Alamos Gold Inc. · TSX:AGI
Alamos Gold — Investor Presentation (August 2015)
32 slides from Alamos Gold's investor presentation, Aug 19, 2015
Slide 1: August 2015 Corporate Presentation
August 2015 Corporate Presentation
Slide 2: Cautionary Notes
Cautionary Notes Cautionary Notes No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Certain statements in this presentation are “forward-looking statements”, including within the meaning of the United States Securitie
Slide 3: Strong Platform for Delivering Long Term Value
Strong Platform for Delivering Long Term Value Diversified gold Peer leading growth production Portfolio of low‐cost development Three North American mines projects Track record of delivering shareholder value Strong balance sheet Safe jurisdictions Nearly $380m cash and $60m net More than 50% of va
Slide 4: Best In Class Portfolio of Assets
Best In Class Portfolio of Assets Diversified production Low‐cost growth Safe jurisdictions LYNN LAKE JV (25%)(2) Stage Feasibility Est. Annual Production 145k oz Est. Cash Costs US$530/oz YOUNG‐DAVIDSON Att. Au M&I Resources 0.7MM oz 2015E Au Production 160‐180k oz Att. Au Inf. Resources 0.5MM oz 2
Slide 5: Diversified North American Production – 2015 Guidance
Diversified North American Production – 2015 Guidance Gold Production Total Cash Costs1,2 AISC1,2 (000 oz) (US$/oz) (US$/oz) Young‐Davidson Canada 160‐180 $675‐775 $950‐1,050 Mulatos Mexico 150‐170 $865 $1,100 El Chanate Mexico 65‐75 $675‐775 $950‐1,050 Total 375‐425 500 400 Production (000 oz Au) 3
Slide 6: Leading Low-Cost Growth Profile – Two Stage Growth
Leading Low‐Cost Growth Profile – Two Stage Growth Production Growth at Existing Operations • Young‐Davidson (Canada): Ramp up underground throughput to 8,000 tpd • Mulatos (Mexico): New production from higher grade satellite deposits Peer Leading Development Pipeline in Safe Jurisdictions • Kirazlı
Slide 7: Leading Low-Cost Growth Profile
Leading Low‐Cost Growth Profile 900 Combined annual production potential > 700k oz 800 700 600 Production (000 oz Au) 500 400 300 200 100 0 2014 2015E 7
Slide 8: Leading Low-Cost Growth Profile
Leading Low‐Cost Growth Profile Gold Production Growth: 2015 ‐ 2017 51% 34% 28% 28% 22% 9% ‐2% ‐3% ‐6% Eldorado Alamos Tahoe B2Gold Detour Yamana Randgold IAMGOLD Kinross Disciplined, controlled growth Source: Macquarie Research 8
Slide 9: Safe Political Jurisdictions
Safe Political Jurisdictions Consensus NPV by Geography Consensus NPV by Stage Assets in safe jurisdictions with bulk of valuation in producing mines Source: Consensus analyst estimates Please refer to Cautionary Notes on non‐GAAP Measures and Additional GAAP Measures. 9
Slide 10: Safe Political Jurisdictions
Safe Political Jurisdictions Fraser Institute Investment Attractiveness Index – Mining NAV Weighted The Fraser Institute Investment Attractiveness Index is constructed by combining the Best Practices Mineral Potential Index, which rates regions based on their geologic attractiveness, and the Policy
Slide 11: Strong Balance Sheet
Strong Balance Sheet Balance Sheet Cash & Cash Eq.1 US$379 million Working Capital1,3 US$451 million $63m Total Debt1 US$316 million net cash Capital Structure $379 m Shares Outstanding 255.5 million Warrants 7.2 million $316 m Employee Options 15.1 million Fully Diluted 277.8 million Recent Share P
Slide 12: Strong Balance Sheet
Strong Balance Sheet Net Cash / (Debt) (US$m) $506 $215 $108 $106 $63 $62 ($136) ($289) ($298) ($552) ($958) ($1,740) Centerra Pan Randgold IAMGOLD Alamos Tahoe Eldorado Detour B2Gold New Gold Kinross Yamana American Well positioned to weather a challenging gold price environment Source: Factset and
Slide 13: Young-Davidson – Flagship, Long-Life Production
Young‐Davidson – Flagship, Long‐Life Production Location: Ontario, Canada Ownership: 100% interest Stage: Producing Operation: Underground • One of Canada’s largest underground gold mines • 15 year mine life based on year end 2014 reserves • Large resource base and exploration potential to support m
Slide 14: Young-Davidson – Favourable Canadian Dollar Exposure
Young‐Davidson – Favourable Canadian Dollar Exposure Gold Price Remains Strong in Canadian Dollar Terms $1,700 Gold (US$/oz) Gold (C$/oz) $1,600 $1,500 $1,400 Gold Price $1,300 $1,200 $1,100 $1,000 Jul‐13 Oct‐13 Jan‐14 Jul‐14 Oct‐14 Jan‐15 Jul‐15 Apr‐14 Apr‐15 90‐95% of Costs are in Canadian Dollars
Slide 15: Young-Davidson – Increasing Grade & Productivity
Young‐Davidson – Increasing Grade & Productivity Ramp up of underground mining rate to 8,000 tpd Growing Underground Ore Feed 13% • Driving productivity improvements and 25% processed grade higher 47% 55% 56% 63% 64% • Growing production 77% 79% 82% 83% 100% 100% 100% • Declining costs 88% 75% • Dec
Slide 16: Mulatos – Our Founding Operation
Mulatos – Our Founding Operation Location: Sonora State, Mexico Ownership: 100% interest Stage: Producing Operation: Open pit, heap leach & high grade mill • Mine life of 7 years based on YE 2014 reserves • Generated ~$350m in free cash flow to date • Large exploration package (30,325 ha/117 sq. mil
Slide 17: Mulatos – Outlook
Mulatos – Outlook Lower Costs in 2016 Higher Production, Lower Costs in 2017 Open Pit, Heap Leach Grade2 (g/t) • Low cost production growth from La Yaqui & Cerro Pelon satellite deposits 1.00 +18% • Higher grade – combined reserve grade 1.6 g/t ‐ Average production 33k oz per year 0.90 0.80 ‐ Averag
Slide 18: El Chanate – Consistent Gold Producer
El Chanate – Consistent Gold Producer Location: Sonora State, Mexico Ownership: 100% interest Stage: Producing Operation: Open pit, heap leach • Consistent annual production of up to 75k oz Au since 2011 • Record production of 23.2k oz in Q2 2015 2014 2015E Q1/15A Q2/15A Gold Production (k oz) 67 65
Slide 19: Turkey – Low-Cost Production Growth
Turkey – Low‐Cost Production Growth Location: Turkey Ownership: 100% interest Stage: Development Operation: Open pit, heap leach • Kirazlı & Ağı Dağı EIA approvals reinstated • New mining law supportive of industry • Forestry fees recently reduced 2012 Positive Pre‐feasibility Study – Summary1 Kiraz
Slide 20: Esperanza Gold Project – Significant Growth Potential
Esperanza Gold Project – Significant Growth Potential Location: Morelos State, Mexico Ownership: 100% interest Stage: Development Operation: Open pit, heap leach • Excellent infrastructure; low technical risk • Low capital intensity and operating costs • Average annual production potential > 100,000
Slide 21: Quartz Mountain Property – Compelling Opportunity
Quartz Mountain Property – Compelling Opportunity Location: Oregon, United States Ownership: Right to earn a 100% interest Stage: Advanced Exploration • Located on northern extension of the prolific Basin and Range Province of Nevada • Low strip ratio, favourable metallurgy2 • 8,000m exploration pro
Slide 22: Lynn Lake Project – High Grade, Open Pit
Lynn Lake Project – High Grade, Open Pit Location: Manitoba, Canada 2014 Preliminary Economic Assessment Highlights (1) Ownership: 25% interest (earn‐in up to 60%) Mine Type Open Pit Stage: Feasibility Au Grade (g/t) 2.2 Operation: Open pit Au M&I Resources (MM oz) 1.5 Avg. LOM Annual Mill Productio
Slide 23: Alamos – Investment Case
Alamos – Investment Case Diversified intermediate gold producer Strong, low‐cost growth profile Strong balance sheet to support growth Long term track record of delivering shareholder value Catalysts Q2 2014: Acquired surface rights at La Yaqui & Cerro Pelon Q3 2014: Transitioned to underground
Slide 24: Appendices
Appendices
Slide 25: Board of Directors and Executive and Management Team
Board of Directors and Executive and Management Team Board of Directors Executive and Management Team Alan R. Edwards Chairman John A. McCluskey President and Chief Executive Officer John A. McCluskey Director Jamie Porter Chief Financial Officer Paul J. Murphy Director Peter MacPhail Vice President
Slide 26: Sustainability
Sustainability • Completed first Annual Sustainability Report pursuant to GRI framework • Our Objectives • As we pursue further growth, we will continue to measure our success as an organization by our performance in achievement of our sustainability objectives: • protecting the health and well‐bein
Slide 27: Long Life Reserve Base
Long Life Reserve Base Gold Mineral Reserves & Resources1 P&P Mineral Reserves M&I Mineral Resources Inferred Mineral Resources 20 4.5 Au oz (millions) 15 10 9.1 5 6.2 6.2 0 Mineral Reserves Mineral Reserves & Resources Reserve Life Index (on Operating Assets)2 30 25.6 25 21.7 Reserve life index (ye
Slide 28: 2014 Proven and Probable Mineral Reserves
2014 Proven and Probable Mineral Reserves PROVEN AND PROBABLE MINERAL RESERVES 1,2,3,4,5,6,7,8,9,10 AS AT DECEMBER 31, 2014 PROVEN2 PROBABLE2 PROVEN + PROBABLE2 RESERVE TONNES GRADE CONTAINED TONNES GRADE CONTAINED TONNES GRADE CONTAINED AREA (000) (G/T AU) OUNCES (000) (G/T AU) OUNCES (000) (G/T AU
Slide 29: 2014 Total Measured and Indicated Mineral Resources
2014 Total Measured and Indicated Mineral Resources TOTAL MEASURED & INDICATED MINERAL RESOURCES1,2,3,4,5,6,7,8,9,10,11,12,13,14 AS AT DECEMBER 31, 2014 CUT-OFF TONNES GRADE GRADE CONTAINED CONTAINED (G/T AU) (000) (G/T AU) (G/T AG) OUNCES AU OUNCES AG Mexico Mulatos 0.5 76,850 1.06 - 2,624,686 - Sa
Slide 30: 2014 Total Inferred Mineral Resources
2014 Total Inferred Mineral Resources TOTAL INFERRED MINERAL RESOURCES1,3,4,5,6,7,8,9,10,11,12,13,14 AS AT DECEMBER 31, 2014 CUT-OFF TONNES GRADE GRADE CONTAINED CONTAINED (G/T AU) (000) (G/T AU) (G/T AG) OUNCES AU OUNCES AG Mexico Mulatos 0.5 6,629 0.98 - 208,576 - San Carlos UG 2.5 403 4.53 - 58,7
Slide 31: Notes to Mineral Reserve and Resource Estimates
Notes to Mineral Reserve and Resource Estimates Notes to Mineral Reserve Estimates 1) The Company’s mineral reserves as at December 31, 2014 are classified in accordance with the Canadian Institute of Mining Metallurgy and Petroleum’s “CIM Standards on Mineral Resources and Reserves, Definition and
Slide 32: Scott K. Parsons, CFA
Scott K. Parsons, CFA VP, Investor Relations 416.368.9932 x 5439 sparsons@alamosgold.com