Alamos Gold Inc. · TSX:AGI
Alamos Gold — Investor Presentation (May 2022)
55 slides from Alamos Gold's investor presentation, May 2022
Slide 1: Corporate Presentation May 2022
Corporate Presentation May 2022
Slide 2: Cautionary Notes
Cautionary Notes This presentation, the information contained herein, any other materials provided in connection with this presentation and any oral remarks accompanying this presentation (collectively, the “Presentation”), has been prepared by Alamos Gold Inc. (“Alamos” or the “Company”) solely for
Slide 3: Growing, diversified, intermediate gold producer
Growing, diversified, intermediate gold producer 12 year average mine life Strong supported by 10.3M oz Mineral Reserve base4 operating ~460k oz ~$1,215 2022E gold production1 2022E AISC per ounce1,2,3 base Fully funded Lynn Lake, Canada organic ~750k oz ~$800 Island Gold, Canada 2025E production po
Slide 4: Sustainable business model supporting long-term value creation
Sustainable business model supporting long-term value creation Conservative, low-risk Balanced approach to Long-term track record strategy capital allocation of value creation Return capital to shareholders Safe jurisdictions Strong ongoing Strengthen Counter-cyclical cash flow2 Approach to M&A, acq
Slide 5: ESG – leading on key metrics with focus on continuous improvement
ESG – leading on key metrics with focus on continuous improvement Environment Social Governance Lower GHG emissions per oz gold eq. produced1,2 Lost time injury rate 89% 33% 0.69 0.34 Director Board members per 200,000 hours independence are women 0.54 31% 38% tCO2e/oz 0.21 worked 0.37 lower than 0.
Slide 6: ESG – strong relative performance & positive rating trend
ESG – strong relative performance & positive rating trend ESG disclosure and reporting 2018 2019 2020 2021 Trend Score/notes o Adopting TCFD recommendations and incorporating climate-related risk into Medium risk; 20th percentile in disclosures - 47 39 29 gold subindustry o Completed CDP questionnai
Slide 7: Q1 2022 results – on track to achieve full year guidance
Q1 2022 results – on track to achieve full year guidance Q1 2022A Q1 2021A 2022 Guidance Gold production (000 oz) Gold sales (000 oz) 98.9 98.5 125.8 126.5 440-480 - 99k oz produced in Q1; production & Average realized gold price (US$/oz) $1,874 $1,798 - costs consistent with Q1 guidance Cost of sal
Slide 8: 2022 catalysts
2022 catalysts ✓ February 2022 o Mid-2022 o Q3 2022 o H2 2022 Mineral Reserves Island Gold La Yaqui Grande Lynn Lake 4% increase to 10.3M oz; updated Phase III expansion initial production EIS approval & 5% higher grades1 mine plan construction decision Groundbreaking for Island Gold Phase III Expan
Slide 9: Three-year outlook – expanding profitability
Three-year outlook – expanding profitability Gold production1 (000 oz) Total cash costs1,3 (US$/oz) All-in sustaining costs1,2,3,4 (US$/oz) Capital expenditures, operating mines1,3,5 (US$M) 460-500 460-500 $1,190-1,240 $1,075-1,175 440-480 $875-925 $950-1,050 $290-330 $775-875 $220-260 $230-270 $650
Slide 10: High quality, long-life production base; low geopolitical risk profile
High quality, long-life production base; low geopolitical risk profile Young-Davidson, Ontario, Canada Low-cost operation with 15-year Mineral Reserve life3 Underground o One of Canada’s largest underground gold mines ❑ 2022E Au production: 185-200k oz o Completed lower mine expansion in 2020 ❑ 2022
Slide 11: High-return organic growth in safe jurisdictions
High-return organic growth in safe jurisdictions Island Gold Phase III Expansion La Yaqui Grande (Mulatos) Lynn Lake Ontario, Canada Sonora, Mexico Manitoba, Canada IRR1,2: 17% IRR1,2: 22% IRR3: 41% IRR3: 58% IRR4: 13% IRR4: 22% NPV5% 1: $1.02B NPV5% 1: $1.45B NPV5% 3: $165M NPV5% 3: $260M NPV5% 4:
Slide 12: Island Gold – Phase III Shaft Expansion to 2,000 tpd
Island Gold – Phase III Shaft Expansion to 2,000 tpd Phase III Shaft Expansion production & cost profile2 Strong production growth at industry low costs 350,000 $1,000 300,000 $900 80% $534/oz $800 production growth to mine-site AISC1,2 , 40% 250,000 236koz/yr in 20251 reduction from 2022 Mine-site
Slide 13: Island Gold – ongoing exploration success driving growth in size & quality
Island Gold – ongoing exploration success driving growth in size & quality Reserve & Resource growth since 2017 acquisition Changes in Reserves & Resources as of December 31, 2021 Mineral Reserves M&I Mineral Resources Inferred Mineral Resources Mineral Reserve grade 16 5,000 Inferred Resource grade
Slide 14: La Yaqui Grande Project – low-cost production on track for Q3 2022
La Yaqui Grande Project – low-cost production on track for Q3 2022 Q3 2022 initial production; construction 90% complete Primary crusher - commissioned in Q1/22 Heap leach facility - 90% complete $578/oz average LOM mine-site AISC1,2; expected to drive Mulatos costs 30% lower in H2 20223 58% after-t
Slide 15: Lynn Lake Project – low cost, high-grade, open pit
Lynn Lake Project – low cost, high-grade, open pit Lower risk: ✓ Favorable jurisdiction: Manitoba, Canada ✓ Good infrastructure: access to low-cost hydro electric power ✓ Brownfield site: paved highways in proximity to site ✓ Low-cost, high-grade, conventional open-pit, milling project Significant u
Slide 16: Growing, long-life North American production; declining cost profile
Growing, long-life North American production; declining cost profile ~750k oz annual production potential by 2025 at ~$800/oz AISC1 Mulatos $1,215 PDA development Additional $1,135 $1,125 upside Island Gold $1,000 ~750 Updated mine plan potential $800 Lynn Lake3 13 year reserve life2 Production (000
Slide 17: Strong balance sheet; long-term focus on returning capital to shareholders
Strong balance sheet; long-term focus on returning capital to shareholders Cash & Total Liquidity Conservative balance sheet $124M zero debt, well positioned for all market conditions 1,2,3 $624M $124M Fully funded Cash & $624 total liquidity1,2,3 organic growth $500M Undrawn Credit Facility Cash &
Slide 18: Track record of adding value through M&A & exploration
Track record of adding value through M&A & exploration Mulatos (US$M) Young-Davidson (US$M) Island Gold (US$M) $230 $170 $353 $1,184 $1,434 $950 $438 $624 $10 Acquisition Cost Consensus NAV & Acquisition Cost (2015) Consensus NAV & Acquisition Cost (2017) Consensus NAV & (2003) Cumulative FCF Cumula
Slide 19: Track record of adding value on aggregate & per share basis
Track record of adding value on aggregate & per share basis Gold Production (000 oz Au) Mineral Reserves (M oz Au) Cash provided by operations before changes in WC (US$M) +226% 457 +506% 10.3 +706% $411 140 1.7 $51 1 2,3 2014A 2021A 2014A 2021A 2014A 2021A Gold Production Per Share Gold Reserves Per
Slide 20: Long-term track record of delivering shareholder value
Long-term track record of delivering shareholder value Long-term track record of outperformance 1.71 2 Average annualized return since 2003 1 Consensus P/NAV 12% 1.37 1.30 1.28 1.24 1.11 9% 0.97 0.95 0.93 0.92 0.89 0.85 0.76 0.75 0.74 0.59 0.58 0.54 3% CG IMG EQX SSRM BTO ABX NGD NEM K AGI AEM PAAS
Slide 21: Alamos – value creation opportunities
Alamos – value creation opportunities Growing, diversified, Expanding margins & Conservative, low- Sustainable business intermediate gold profitability risk strategy model supporting producer growing returns over the long-term Catalysts ✓ 4% increase in YE 2021 Mineral Reserves1 at 5% higher grades
Slide 22: Appendices
Appendices TSX:AGI ǀ NYSE:AGI 22
Slide 23: Board of Directors, Executive and Management Team
Board of Directors, Executive and Management Team Board of Directors Paul J. Murphy John A. McCluskey Elaine Ellingham David Fleck David Gower Claire M. C. Kennedy Monique Mercier J. Robert S. Prichard Kenneth Stowe Chairman Director Director Director Director Director Director Director Director Exe
Slide 24: 2022 guidance
2022 guidance 2022 Guidance 2021A Young-Davidson Island Gold Mulatos Other Total Total Gold production (000 oz) 185-200 125-135 130-145 — 440-480 457 Cost of sales (US$M) (3) — — — — $610 $534 Cost of sales (US$/oz) (3) — — — — $1,325 $1,167 Total cash costs (US$/oz) (1) $850-900 $550-600 $1,225-1,2
Slide 25: 2022 guidance: capital budget
2022 guidance: capital budget 2022 Guidance 2021A2 Sustaining Capital Growth Capital Total Total Operating Mines (US$M) Young-Davidson $50-55 $5-10 $55-65 $82 Island Gold $35-40 $145-160 $180-200 $101 Mulatos $5-10 $50-55 $55-65 $127 Total – Operating Mines $90-105 $200-225 $290-330 $310 Development
Slide 26: 2022 - 2024 guidance: operating mines
2022 - 2024 guidance: operating mines1 2022 2023 2024 Gold Production (000 oz) Young-Davidson 185-200 185-200 185-200 Island Gold 125-135 115-125 140-155 Mulatos 130-145 160-175 135-145 Total Gold Production 440-480 460-500 460-500 Total cash costs (US$/oz) (2) $875-925 $775-875 $650-750 All-in sust
Slide 27: Significant exploration potential; strong track record
Significant exploration potential; strong track record Mineral Reserves growing in size & quality1 2022 Exploration Budget (US$M) 1.58 1.50 1.51 1.50 1.49 1.30 9,832 9,702 9,726 9,870 10,257 $40M 7,696 Island Gold Drill Rig 2016 2017 2018 2019 2020 2021 P&P Mineral Reserve (Koz) Grade (g/t Au) Islan
Slide 28: COVID-19 – focused on the health & safety of our people & communities
COVID-19 – focused on the health & safety of our people & communities Amending COVID-19 health & safety protocols Supporting our communities • Adopting the advice of public health authorities; adhering to government regulations • On-site testing for COVID-19 on a voluntary basis • Vaccinations offer
Slide 29: Young-Davidson – long-life, low-cost production
Young-Davidson – long-life, low-cost production Location: Ontario, Canada Stage: Producing Ownership: 100% interest Operation: Underground • One of Canada’s largest underground gold mines • 15 year mine life based on YE 2021 Mineral Reserves • Large resource base & exploration potential to support m
Slide 30: Young-Davidson – transition to lower mine infrastructure completed July 2020
Young-Davidson – transition to lower mine infrastructure completed July 2020 Lower mine infrastructure larger, more productive & highly automated Upper mine infrastructure Upper mine Lower mine % infrastructure infrastructure Change Long term – July Timeline Pre-July 2020 2020 onward Design ore 6,00
Slide 31: Young-Davidson longitudinal – significant exploration potential
Young-Davidson longitudinal – significant exploration potential o Mineral Reserves increased 5% in 2021 to 3.4m oz supporting 15 year Reserve life1 o Mineralization open at depth, along strike to west o 21,600 m of underground exploration drilling planned in 2022 focused on expanding Resources o 3,5
Slide 32: Young-Davidson exploration drilling – extending gold mineralization within syenite
Young-Davidson exploration drilling – extending gold mineralization within syenite Detailed Longitudinal – 8960L drilling o Gold mineralization intersected within syenite 220 m below previous Mineral Resources in 2020 and extended an additional 150 m below Inferred Mineral Resources in 2021 YTD o Hi
Slide 33: Young-Davidson – increasing mining rates & productivity
Young-Davidson – increasing mining rates & productivity Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 Q1/22 Gold production (oz) 44,662 40,400 47,300 55,800 56,500 41,000 39,100 49,000 50,900 45,000 45,000 50,000 48,000
Slide 34: Island Gold – high-grade, low-cost production
Island Gold – high-grade, low-cost production Location: Ontario, Canada Stage: Producing Ownership: 100% interest Operation: Underground • World’s sixth highest grade gold mine1 • Phase III Shaft Expansion to 2,000 tpd expected to be completed 2025 • Significant exploration potential laterally & at
Slide 35: Island Gold – Phase III Shaft Expansion to 2,000 tpd
Island Gold – Phase III Shaft Expansion to 2,000 tpd Phase III Expansion Operating Parameters & Economics1 Average annual production (000 oz)2 236 Average mine-site AISC (US$/oz)2,3 $534 Growth capital (US$M) $514 Gold price assumption (US$/oz) $1,450 $1,750 Average annual free cash flow (US$M)2,3 $
Slide 36: One of Canada’s highest-grade gold mines
One of Canada’s highest-grade gold mines Mineral Reserve Grade (g/t Au) 16.3 15.3 +58% 10.1 9.2 8.4 7.0 6.7 6.5 6.4 6.4 5.8 5.1 4.7 4.5 4.2 4.1 3.0 2.4 1.6 Source: Company filings TSX:AGI ǀ NYSE:AGI 36
Slide 37: Island Gold Shaft Expansion – cash flow profile at $1,750/oz Au
Island Gold Shaft Expansion – cash flow profile at $1,750/oz Au $332 $301 $302 $291 $253 $251 $239 $236 $196 $214 $220 $207 $223 $203 $192 $204 $195 $175 $177 $172 $173 $161 $162 $156 $137 $86 $98 $86 $52 -$15 -$9 -$14 -$15 -$1 -$26 -$40 -$35 -$30 -$52 -$48 -$42 -$77 -$65 -$124 -$162 -$169 -$186 202
Slide 38: Island Gold Shaft Expansion – detailed mine plan
Island Gold Shaft Expansion – detailed mine plan 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Mill Feed mined (tonnes) 438,000 437,999 437,994 439,198 557,150 719,805 730,000 731,957 729,934 729,951 730,000 731,947 730,000 721,154 296,654 Waste mined (tonnes) 440,063 61
Slide 39: Island Gold – changes in Mineral Reserves as of December 31, 2021
Island Gold – changes in Mineral Reserves as of December 31, 2021 TSX:AGI ǀ NYSE:AGI 39
Slide 40: Island Gold – changes in Mineral Resources as of December 31, 2021
Island Gold – changes in Mineral Resources as of December 31, 2021 TSX:AGI ǀ NYSE:AGI 40
Slide 41: Island Gold – gold metal factor long section
Island Gold – gold metal factor long section Gold Metal Factor (Grade x True Width) C-Zone & E1E-Zone as of December 31, 2021 TSX:AGI ǀ NYSE:AGI 41
Slide 42: Island Gold – historical operational results
Island Gold – historical operational results Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 Q1/22 Gold production (oz) 23,772 26,110 26,659 22,063 28,100 26,700 22,000 29,000 35,600 39,500 36,700 38,600 38,800 19,400 39,600 41,
Slide 43: Mulatos – our founding operation
Mulatos – our founding operation Location: Sonora, Mexico Stage: Producing Ownership: 100% interest Operation: Open pit, heap leach • Initial production 2005 • More than 2M oz produced & ~$353M of free cash flow2 generated to date • Declining cost profile with development of La Yaqui Grande • No thi
Slide 44: Mulatos – district exploration potential
Mulatos – district exploration potential District potential large underexplored land package totaling 28,773 ha >70% of past drilling focused near Mulatos mine 1.2M oz Combined Mineral Reserves1,2 at the La Yaqui Grande & Puerto Del Aire higher grade discoveries 1 See Mineral Reserve and Resource es
Slide 45: La Yaqui Grande Internal Economic Study – 2020
La Yaqui Grande Internal Economic Study – 2020 La Yaqui Grande Project Highlights Life of Mine1 Production Mine life (years) 5 Total gold production (000 oz) 616 Total silver production (000 oz) 1,471 Average annual gold production (000 oz) 123 Total ore mined (000 tonnes) 19,205 Average tonnes of o
Slide 46: Lynn Lake Feasibility Study – 2017
Lynn Lake Feasibility Study – 2017 Feasibility Study Highlights - December 2017 Production Mine life (years) 10.4 Total gold production (000 oz) 1,495 Total silver production (000 oz) 1,263 Average annual gold production1 Years 1 to 6 (000 oz) 170 Years 1 to 10 (000 oz) 143 Total ore mined (000 tonn
Slide 47: Turkish Development Projects
Turkish Development Projects • $1B investment treaty claim filed against Republic of Turkey for expropriation & unfair & inequitable treatment of its Turkish gold projects1 • Construction of Kirazlı project suspended in October 2019 after government failed to grant routine renewal of the Company’s m
Slide 48: Kirazlı, Ağı Dağı & Çamyurt Economic Studies – 2017
Kirazlı, Ağı Dağı & Çamyurt Economic Studies – 2017 Feasibility Study - 2017 Preliminary Economic Assessment - 2017 Kirazlı Ağı Dağı Çamyurt Production Mine life (years) 5 6 4 Total gold production (ounces) 540,000 937,300 373,200 Total silver production (ounces) 3,141,000 2,365,200 1,612,600 Averag
Slide 49: Top 10 Shareholders and Analyst Coverage
Top 10 Shareholders and Analyst Coverage Top 10 Shareholders1,2 Analyst Coverage Bank of America - Lawson Winder Van Eck Associates Corporation BMO Capital Markets - Brian Quast BlackRock Investment Management Canaccord Genuity - Dalton Baretto Dimensional Fund Advisors CIBC Word Markets - Cosmos Ch
Slide 50: Total Proven & Probable Mineral Reserves
Total Proven & Probable Mineral Reserves PROVEN AND PROBABLE GOLD MINERAL RESERVES (as at December 31, 2021) Proven Reserves Probable Reserves Total Proven and Probable Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces (000's) (g/t Au) (000's) (000's) (g/t Au) (000's) (000's) (g/t Au) (000
Slide 51: Total Measured & Indicated Mineral Resources
Total Measured & Indicated Mineral Resources MEASURED AND INDICATED GOLD MINERAL RESOURCES (as at December 31, 2021) Measured Resources Indicated Resources Total Measured and Indicated Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces (000's) (g/t Au) (000's) (000's) (g/t Au) (000's) (000'
Slide 52: Total Inferred Mineral Resources
Total Inferred Mineral Resources INFERRED GOLD MINERAL RESOURCES (as at December 31, 2021) Tonnes Grade Ounces (000's) (g/t Au) (000's) Young-Davidson – Surface 31 0.99 1 Young-Davidson – Underground 2,062 3.02 200 Total Young-Davidson 2,093 2.99 201 Island Gold 7,906 13.59 3,454 Mulatos 507 0.92 15
Slide 53: Notes to Mineral Reserve and Resource estimates
Notes to Mineral Reserve and Resource estimates Qualified Persons Chris Bostwick, FAusIMM, Alamos Gold’s Senior Vice President, Technical Services, has reviewed and approved the scientific and technical information contained in this presentation. Chris Bostwick is a Qualified Person within the meani
Slide 54: Cautionary Note to U.S. Investors
Cautionary Note to U.S. Investors All resource and reserve estimates included in this Presentation have been prepared in accordance with Canadian National Instrument 43-101 -Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy and Petroleum (the
Slide 55: Scott K. Parsons, CFA
Scott K. Parsons, CFA VP, Investor Relations 416.368.9932 x 5439 sparsons@alamosgold.com