Alamos Gold Inc. · TSX:AGI
Alamos Gold — Investor Presentation (February 2023)
59 slides from Alamos Gold's investor presentation, Feb 22, 2023
Slide 1: Corporate Presentation February 2023
Corporate Presentation February 2023
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 Fully funded ~500k oz ~800k oz Longer-term organic growth 2023E gold production1 production potential Lynn Lake, Canada Island Gold, Canada Young-Davidson, Canada Declining ~$1,150 <$1,000 Quartz Mountain, USA cost profile 2023E AISC/oz1,2,3 2025+ AIS
Slide 4: Sustainable business model supporting long-term value creation
Sustainable business model supporting long-term value creation Conservative, low-risk Balanced approach to Long-term track record strategy growth of value creation Counter-cyclical Safe jurisdictions Return capital to Approach to M&A, acquiring high-quality 100% North American production shareholder
Slide 5: ESG – leading on key metrics with focus on continuous improvement
ESG – leading on key metrics with focus on continuous improvement Environment Social Lower GHG emissions per oz gold produced1,2 Lost time injury frequency rate 0.8 0.67 0.25 0.20 tCO2e/oz Au per 200,000 hours 0.6 0.41 39% 0.4 0.17 63% 0.2 0.15 0.16 0.14 worked 0.2 lower than 0 Reduction in LTIFR 0.
Slide 6: ESG – strong relative performance & positive rating trend
ESG – strong relative performance & positive rating trend Governance 2018 2019 2020 2021 2022 Trend Score/notes 90% 38% Independent Director Medium risk; 78th percentile in Board members - 47 39 29 28.5 independence precious metals subindustry3 are women o Top 35% ranking in 2022 Globe and Mail Boar
Slide 7: Q4 & full-year 2022 results – record quarterly production; met full year guidance
Q4 & full-year 2022 results – record quarterly production; met full year guidance 2022 Q4 2022A Q4 2021A 2022A 2021A Guidance Gold production (000 oz) Gold sales (000 oz) 134.2 133.2 112.5 113.0 460.4 456.6 457.2 457.5 440-480 - 134k oz Average realized gold price (US$/oz) $1,741 $1,798 $1,799 $1,80
Slide 8: 2023 guidance – production guidance increased reflecting stronger outlook
2023 guidance – production guidance increased reflecting stronger outlook 2023E 2023E 2022A (previous) (current) Gold production (000 oz) 460 460-500 480-520 9% production growth Cost of sales (US$/oz, includes amortization)1 $1,334 - $1,250 YoY to 480-520k oz Total cash costs (US$/oz)2 $884 $775-87
Slide 9: Strong three-year outlook – growing production & declining costs
Strong three-year outlook – growing production & declining costs Strong production growth in 2023; further upside $1,150 potential in 2025 800 800 $1,204 • Production guidance increased for 2023 & 2024 $1,125 $1,025 700 $1,000 700 • Additional growth potential in 2025 with inclusion of higher-grade
Slide 10: Consolidated cash flow outlook – fully funded growth with strong free cash flow
Consolidated cash flow outlook – fully funded growth with strong free cash flow Consolidated free cash flow outlook (US$M)1,2 $150 $100 $50 $0 2023 2024 2025 2026+ US$1,650/oz Au US$1,750/oz Au US$1,850/oz Au Balanced approach to growth – no Strong ongoing free cash flow Significant free cash flow s
Slide 11: High quality, long-life production base; low geopolitical risk profile
High quality, long-life production base; low geopolitical risk profile Young-Davidson, Ontario, Canada Island Gold, Ontario, Canada Mulatos (inc. LYG), Sonora, Mexico Underground Underground Open pit, heap leach ❑ 2023E Au production: 185-200k oz ❑ 2023E Au production: 120-135k oz ❑ 2023E Au product
Slide 12: High-return organic growth in safe jurisdictions
High-return organic growth in safe jurisdictions Island Gold Phase 3+ Expansion Puerto Del Aire (Mulatos) Lynn Lake Ontario, Canada Sonora, Mexico Manitoba, Canada IRR1,2: 23% IRR1,2: 25% IRR3: 13% IRR3: 22% New development plan NPV5% 1: $1.6B NPV5% 1: $2.0B NPV5% 3: $123M NPV5% 3: $290M H2 2023 @$1
Slide 13: Growing, long-life North American production; declining cost profile
Growing, long-life North American production; declining cost profile 800 $1,204 $1,150 Lynn Lake4 700 $1,025 $1,000 13 year reserve life3 Production (000 oz Au) 600 500 Island Gold 17 year mine life3 400 300 Mulatos (excluding PDA) 5 year reserve life3,5 200 100 Young-Davidson 15 year reserve life3
Slide 14: Island Gold Phase 3+ Expansion – larger, longer-life & lower capital intensity
Island Gold Phase 3+ Expansion – larger, longer-life & lower capital intensity 115% production growth to 287k oz/yr in 20261 $576/oz Shaft site area, February 2023 Shaft pre-sinking completed in November 2022 Average mine-site AISC1,2,3 , 37% reduction from 2022 Phase 3+ Expansion production & cost
Slide 15: Island Gold – ongoing exploration success driving growth in size & value
Island Gold – ongoing exploration success driving growth in size & value Reserve & Resource growth since 2017 acquisition Island Gold Consensus NPV growth (US$M)4 Mineral Reserves M&I Mineral Resources 16 Inferred Mineral Resources 5,000 Mineral Reserve grade Inferred Resource grade Cumulative oz pr
Slide 16: Mulatos District – La Yaqui Grande driving production higher & costs lower
Mulatos District – La Yaqui Grande driving production higher & costs lower PUERTO DEL AIRE MULATOS MINE LA YAQUI GRANDE Puerto Del Aire (PDA) La Yaqui Grande Near-term value driver: La Yaqui Grande low-cost production growth • 68k oz produced at $598/oz mine site AISC1,2 in 2022 following initial pr
Slide 17: 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 18: 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 $130M zero debt, well positioned for all market conditions 1,2 $630M $130M Fully funded Cash & $630M total liquidity1,2 organic growth $500M Undrawn Credit Facility Cash & cas
Slide 19: Track record of adding value through M&A & exploration
Track record of adding value through M&A & exploration Mulatos (US$M) Young-Davidson (US$M) Island Gold (US$M) $226 $248 $354 $1,769 $1,188 $950 $475 $640 $10 Acquisition Cost (2003) Consensus NPV & Acquisition Cost (2015) Consensus NPV & Acquisition Cost (2017) Consensus NPV & Cumulative FCF Cumula
Slide 20: Long-term track record of delivering shareholder value
Long-term track record of delivering shareholder value Short & long-term track 14% average annualized return Strong outlook, attractive record of outperformance since 20031 valuation 60% AGI - NYSE GDX 1,2 50% Consensus P/NAV GDXJ Gold (US$/oz) 1.20 1.20 40% 1.04 1.04 0.99 0.96 30% 0.89 0.87 0.81 0.
Slide 21: Alamos Gold – value creation opportunities
Alamos Gold – 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 ✓ 2% increase in YE 2022 Mineral Reserves at 3% higher gra
Slide 22: Appendices
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: 2023 guidance
2023 guidance 2023 Guidance 2022A Young-Davidson Island Gold Mulatos Lynn Lake Total Total Gold production (000 oz) 185 - 200 120 - 135 175 - 185 — 480 - 520 460 Cost of sales (US$M)3 — — — — $625 $609 Cost of sales (US$/oz)3 — — — — $1,250 $1,334 Total cash costs (US$/oz)1 $900 - 950 $600 - 650 $90
Slide 25: 2023 guidance: capital budget
2023 guidance: capital budget 2023 Guidance 2022A Sustaining Capital Growth Capital Total Total Operating Mines (US$M) Young-Davidson $50 - 55 $5 - 10 $55 - 65 $67 Island Gold $45 - 50 $165 - 185 $210 - 235 $139 Mulatos $10 $5 - 10 $15 - 20 $60 Total – Operating Mines $105 - 115 $175 - 205 $280 - 32
Slide 26: 2023 - 2025 guidance: operating mines
2023 - 2025 guidance: operating mines1 2023 2024 2025 Current Previous Current Previous Current Gold Production (000 oz) Young-Davidson 185 - 200 185 - 200 185 - 200 185 - 200 185 - 200 Island Gold 120 - 135 115 - 125 145 - 160 140 - 155 175 - 190 Mulatos District 175 - 185 160 - 175 140 - 150 135 -
Slide 27: Significant exploration potential; strong track record
Significant exploration potential; strong track record Mineral Reserves Growing in Size & Quality1 2023 Exploration Budget (US$M) 1.70 1.63 11,200 1.58 1.60 1.51 1.49 1.50 1.50 10,200 1.40 9,200 1.30 8,200 9,702 9,726 9,870 10,257 10,455 1.20 $47M 7,200 1.10 6,200 1.00 2018 2019 2020 2021 2022 P&P M
Slide 28: Track record of adding value on aggregate & per share basis
Track record of adding value on aggregate & per share basis Gold Production (000 oz Au) Mineral Reserves (M oz Au) Cash provided by operations before changes in WC (US$M) +229% +518% 10.5 460 +610% $362 140 1.7 $51 1 2 2014A 2022A 2014A 2022A 2014A 2022A Gold Production Per Share Gold Reserves Per S
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 2022 Mineral Reserves • Large resource base & exploration potential to support m
Slide 30: Young-Davidson – transition to lower mine infrastructure driving strong FCF
Young-Davidson – transition to lower mine infrastructure driving strong FCF $26M average quarterly mine-site free cash flow1 following completion of lower mine expansion in July 2020 8,000 Underground Mining Rate (TPD) 7,000 6,000 5,000 4,000 3,000 2,000 Upper mine 1,000 infrastructure 0 Q1/15 Q2/15
Slide 31: Young-Davidson longitudinal – significant exploration potential
Young-Davidson longitudinal – significant exploration potential West Historic Northgate MCM Historic East YD Mine Shaft Shaft MCM Mine 10100 Surface o 3.3M oz Mineral Reserves, L MCM Drilling supporting a 15 year Reserve life1 -500m o Mineralization open at depth, 9590L 9770 - FW East and along stri
Slide 32: Young-Davidson – increasing mining rates & productivity
Young-Davidson – increasing mining rates & productivity Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Gold production (oz) 55,800 56,500 41,000 39,100 49,000 50,900 45,000 45,000 50,000 48,000 28,700 23,100 36,400
Slide 33: Island Gold – high-grade, low-cost production
Island Gold – high-grade, low-cost production Location: Ontario, Canada Stage: Producing Ownership: 100% interest Operation: Underground • World’s sixth highest grade gold mine1 • Phase 3+ Shaft Expansion to 2,400 tpd expected to be completed 2026 • Significant exploration potential laterally & at d
Slide 34: Island Gold - largest, most valuable operation in Canada not held by a major
Island Gold - largest, most valuable operation in Canada not held by a major Annual production - 7th largest Lowest cost Profitability - top 5 2021A Production3 2021A AISC1,3 Annual Profitability Operation Owner Operation Operation (US$M) (AISC Margin2 (koz) (US$/oz) x annual production) Agnico Eagl
Slide 35: 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 +69% 10.8 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 35
Slide 36: Island Gold Phase 3+ Expansion to 2,400 tpd - larger, more valuable operation
Island Gold Phase 3+ Expansion to 2,400 tpd - larger, more valuable operation P3 2000 (2020)5 P3+ 2400 (2022) % change Throughput (tpd) tpd 2,000 2,400 20% Larger operation Total production (life of mine) 000 oz Au 3,104 4,460 44% Bigger ore body Average production (post project) 2 000 oz Au 236 287
Slide 37: Phase 3+ Expansion – cash flow profile at $1,650/oz Au
Phase 3+ Expansion – cash flow profile at $1,650/oz Au $446 $394 $401 $398 $399 $342 $327 $328 $324 $306 $269 $271 $270 $280 $283 $235 $246 $251 $246 $226 $225 $207 $205 $196 $186 $188 $184 $169 $164 $133 $139 $86 -$2 -$19 -$4 -$12 -$43 -$45 -$36 -$45 -$34 -$27 -$61 -$62 -$57 -$63 -$58 -$52 -$97 -$1
Slide 38: Phase 3+ Expansion – cash flow profile at $1,850/oz Au
Phase 3+ Expansion – cash flow profile at $1,850/oz Au $514 $463 $460 $463 $456 $397 $377 $358 $380 $383 $332 $316 $326 $315 $289 $281 $289 $294 $289 $262 $245 $219 $235 $242 $232 $215 $213 $220 $164 $164 $157 $103 $35 -$19 -$4 -$12 -$43 -$31 -$45 -$36 -$45 -$34 -$27 -$62 -$57 -$63 -$58 -$52 -$72 -$
Slide 39: Phase 3+ Expansion – detailed mine plan
Phase 3+ Expansion – detailed mine plan 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 Mill Feed mined (000’s tonnes) 438 438 439 479 699 876 878 876 876 876 878 876 876 876 878 875 874 542 Waste mined (000’s tonnes) 493 579 647 676 537 393 393 370 427 412
Slide 40: Island Gold – 2022 Mineral Reserve & Resource additions
Island Gold – 2022 Mineral Reserve & Resource additions TSX:AGI ǀ NYSE:AGI 40
Slide 41: Island Gold 2022 exploration highlights
Island Gold 2022 exploration highlights Extending high-grade mineralization beyond Mineral Reserves & Resources laterally & at depth TSX:AGI ǀ NYSE:AGI 41
Slide 42: Island Gold 2022 exploration highlights – Island West sub-parallel B-Zone
Island Gold 2022 exploration highlights – Island West sub-parallel B-Zone High-grade mineralization intersected in newly defined sub-parallel zones in proximity of existing infrastructure TSX:AGI ǀ NYSE:AGI 42
Slide 43: Island Gold 2022 exploration highlights – Island West sub-parallel G1-Zone
Island Gold 2022 exploration highlights – Island West sub-parallel G1-Zone Potential high-grade Mineral Reserve & Resource additions that could be incorporated into near-term mine plan TSX:AGI ǀ NYSE:AGI 43
Slide 44: Longitudinal of Canadian underground gold deposits
Longitudinal of Canadian underground gold deposits • Underground gold deposits in Canadian shield can extend well below a depth of 3km • Island Gold has been drilled to a depth of 1.7km & remains open laterally & down plunge TSX:AGI ǀ NYSE:AGI 44
Slide 45: Island Gold – historical operational results
Island Gold – historical operational results 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 Q2/22 Q3/22 Q4/22 Gold production (oz) 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 41,200 42,2
Slide 46: Mulatos District – our founding operation
Mulatos District – our founding operation Location: Sonora, Mexico Stage: Producing Ownership: 100% interest Operation: Open pit, heap leach • Initial production 2005 • More than 2M oz produced & ~$354M of free cash flow2 generated to date • Declining cost profile with low-cost production from La Ya
Slide 47: 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 1.4M oz Combined Mineral Reserves1,2 at the La Yaqui Grande & Puerto Del Aire higher grade discoveries 1 See Mineral Reserve and Resource es
Slide 48: Mulatos – Puerto Del Aire (PDA): growing, higher-grade underground deposit
Mulatos – Puerto Del Aire (PDA): growing, higher-grade underground deposit Significant growth & exploration upside: Development plan H2 2023: • 70% increase in Mineral Reserves to 728k oz; 4% increase in grades to 4.84 g/t Au • PDA adjacent to main Mulatos pit • 1M oz total Mineral Reserves & Resour
Slide 49: 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 50: 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 51: Turkish Development Projects
Turkish Development Projects • $1B investment treaty claim filed against Republic of Türkiye 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
Slide 52: 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 53: Top Shareholders and Analyst Coverage
Top 10 Shareholders and Analyst Coverage Top 10 Shareholders1,2 Analyst Coverage Van Eck Associates Corporation Bank of America - Harmen Puri BMO Capital Markets - Brian Quast BlackRock Investment Management Canaccord Genuity - Dalton Baretto Dimensional Fund Advisors CIBC Word Markets - Cosmos Chiu
Slide 54: Total Proven & Probable Mineral Reserves
Total Proven & Probable Mineral Reserves PROVEN AND PROBABLE GOLD MINERAL RESERVES (as at December 31, 2022) 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 55: Total Measured & Indicated Mineral Resources
Total Measured & Indicated Mineral Resources MEASURED AND INDICATED GOLD MINERAL RESOURCES (as at December 31, 2022) 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 56: Total Inferred Mineral Resources
Total Inferred Mineral Resources INFERRED GOLD MINERAL RESOURCES (as at December 31, 2022) Tonnes Grade Ounces (000's) (g/t Au) (000's) Young-Davidson - Surface 31 0.99 1 Young-Davidson - Underground 1,586 2.89 147 Total Young-Davidson 1,617 2.85 148 Golden Arrow 2,028 1.07 70 Island Gold 8,066 13.6
Slide 57: 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 news release. Chris Bostwick is a Qualified Person within the meani
Slide 58: 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 59: Scott K. Parsons, CFA
Scott K. Parsons, CFA SVP, Investor Relations 416.368.9932 x 5439 sparsons@alamosgold.com