Alamos Gold Inc. · TSX:AGI
Alamos Gold — Investor Presentation (January 2023)
62 slides from Alamos Gold's investor presentation, Jan 12, 2023
Slide 1: Corporate Presentation January 2023
Corporate Presentation January 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 <$1,000 Quartz Mountain, USA cost profile 2023E AISC/oz1,2,3 2025+ AIS
Slide 4: Sustainable business model supporting long-term value creation
Sustainable business model supporting long-term value creation Conservative, low-risk Balanced approach to Long-term track record strategy growth of value creation Counter-cyclical Safe jurisdictions Return capital to Approach to M&A, acquiring high-quality 100% North American production shareholder
Slide 5: ESG – leading on key metrics with focus on continuous improvement
ESG – leading on key metrics with focus on continuous improvement Environment Social Lower GHG emissions per oz gold produced1,2 Lost time injury frequency rate 0.8 0.67 0.25 0.20 tCO2e/oz Au per 200,000 hours 0.6 0.41 39% 0.4 0.17 63% 0.2 0.15 0.16 0.14 worked 0.2 lower than 0 Reduction in LTIFR 0.
Slide 6: ESG – strong relative performance & positive rating trend
ESG – strong relative performance & positive rating trend Governance 2018 2019 2020 2021 2022 Trend Score/notes 90% 38% Independent Director Medium risk; 78th percentile in Board members - 47 39 29 28.5 independence precious metals subindustry3 are women o Top 35% ranking in 2022 Globe and Mail Boar
Slide 7: Q4 & full-year 2022 results – record quarterly production; met full year guidance
Q4 & full-year 2022 results – record quarterly production; met full year guidance Q3 YTD Q4 2022 2022A Q4 & FY2022 results highlights 2022A 2022A Guidance Gold production (000 oz) 326 134 460 440-480 • Record quarterly production: 9% increase from Q3 Gold sales (000 oz) 323 133 457 - • Met full year
Slide 8: 2023 guidance – production guidance increased reflecting stronger outlook
2023 guidance – production guidance increased reflecting stronger outlook 2023E 2023E 2022E (previous) (current) Gold production1 (000 oz) 460 460-500 480-520 9% production growth Cost of sales (US$/oz, includes amortization)2 $1,325 - $1,250 YoY to 480-520k oz Total cash costs (US$/oz)3 $875-925 $7
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 potential in 2025 $1,150 800 $1,215 • Production guidance increased for 2023 & 2024 $1,125 $1,025 $1,000 700 • Additional growth potential in 2025 with inclusion of higher-grade $1,000 P
Slide 10: Consolidated cash flow outlook – fully funded growth with strong free cash flow
Consolidated cash flow outlook – fully funded growth with strong free cash flow Consolidated free cash flow outlook (US$M)1,2 $150 $100 $50 $0 2023 2024 2025 $1,650 $1,750 $1,850 2026+ Balanced approach to growth – no Strong ongoing free cash flow Significant free cash flow significant capital expec
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 $1,215 800 $1,150 Lynn Lake3 700 $1,025 $1,000 13 year reserve life2 600 Production (000 oz Au) 500 Island Gold 18 year mine life2 400 300 Mulatos 6 year reserve life2,4 200 100 Young-Davidson 15 year reserve life2 0 2022E 2023E 20
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 Shaft pre-sinking completed in November Average mine-site AISC1,2,3 , 34% reduction from 2022 Phase 3+ Expansion production & cost profile 1 400,000 $1
Slide 15: Island Gold – ongoing exploration success driving growth in size & value
Island Gold – ongoing exploration success driving growth in size & value Reserve & Resource growth since 2017 acquisition Island Gold Consensus NPV growth (US$M)4 Mineral Reserves M&I Mineral Resources Inferred Mineral Resources 16 $1,589 5,000 Mineral Reserve grade 4,500 Inferred Resource grade Cum
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 (PDA) PUERTO DEL AIRE MULATOS MINE LA YAQUI GRANDE La Yaqui Grande Near-term value driver: La Yaqui Grande low-cost production growth • 63k oz produced in H2/22 at ~$700/oz mine site AISC1,2 • 34% increase in
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 $500M Undrawn Credit Facility Cash &
Slide 19: Track record of adding value through M&A & exploration
Track record of adding value through M&A & exploration Mulatos (US$M) Young-Davidson (US$M) Island Gold (US$m) $241 $224 $1,649 $325 $1,230 $950 $640 $10 $426 Acquisition Cost (2003) Consensus NPV & Acquisition Cost (2015) Consensus NPV & Acquisition Cost (2017) Consensus NPV & Cumulative FCF Cumula
Slide 20: Long-term track record of delivering shareholder value
Long-term track record of delivering shareholder value Short & long-term track 14% average annualized return Strong outlook, attractive record of outperformance since 20031 valuation 50% AGI - NYSE GDX 1.49 1,2 40% GDXJ Gold (US$/oz) Consensus P/NAV 1.34 30% 1.21 1.21 1.18 1.18 1.12 1.11 20% 1.05 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 o 2022 year-end Mineral Reserve and Resource update: Febru
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 2022 Guidance Young-Davidson Island Gold Mulatos Lynn Lake Total Total Gold production (000 oz) 185 - 200 120 - 135 175 - 185 — 480 - 520 460 (actual) Cost of sales (US$M)3 — — — — $625 $610 Cost of sales (US$/oz)3 — — — — $1,250 $1,325 Total cash costs (US$/oz)1 $900 - 9
Slide 25: 2023 guidance: capital budget
2023 guidance: capital budget 2023 Guidance 2022 Guidance Sustaining Capital Growth Capital Total Total Operating Mines (US$M) Young-Davidson $50 - 55 $5 - 10 $55 - 65 $55 - 65 Island Gold $45 - 50 $165 - 185 $210 - 235 $180 - 200 Mulatos $10 $5 - 10 $15 - 20 $55 - 65 Total – Operating Mines $105 -
Slide 26: 2023 - 2025 guidance: operating mines
2023 - 2025 guidance: operating mines1 2023 2024 2025 Current Previous Current Previous Current Gold Production (000 oz) Young-Davidson 185 - 200 185 - 200 185 - 200 185 - 200 185 - 200 Island Gold 120 - 135 115 - 125 145 - 160 140 - 155 175 - 190 Mulatos District 175 - 185 160 - 175 140 - 150 135 -
Slide 27: Significant exploration potential; strong track record
Significant exploration potential; strong track record Mineral Reserves growing in size & quality1 2023 Exploration Budget (US$M) 1.58 1.50 1.51 1.50 1.49 1.30 9,832 9,702 9,726 9,870 10,257 $47M 7,696 2016 2017 2018 2019 2020 2021 P&P Mineral Reserve (k oz) Grade (g/t Au) Island Gold Young-Davidson
Slide 28: Track record of adding value on aggregate & per share basis
Track record of adding value on aggregate & per share basis Gold Production (000 oz Au) Mineral Reserves (M oz Au) Cash provided by operations before changes in WC (US$M) +229% 461 +506% 10.3 +706% $411 140 1.7 $51 1 2 2014A 2022A 2014A 2021A 2014A 2021A 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 2021 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 Underground mining rate (TPD) 8,000 6,000 4,000 2,000 Upper mine infrastructure 0 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16
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, and along strike to west o 21,600 m of underground exploration drilling planned in 2023 focused on expanding Resources o
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 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 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 3+ Shaft Expansion to 2,400 tpd expected to be completed 2026 • Significant exploration potential laterally & at d
Slide 35: 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 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 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 38: 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 39: 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 40: 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 41: 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 41
Slide 42: 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 42
Slide 43: 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 43
Slide 44: 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 44
Slide 45: 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 45
Slide 46: 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 46
Slide 47: 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 48: 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 & ~$325M of free cash flow2 generated to date • Declining cost profile with low-cost production from La Ya
Slide 49: 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 50: Mulatos – Puerto Del Aire, PDA1, and PDA2 new drilling results
Mulatos – Puerto Del Aire, PDA1, and PDA2 new drilling results High-grade mineralization extended beyond Mineral Reserves & Resources including 32.24 g/t Au (20.78 g/t cut) over 5.30 m TSX:AGI ǀ NYSE:AGI 50
Slide 51: 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 52: 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 53: 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 54: 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 55: Top Shareholders and Analyst Coverage
Top 10 Shareholders and Analyst Coverage Top 10 Shareholders1,2 Analyst Coverage Van Eck Associates Corporation Bank of America - Lawson Winder BMO Capital Markets - Brian Quast BlackRock Investment Management Canaccord Genuity - Dalton Baretto Dimensional Fund Advisors CIBC Word Markets - Cosmos Ch
Slide 56: Gold247
What is Gold247? Gold247 Why now? The World Gold Council's strategic vision for Gold has a systemic role in the world's economy. The way transforming the global gold market and elevating gold is traded, and supply chain management needs to gold into the mainstream of financial markets. The modernise
Slide 57: 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 58: 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 59: 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 60: 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 61: 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 62: Scott K. Parsons, CFA
Scott K. Parsons, CFA SVP, Investor Relations 416.368.9932 x 5439 sparsons@alamosgold.com