Alamos Gold Inc. · TSX:AGI
Alamos Gold — Shareholder Meeting (May 2021)
23 slides from Alamos Gold's shareholder meeting presentation, May 27, 2021
Slide 1: Annual Meeting of Shareholders
John A. McCluskey President & Chief Executive Officer Annual Meeting of Shareholders May 27, 2021
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: Year in review
Year in review TSX:AGI ǀ NYSE:AGI 3
Slide 4: Health & Safety – Home Safe Every Day
Health & Safety – Home Safe Every Day Annual recordable injury frequency rate 1 Annual lost time injury frequency rate1 28% improvement in annual recordable injury frequency rate vs. 2019 18% improvement in lost time injury frequency rate vs. 2019 1 Recordable Injury Rate and Lost Time Injury Rate p
Slide 5: COVID-19 – focused on the health & safety of our people & communities
COVID-19 – focused on the health & safety of our people & communities Strict health & safety protocols at each operation Supporting our communities • We continue to be diligent in taking precautions to help prevent the potential spread of COVID-19 • All operations have returned to normal operating l
Slide 6: ESG – leading on key metrics with focus on continuous improvement
ESG – leading on key metrics with focus on continuous improvement Environment Social Governance o Carbon footprint & energy reduction initiatives o Recognition for social contributions: o 90% Director independence; 33% of which are women o Grid power connection at Mulatos o Best Corporate Social Res
Slide 7: Met full-year guidance; record financial performance
Met full-year guidance; record financial performance Gold Production (koz) Cash Flow from Operations & AISC (US$/oz)1,2 (before changes in WC)1 (US$M) $1,091 $1,022 $1,010 $933 $989 $1,046 $383 505 $951 495 $293 427k oz 380 392 429 427 gold production; met guidance for $213 $148 $183 6th consecutive
Slide 8: Q1 2021 results – solid operational & financial performance
Q1 2021 results – solid operational & financial performance Q1 2021A Q1 2020A 2021 Guidance Gold production (000 oz) 125.8 110.8 470-510 Gold sales (000 oz) 126.5 111.9 - 126k oz Average realized gold price (US$/oz) $1,798 $1,582 - produced, exceeding first quarter Cost of sales (US$/oz, includes am
Slide 9: Young-Davidson – lower mine expansion driving strong free cash flow growth
Young-Davidson – lower mine expansion driving strong free cash flow growth Lower mine expansion completed July 2020 7,791 tpd record underground mining rate in Q1 2021, exceeding H1 2021 target $53m mine-site free cash flow1 in first two full quarters post expansion 1 Please refer to Cautionary Note
Slide 10: Island Gold – record financial year; Phase III expansion to drive further growth
Island Gold – record financial year; Phase III expansion to drive further growth $101m record mine-site free cash flow2 in 2020 70% production growth to 236k oz annually starting 20253,4 with Phase III expansion 19% decrease in mine-site all-in sustaining costs2,3,4 to $534/oz $1.45b After-tax NPV5%
Slide 11: Island Gold – ongoing Reserve & Resource growth highlights significant upside
Island Gold – ongoing Reserve & Resource growth highlights significant upside Significant Growth Since Nov 2017 Acquisition Reserves 5,000 M&I Resources Inferred Resources Cumulative oz produced 1m oz increase in Mineral Reserves & 4,000 Resources in 2020, all upside to Phase III Study 3,000 3,208 2
Slide 12: Mulatos – developing La Yaqui Grande low-cost, high-return project
Mulatos – developing La Yaqui Grande low-cost, high-return project La Yaqui Grande development commenced Q3 2020 Q3 2022 initial production $578/oz mine-site AISC1,2; expected to significantly reduce Mulatos cost profile 1 Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Mea
Slide 13: Sustainable business model
Sustainable business model Balanced approach to capital allocation supporting growth & higher returns to shareholders over the long term o 67% increase in dividend since Q2/20 Return capital to o 400% increase in dividend since 2018 shareholders o Share buyback Strong free cash flow growth since Q2/
Slide 14: Growing, long-life North American production; declining cost profile
Growing, long-life North American production; declining cost profile ~490k oz production in 2021 at ~750k oz annual production potential by 2025 at ~$1,050/oz AISC1 ~$800/oz AISC1 800 Lynn Lake3 700 10 year reserve life2 ~170k oz per year 2025+ 600 Mulatos Production (000 oz Au) 500 7 year reserve l
Slide 15: Strong outperformance in 2020
Strong outperformance in 2020 120% Alamos Gold (TSX:AGI) 100% Gold Price (US$/oz) $31m S&P/TSX Global Gold Index returned to shareholders through dividends & buybacks in 2020 80% 60% 42% 67% 40% Increase in dividend since 25% September 2020 20% 21% 0% 400% -20% increase in annual dividend rate since
Slide 16: Long-term track record of delivering shareholder value
Long-term track record of delivering shareholder value Growing, diversified, Expanding margins & Conservative, low-risk Sustainable business intermediate gold profitability strategy model supporting producer growing returns over the long-term Catalysts 15% production growth in 2021 & further ~50% gr
Slide 17: Appendices
Appendices TSX:AGI ǀ NYSE:AGI 17
Slide 18: 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 19: Proven & Probable Mineral Reserves
Proven & Probable Mineral Reserves PROVEN AND PROBABLE GOLD MINERAL RESERVES (as at December 31, 2020) 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's) Yo
Slide 20: Total Measured & Indicated Mineral Resources
Total Measured & Indicated Mineral Resources MEASURED AND INDICATED GOLD MINERAL RESOURCES (as at December 31, 2020) 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 21: Total Inferred Mineral Resources
Total Inferred Mineral Resources INFERRED GOLD MINERAL RESOURCES (as at December 31, 2020) Tonnes Grade Ounces (000's) (g/t Au) (000's) Young-Davidson – Surface 31 0.99 1 Young-Davidson – Underground 2,301 2.88 213 Total Young-Davidson 2,331 2.86 214 Island Gold 6,915 14.43 3,208 Mulatos 8,122 0.92
Slide 22: Notes to Mineral Reserve and Resource estimates
Notes to Mineral Reserve and Resource estimates Qualified Persons Chris Bostwick, FAusIMM, Alamos Gold’s 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 meaning of C
Slide 23: Scott K. Parsons, CFA
Scott K. Parsons, CFA VP, Investor Relations 416.368.9932 x 5439 sparsons@alamosgold.com