Alamos Gold Inc. · TSX:AGI
Alamos Gold — Investor Day (January 2016)
43 slides from Alamos Gold's investor day presentation, Jan 19, 2016
Slide 1: Analyst Day & Young-Davidson Site Tour
1 Analyst Day & Young-Davidson Site Tour January 18, 2016
Slide 2: Cautionary Notes
2 Cautionary Notes No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Certain statements in this presentation are “forward-looking statements”, including within the meaning of the United States Securities Exchange Act
Slide 3: Site Visit Schedule
3 Site Visit Schedule 10:00 AM Operations Presentation - Overview - 2015 Results - 2016 Guidance - Young-Davidson Teach-in 11:30 AM Lunch 12:15 PM Underground Tour 2:15 PM Surface Tour 3:30 PM Ground transportation to Kirkland Lake (approx. 45 minutes); depart forToronto 6:00 PM Arrive at Billy Bish
Slide 4: Safety Guidelines
4 Safety Guidelines Your safety is our priority • The personal protection equipment provided to you is required in all areas: • Coveralls • Safety boots • Hard hat • Safety glasses • Ear plugs (as required) • Please remain with the group throughout the tour • Be sure to observe safety signage • Keep
Slide 5: Overview
55 Overview
Slide 6: Strong Platform for Delivering Long Term Value
6 1 As of September 30, 2015 2 Based on consensus analyst estimates. See page 8 for further detail. 3 See mineral reserve and resource estimates and associated footnotes in appendix. Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures. Strong Platform for Delivering Lo
Slide 7: Core Strategy – Disciplined, staged growth
7 Core Strategy – Disciplined, staged growth • Young-Davidson: Ramp up underground production • Mulatos: Develop Cerro Pelon & La Yaqui satellite deposits Near Term Focus: • Utilize cash flow from YD & Mulatos to fund future growth • Focus on highest return projects Long Term Focus:
Slide 8: Best In Class Portfolio of Assets
8 Best In Class Portfolio of Assets Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures. Note: Mineral resources are exclusive of mineral reserves. See mineral reserve and resource estimates and associated footnotes in appendix. Producing Assets Exploration / Developme
Slide 9: 2015 Operational Results
99 2015 Operational Results
Slide 10: 2015 Operational Results
10 2015 Operational Results 2015A 2015E Guidance Gold Production (000 oz) Young-Davidson 160.4 160-180 Mulatos 140.3 150-170 El Chanate 79.3 65-75 Total Gold Production 380 375-425 AISC (US$/oz)1,2 Young-Davidson $950-1,050 Mulatos $1,1003 El Chanate $950-1,050 1 Please refer to Cautionary Notes on
Slide 11: 2015 Operational Results – Young-Davidson
11 2015 Operational Results – Young-Davidson Q1/15A Q2/15A Q3/15A Q4/15A 2015A 2015E Guidance Gold Production (k oz) 38.1 39.4 38.2 44.7 160.4 160-180 Total Cash Costs1 (US$/oz) $745 $697 $681 $675-775 AISC1,2 (US$/oz) $987 $1,008 $979 $950-1,050 Underground mine Tonnes mined per day 4,130 5,149 5,0
Slide 12: 2015 Operational Results – Mulatos
12 2015 Operational Results – Mulatos Q1/15A Q2/15A Q3/15A Q4/15A 2015A 2015E Guidance Gold Production (k oz) 38.0 33.0 27.5 41.8 140.3 150-170 Total Cash Costs1 (US$/oz) $805 $861 $979 $865 AISC1,2 (US$/oz) $1,115 $1,154 $1,210 $1,100 Combined Throughput (tpd) 17,500 18,100 16,600 17,700 17,500 17,
Slide 13: 2015 Operational Results – El Chanate
13 2015 Operational Results – El Chanate Q1/15A Q2/15A Q3/15A Q4/15A 2015A 2015E Guidance Gold Production (k oz) 15.9 23.2 21.9 18.2 79.3 65-75 Total Cash Costs1 (US$/oz) $585 $621 $994 $675-775 AISC1,2 (US$/oz) $1,043 $878 $1,019 $950-1,050 Throughput (Crushed & ROM) 21,149 20,452 19,500 21,600 20,
Slide 14: 2015 Operational Results – Record Safety Performance
14 2015 Operational Results – Record Safety Performance Young-Davidson 3.7 million hours or 2.5 years without an LTI achieved in 2015 Mulatos 3.6 million hours or >14 months without an LTI achieved in 2015 El Chanate 1.7 million hours or >12 months without an LTI achieved in 2015
Slide 15: 2016 Guidance
1515 2016 Guidance
Slide 16: 2016 Guidance – Focus on Quality
16 2016 Guidance – Focus on Quality 2015A (Guidance where indicated by Italics) 2016E Guidance Gold Production (k oz) 380 370 - 400 Total Cash Costs1 (US$/oz) $800 AISC1 (US$/oz) $975 Sustaining Capital (US$m) $75-83 $51-61 Expansion Capital (US$m) $102-111 $87-97 Total Capital (US$m) $177-194 $138-
Slide 17: Young-Davidson – 2016 Guidance
17 Young-Davidson – 2016 Guidance 2015A (Guidance where indicated by Italics) 2016E Guidance Gold Production (k oz) 160 170 - 180 Total Cash Costs1 (US$/oz) $675-775 $600 AISC1,2 (US$/oz) $950-1,050 $825 Mill throughput (tpd) 7,545 7,800 Underground grade (g/t Au) 2.7 2.7 Recovery (%) 89% 90% Sustai
Slide 18: Mulatos – 2016 Guidance
18 Mulatos – 2016 Guidance • Modest production growth with lower AISC • Lower unit mining costs, low strip ratio, higher open pit grades • Milled grades are expected to average 7.9 g/t Au – above the current mineral reserve grade • Focus on expanding and developing La Yaqui and Cerro Pelon satellite
Slide 19: El Chanate – 2016 Guidance
19 El Chanate – 2016 Guidance • Optimized 2016 mine plan – lower stripping requirements • Operation expected to be free cash flow neutral in 2016 at $1,100 per ounce gold • Outlook: mature operation with short remaining mine life and long leach cycle ◦ >100,000 recoverable ounces once mining ceases
Slide 20: 2016 Guidance – Capital Budget
20 2016 Guidance – Capital Budget 2016 Guidance 2015 Guidance Sustaining Capital Growth Capital Total Total Operating Mines (in millions) Young-Davidson $40-45 $45-50 $85-95 $85-95 Mulatos $10-15 $15-20 $25-35 $40.6 El Chanate $1 - $1 $17.5-20 Total – Operating Mines $51-61 $60-70 $111-131 $143.1-15
Slide 21: Young-Davidson Teach-in
2121 Young-Davidson Teach-in
Slide 22: Young-Davidson Overview
22 Young-Davidson Overview • Historic production from underground gold mines in Timmins and Kirkland Lake (~108 M Oz.) • Five mines with greater than 5 million ounces production, Young-Davidson is likely to be the sixth • Low cost producer with strong production growth profile • Long mine life: Oppo
Slide 23: Rich Tradition – Mine History
23 Rich Tradition – Mine History • Site of two former producers • 20+ years in operation • +1,200 tpd average production rate • Early pioneers of bulk mining • +1 million tonne stopes underground • Mined ~9 million tonnes; produced 970,000 oz. • Average realized grade of 3.37 g/tonne • Profitable op
Slide 24: Responsible Mining
24 Responsible Mining Fostering positive relationships with all stakeholders • Solid safety record • 3.7 M hours lost time injury free (~2.5 years) • 2015 KL District Mine Rescue champions • 2015 Provincial Mine Rescue runner up • Strong First Nations support • Partnerships with local communities •
Slide 25: Underground Mine Plan – Highly Productive Bulk Mining
25 Underground Mine Plan – Highly Productive Bulk Mining • Highly mechanized – low manning requirements • Transverse long hole stoping • For wider zones (12-40m) • 30m sub levels • 94% of mineral reserve • Pastefill • Mining recovery ~ 92% • Dilution ~10% • Underground reserve grade 2.74 g/t • Grade
Slide 26: 2016 Production & Development Plan
26 2016 Production & Development Plan • MCM Shaft ◦ Sinking complete Q3 2015 ◦ Men and materials shaft ◦ 8870 Loading Pocket installation complete ◦ Commissioning Q1 2016 • Planned reaming Northgate shaft begins H2 2016 • MCM waste pass in place by mid 2017 East wastepass MCM Wastepass
Slide 27: MCM & Northgate Shafts
27 MCM & Northgate Shafts MCM ShaftNorthgate Shaft • Capacity: ~8,500 tpd (ore + waste) • Northgate shaft hoisting from 8900L beginning in 2019 • Capacity: ~2,000 tpd + men & materials • Headframe/Skip/Cage changeover February 2016 • Begin skipping material from upper mine mid-2017 Total combined sk
Slide 28: Underground Mining Rates
28 Underground Mining Rates Underground Ramp up Progression to 8,000 tpd Driving productivity improvements and processed grade higher • Growing production • Declining costs • Declining capital intensity
Slide 29: Ore Grades by Quarter
29 Ore Grades by Quarter Growing contribution of underground ore to drive milled grade & production higher
Slide 30: Young-Davidson – Transition to Owner Development
30 Young-Davidson – Transition to Owner Development • ~65% owner development in Q4 2015 • 100% owner development by mid-2016 • Reduced development costs per metre • Higher capital of $6m in H1 2016 for equipment purchases Utilizing balance sheet strength to accelerate transition to owner development
Slide 31: Unit Costs & Currency Sensitivities
31 Unit Costs & Currency Sensitivities Unit Costs per tonne 2016 Estimates Life of Mine Underground CAD$39 CAD$35 Mill Processing CAD$14 CAD$14 Administration1 CAD$4 CAD$4 Footnotes: 1. Per tonne processed Significant Leverage to CAD$/US$ • 90-95% of all outflows in CAD$ • $0.05 change in CAD$ would
Slide 32: Capital Spending – Declining Intensity
32 Capital Spending – Declining Intensity Capital (US$m) 2016 Estimates Life of Mine Sustaining $40-45 $40 Expansion $45-50 $- Total $85-95 $40 Footnotes: 1. Assumes 0.75 CAD$ to every 1 US dollar • Declining capital intensity once 8,000 tpd achieved mid-2017 • Decrease to long term sustaining capit
Slide 33: Development Schedule – Key Milestones
33 Development Schedule – Key Milestones 2016 2017 2018 2019 Commissioning of MCM shaft Transition to 100% owner development Raise boring of lower NG shaft Ramp up to 7,000 tpd Completion of MCM waste pass Ramp up to 8,000 tpd Shaft bottom infrastructure Northgate shaft hoisting from 8900L
Slide 34: Underground Tour
34 Underground Tour • U/G ore handling • Crusher • Loading pocket • Remote mucking stope • Production drill
Slide 35: Alamos Gold Inc.
™ Atamos Gotp INc
Slide 36: Young-Davidson – Historical Operational Results
36 Young-Davidson – Historical Operational Results 1 Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures. 2 Excludes Net Realizable Value (“NRV”) inventory adjustments. See associated MD&A for a full reconciliation. 3 Excludes hydro rebate not attributable to that quar
Slide 37: Leading Low-Cost Growth Profile
37Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures. Leading Low-Cost Growth Profile
Slide 38: Strong Balance Sheet
38 1 Unaudited – managements estimate as of September 30, 2015. 2 As of January 12, 2016. Strong Balance Sheet No significant debt maturities until 2020
Slide 39: 2014 Proven and Probable Mineral Reserves
39 2014 Proven and Probable Mineral Reserves PROVEN AND PROBABLE MINERAL RESERVES 1,2,3,4,5,6,7,8,9,10 AS AT DECEMBER 31, 2014 PROVEN2 PROBABLE2 PROVEN + PROBABLE2 RESERVE TONNES GRADE CONTAINED TONNES GRADE CONTAINED TONNES GRADE CONTAINED AREA (000) (G/T AU) OUNCES (000) (G/T AU) OUNCES (000) (G/T
Slide 40: 2014 Total Measured and Indicated Mineral Resources
40 2014 Total Measured and Indicated Mineral Resources TOTAL MEASURED & INDICATED MINERAL RESOURCES1,2,3,4,5,6,7,8,9,10,11,12,13 AS AT DECEMBER 31, 2014 CUT-OFF TONNES GRADE GRADE CONTAINED CONTAINED (G/T AU) (000) (G/T AU) (G/T AG) OUNCES AU OUNCES AG Mexico Mulatos 0.5 76,850 1.06 - 2,624,686 - Sa
Slide 41: 2014 Total Inferred Mineral Resources
41 2014 Total Inferred Mineral Resources TOTAL INFERRED MINERAL RESOURCES1,3,4,5,6,7,8,9,10,11,12,13 AS AT DECEMBER 31, 2014 CUT-OFF TONNES GRADE GRADE CONTAINED CONTAINED (G/T AU) (000) (G/T AU) (G/T AG) OUNCES AU OUNCES AG Mexico Mulatos 0.5 6,629 0.98 - 208,576 - San Carlos UG 2.5 403 4.53 - 58,7
Slide 42: Notes to Mineral Reserve and Resource Estimates
42 Notes to Mineral Reserve and Resource Estimates Notes to Mineral Reserve Estimates 1) The Company’s mineral reserves as at December 31, 2014 are classified in accordance with the Canadian Institute of Mining Metallurgy and Petroleum’s “CIM Standards on Mineral Resources and Reserves, Definition a
Slide 43: Investor Relations Contact
‹#› Scott K. Parsons, CFA VP, Investor Relations 416.368.9932 x 5439 sparsons@alamosgold.com