Each one in plain English, with the numbers worked through for a shareholder.
10 Mar 2009capital raising announcement● NeutralMajor
IAMGOLD signed the underwriting agreement for its share offering: 34.3 million shares at Cdn$8.75, for gross proceeds of Cdn$300,125,000, up from the roughly Cdn$275 million first announced. The underwriters hold an option for 5,145,000 more shares, which would bring proceeds to Cdn$345,143,750 if fully used. Planned use of proceeds is unchanged: Essakane construction (replacing all or substantially all of the previously proposed project debt facility and gold hedging) and other spending, with closing expected around March 26, 2009. This sets the final terms of the offering announced the day before.
IAMGOLD filed a new technical report on the Niobec mine in Quebec, dated February 2009 and written by outside firm Belzile Solutions as an independent review of resources and reserves as of December 31, 2008. It says the mine is held 100% by an IAMGOLD subsidiary, is the only ferroniobium (a steel additive) producer in North America, and supplies roughly 7-8% of world demand. Niobec was not in the earlier asset list. The filing is truncated, so the actual resource and reserve numbers are not visible.
9 Mar 2009capital raising announcement● NeutralMajor
IAMGOLD announced a planned share offering to raise about Cdn$275 million (about Cdn$316.25 million if the underwriters' 15% extra-share option is used in full), led by Canaccord and TD Securities. The money is meant mainly for building Essakane, replacing all or substantially all of the previously proposed Essakane project debt facility and related gold hedging, with the rest for other capital spending and general purposes including future acquisitions. Closing is expected around March 26, 2009. For shareholders this means new shares and dilution, and it follows up the open question of how Essakane construction would be financed after the Orezone purchase.
IAMGOLD refiled a January 18, 2006 technical report on the Buckreef project in Tanzania, written by Gallery Gold executives to support the earlier proposed IAMGOLD-Gallery transaction. It is a historical document with resources as at November 1, 2005 (measured and indicated 8.65 million tonnes at 2.3 g/t, 632,000 oz; inferred 773,000 oz), not the July 2008 figures already on record (~1M oz M&I). It does not explain why it was refiled or update the status of the revised scoping study or pre-feasibility goal.
IAMGOLD filed an updated technical report on the Quimsacocha gold project in Ecuador, prepared by its own technical team and dated February 2009. The visible text lists July 2008 indicated and inferred resources at a 3.0 g/t cut-off and a probable reserve, which fits the July 2008 pre-feasibility study already on record, and it covers mining law and permitting. The filing is truncated, so no new reserve, cost or schedule figures can be confirmed, and the status of the Ecuador Mining Code is not shown.
IAMGOLD filed a new technical report on the Westwood project in Quebec, dated February 27, 2009 and prepared by its own technical team, to support its public disclosure. It says the property is held 100% by an IAMGOLD subsidiary and gives inferred resources of 11,283 thousand tonnes at 8.7 g/t, about 3.15 million oz, at a 4 g/t cut-off. This updates the resource estimate noted in the prior record (inferred ~3.5M oz in the context) and the scoping study that was due; the economics are mostly based on inferred resources, which the report calls preliminary and speculative. The visible text does not show the economic results or timelines.
IAMGOLD refiled a January 18, 2006 technical report on the Mupane gold mine in Botswana, written by Gallery Gold executives to support IAMGOLD's earlier proposed Gallery Gold transaction. It is a historical document with 2005 figures (reserves of 612,000 oz as at June 30, 2005; a 5.5-year mine life then), not a current estimate; the filing does not say why it was refiled now or what IAMGOLD's current interest in Mupane is. It joins the other old reports refiled the same day.
IAMGOLD filed an old independent technical report on the Damang gold mine in Ghana, effective July 1, 2004 and issued October 25, 2004, prepared for Gold Fields and IAMGold for the earlier proposed transaction. It is a historical document with 2004 figures (850,000 oz reserves, 303,300 oz produced in the year to June 2004, mine life to 2008), not a current estimate, and the filing does not explain why it was refiled or IAMGOLD's current interest.
IAMGOLD filed an old independent technical report on the Tarkwa gold mine in Ghana, effective July 1, 2004 and issued October 25, 2004, prepared for Gold Fields and IAMGold at the time of the earlier proposed Gold Fields transaction. It is a historical document, not a new estimate; its figures (e.g. 14.73M oz reserves at June 30, 2004, 550,000 oz produced in the 2004 financial year) are five years old and the filing does not say why it was refiled now or whether IAMGOLD still holds the interest.
IAMGOLD filed the updated Essakane feasibility study (effective June 3, 2008, re-addressed to IAMGOLD on March 3, 2009) to support its own disclosure now that it owns the project through Orezone. The report states that no changes were made other than correcting a table title and re-addressing and re-dating it, so it carries no new reserve or cost figures beyond the 2008 study. The visible text shows reserves based on a US$600/oz gold price, and the truncated filing does not show the numbers.
IAMGOLD filed the full text of the December 10, 2008 arrangement agreement with Orezone Resources and its spin-out subsidiary 7086130 Canada Inc. ('New Orezone'), as an exhibit after the deal closed on February 25, 2009. It is the contract behind the already-completed Orezone purchase; the visible text includes the US$40M Standard Bank bridge facility and the CAD$10M 6% MinQuest convertible debenture due July 1, 2011, but the filing is truncated so other terms cannot be confirmed here.
IAMGOLD filed a January 12, 2009 amending agreement to the Orezone deal documents. It renames the spin-out company 'New Orezone' to Orezone Gold Corporation, changes the wording on terms of replacement IAMGOLD options, and replaces the plan of arrangement schedule. The visible text shows no change to the 0.08 exchange ratio. The filing is truncated, so other changes in the replacement schedule cannot be confirmed. This is filed after the deal closed on February 25, 2009.
IAMGOLD completed its acquisition of Orezone on February 25, 2009, on the announced terms (0.08 IAMGOLD share plus 0.125 Orezone Gold Corporation share per Orezone share). Orezone shares were delisted that day, and IAMGOLD now owns the Essakane gold project in Burkina Faso. Management says it lowers average cash cost by $40 to $50 per ounce and moves it toward the 1.8 million oz a year target for 2012. This resolves the pending Orezone deal; Essakane construction financing is not described in this release.
The Ontario Superior Court of Justice issued its final order approving the IAMGOLD-Orezone arrangement, the last approval step the earlier filings had flagged. Closing is still expected on February 25, 2009, on the same terms (0.08 IAMGOLD share plus 0.125 Orezone Gold Corporation share per Orezone share).
Orezone shareholders approved the arrangement with IAMGOLD, with 99.94% of votes cast in favour (those votes represented 78.10% of Orezone's outstanding shares). Court approval was set for February 20 and closing expected February 25, 2009. Orezone holders get 0.08 IAMGOLD share plus 0.125 of a share of new Orezone Gold Corporation per Orezone share. The CEO said Essakane adds more than 30% to IAMGOLD's reserves.
IAMGOLD completed its Cdn$20 million private placement in Orezone, buying 71,428,571 Orezone shares at Cdn$0.28 each; it now holds about 16.6% of Orezone and held none before. This is the placement announced with the December 2008 all-share deal, which is still expected to close by end of February 2009, subject to an Orezone shareholder vote and final court approval.
IAMGOLD declared its eighth consecutive annual dividend of US$0.06 per share, payable January 12, 2009 to shareholders of record on December 24, 2008. This continues the yearly US$0.06 payment (last paid January 2008) at the same amount.
IAMGOLD said it completed the sale of the Sleeping Giant mine (Quebec) to Cadiscor Resources as of October 31, 2008, resolving the option signed in October 2007. In return it holds 5,185,715 Cadiscor shares (about 12.0%), 1,000,000 warrants at $0.47 expiring Dec 31, 2010, and a $3.5 million convertible debenture; the filing does not restate the cash price, and the structure differs from the original option terms (e.g. a debenture is now part of it). Sleeping Giant produced 63,000 oz in 2008 to the Q3 sale at a $320/oz cash cost.
IAMGOLD agreed to buy all of Orezone Resources in an all-share deal valued at about US$139 million, giving it the Essakane gold project in Burkina Faso (construction began September 2008; remaining capex about US$350 million; full production anticipated late 2010). Orezone holders get 0.08 IAMGOLD share plus a share of a spun-out 'New Orezone' per share, ending up with about 9% (28.6 million shares) of 324.3 million IAMGOLD shares, so existing holders are modestly diluted. IAMGOLD will also buy Cdn$20M of Orezone shares, assume a US$40M bridge loan, and is in talks with lenders for US$160-220M of project financing; closing is expected by end of February 2009, subject to a two-thirds Orezone vote, court and regulatory approval.
IAMGOLD reported drill results from its wholly-owned Boto exploration property in Senegal (630 sq km), including 15 m at 23.68 g/t and 9 m at 60.02 g/t gold in the Koulou Trend, though the company says continuity of mineralization at Boto 5 has not been conclusively demonstrated. It plans to spend US$1.7 million on 2008 Boto exploration, with more drilling in Q4; no resource estimate is given. This is a new exploration property in the record.
IAMGOLD released the long-awaited pre-feasibility study for its 100%-owned Quimsacocha gold project in Ecuador (due Q1 2008, so about four months late): 7.5-year mine life, average 202,000 oz/yr of gold, initial capital of US$337 million (±25%, including US$45M contingency), and a 21.3% pre-tax return at US$750/oz gold (13.4% at US$650). The filing says capital cost has risen substantially from cost pressures; a feasibility study is now due Q4 2009, construction early 2010 and commercial production in the second half of 2011, all dependent on Ecuador's new Mining Code, whose draft went to the President on June 27 and which he intends to publish by end of August.
IAMGOLD raised the Buckreef (Tanzania) resource: measured and indicated stays about 1 million ounces (16 Mt at 2.0 g/t), and inferred rose by 86,000 ounces to over 900,000 ounces, from drilling on the Minzwel-Busolwa trend. This follows the May 2008 promise of an update by end of July; the pre-feasibility decision is still open, a revised scoping study is now expected in August, and the 2008 budget is now US$9.9 million (up from US$9.5 million).
IAMGOLD bought the participation royalty on the Doyon/Westwood property from Barrick Gold for US$13 million in cash, ending a royalty of 24.75% of the gold price above US$375/oz. The company says this cuts Doyon cash costs by about US$140/oz at current gold prices, and future Westwood production will be royalty-free.
IAMGOLD raised the Westwood inferred resource to 3.5 million ounces (14.2 Mt at 7.6 g/t, 3.0 g/t cut-off), about 5% more gold than the June 2007 estimate. The company is accelerating development: a revised scoping study is due by end of September 2008, a feasibility study in the second half of 2009, and production from the near-surface Warrenmac deposit in late 2010. This follows the 2007 scoping study and the Zone 2 drilling.
IAMGOLD reported results from its first drilling at Sarakreek in Suriname (87.5% owned, 100 km south of the Rosebel mine), including 222.2 g/t gold over 7.5 m in one hole. The company says continuity has not been established and more drilling is needed; the 2008 budget is US$2.2 million and results for holes SK08-16 to 27 are still pending.
IAMGOLD reported strong drill results at its Buckreef project in Tanzania, which already has measured and indicated resources of about 1 million ounces of gold, including 24.8 m at 13.72 g/t. Because of these results the company extended the time to decide on moving to pre-feasibility, with an updated resource and project economics promised by end of July; the 2008 exploration budget is US$9.5 million.
9 May 2008asset acquisition disposition▲ GoodMajor
IAMGOLD agreed to sell its La Arena copper/gold project in Peru to Rio Alto Mining for US$47.55 million in cash plus a 5.5% interest in Rio Alto, expected to close in the coming months. Management called it part of rationalizing non-core assets; Rio Alto has hired an investment bank to arrange financing for the purchase, so closing is not yet certain.
IAMGOLD signed a US$140 million five-year revolving credit facility with a bank syndicate led by Scotia Capital and Société Générale (with National Bank of Canada, N.M. Rothschild and TD also lending); the filing describes it as senior secured. It is the company's first debt facility in the running record, and management said it adds financial capacity alongside a cash/bullion position above US$200 million. The filing does not say whether any of it has been drawn.
IAMGOLD declared its seventh consecutive annual dividend of US$0.06 per share, payable January 11, 2008 to shareholders of record on December 24, 2007. The chairman said the company completed integrating all its 2006 acquisitions during the year.
New Westwood drilling found Zone 2 mineralization about 2.3 km deep, 800 metres deeper than before, including 10.0 metres averaging 11.5 g/t gold. The company says this could substantially increase the Westwood resource; valuation drilling on Zone 2 is planned for January 2008, building on the 2007 resource and scoping work.
