Alamos Gold Inc. · TSX:AGI
Alamos Gold — Investor Presentation (March 2022)
55 slides from Alamos Gold's investor presentation, March 2022
Slide 1: Corporate Presentation March 2022
Corporate Presentation March 2022
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 12 year average mine life Strong supported by 10.3M oz Mineral Reserve base4 operating ~460k oz ~$1,215 2022E gold production1 2022E AISC per ounce1,2,3 base Fully funded Lynn Lake, Canada organic ~750k oz ~$800 Island Gold, Canada 2025E production po
Slide 4: Sustainable business model supporting long-term value creation
Sustainable business model supporting long-term value creation Conservative, low-risk Balanced approach to Long-term track record strategy capital allocation of value creation Return capital to shareholders Safe jurisdictions Strong ongoing Strengthen Counter-cyclical cash flow2 Approach to M&A, acq
Slide 5: ESG – leading on key metrics with focus on continuous improvement
ESG – leading on key metrics with focus on continuous improvement Environment Social Governance Lower GHG emissions per oz gold eq. produced1,2 Lost time injury rate 89% 33% 0.69 0.34 Director Board members per 200,000 hours independence are women 0.54 31% 38% tCO2e/oz 0.21 worked 0.37 lower than 0.
Slide 6: ESG – strong relative performance & positive rating trend
ESG – strong relative performance & positive rating trend ESG disclosure and reporting 2018 2019 2020 2021 Trend Score/notes o Adopting TCFD recommendations and incorporating climate-related risk into Medium risk; 20th percentile in disclosures - 47 39 29 gold subindustry o Completed CDP questionnai
Slide 7: Q4 & 2021 results – achieved full-year revised production & cost guidance
Q4 & 2021 results – achieved full-year revised production & cost guidance Revised 2021 Q4 2021A Q4 2020A 2021A 2020A Guidance5 Gold production (000 oz) 112.5 120.4 457.2 426.8 455-495 457k oz met revised full year production & Gold sales (000 oz) 113.0 121.8 457.5 424.3 - cost guidance Average reali
Slide 8: 2022 guidance – stable production; temporary increase in costs
2022 guidance – stable production; temporary increase in costs 2021A 2022E Gold production (000 oz) 457 440-480 440-480k oz Cost of sales (US$/oz, includes stable gold production YoY $1,167 $1,325 amortization)1 Total cash costs (US$/oz)2 $794 $875-925 Sequencing Efficiencies Inflation Mulatos All-i
Slide 9: Three-year outlook – expanding profitability
Three-year outlook – expanding profitability Gold production1 (000 oz) Total cash costs1,3 (US$/oz) All-in sustaining costs1,2,3,4 (US$/oz) Capital expenditures, operating mines1,3,5 (US$M) 460-500 460-500 $1,190-1,240 $1,075-1,175 440-480 $875-925 $950-1,050 $290-330 $775-875 $220-260 $230-270 $650
Slide 10: High quality, long-life production base; low geopolitical risk profile
High quality, long-life production base; low geopolitical risk profile Young-Davidson, Ontario, Canada Flagship operation with 15-year Mineral Reserve life3 Underground o One of Canada’s largest underground gold mines ❑ 2022E Au production: 185-200k oz o Completed lower mine expansion in 2020 ❑ 2022
Slide 11: High-return organic growth in safe jurisdictions
High-return organic growth in safe jurisdictions Island Gold Phase III Expansion La Yaqui Grande (Mulatos) Lynn Lake Ontario, Canada Sonora, Mexico Manitoba, Canada IRR1,2: 17% IRR1,2: 22% IRR3: 41% IRR3: 58% IRR4: 13% IRR4: 22% NPV5% 1: $1.02B NPV5% 1: $1.45B NPV5% 3: $165M NPV5% 3: $260M NPV5% 4:
Slide 12: Island Gold – Phase III Shaft Expansion to 2,000 tpd
Island Gold – Phase III Shaft Expansion to 2,000 tpd Shaft Expansion production & cost profile 4 • Expansion to drive ~70% production growth at industry low costs 350,000 $1,000 • 236k oz/yr at mine-site AISC4 of $534/oz starting in 2025 300,000 $900 • Significant upside potential to Phase III expan
Slide 13: Island Gold – ongoing exploration success driving growth in size & quality
Island Gold – ongoing exploration success driving growth in size & quality Reserve & Resource growth since 2017 acquisition Changes in Reserves & Resources as of December 31, 2021 Mineral Reserves M&I Mineral Resources Inferred Mineral Resources Mineral Reserve grade Inferred Resource grade 16 5,000
Slide 14: La Yaqui Grande Project – low-cost production on track for Q3 2022
La Yaqui Grande Project – low-cost production on track for Q3 2022 Primary, secondary & tertiary crushers >90% Pre-stripping open pit Heap leach construction 85% complete complete La Yaqui Grande Development on track Average annual production (000 oz)2 123 commercial production expected Q3 2022 Aver
Slide 15: Lynn Lake Project – low cost, high-grade, open pit
Lynn Lake Project – low cost, high-grade, open pit • Favourable jurisdiction: Manitoba, Canada • Significant exploration potential across large land package (58,000 ha) • Mineral Reserves increased 27% to 2.1M oz3,4 since 2017 Feasibility Study • Tulune greenfields discovery indicative of upside pot
Slide 16: Growing, long-life North American production; declining cost profile
Growing, long-life North American production; declining cost profile Fully funded internal growth ~750k oz annual production potential by 2025 at ~$800/oz AISC1 $1,135 $1,215 $1,125 800 $1,000 700 Lynn Lake3 $800 13 year reserve life2 Production (000 oz Au) 600 500 460 - 500 460 - 500 Mulatos 457 44
Slide 17: 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 $173M zero debt, well positioned for all market conditions 1,2,3 $673M $173M Fully funded $500M Cash & $673 total liquidity1,2,3 organic growth Undrawn Credit Facility Cash &
Slide 18: Track record of adding value through M&A & exploration
Track record of adding value through M&A & exploration Mulatos (US$M) Young-Davidson (US$M) Island Gold (US$M) $236 $147 $390 $1,190 $1,390 $950 $436 $624 $10 Acquisition Cost Consensus NAV & Acquisition Cost (2015) Consensus NAV & Acquisition Cost (2017) Consensus NAV & 3 (2003) Cumulative FCF Cumu
Slide 19: Track record of adding value on aggregate & per share basis
Track record of adding value on aggregate & per share basis Gold Production (000 oz Au) Mineral Reserves (M oz Au) Cash provided by operations before changes in WC (US$M) +226% 457 +506% 10.3 +706% $411 140 1.7 $51 1 2,3 2014A 2021A 2014A 2021A 2014A 2021A Gold Production Per Share Gold Reserves Per
Slide 20: Long-term track record of delivering shareholder value
Long-term track record of delivering shareholder value Long-term track record of outperformance 2 Average annualized return since 2003 1 Consensus P/NAV 13% 2.02 1.60 1.51 1.48 9% 1.41 1.17 1.14 1.09 1.06 1.05 1.01 1.00 0.97 0.89 0.87 0.83 0.72 0.62 3% AGI NEM SSRM K EQX ELD CG YRI BTO IMG NGD AEM P
Slide 21: Alamos – value creation opportunities
Alamos – value creation opportunities Growing, diversified, Expanding margins & Conservative, low- Sustainable business intermediate gold profitability risk strategy model supporting producer growing returns over the long-term Catalysts ✓ Mineral Reserve and Resource update February 2022 o Island Go
Slide 22: Appendices
Appendices TSX:AGI ǀ NYSE:AGI 22
Slide 23: Board of Directors, Executive and Management Team
Board of Directors, Executive and Management Team Board of Directors Paul J. Murphy John A. McCluskey Elaine Ellingham David Fleck David Gower Claire M. C. Kennedy Monique Mercier J. Robert S. Prichard Kenneth Stowe Chairman Director Director Director Director Director Director Director Director Exe
Slide 24: 2022 guidance
2022 guidance 2022 Guidance 2021A Young-Davidson Island Gold Mulatos Other Total Total Gold production (000 oz) 185-200 125-135 130-145 — 440-480 457 Cost of sales (US$M) (3) — — — — $610 $534 Cost of sales (US$/oz) (3) — — — — $1,325 $1,167 Total cash costs (US$/oz) (1) $850-900 $550-600 $1,225-1,2
Slide 25: 2022 guidance: capital budget
2022 guidance: capital budget 2022 Guidance 2021A2 Sustaining Capital Growth Capital Total Total Operating Mines (US$M) Young-Davidson $50-55 $5-10 $55-65 $82 Island Gold $35-40 $145-160 $180-200 $101 Mulatos $5-10 $50-55 $55-65 $127 Total – Operating Mines $90-105 $200-225 $290-330 $310 Development
Slide 26: 2022 - 2024 guidance: operating mines
2022 - 2024 guidance: operating mines1 2022 2023 2024 Gold Production (000 oz) Young-Davidson 185-200 185-200 185-200 Island Gold 125-135 115-125 140-155 Mulatos 130-145 160-175 135-145 Total Gold Production 440-480 460-500 460-500 Total cash costs (US$/oz) (2) $875-925 $775-875 $650-750 All-in sust
Slide 27: 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 28: Young-Davidson – flagship, long-life production
Young-Davidson – flagship, long-life 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 29: Young-Davidson – transition to lower mine infrastructure completed July 2020
Young-Davidson – transition to lower mine infrastructure completed July 2020 Lower mine infrastructure larger, more productive & highly automated Upper mine infrastructure Upper mine Lower mine % infrastructure infrastructure Change Long term – July Timeline Pre-July 2020 2020 onward Design ore 6,00
Slide 30: Young-Davidson 2021 exploration drilling – significant potential
Young-Davidson 2021 exploration drilling – significant potential o 2021 marks first significant exploration program at YD since 2011 o Mineralization open at depth, along strike to west o Combined 13,000 m of underground exploration drilling from drill platforms in the mid-mine and lower mine o 4,50
Slide 31: 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 32: Young-Davidson – increasing mining rates & productivity
Young-Davidson – increasing mining rates & productivity Q3/16 Q4/16 Q1/17 Q2/17 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 Gold production (oz) 43,629 44,662 40,400 47,300 55,800 56,500 41,000 39,100 49,000 50,900 45,000 45,000 50,000
Slide 33: 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 III Shaft Expansion to 2,000 tpd expected to be completed 2025 • Significant exploration potential laterally & at
Slide 34: One of Canada’s highest-grade gold mines
One of Canada’s highest-grade gold mines Mineral Reserve Grade (g/t Au) 21.9 +58% 13.4 10.1 9.8 9.2 8.4 6.9 6.5 6.4 6.3 5.9 5.1 5.0 4.9 4.4 4.1 3.0 2.4 1.6 Source: Company filings TSX:AGI ǀ NYSE:AGI 34
Slide 35: Island Gold Shaft Expansion – cash flow profile at $1,450/oz Au
Island Gold Shaft Expansion – cash flow profile at $1,450/oz Au $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 -$1 -$14 -$15 -$40 -$42 -$35 -$30 -$54 -$59 -$47 -$52 -$48 -$65 -$77 -$124 -$162 -$169 -$186 20
Slide 36: Island Gold Shaft Expansion – cash flow profile at $1,750/oz Au
Island Gold Shaft Expansion – cash flow profile at $1,750/oz Au $332 $301 $302 $291 $253 $251 $239 $236 $196 $214 $220 $207 $223 $203 $192 $204 $195 $175 $177 $172 $173 $161 $162 $156 $137 $86 $98 $86 $52 -$15 -$9 -$14 -$15 -$1 -$26 -$40 -$35 -$30 -$52 -$48 -$42 -$77 -$65 -$124 -$162 -$169 -$186 202
Slide 37: Island Gold Shaft Expansion – detailed mine plan
Island Gold Shaft Expansion – detailed mine plan 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Mill Feed mined (tonnes) 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) 440,063 61
Slide 38: 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 38
Slide 39: 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 39
Slide 40: Island Gold – gold metal factor long section
Island Gold – gold metal factor long section Gold Metal Factor (Grade x True Width) C-Zone & E1E-Zone as of December 31, 2021 TSX:AGI ǀ NYSE:AGI 40
Slide 41: Island Gold – Trillium Mining acquisition adds to significant exploration potential
Island Gold – Trillium Mining acquisition adds to significant exploration potential Alamos Gold & Trillium Mining Land Tenure Map Surface Projection of Island Gold Mine YE 2019 Mineral Reserves & Resources • 59% increase in land package to 15,524 ha with C$25M Trillium Mining acquisition in December
Slide 42: Island Gold – historical operational results
Island Gold – historical operational results 45,000 $1,400 16 1,400 40,000 14 $1,200 1,200 35,000 12 $1,000 1,000 30,000 10 25,000 $800 800 8 20,000 $600 600 6 15,000 $400 400 10,000 4 $200 2 200 5,000 0 $0 0 0 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19
Slide 43: Mulatos – our founding operation
Mulatos – our founding operation Location: Sonora, Mexico Stage: Producing Ownership: 100% interest Operation: Open pit, heap leach • Initial production 2005 • More than 2M oz produced & ~$390M of free cash flow2 generated to date • Declining cost profile with development of La Yaqui Grande • No thi
Slide 44: 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 45: 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 46: Development – Lynn Lake, Esperanza & Quartz Mountain
Development – Lynn Lake, Esperanza & Quartz Mountain Lynn Lake Esperanza Quartz Mountain Location: Manitoba, Canada Location: Morelos State, Mexico Location: Oregon, United States Ownership: 100% interest Ownership: 100% interest Ownership: Right to earn a 100% interest4 Stage: Permitting Stage: Per
Slide 47: 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 48: Turkish Development Projects
Turkish Development Projects • $1B investment treaty claim filed against Republic of Turkey 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 m
Slide 49: 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 50: 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 51: 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 52: 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 53: 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 54: 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 55: Scott K. Parsons, CFA
Scott K. Parsons, CFA VP, Investor Relations 416.368.9932 x 5439 sparsons@alamosgold.com