEL Quimsacocha Para MINE Pitangui Development Project Active Exploration Natural extensions with significant expansion potential
Slide 5: Gold Production
5 Gold Production Gold production attributable to IAMGOLD 1,120-1,220 Discontinued 997 940-1,000 operations 965 939 967 865-940 67 Westwood 239 000s oz 326 214 311 Essakane 392 122 263 315 395 Rosebel 260 Sadiola & 238 224 Yatela 178 Mouska 131 118 109 '07 '08 '09 '10 '11E '12E '13E Sustaining annua
Slide 6: Gold Price Assumptions
6 3 Year Average Annual Operating Cash Flow Forecast 3 Year Average Annual Operating Cash Flow Forecast* (2012-2014) $ 1,800/oz $1.0 Billion Gold Price Assumptions $ 1,500/oz $0.8 Billion $ 1,200/oz $0.5 Billion *Notes: Includes Niobec, with price assumption average of $42/kg. Increase in operat
Slide 7: Shifting towards a more balanced risk profile
7 Shifting towards a more balanced risk profile Operating Cash Flow by Region (Continuing Gold Operations and Niobium Operation) 13% North America 36%* 58 % 29% 40% North America Africa Africa South America 24% South America Experienced in different political environments In-depth knowledge of multi
Slide 8: Considerable Financial Flexibility
8 Considerable Financial Flexibility $1.7B available at end of Q2 1,654 Significant positive cash flow 350 Credit Facility available1 107 Marketable 2 $1B shelf prospectus Securities $ Millions 1,198 Cash & Bullion3 Zero Debt at Q2'11 1 Available undrawn portion, credit facility expiring April 2013
Slide 9: Expanding and Optimizing Existing Mines
9 Expanding and Optimizing Existing Mines More Cost Effective > Leverages existing infrastructure > Economies of scale > Zero to minimal permitting issues > No acquisition costs Faster Execution > Established operating team Lower Risk > Higher confidence in mineralization > Lower technical risk > Fa
Slide 10: Rosebel Gold Mine
10 Rosebel Gold Mine Suriname 4th expansion in 7 years Large land area still to be explored Reserves outpace depletion On-going discussions with Government to unlock further IAMGOLD: 95% Ownership value P&P Reserves1 (000 oz) 5,892 Attributable production M&I Resources2 (000 oz) 7,531 395 360-380 In
Slide 11: Reserves Outpace Depletion at Rosebel
11 Reserves Outpace Depletion at Rosebel 10 Cumulative Ounces Mined and Reserves (100% basis) 8 1.2 Moz reserve growth in 2010 (after depletion) 94,000+ m drilling Koolhoven and Royal Hill extensions Million ounces 6 6.2 5.1 4 3.7 3.8 3.4 3.2 2 2.5 2.4 2.7 2.1 1.4 1.7 .02 1.1 0.4 0.7 0 '03 '04 '05 '
Slide 12: Rosebel Expansion: Optimizing the open pit mine
12 Current Rosebel Expansion Based on 2010 SRDP Base Case Expansion Mine Life 18 years 11 years Accelerated Processing Rate 12 Mtpa 12-14 Mtpa production Declining to 6 Mtpa reduces costs 55 Mtpa Nominal Mining Rate declining to 35 Mtpa 70-75 Mtpa and brings Strip Ratio (Waste:Ore) 4.0 4.0 cash flow
Slide 13: Essakane Gold Mine
13 Essakane Gold Mine Brought into production by IAMGOLD development team Burkina Commenced production July ‘10 Faso Expansion feasibility study expected Q4’11 Expansion construction expected to begin Q1’12 IAMGOLD: 90% Ownership Attributable production 340-360 P&P Reserves1 (000 oz) 4,015 M&I Resou
Slide 14: Essakane Expansion
14 Current Essakane Expansion Based on 2010 SRDP Base Case Expansion Mine Life 21 years 14 years Accelerated Soft rock: 9 Mtpa first 3 yrs, then Soft rock: 9 Mtpa first 3 yrs, then Processing Rate Hard rock: 5.4 Mtpa Hard rock: 10.8 Mtpa production Nominal Mining Rate 30 Mtpa declining to 14 Mtpa 40
Slide 15: Sadiola Gold Mine
15 Sadiola Gold Mine Produced > 7 Moz gold since 1996 Mali Operated as a joint venture with AngloGold Sulphide expansion feasibility study in final stages IAMGOLD: 41% Ownership Attributable production P&P Reserves1 (000 oz) 2,297 145-160 M&I Resources2 (000 oz) 3,481 Inferred Resources (000 oz) 991
Slide 16: Sadiola Sulphides Expansion Plan
16 Sadiola Sulphides Expansion Plan Based on Interim FS Base Case Expansion IAMGOLD initiated Mine Life 8 years 15 years the sulphide Processing Rate 4.6-5.0 Mtpa 7.5-8.5 Mtpa project which will Nominal Mining Rate 25-30 Mtpa 50-60 Mtpa increase the declining to 20 Mtpa throughput, Strip Ratio annua
Slide 17: Operating Model Focused on Cost Management
17 Operating Model Focused on Cost Management Mining Costs per Tonne Joint Ventures 5.21 3.72 $/tonne IAMGOLD- owned 2.74 2.90 2.52 2.58 1.80 1.91 Sadiola 1.60 1.60 1.70 Yatela 1.35 1.50 Essakane 0.93 Rosebel 0.85 Competitors Estimates based on IAMGOLD data and publicly available disclosure Rosebel
Slide 18: Project Development Timelines
18 Project Development Timelines Rosebel 2011 2012 2013 2014 2015 Expansion Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Construction GRAVITY CIRCUIT Commissioning/ Production GRINDING Construction CIRCUIT Commissioning/ Production EXPANSION SRDP FUTURE Prefeasibility Essakane 2011 20
Slide 19: Westwood Development Project
19 Westwood Development Project Geology well understood Minimum development costs Quebec IAMGOLD: 100% Ownership Indicated Resources1 269,000 oz Inferred Resources1 3,467,000 oz 2011 Expenditures $146M LOM Average Annual Production 186,000 oz 82,000 m exploration drilling LOM Average Cash Cost2 $358
Slide 20: Westwood Project Development Timeline
20 Westwood Project Development Timeline 2011 2012 2013 2014 2015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Ventilation Shaft Waste Silo Doyon Mill refurbishment Shaft Sinking 1,560 2,000 m m Construction of Paste Backfill Plant Commissioning/ Full Production Production 130,000-150
Slide 21: Active Exploration Areas
21 Active Exploration Areas 2011 Exploration Budget Greenfields $43.5M $97M Brownfields $53.3M Quebec Senegal Mali Burkina Faso Suriname Colombia French Guiana Ecuador Peru Brazil Planned near-mine and greenfield drilling 500,000+ metres
Slide 22: 2011 Greenfield Exploration: South America
22 2011 Greenfield Exploration: South America Charmagne & COLOMBIA Koemboe Charmagne Discovery Seeking opportunities 329,000 oz inferred resource at to expand exploration 1.02 g/t grade portfolio Positive concept study completed Targeting conversion of inferred to M&I resource by year-end Koemboe Pr
Slide 23: 2011 Greenfield Exploration: West Africa
23 2011 Greenfield Exploration: West Africa Siribaya JV 40,000 m diamond and RC drill program Targeting an 8-km long mineralized corridor Essakane District scale land package 8 regional satellite targets Siribaya JV Essakane 37,000 m core and RC drill Boto program 46,000 m air-core drill program Kal
Slide 24: Acquisition Criteria
24 Acquisition Criteria Canada Africa Exploration Production South America Development KNOWN REGIONS 150,000+ oz of gold/yr VARIOUS STAGE > Regional Continuity PROJECTS > Social and Fiscal Stability 2,000,000+ oz Reserves > Long-term Prospectivity and opportunities Targeting growth in shareholder va
Slide 25: Proven Acquisition Strategy
25 Proven Acquisition Strategy Acquisitions from 2003-2009 Cost of Capital Essakane Acquisitions Spend Rosebel $1.9B $1.1B Doyon Division Niobec Mupane Tarkwa & Damang Asset Operating 2011 Analyst Consensus NAV of Assets acquired by IAMGOLD Sales Cash Flow $0.9B $1.3B ~ $7.5B Asset Operating sales c
Slide 26: Niobec Niobium Mine
26 Niobec Niobium Mine ~ 8% market share 30 year history of reserve renewal QUEBEC Planning to sell 10-20% 4.5-5.0 Niobium production 4.4 IAMGOLD: 100% Ownership P&P Reserves1 (Mkg Nb2O5) 243.8 M&I Resources2 (Mkg Nb2O5) 1,927.4 Inferred Resources3 (Mkg Nb2O5) 1,240.4 Million kg 2.2 2011 H1 Grade (%
Slide 27: Niobium: Rare Metal with Unique Properties
27 Niobium: Rare Metal with Unique Properties Using niobium to enhance steel has many benefits: Adds strength Lightens weight Enhances flexibility Improves durability Reduces costs Niobium is used to produce high-quality steel
Slide 28: Niobium Demand is Rapidly Growing
28 Niobium Demand is Rapidly Growing Niobium Demand 145,000 Growing at 10% CAGR 2,000 125,000 1,800 FeNb consumption (tonnes) 105,000 1,600 Steel Production (Mt) 85,000 1,400 65,000 1,200 45,000 1,000 25,000 800 5,000 600 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '0
Slide 29: Potential Value of Niobec Confirmed
29 Potential Value of Niobec Confirmed Preliminary Economic Assessment Bulk Mining Methods (NI 43-101)* Plan to convert undergound mine to bulk mining 691% increase in M&I mineral resource to 1.93 Bkg Potential increase in annual production to 15 Mkg Remaining mine life 40+ years at triple current p
Slide 30: Potential Funding Sources for Niobec Expansion
30 Potential Funding Sources for Niobec Expansion After-tax NAV of Niobec: $1.6B-$2.0B $830M-$840M Free Cash Flow (2011-2014) > Assuming Nb price $42-$45/kg > Assuming sale of 10-20% $ Millions Sale of 10-20% minority interest 3 Project Financing Niobec IPO Expansion Capital Niobec expansion will be
Slide 31: Rare Earth Element Potential at Niobec
31 Rare Earth Element Potential at Niobec Niobium exploration potential Rare earth elements > 4 hole drill program completed March 2011 Shaft > Exploration and metallurgical testing underway > Metallurgical results expected end of Q3 2011 Existing block model and shaft Exploration and Metallurgical
Slide 32: CSR Leadership
32 CSR Leadership 2011 CIM Syncrude Award Excellence in Sustainable Development HEALTH & SUSTAINABILITY 2011 PDAC Environmental & SAFETY Framework Framework Social Responsibility Award Z Leadership Leadership E H 2011 Maclean’s/Jantzi-Sustainalytics Governance Top 50 most responsible corporations in
Slide 33: Growth Strategy
33 Growth Strategy Extend and optimize existing mines Focusing on natural extensions Increase focus on mine specific cost reduction measures Pursue exploration plays In highly prospective and low risk regions Evaluate acquisition opportunities Aligned with corporate objectives Surface full value of
Slide 34: Investment Highlights
34 Investment Highlights Diversified portfolio of long-life gold assets With significant expansion opportunity Proven operating, exploration and development expertise Unique niobium asset In a fast growing niche market Demonstrated CSR leadership Return on capital driven growth strategy Strong balan
Slide 35: Appendix
Appendix TSX: IMG NYSE: IAG
Slide 36: IAMGOLD's Mining Interests
36 IAMGOLD’s Mining Interests 1 Cash cost per ounce is a non-GAAP measure. Refer to the Supplemental information attached to the 2010 Q4/YE news release for reconciliation to GAAP measures. 2 Tarkwa and Damang sold in June 2011, Mupane sold in August 2011 3 Operating margin per kg of niobium is a no
Slide 37: Attributable Reserves and Resources Growth
37 Attributable Reserves and Resources Growth Proven and Probable Measured & Indicated Inferred Resources Reserves Resources1 18.1 16.5 Million ounces Million ounces Million ounces 14.0 11.9 8.1 7.2 2009 2010 2009 2010 2009 2010 1M&I Resources include Reserves Reserves and Resources based on continu
Slide 38: 2011 Guidance
38 2011 Guidance 2011 Guidance (000s ounces) Attributable gold production Rosebel 360-380 Essakane 340-360 Mouska 25-30 Mines owned and operated by IAMGOLD 725-770 Sadiola and Yatela 145-160 Total from continuing operations 870-930 Discontinued Operations 67 (Mupane, Tarkwa & Damang) Total Productio
Slide 39: Planned Capital Expenditures
39 Planned Capital Expenditures 2011 Capital Expenditure 355 332 25 191 54 132 212 $ Millions 92 156 23 139 146 38 98 72 95 13 44 20 39 22 Essakane Westwood Sadiola Rosebel Niobec Other 2011 2012 2013 Significant Investment in Brownfield sites
Slide 40: Kalana JV, Mali
40 Kalana JV, Mali Mining Permit 387 km2 expires 2033 2011 Budget: $7.9 million GUINEA MALI Avnel-IAMGOLD agreement Kalanako Dadjan $11M expenditure in 3 years High priority Kalana 60km² NI 43-101 Compliant Resource of 2 Moz Dabaran IMG can increase to 70% interest by sole funding of a Feasibility S
Slide 41: Siribaya JV, Mali
41 Siribaya JV, Mali Land Package 563 km2 2011 Budget: C$3.0+ million Merrex-IMG Option Agreement IAMGOLD can earn 50% interest for C$10.5M spend > years IAMGOLD holds 14.8% of issued capital of Merrex Work Completed 28,000 m drilling year-to-date High resolution airborne geophysics Regional geochem
Slide 42: Daorala-Boto & Bambadji, Senegal
42 Daorala-Boto & Bambadji, Senegal 315 km2 in World-Class District Daorala-Boto: 100% IAMGOLD Sabodala – 2 Moz Boto located 25 km from Siribaya Loulo – 6 Moz Non-compliant mineral inventory DAORALA Daorala situated within Loulo-Gara Yalea – 2.4 Moz trend Massawa – 4.5 Moz Tabakoto – 2.8 Moz Drillin
Slide 43: Management Team
43 Management Team Renaud Adams Steve Letwin Senior Vice President, Operations, Americas President & Chief Executive Officer Michael Donnelly Senior Vice President, Exploration Benjamin Little Senior Vice President, Corporate Affairs Gordon Stothart Denis Miville-Deschênes Executive Vice President &
Slide 44: Denver Gold Forum 2011
Denver Gold Forum 2011 September 20, 2011 401 Bay Street, Suite 3200 Toronto, ON M5H 2Y4 Canada 1-888-464-9999 www.iamgold.com INVESTOR RELATIONS Bob Tait, VP Investor Relations T: 416 360 4743 C: 647 403 5520 Laura Young, Director, Investor Relations T: 416 933 4952 C: 416 670 3815 TSX: IMG NYSE: I