Alamos Gold Inc. · TSX:AGI
Alamos Gold — Q2 2020 Earnings Presentation
23 slides from Alamos Gold's earnings presentation, Jul 30, 2020
Slide 1: Second Quarter 2020 Results Presentation
Second Quarter 2020 Results Presentation July 30, 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: Q2 2020 highlights
Q2 2020 highlights YoY % Q2 2020A Q2 2019A Revised 2020 Previous 2020 Q2 2020A Q2 2019A YoY% Change Change YTD YTD Guidance Guidance4 Gold production (000 oz) 78.4 125.2 (37%) 189.3 250.5 (24%) 405-435 425-465 Gold sales (000 oz) 74.6 128.5 (42%) 186.5 248.2 (25%) - - Total cash costs (US$/oz)1,4 $9
Slide 4: COVID-19 update & outlook
COVID-19 update & outlook • Our primary focus remains the health and safety of our people and the communities in which we operate • We continue to be diligent in taking precautions to help prevent the potential spread of COVID-19 including instituting the following measures across the Company: o Med
Slide 5: Delivered on transformational catalysts – strong H2 2020 outlook
Delivered on transformational catalysts – strong H2 2020 outlook Young-Davidson mine Island Gold mine Mulatos mine Completion of lower mine expansion Phase III Expansion to 2,000 tpd La Yaqui Grande construction decision o Higher production & lower costs o Doubled mine life to 16 years o Low-cost, h
Slide 6: Financial highlights
Financial highlights Q2 Q2 Revised Previous Q2 Q2 YoY % YoY% AISC margin (US$/oz)1,3 2020A 2019A 2020 2020 2020A 2019A Change Change YTD YTD Guidance Guidance $572 Realized gold price (US$/oz) $1,692 $1,309 29% $1,626 $1,306 25% - - $498 $491 $383 $416 Operating revenues (US$M) $126 $168 (25%) $303
Slide 7: Operational highlights – Young-Davidson
Operational highlights – Young-Davidson Previous Q2 YTD Q2 YTD Revised 2020 Production & total cash costs2 Q2 2020A Q2 2019A 2020 2020A 2019A Guidance Guidance4 Northgate Shaft 60 shutdown $1,800 Gold production (koz) 23.1 45.0 51.8 90.0 135-145 145-160 50 $1,500 Cost of sales, including amortizatio
Slide 8: Young-Davidson lower mine expansion – completed July 2020
Young-Davidson lower mine expansion – completed July 2020 9025L Rockbreaker • Lower mine infrastructure bigger, more efficient & productive • Mining rates increased to 6,500 tpd by the end of July • Mining rates expected to increase to 7,500 tpd by end of 2020 • Lower mine expansion expected to driv
Slide 9: Operational highlights – Island Gold
Operational highlights – Island Gold Previous Q2 2020A Q2 2019A Revised 2020 Q2 2020A Q2 2019A 2020 YTD YTD Guidance Production & total cash costs2,5 Guidance4,5 Gold production (koz) 19.4 39.5 58.2 75.1 130-140 130-145 40 $700 Cost of sales, incl. amortization, per oz of gold sold 1 $1,056 $824 $86
Slide 10: Island Gold – Phase III Expansion Study
Island Gold – Phase III Expansion Study Shaft Expansion to 2,000 tpd best option of five considered • Strongest economics • Highest annual production and lowest operating costs • Higher capital more than offset by reduction in LOM operating costs $1.02B NPV5% & 17% IRR • Increasing margins vs ramp a
Slide 11: Island Gold Shaft Expansion – best option
Island Gold Shaft Expansion – best option Shaft Expansion Production & Cost Profile 2 350,000 $1,000 236k oz average annual 300,000 $900 production1; 72% increase from initial 2020 guidance3 $800 250,000 $534/oz average mine-site Mine-site AISC2 (US$/oz) $700 Gold production (oz) 200,000 AISC1,2; 30
Slide 12: Shaft Expansion – best option to capitalize on future exploration upside
Shaft Expansion – best option to capitalize on future exploration upside W Planned shaft location E Crown pillar 340 Level 620-616-07 - 500 m - 500 m 18.72 g/t Au (16.44 g/t Au cut) / 3.64 m 840-566-06 21.01 g/t Au (21.01 g/t Au cut) / 4.26 m 620 Level 620-616-02 21.30 g/t Au (15.52 g/t Au cut) / 2.
Slide 13: Operational highlights – Mulatos
Operational highlights – Mulatos Revised Previous Q2 2020A Q2 2019A Production & total cash costs2 Q2 2020A Q2 2019A 2020 2020 YTD YTD Guidance Guidance4 50 $1,000 Gold production (koz) 35.9 36.3 78.5 75.2 140-150 150-160 $900 Cost of sales, including amortization, per ounce of 40 $1,116 $892 $1,078
Slide 14: La Yaqui Grande construction decision – low cost, high-return project
La Yaqui Grande construction decision – low cost, high-return project • Low-cost, high return project within Mulatos District • Fully permitted with construction activities ramping up H2 2020 • Five year mine life with initial production expected Q3 2022 • Expected to keep Mulatos production at ~150
Slide 15: 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 2.20 1 Consensus P/NAV ✓ Island Gold – 0.9 million
Slide 16: Appendices
Appendices TSX:AGI ǀ NYSE:AGI 16
Slide 17: 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 18: 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 19: 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 20: 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 21: 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 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 TSX:AGI ǀ NYSE:AGI 23