Alamos Gold Inc. · TSX:AGI
Alamos Gold — Q3 2020 Earnings Presentation
21 slides from Alamos Gold's earnings presentation, Oct 29, 2020
Slide 1: Third Quarter 2020 Results Presentation
Third Quarter 2020 Results Presentation October 29, 2020
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: Q3 2020 highlights
Q3 2020 highlights Revised Q3 2020A Q3 2019A YoY % Q3 2020A Q3 2019A YoY% 2020 Gold production (000 oz) Change YTD YTD Change Guidance4 122 -4% 117 Gold production (000 oz) 117.1 121.9 (4%) 306.4 372.4 (18%) 405-435 Gold sales (000 oz) 116.0 119.4 (3%) 302.5 367.6 (18%) - Total cash costs (US$/oz)1
Slide 4: COVID-19: focus on the health and safety of our people and communities
COVID-19: focus on the health and safety of our people and 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
Slide 5: Sustainable business model that can support growing returns over the long-term
Sustainable business model that can support growing returns over the long-term Return capital to shareholders • 33% increase in dividend to $0.08/sh annually • 300% increase in dividend since 2018 Strong free cash flow outlook • Share buyback • Completion of lower mine expansion at Young-Davidson St
Slide 6: Financial highlights
Financial highlights Revised AISC margin (US$/oz)1,3 YoY % Q3 2020A Q3 2019A YoY% Q3 2020A Q3 2019A 2020 Change YTD YTD Change Guidance5 $933 Realized gold price (US$/oz) $1,882 $1,448 30% $1,724 $1,352 28% - Operating revenues (US$M) $218 $173 26% $522 $497 5% - $572 $498 $491 $416 Cash flow from o
Slide 7: Operational highlights – Young-Davidson
Operational highlights – Young-Davidson Q3 YTD Q3 YTD Revised 2020 Production & total cash costs2 Q3 2020A Q3 2019A 2020A 2019A Guidance4 Northgate Shaft Gold production (koz) 36.4 50.0 88.2 140.0 135-145 60 shutdown $1,800 Cost of sales, including amortization, per oz of gold sold 1 $1,421 $1,191 $
Slide 8: Young-Davidson – lower mine infrastructure performing well
Young-Davidson – lower mine infrastructure performing well Conveyor • Lower mine infrastructure bigger, more efficient & productive • Mining rates averaged 6,713 tpd in Q3, including 8,000 tpd in September • Mining rates on track to ramp up to 7,500 tpd by end of 2020 • Lower mine expansion expected
Slide 9: Operational highlights – Island Gold
Operational highlights – Island Gold Q3 2020A Q3 2019A Revised 2020 Production & total cash costs2 Q3 2020A Q3 2019A YTD YTD Guidance4 Gold production (koz) 39.6 36.7 97.8 111.8 130-140 40 $700 Cost of sales, incl. amortization, per oz of gold sold1 $715 $860 $806 $845 $840 $600 Total cash costs, pe
Slide 10: Island Gold – Q3 2020 surface exploration highlights
Island Gold – Q3 2020 surface exploration highlights W Planned shaft location E Crown pillar Best surface exploration hole drilled to 340 Level date (MH25-04), intersecting high-grade mineralization across significantly greater - 500 m widths down-plunge from existing - 500 m 620 Level Inferred Mine
Slide 11: Operational highlights – Mulatos
Operational highlights – Mulatos Q3 2020A Q3 2019A Revised 2020 Production & total cash costs2 Q3 2020A Q3 2019A YTD YTD Guidance4 Gold production (koz) 41.1 32.7 119.6 107.9 140-150 50 $1,000 Cost of sales, including amortization, per ounce of gold $900 $1,069 $1,075 $1,075 $960 $1,135 40 sold1 $80
Slide 12: La Yaqui Grande – low cost, high-return project
La Yaqui Grande – low cost, high-return project 123k oz Average annual production over 5 year life1 $137m Initial capital; $196m total LOM capital1 $578/oz Average LOM mine-site AISC1,2 • Five year mine life with initial production expected Q3 2022 • Expected to keep Mulatos production at ~150k oz p
Slide 13: Strong platform for delivering long-term value
Strong platform for delivering long-term value Diversified, long-life gold Expanding margins & Strong balance sheet to Long-term track record production profitability support growth of creating value for all stakeholders 2020 – transformational year 1.52 Consensus P/NAV1 ✓ Island Gold – 0.9 million
Slide 14: Appendices
Appendices TSX:AGI ǀ NYSE:AGI 14
Slide 15: 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 Ronald E. Smith Kenneth Stowe Chairman Director Director Director Director Director Director Direc
Slide 16: Revised 2020 guidance
Revised 2020 guidance Previous 2020 Revised 2020 Guidance Guidance4,5 Young-Davidson Mulatos Island Gold4 Other Total Total Gold production (000’s oz) 135-145 140-150 130-140 — 405-435 425-465 Cost of Sales (in millions) (3) $209 $165 $113 — $487 $491 Cost of Sales ($ per ounce) (3) $1,490 $1,135 $8
Slide 17: 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 18: 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 19: 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 20: 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 21: Scott K. Parsons, CFA
Scott K. Parsons, CFA VP, Investor Relations 416.368.9932 x 5439 sparsons@alamosgold.com TSX:AGI ǀ NYSE:AGI 21