Slide 1: Island Gold Phase III Expansion Study Webcast
Island Gold Phase III Expansion Study Webcast July 15, 2020 TSX:AGI ǀ NYSE:AGI 1
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: Our team
Our team Toronto John A. McCluskey - President & CEO Jamie Porter - CFO Peter MacPhail - COO Chris Bostwick - VP, Technical Services Scott K. Parsons - VP, Investor Relations Island Gold Austin Hemphill - General Manager Raynald Vincent - Chief Geologist Nathan Bourgeault - Chief Mine Engineer TSX:A
Slide 4: Schedule
Schedule • Introduction • Island Gold overview • Exploration • Phase III Expansion Study 8:30 -10:30am • Overview & assumptions • Scenario analysis • Detailed review of Shaft Expansion • Capital allocation outlook • Conclusion and Q&A TSX:AGI ǀ NYSE:AGI 4
Slide 5: Introduction
Introduction John A. McCluskey President & Chief Executive Officer TSX:AGI ǀ NYSE:AGI 5
Slide 6: Strong platform for delivering long-term value
Strong platform for delivering long-term value Diversified, long-life Expanding margins & Strong balance sheet Long-term track gold production from profitability to support growth record of creating three North American value for all mines stakeholders 2020 – transformational year ✓ Island Gold – 0.
Slide 7: Island Gold Phase III Expansion Study
Island Gold Phase III Expansion Study Shaft Expansion to 2,000 tpd best option • Strongest economics • $1.02B after-tax NPV5%3 & 17% after-tax IRR3,4 ($1,450 gold price & US$/C$ $0.75:1) • $1.45B after-tax NPV5%3 & 22% after-tax IRR3,4 ($1,750 gold price & US$/C$ $0.75:1) • Higher capital more than
Slide 8: Island Gold – overview
Island Gold – overview Jamie Porter Chief Financial Officer Peter MacPhail Chief Operating Officer TSX:AGI ǀ NYSE:AGI 8
Slide 9: Island Gold – overview
Island Gold – overview Location: Ontario, Canada Stage: Producing Ownership: 100% interest Operation: Underground • One of Canada’s highest grade & lowest cost gold mines • Located just east of the town of Dubreuilville, Ontario, 83km northeast of Wawa • Commercial production declared October 2007;
Slide 10: Ongoing exploration success driving growth in size & quality
Ongoing exploration success driving growth in size & quality Significant Growth Since Nov 2017 Acquisition 4,000 12 +62% Mineral Reserves M&I Mineral Resources or 463k oz Increase in Mineral Inferred Mineral Resources Reserves, net of 364k oz mining Mineral Reserve grade 10 depletion3 Cumulative oz
Slide 11: One of Canada's highest-grade gold mines
One of Canada’s highest-grade gold mines Mineral Reserve Grade (g/t Au) 22.1 +62% 14.4 10.4 10.2 10.2 9.3 8.7 8.4 7.0 6.5 6.5 6.4 6.1 5.7 5.3 5.3 5.1 3.1 2.6 1.6 Source: Company filings TSX:AGI ǀ NYSE:AGI 11
Slide 12: Growing production, declining costs
Growing production, declining costs 160 $1,600 150 $1,452 140 $1,400 120 $1,185 $1,200 $1,136 106 Gold production (000 oz Au) 2 Mine-site AISC (US$/oz)1 100 99 $1,000 83 80 $781 $800 $745 $656 60 55 $599 $600 48 46 42 42 39 40 40 $400 34 29 20 $200 - $0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2
Slide 13: Growing free cash flow
Growing free cash flow 1 Total capital (US$m) $133 2 Operating cash flow (US$m) 2 Mine-site free cash flow (US$m) $76 $65 $59 $41 $26 $15 $10 -$2 -$27 -$33 -$42 -$43 -$661 -$691 2015A 2016A 2017A 2018A 2019A 1 Includes capitalized exploration 2 Please refer to Cautionary Notes on non-GAAP Measures a
Slide 14: Growing valuation
Growing valuation Island Gold (US$M) +149% $101 +79% Significant increase in value since $101 acquisition • Mineral Reserve & Resource growth $1,450 • Expanding throughput $55 $1,019 • Higher gold price $569 • Strong free cash flow generation Acquisition Cost (2017) & Royalty Phase III Shaft NAV5% (
Slide 15: Exploration
Exploration Raynald Vincent Chief Geologist, Island Gold TSX:AGI ǀ NYSE:AGI 15
Slide 16: Geology & exploration – gold occurrence
Geology & exploration – gold occurrence • Gold is mainly contained in high-grade quartz veins located inside plurimetric shear zones with altered host rocks (API) • Number and thickness of quartz veins are more important in the core of the C Zone at depth DDH: MH16-03: C vein – milky white color + V
Slide 17: Evolution of Island Gold – 2010
Evolution of Island Gold – 2010 W E Crown pillar LEGEND Ramp & Development 190 Level Mined out Diabase Dyke 340 Level R & R Year End 2010 GD-10-02 Proven Reserves 10.4/5.1 (2.9) - 500 m Probable Reserves - 500 m GD-10-07 GD-10-05 Indicated Resources 4.0/4.4 (2.4) 5.0/1.2 (0.7) Inferred Resources GD-
Slide 18: Evolution of Island Gold – year-end 2016
Evolution of Island Gold – year-end 2016 (acquired November 2017) W E Crown pillar LEGEND Ramp & Development 190 Level Mined out Diabase Dyke 340 Level R & R Year End 2016 Proven Reserves - 500 m Probable Reserves - 500 m Measured Resources 620 Level Indicated Resources Inferred Resources - 1000 m -
Slide 19: Mineral Reserves & Resources as of December 31, 2019
Island Gold Mine – Mineral Reserves & Resources as of December 31, 2019 W E Crown pillar LEGEND Ramp & Development 190 Level Mined out Diabase Dyke 340 Level R & R Year End 2019 Proven Reserves - 500 m Probable Reserves - 500 m Measured Resources Indicated Resources 620 Level Inferred Resources 840
Slide 20: Island Gold Mine – 2020 exploration highlights
Island Gold Mine – 2020 exploration highlights W E Crown pillar 190 Level 340 Level - 500 m - 500 m 840-566-06 21.01 g/t Au (21.01 g/t Au cut) / 4.26 m 620 Level Surface drilling in progress 840 Level Island East MH21-04 - 1000 m 840-566-01 44.30 g/t Au (44.30 g/t Au cut) / 2.25 m - 1000 m 1000 Leve
Slide 21: Island Gold Mine – exploration drilling areas
Island Gold Mine – exploration drilling areas W E Crown pillar 190 Level 340 Level Potential areas for - 500 m new resources - 500 m (3 UG drill rigs) 620 Level Surface directional drilling (3 drill rigs) 840 Level Island East - 1000 m - 1000 m 1000 Level LEGEND E Ramp & Development Mined out Au Cut
Slide 22: Phase III Expansion Study
Phase III Expansion Study Chris Bostwick VP, Technical Services TSX:AGI ǀ NYSE:AGI 22
Slide 23: Focus since November 2017 acquisition
Focus since November 2017 acquisition ✓ Successful integration ✓ Expand exploration efforts Year 1 ✓ Grow Mineral Reserve and Resource base (2018) ✓ Complete Phase I expansion to 1,100 tpd ✓ Continuous improvement initiatives (haulage optimization, supply chain management, mine ops dashboard) ✓ Cont
Slide 24: Phase I & Phase II expansions
Phase I & Phase II expansions • Phase I expansion to 1,100 tpd completed September 2018 • Phase II expansion – amended permits to operate at 1,200 tpd received May 2019 • Current expanded mill & mine capacity can support ~1,200 tpd • Mining rates averaged a record 1,240 tpd in Q1 2020 1,300 1,200 Ph
Slide 25: Shaft Expansion to 2,000 tpd best option under all conditions
Phase III Expansion Study Shaft Expansion to 2,000 tpd best option under all conditions • Strongest economics • $1.02B after-tax NPV5%3 & 17% after-tax IRR3,4 ($1,450/oz Au & US$/C$ $0.75:1) • $1.45B after-tax NPV5%3 & 22% after-tax IRR3,4 ($1,750/oz Au & US$/C$ $0.75:1) • Strongest operating parame
Slide 26: Phase III Expansion Study – assumptions
Phase III Expansion Study – assumptions Base case assumptions: • Mineable Resource • Mineral Reserves + 80% of M&I and Inferred Mineral Resources (as of December 31, 2019) • Gold price: US$1,450/oz • Consistent with consensus long term gold price assumptions • US$/C$: $0.75:1 • Life of mine plan and
Slide 27: Phase III Expansion Study – planning process
Phase III Expansion Study – planning process Five plans generated, multiple optimizations on each, Deswik planning software utilized • Mine design • Orebody divided into mineable shapes • Cut-off and recovery applied • Lateral development laid out, access ramps, vent raises, ore passes • Ventilation
Slide 28: Phase III Expansion Study – capital estimates
Phase III Expansion Study – capital estimates • Design engineering & costing completed to pre-feasibility level • High degree of confidence – mining costs based on first principles and operating experience • Construction labour rates and productivities based on site and Northern Ontario recent proje
Slide 29: Phase III Expansion Study – consultant contributions
Phase III Expansion Study – consultant contributions Item Consultant Overall Infrastructure Design & Engineering Sinking Engineering & Design Ventilation Engineering Paste Fill Plant & Underground Distribution System Design Water Management and Tailings Dam Mill Expansion Mine Simulation Consultant
Slide 30: Phase III Expansion Study – Mineable Resource
Phase III Expansion Study – Mineable Resource Undiluted Resource Diluted and Recovered Resource December 31 2019 Used in Phase III Study Used in Phase III Study1 kTonnes Grade (g/t) kOunces kTonnes Grade (g/t) kOunces kTonnes Grade (g/t) kOunces Mineral Reserves Proven 786 13.48 341 786 13.48 341 Pr
Slide 31: Phase III Expansion Study – mine design
Phase III Expansion Study – mine design Notes Resource conversion: 84% Mining recovery: 95% (by zone & type) Net Resource conversion: 80% Dilution: by zone 2 1 See Mineral Reserve and Resource estimates and associated footnotes in appendix 2 The Phase III Expansion Study includes Inferred Mineral Re
Slide 32: Historical conversion of Inferred Mineral Resources
Historical conversion of Inferred Mineral Resources 83% Inferred Mineral Resource Conversion 2,500 Mineral Reserve additions by year since Inferred Mineral Resource declared (koz) 2,000 157% Conv. 154% Conv. Ounces (x 1,000) 2019 Inferred Ounces 1,500 2019 361 Koz 2019 144% Conv. 2018 229 Koz 2018 I
Slide 33: Preliminary evaluation (2019) – internal scoping studies
Preliminary evaluation (2019) – internal scoping studies Increasing Capital Cost Increasing Operating Cost Ramp Haulage 840L Conveyor Shaft 1,200 tpd 1,500 tpd 1,500 tpd 1,500 tpd 2,000 tpd • Expansion to depth • Expansion to depth • Reduced personnel travel time • Utilizes existing underground ramp
Slide 34: Final evaluation (2020) – pre-feasibility level evaluation
Final evaluation (2020) – pre-feasibility level evaluation Increasing Capital Cost Increasing Operating Cost Scenario R1200 NP1 R1200 R1600 S1600 S2000 (Current operation) Material Handling Ramp haulage Ramp haulage Ramp haulage Shaft Shaft Throughput 1,200 tpd 1,200 tpd 1,600 tpd 1,600 tpd 2,000 tp
Slide 35: Phase III Expansion Study – scenarios
Phase III Expansion Study – scenarios Austin Hemphill General Manager, Island Gold Nathan Bourgeault Chief Mine Engineer TSX:AGI ǀ NYSE:AGI 35
Slide 36: Common infrastructure changes across all scenarios
Common infrastructure changes across all scenarios Current operation Expansion scenarios Common additions with all Ramp Haulage Ramp Haulage Shaft scenarios R1200 R1600 S2000 • Improved mining recovery & mining sequence Paste plant • 32% after-tax IRR • Ramp scenarios – increase ventilation required
Slide 37: Unique infrastructure investments by scenario
Unique infrastructure investments by scenario Current operation Expansion scenarios Scenario specific Ramp Haulage Ramp Haulage Shaft changes R1200 R1600 S2,000 • Additional mobile • Additional mobile equipment equipment required to Mobile equipment required to sustain mining support higher mining r
Slide 38: Common infrastructure investments – paste plant
Common infrastructure investments – paste plant Addition of paste plant & paste backfill • Increased mining recovery • Additional ~100k oz gold recovered with Phase III mine plan • Allows mining of sills without need for remnant pillars • Reduces backfill dilution • $145M in situ value @$1,450/oz Au
Slide 39: Common infrastructure investments – paste plant
Common infrastructure investments – paste plant Underground paste distribution system • Capacity: 2,000 tpd • Capital & operating costs • $34M capital cost1 (2021 – 2023) including underground distribution system • Opportunity to reduce with modification to disc filter • ~C$13/paste tonne • Commissi
Slide 40: Common infrastructure investments – power supply upgrade
Common infrastructure investments – power supply upgrade Requirements Current Ramp (R1200 – R1600) Shaft (S2000) Shaft vs. ramp difference (peak) Power • 9 MW (2020) • (range) 19.9 MW (peak in • 25.6MW (peak in 2027) • +7.5MW for hoists 2028) • 16-18MW required in 2023- • +1.8MW for the mill • Incre
Slide 41: Common infrastructure investments – surface infrastructure
Common infrastructure investments – surface infrastructure • New kitchen & bunk house • Centralize workforce on site, eliminating need for camp in town • Modern, expanded kitchen & recreational facilities • 262 person ultimate capacity; 167% increase vs. previous facility • Sufficient for 100% of no
Slide 42: Common infrastructure investments – tailings expansion
Common infrastructure investments – tailings expansion Tailings facility expansion • Increased capacity to accommodate growth in Mineral Reserves & Resources • 2019 first phase of expansion – grouting & coffer dam • 2020 second phase of expansion – dam raises • ~$22m total capital1 2019 & 2020 • Suf
Slide 43: Scenario analysis – ramp vs shaft
Scenario analysis – ramp vs shaft TSX:AGI ǀ NYSE:AGI 43
Slide 44: Phase III Expansion scenarios reviewed
Phase III Expansion scenarios reviewed Base case Expansion scenario Ramp Haulage (R1200) Shaft (S2000) Throughput (tpd) tpd 1,200 2,000 Average production (post project) 2 000 oz Au 142 236 Total cash costs (post project) 2 US$/oz $539 $403 Mine-site AISC (post project) 2 US$/oz $767 $534 Total capi
Slide 45: R1200 scenario – ramp haulage 1,200 tpd
R1200 scenario – ramp haulage 1,200 tpd Additional Additional Exhaust Fresh Air Raise • Mining rates: consistent with current 1,200 tpd rate Raise • Overview of key changes: • Common infrastructure investments (paste plant, power supply upgrade, surface infrastructure, tailings) • Additional develop
Slide 46: R1200 scenario – additional mobile equipment required
R1200 scenario – additional mobile equipment required Current production horizons • 8 x 42 tonne haul trucks to support 1,200 tpd • 1.7 hr round trip Future production horizons • 18 x 42 tonne peak haul trucks required to support 1,200 tpd • 3.3 hr round trip from depth • Additional mobile equipment
Slide 47: R1600 expansion scenario – ramp haulage 1,600 tpd
R1600 expansion scenario – ramp haulage 1,600 tpd Additional Fresh Additional Fresh Overview of key changes Air System 2nd Ramp to Air Raise Surface • Mining rate increased to 1,600 tpd by 2026 • Common infrastructure investments • Additional development & 2nd ramp to surface • Increased ventilation
Slide 48: R1600 expansion scenario – ramp haulage 1,600 tpd
R1600 expansion scenario – ramp haulage 1,600 tpd Current production horizons • 8 x 42 tonne haul trucks to support 1,200 tpd • 1.7 hr round trip Future production horizons • 25 x 42 tonne peak haul trucks required to support 1,600 tpd • 3.3 hr round trip from depth • Additional mobile equipment nee
Slide 49: S2000 expansion scenario – shaft 2,000 tpd
S2000 expansion scenario – shaft 2,000 tpd Shaft (Fresh Air Raise) Overview of key changes: • Mining rate increased to 2,000 tpd in 2025 • Common infrastructure investments • Mill expansion • Shaft installation • Reduced ventilation requirements • Reduced mobile fleet requirements • 5 haul trucks ne
Slide 50: Shaft Expansion – surface plan
Shaft Expansion – surface plan Mill Existing Portal Proposed Shaft TSX:AGI ǀ NYSE:AGI 50
Slide 51: Shaft – production hoisting plant (ore & waste)
Shaft – production hoisting plant (ore & waste) • 5m x 2m double drum 4,500 tpd capacity at initial 1,373 m depth • 2,000m design depth • Initial sink to 1,373m 2,000 m design depth • Ontario FOS all cases • 2 x 12t skips at 15m/s on steel guides • 4200kW rating • Bottom dump skips with scrolls • 19
Slide 52: Shaft designed to accommodate future exploration success
Shaft designed to accommodate future exploration success - 500 m - 500 m - 1000 m - 1000 m 1,373m current planned shaft depth - 1500 m Deposit open at depth (4,500 tpd capacity) - 1500 m Shaft best positions operation to capitalize on further Mineral Reserve & Resource growth - 2000 m 250 m 2,000m d
Slide 53: Shaft – service hoisting plant (personnel & materials)
Shaft – service hoisting plant (personnel & materials) • 4m x 1.8m double drum • 2,000m design depth • Ontario FOS all cases • 1200kW rating • 5t double deck cage, 22 persons/deck, 7.5m/s on timber guides with dogs • 7.5t counterweight on steel guides • Personnel & palletized loads • 5 trips/hour at
Slide 54: Shaft – headworks
Shaft – headworks • Hoist house • 20m x 40m main hoistroom 59m steel headframe; two co- located hoists • Two hoists co-located • Hoist and UG feed electrical room • Combined control room • Sinking compressor and laydown space • Steel headframe • 59m overall • Sheave decks at 42m, 51m • Services tunn
Slide 55: Shaft – permanent shaft complex arrangement
Shaft – permanent shaft complex arrangement 5.0m diameter shaft with concrete liner • 5.0m finished shaft • 300mm min. concrete liner 2 x 12t skips in separate • Brattice on centre divider compartments • Skip travelling in dedicated compartment • 2x12T skips (1.4m x 1.4m) • Steel guides • Service ca
Slide 56: Shaft sinking
Shaft sinking Conventional blind sink improves schedule reliability; raise bore cuttings would displace underground ore production to well below 1,200 tpd • Conventional blind sink from surface • Schedule reliability • Sinking cycle simplification • Galloway design simplifications • Average sinking
Slide 57: Shaft underground ore & waste handling, loading pocket
Shaft underground ore & waste handling, loading pocket • Conveyor fed in line from bin via apron feeder • Back mounted and head driven arrangement (hydraulically driven) • Conveyor fed loading pocket • Transfer car diverter • 2 x 12t weighed measuring boxes, 3-point suspension on load cells • Lay-fl
Slide 58: Shaft ventilation system
Shaft ventilation system • 0.7 MCFM required • Less than ramp scenario requirements of 0.9-1.1 MCFM • One new fresh air source (shaft) • FAR 1 & 2 remain in place Reduced ventilation requirement with shaft serving as new fresh air source TSX:AGI ǀ NYSE:AGI 58
Slide 59: Mill expansion to 2,000 tpd capacity
Mill expansion to 2,000 tpd capacity Key component changes: • Upgraded crushing circuit • New vibrating grizzly • Replace jaw crusher • New fine ore stockpile cover and tunnel with associated conveyors • Second parallel ball mill • New CIP circuit with carbon screens • New elution circuit $40M total
Slide 60: Mill expansion to 2,000 tpd capacity
Mill expansion to 2,000 tpd capacity New CIP & CIL Circuit New Parallel Ball Mill New Fine Ore Stockpile & Conveyors Upgraded Crushing Circuit TSX:AGI ǀ NYSE:AGI 60
Slide 61: Total material mined by year – sufficient hoisting & milling capacity
Total material mined by year – sufficient hoisting & milling capacity Development & Stoping Mill Feed Mined (tpd) 2,500 2,000 1,500 1,000 500 0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Development Mill Feed Stoping Mill Feed 4,500 tpd Mill Feed and Waste Mined
Slide 62: Ramp vs Shaft – capital & operating cost summary
Ramp vs Shaft – capital & operating cost summary (in C$ millions) Total capital & operating Costs R1200 S2000 Difference Sustaining capital $1,004 $736 -$268 Growth capital $260 $685 $425 $118m higher LOM total capital with Total capital (C$ millions) $1,264 $1,421 $157 Shaft Expansion Total capital
Slide 63: Ramp vs Shaft – sustaining capital
Ramp vs Shaft – sustaining capital (in C$ millions) Sustaining Direct Costs R1200 S2000 Difference TSF Earthworks $13 $13 $0 Misc U/G Infrastructure $17 $14 -$3 U/G Mine Dewatering $23 $23 $0 U/G Power $58 $58 $0 General UG Facilities $35 $24 -$11 Mobile Equipment $234 $144 -$90 Subtotal $379 $276 -
Slide 64: Ramp vs Shaft – growth capital
Ramp vs Shaft – growth capital (in C$ millions) Growth Capital R1200 S2000 Difference Site Wide Surface Works $43 $41 -$2 Power Upgrade $18 $18 $0 Mill Expansion – $36 $36 Paste Plant $38 $38 $0 Shaft Surface Works – $9 $9 Headframe and Hoisting Plant – $59 $59 Shaft Sinking and Equipping – $78 $78
Slide 65: Shaft construction capital summary
Shaft construction capital summary (in C$ millions) Growth Capital Shaft Surface Works $9 Headframe & Hoist House $59 Shaft Sinking & Equipping $78 UG Ore/Waste Handling $13 Subtotal Direct Costs $159 Q3 2021 early surface works begin in Indirect Costs $72 shaft area EPCM $22 Owner's Costs $5 Q1 202
Slide 66: Ramp vs Shaft – unit cost summary
Ramp vs Shaft – unit cost summary S2000 - Mining Cost (in C$/tonne) R1200 S2000 Production (Material & Hydro, Diesel, Equipment) Mining (less cap dev) $127 $98 Propane 15% 10% Milling $35 $31 Backfill (Material & Equipment) Admin $53 $39 4% Subtotal Operating Cost $215 $168 Development (Material & S
Slide 67: Detailed operating parameters – ramp vs shaft
Detailed operating parameters – ramp vs shaft TSX:AGI ǀ NYSE:AGI 67
Slide 68: Grade distribution – shaft provides early access to +20 g/t Au stopes
Grade distribution – shaft provides early access to +20 g/t Au stopes Shaft location TSX:AGI ǀ NYSE:AGI 68
Slide 69: Grade profile
Grade profile Accelerated access to higher grade portions of ore body with shaft 16.0 15.0 14.0 13.0 12.0 Grade (g/t Au) 11.0 10.0 9.0 8.0 7.0 6.0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 R1200 R1600 S2000 Avg Grade TSX:AGI ǀ
Slide 70: Annual gold production
Annual gold production Annual Gold Production (000 oz) Average LOM Average Post Project Project Completion 236k oz average annual production with shaft 1 Completion Date scenario R1200 140 142 2024 R1600 171 184 2025 66% higher average annual production with shaft S2000 201 236 2025 scenario vs R120
Slide 71: Unit mining costs
Unit mining costs Unit Mining Cost (C$/tonne) Average LOM Average Post Project Project Completion 27% lower unit mining costs relative to ramp Completion Date scenario (R1200) post project completion R1200 $127 $131 2024 R1600 $122 $127 2025 S2000 $98 $96 2025 $160 $140 Mining Costs/Tonne C$ $120 $1
Slide 72: Unit operating costs
Unit operating costs Unit Operating Cost2 (C$/tonne) Average LOM Average Post Project Project Completion 24% lower unit operating costs relative to ramp Completion Date scenario (R1200) post project completion R1200 $229 $235 2024 R1600 $216 $220 2025 S2000 $182 $178 2025 $300 $280 $260 Operating Co
Slide 73: Total cash costs
Total cash costs Total Cash Costs (US$/oz) Average LOM Average Post Project Completion $403/oz average total cash costs (post project) Project Completion Date R1200 $531 $539 2024 R1600 $499 $503 2025 25% lower total cash costs relative to ramp scenario S2000 $422 $403 2025 (R1200) post project comp
Slide 74: Mine-site all-in sustaining costs
Mine-site all-in sustaining costs Mine-site All-in Sustaining Costs (US$/oz) Average LOM Average Post Project Completion $534/oz average mine-site AISC (post project) Project Completion Date R1200 $772 $767 2024 R1600 $731 $712 2025 30% lower mine-site AISC relative to ramp scenario S2000 $598 $534
Slide 75: Operating cost by level
Operating cost by level Unit mining cost by elevation Difference (C$/tonne) Elevation R1200 R1600 S2000 S2000 vs R1200 750m $106 $104 $96 -$10 1000m $124 $119 $98 -$26 1250m $141 $135 $100 -$41 1500m $159 $150 $102 -$57 • Ramp access costs will continue to increase as mining goes deeper, limiting ex
Slide 76: Tonnes & grade by vertical metre
Tonnes & grade by vertical metre Tonnes / Vertical Meter by Elevation 18,000 16 Current lowest production High grade area in • Increasing tonnes & ounces per horizon (860L) lower east zone 16,000 vertical metre below 1000m level 14 14,000 • Margins with shaft (vs ramp) increase 12 with depth 12,000
Slide 77: Productivity review
Productivity review Direct Development Personnel Effective Time at the Face Metres per Employee - Shift 130% 0.740 120% 0.690 110% 0.640 % of baseline (720m Elevation) Metres per employee shift 100% 0.590 90% 0.540 80% 0.490 70% 0.440 60% 50% 0.390 40% 0.340 2021 2022 2023 2024 2025 2026 2027 2028 2
Slide 78: Productivity review
Productivity review Direct Production Personnel Stope Tonnes per Employee Hour Mine Staffing Requirements 7.5 600 7.0 500 Stope tonnes per employee hour 6.5 400 Mine staffing 6.0 300 5.5 200 5.0 4.5 100 4.0 0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2
Slide 79: Productivity review
Productivity review Primary Production Equipment Underground Trucking Hours 50 100000 45 90000 40 80000 Total number of mobile equipment 35 70000 Truck operating hours 30 60000 25 50000 20 40000 15 30000 10 20000 5 10000 0 0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034
Slide 80: Economic review – Shaft Expansion provides strongest economics
Economic review – Shaft Expansion provides strongest economics Ramp Haulage Shaft Expansion R1200 S2000 Revenue US$ M $4,500 $4,500 Operating Costs US$ M $1,648 $1,310 Total Capital US$ M $948 $1,066 Total Operating Costs & Capital US$ M $2,596 $2,376 Cumulative free cash flow (after tax) US$ M $1,4
Slide 81: Cumulative free cash flow profile
Cumulative free cash flow profile Cumulative Cash Flow (after tax, US$M) $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 -$200 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 R1200 S2000 Shaft Expansion economics benefit fr
Slide 82: Shaft Expansion best option under all conditions
Shaft Expansion best option under all conditions Strongest alternative based on current Mineral Reserve & Resource • Strongest economics – highest FCF & NAV • Highest production – 72% increase from current average annual production • Lowest costs – first quartile total cash costs & AISC • Lowest com
Slide 83: Shaft Expansion – greater exposure to higher gold prices
Shaft Expansion – greater exposure to higher gold prices $1,593 After-tax NPV 5% (US$M) After tax NPV 5% (US$M) IRR (%) $1,450 $1,383 Gold price R1200 S2000 R1200 S2000 $1,308 $1,256 $1,250 $612 $727 - 14% $1,164 $1,130 $1,350 $744 $874 - 16% $1,019 $1,003 $1,450 $874 $1,019 - 17% $1,550 $1,003 $1,1
Slide 84: Shaft Expansion – greater exposure to exploration upside potential
Shaft Expansion – greater exposure to significant exploration upside potential Additional AISC margin with Shaft Elevation R1200 S2000 (S2000 vs R1200) US$ per additional US$/oz US$/oz US$/oz M oz of mineable resource Post project AISC LOM $767 $534 $233 $233M 750m $750 $554 $196 $196M 1000m $797 $5
Slide 85: Shaft Expansion – lowest greenhouse gas emissions
Shaft Expansion – lowest greenhouse gas emissions tCO2e/tonnes Mined by Year tCO2e/OZ by Year 0.10 35,000 0.09 30,000 0.08 0.07 25,000 0.06 20,000 0.05 15,000 0.04 0.03 10,000 0.02 5,000 0.01 0.00 0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2
Slide 86: Shaft Expansion – environmental data collection & permitting
Shaft Expansion – environmental data collection & permitting • Data collection program for supplemental environmental information: initiated late 2019 • Surface and groundwater quality • Hydrology, hydrogeology and geochemistry studies • Aquatic and terrestrial ecology assessments and surveys • Proj
Slide 87: Shaft Expansion – project schedule
Shaft Expansion – project schedule 2020 2021 2022 2023 2024 2025 2026 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Engineering / Execution Preparation Site preparation & surface general Plants, buildings & utilities Shaft, headworks, & stations Underground infrastructure P
Slide 88: Capital allocation outlook
Capital allocation outlook Jamie Porter Chief Financial Officer TSX:AGI ǀ NYSE:AGI 88
Slide 89: Shaft Expansion – cash flow profile at $1,450/oz Au
Shaft Expansion – cash flow profile at $1,450/oz Au S2000 $270 $266 $244 $229 $229 $223 $202 $188 $179 $173 $174 $173 $153 $150 $151 $161 $160 $152 $134 $136 $132 $131 $122 $117 $103 $68 $56 $68 $12 -$14 -$1 -$15 -$40 -$42 -$35 -$30 -$54 -$59 -$47 -$52 -$48 -$77 -$65 -$124 -$162 -$169 -$186 2020 202
Slide 90: Shaft Expansion – cash flow profile at $1,750/oz Au
Shaft Expansion – cash flow profile at $1,750/oz Au S2000 $332 $301 $302 $291 $253 $251 $239 $236 $196 $214 $220 $207 $223 $203 $192 $204 $195 $175 $177 $172 $162 $173 $161 $156 $137 $86 $98 $86 $52 -$15 -$9 -$14 -$15 -$1 -$26 -$40 -$35 -$30 -$52 -$48 -$42 -$77 -$65 -$124 -$162 -$169 -$186 2020 2021
Slide 91: Shaft Expansion – cumulative after-tax free cash flow profile
Shaft Expansion – cumulative after-tax free cash flow profile $2,500 $2,286 $2,200 $2,004 $2,000 $1,781 $1,664 $1,575 $1,596 $1,500 $1,401 $1,444 $1,245 $1,271 $1,111 $954 $980 $1,000 $864 $751 $589 $641 $467 $500 $336 $317 $150 $135 $109 $100 $56$98 $69 $14 $87 $0 -$44 -$92 -$500 2020 2021 2022 202
Slide 92: Capital allocation outlook
Capital allocation outlook Return more value to shareholders • Sustainable dividend growth • Share buyback Strong free cash Strengthen balance sheet flow growth • Build cash balance H2 2020+ • Maintain minimal to no debt Advance development pipeline • Build at sustainable rate Balanced approach to g
Slide 93: Long-term focus on returning capital to shareholders
Long-term focus on returning capital to shareholders $0.25 2.50% 11 Consecutive years of $0.02 $0.02 $0.20 2.00% paying dividends Dividends per share Share buybacks per share $0.15 1.50% $173M Returned to shareholders through dividends & buybacks $0.10 $0.20 $0.20 $0.20 1.00% 50% $0.01 Increase in q
Slide 94: Appendix
Appendix TSX:AGI ǀ NYSE:AGI 94
Slide 95: Shaft Expansion – detailed mine plan
Shaft Expansion – detailed mine plan 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Mill Feed mined (tonnes) 410,593 438,000 437,999 437,994 439,198 557,150 719,805 730,000 731,957 729,934 729,951 730,000 731,947 730,000 721,154 296,654 Waste mined (tonnes) 342,999 4
Slide 96: Proven & Probable Mineral Reserves
Proven & Probable Mineral Reserves PROVEN AND PROBABLE GOLD MINERAL RESERVES (as at December 31, 2019) 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 97: Total Measured & Indicated Mineral Resources
Total Measured & Indicated Mineral Resources MEASURED AND INDICATED GOLD MINERAL RESOURCES (as at December 31, 2019) 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 98: Total Inferred Mineral Resources
Total Inferred Mineral Resources INFERRED GOLD MINERAL RESOURCES (as at December 31, 2019) Tonnes Grade Ounces (000's) (g/t Au) (000's) Young-Davidson – Surface 31 0.99 1 Young-Davidson – Underground 1,329 2.43 104 Total Young-Davidson 1,360 2.40 105 Island Gold 5,392 13.26 2,298 Mulatos 8,122 0.92
Slide 99: 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 100: Scott K. Parsons, CFA
Scott K. Parsons, CFA VP, Investor Relations 416.368.9932 x 5439 sparsons@alamosgold.com TSX:AGI ǀ NYSE:AGI 100