Alamos Gold Inc. · TSX:AGI
Alamos Gold — Shareholder Meeting (May 2014)
23 slides from Alamos Gold's shareholder meeting presentation, May 28, 2014
Slide 1: Annual Meeting of Shareholders
John A. McCluskey President and Chief Executive Officer Annual Meeting of Shareholders May 28, 2014
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: Robust Balance Sheet
Robust Balance Sheet Cash & Cash Equivalents1 ~US$400 million Working Capital1 ~US$450 million Debt None Gold Hedging None Semi‐Annual Dividend US$0.10/share Shares Outstanding1 127.4 million Warrants1 7.2 million Employee Options1 4.6 million Fully Diluted 139.1 million Recent Share Price (TSX)2 C$
Slide 4: Significant Achievements in 2013
Significant Achievements in 2013 Achieved 2013 production guidance and low end of cash cost guidance Operating Data 2013A 2013E Guidance Production oz Au 190,000 180,000 ‐ 200,000 Cash Operating Costs1 US$/oz $426 $415‐435 Total Cash Costs1 US$/oz $496 $500‐520 All‐in Sustaining Costs1 US$/oz $772
Slide 5: Significant Achievements in 2013
Significant Achievements in 2013 Achieved 2013 production guidance and low end of cash cost guidance Advanced development pipeline in Turkey • Achieved significant milestone with EIA approval for the Kirazlı project 5
Slide 6: Significant Achievements in 2013
Significant Achievements in 2013 Achieved 2013 production guidance and low end of cash cost guidance Advanced development pipeline in Turkey Enhanced growth profile pipeline through low cost acquisitions $47m <3% >50% Net cash paid to Transaction size Expected production acquire Esperanza rela
Slide 7: Significant Achievements in 2013
Significant Achievements in 2013 Achieved 2013 production guidance and low end of cash cost guidance Advanced development pipeline in Turkey Enhanced growth profile pipeline through low cost acquisitions Generated strong cash flows and continued to strengthen balance sheet $64m $113m Increas
Slide 8: Significant Achievements in 2014
Significant Achievements in 2014 Increased reserve grade and high grade underground reserve • Expected to positively impact production and costs 43% 9% increase higher 7.02 0.93 4.92 0.85 2012 2013 2014 Budget 2013 Open Pit Reserve Grade San Carlos Underground Open Pit Mineral Reserve Grade1 Miner
Slide 9: Significant Achievements in 2014
Significant Achievements in 2014 Increased reserve grade and high grade underground reserve Transitioned to contract mining Alamos Tax Planning Mexican Tax Reform Net Impact • Contract mining • 7.5% EBITDA Tax ~35% effective tax • Transfer pricing • 0.5% Royalty rate instead of ~40% • Inter comp
Slide 10: Significant Achievements in 2014
Significant Achievements in 2014 Increased reserve grade and high grade underground reserve Transitioned to contract mining Strong Q1 2014 results with costs beating expectations on all fronts Operating Data Q1 2014A 2014E Guidance Production oz Au 37,000 150,000 ‐ 170,000 Cash Operating Costs
Slide 11: Significant Achievements in 2014
Significant Achievements in 2014 Increased reserve grade and high grade underground reserve Transitioned to contract mining Strong Q1 2014 results with costs beating expectations on all fronts Secured Surface Rights at Cerro Pelon and La Yaqui 11
Slide 12: Acquired Surface Rights for Cerro Pelon & La Yaqui
Acquired Surface Rights for Cerro Pelon & La Yaqui • Incremental low‐cost production growth starting in 2016 • 33,000 oz – average annual production over a 5 year mine life • ~50,000 oz – peak annual production • 1.6 g/t – combined mineral reserve grade nearly double 2014 budget • $490/oz – combined
Slide 13: Long Term Track Record… …Long Term Vision
Long Term Track Record… …Long Term Vision 13
Slide 14: Alamos Gold – Long Term Track Record…
Alamos Gold – Long Term Track Record… $10m $70m $350m cost to acquire initial capital raised to free cash flow Mulatos in 2003 build Mulatos generated to date Proven, Low Risk, High Reward Strategy 1 Please refer to Cautionary Notes on non‐GAAP Measures and Additional GAAP Measures. 14
Slide 15: …Long Term Vision
…Long Term Vision We intend on replicating this success many times over… Cerro Pelon & La Yaqui Open pit, heap leach projects Kirazlı Total acquisition cost • Low capital intensity Ağı Dağı • <$150m Çamyurt • ~$20/oz of • Low operating costs Esperanza resource1,2 • Low technical risk Quartz Mountain
Slide 16: Production (000 oz Au)
…Long Term Vision • Leading growth profile • Fully funded growth – $400m cash & ongoing cash flow generation • Further potential upside through Çamyurt & Quartz Mountain 500 400 Production (000 oz Au) 300 200 100 0 2006 2007 2008 2009 2010 2011 2012 2013E 2014E Esperanza Kirazlı & Ağı Dağı Mulatos 1
Slide 17: Long Term Track Record of Outperformance
Long Term Track Record of Outperformance 175% Alamos Gold Inc. (TSX:AGI) ‐ Share Pricing 150% S&P/TSX Global Gold Index ‐ Index Value Gold (COMEX ‐ C$/oz) ‐ Day Close Price 125% 100% 75% 50% 25% 0% ‐25% ‐50% ‐75% Jan‐09 Mar‐09 May‐09 Oct‐09 Dec‐09 Mar‐10 May‐10 Oct‐10 Dec‐10 Mar‐11 May‐11 Oct‐11 Dec
Slide 18: Short Term Underperformance
Short Term Underperformance • Transition year at Mulatos – production dip temporary 50% Alamos Gold Inc. (TSX:AGI) ‐ Share Pricing S&P/TSX Global Gold Index ‐ Index Value Gold (COMEX ‐ C$/oz) ‐ Day Close Price 30% 10% ‐10% ‐30% ‐50% Jan‐14 Feb‐14 Mar‐14 Apr‐14 May‐14 Source: Capital IQ 18
Slide 19: Transition Year at Mulatos
Transition Year at Mulatos Pieces in place to return Mulatos to 200,000 oz per year 19
Slide 20: Pieces in Place to Return Mulatos to 200,000 Oz Per Year
Pieces in Place to Return Mulatos to 200,000 oz Per Year • San Carlos on track for Q3 2014 • Reserve grade increase – 2015 production growth • Cerro Pelon & La Yaqui – production growth secured for 2016 200 Production (000 oz Au) 150 100 50 0 2006 2007 2008 2009 2010 2011 2012 2013E 2014E 20
Slide 21: Alamos Gold – Value Proposition
Alamos Gold – Value Proposition 10.00 9.00 8.00 7.00 C$5.40 C$/share 6.00 5.00 C$8.90 4.00 3.00 2.00 C$3.76 C$3.50 1.00 0.00 3 2 2 Current Share Price Cash/Share Working Capital/Share Implied Value for Mulatos, Turkey, Esperanza & Quartz Mountain 3 1 Please refer to Cautionary Notes on non‐GAAP Meas
Slide 22: Alamos Well Positioned for Low-Cost Growth
Alamos Well Positioned for Low‐Cost Growth • We remain a low‐cost, mid‐tier gold producer • Mexico (Sonora State): own and operate the Mulatos Mine • Growth pipeline that generates strong returns at the current gold price • Turkey (Çanakkale): advanced‐stage development projects • Mexico (Morelos St
Slide 23: Scott K. Parsons, CFA
Scott K. Parsons, CFA Director, Investor Relations 416.368.9932 x 439 sparsons@alamosgold.com