Alamos Gold Inc. · TSX:AGI
Alamos Gold — Shareholder Meeting (May 2019)
24 slides from Alamos Gold's shareholder meeting presentation, May 2, 2019
Slide 1: Annual Meeting of Shareholders
John A. McCluskey President & Chief Executive Officer Annual Meeting of Shareholders May 2, 2019
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: Year in review
Year in review T:\Photos & Images\Mulatos\2019 Mulatos Photos by Penda\Aerials\Mulatos Aerials 2.zip\Mulatos_Aerials-32 TSX:AGI ǀ NYSE:AGI 3
Slide 4: Record production; significant growth
Record production; significant growth Gold Production (000 oz) 429 505 505,000 oz 380 392 Record production; met guidance fourth consecutive year 141 2014A 2015A 2016A 2017A 2018A 18% AISC1,2 (US$/oz) Increase in production from 2017; 258% increase since 2014 $1,091 $1,022 $1,010 $983 $933 Declining
Slide 5: Record revenues & cash flow
Strong financial performance Operating Revenues (US$m) Cash Provided by Operations (before changes in WC) (US$M)1 $652 $543 $212 $355 $482 $148 $183 Record revenues $170 $65 & cash flow $51 2014A 2015A 2016A 2017A 2018A 2014A 2015A 2016A 2017A 2018A Mine-Site Free Cash Flow Cash Flow per Share (basi
Slide 6: Island Gold – continued growth & outperformance
Island Gold – continued growth & outperformance Island Gold Mineral Reserves & Resources Over Time (koz) Reserves Phase I Expansion 3,000 M&I Resources 12 Inferred Resources to 1,100 tpd completed September 2018 Mineral Reserve grade Cumulative oz produced 2,500 10 2,000 1,573 8 Record year Grade (g
Slide 7: Young-Davidson – lower mine expansion advancing
Young-Davidson – lower mine expansion advancing Schedule 2 Amendment for new LOM tailings facility received Strong H2 2018 performance H1 2020 Completion of lower mine expansion on track TSX:AGI ǀ NYSE:AGI 7
Slide 8: Mulatos – significant milestone
Mulatos – significant milestone 2m oz Production milestone achieved March 2019 ~$10m Annual savings with end of 5% royalty Cerro Pelon MIA & CUS permits received Q4 2018 TSX:AGI ǀ NYSE:AGI 8
Slide 9: Advanced development pipeline
Advanced development pipeline Cerro Pelon Kirazlı Lynn Lake construction underway; initial received GSM & Operating 16% increase in mineral production 2020 Permits; initial production by reserves1; updated Feasibility end of 2020 Study mid-2019 1 See mineral reserve and resource estimates and associ
Slide 10: Health & Safety – Home Safe Every Day
Health & Safety – Home Safe Every Day Safety Performance AGI LTIFR (per 200k hours worked) 0.50 0.45 0.40 0.35 0.35 0.30 0.25 0.227 0.20 0.15 0.124 0.10 0.05 0.029 0.00 1 2016 2017 2018 2018 WSN 6m hours without an LTI achieved at El Chanate 1 Source: Workplace Safety North: 2018 Lost Time Injuries
Slide 11: Sustainability – Environment & Communities
Sustainability – Environment & Communities Environment • Air emissions monitoring – continual sampling • Water management – comprehensive programs at all sites • Progressive reclamation and reforestation Community Initiatives • Young-Davidson – continued partnerships with Matachewan and Temagami Fir
Slide 12: Voluntary Relocation to Matarachi
Voluntary Relocation to Matarachi Community investment • 21 new homes • Education centre • Medical clinic • Community centre • Church TSX:AGI ǀ NYSE:AGI 12
Slide 13: Outlook
Outlook TSX:AGI ǀ NYSE:AGI 13
Slide 14: Diversified, long-life production; growing cash flow
Diversified, long-life production; growing cash flow Young-Davidson – Ontario, Canada • • Large, bulk tonnage, low-cost underground gold mine 13 year reserve life1 with significant resource & exploration upside 500 koz stable, long term production • Lower mine expansion to drive strong FCF growth in
Slide 15: Peer leading, multi-stage, fully funded growth
Peer leading, multi-stage, fully funded growth Quartz Mountain Esperanza Longer term value creation Mulatos District Exploration opportunities Island Gold Exploration Lynn Lake 13% After-tax IRR1 Çamyurt 253% Peer leading, After-tax IRR1 high return Ağı Dağı 39% After-tax IRR1 growth 44% Kirazlı Aft
Slide 16: Short-term underperformance; long-term track record of delivering value
Short-term underperformance; long-term track record of delivering value Average annualized return since 2003 1 10% 0% -2% 12% -7% 8% -10% -1% AGI (TSX) S&P Global Gold Index Gold (US$/oz) -20% -30% -24% $124m cumulative dividends paid since 2010 -40% Alamos Gold (TSX:AGI) Dividend doubled -50% Gold
Slide 17: Alamos – value creation opportunities
Alamos – value creation opportunities Diversified intermediate gold producer Low-cost growth profile Strong balance sheet to support growth Long-term track record of delivering shareholder value Catalysts Young-Davidson – stronger operational performance Island Gold – Phase II expansion & ongoing Yo
Slide 18: Appendices
Appendices TSX:AGI ǀ NYSE:AGI 18
Slide 19: 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 20: Proven & Probable Mineral Reserves
Proven & Probable Mineral Reserves PROVEN AND PROBABLE GOLD MINERAL RESERVES (as at December 31, 2018) 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 21: Total Measured & Indicated Mineral Resources
Total Measured & Indicated Mineral Resources MEASURED AND INDICATED GOLD MINERAL RESOURCES (as at December 31, 2018) 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 22: Total Inferred Mineral Resources
Total Inferred Mineral Resources INFERRED GOLD MINERAL RESOURCES (as at December 31, 2018) Tonnes Grade Ounces (000's) (g/t Au) (000's) Young-Davidson – Surface 31 0.99 1 Young-Davidson – Underground 3,498 2.75 310 Total Young-Davidson 3,528 2.74 311 Island Gold 4,178 11.71 1,573 Mulatos 8,369 0.92
Slide 23: 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 24: Scott K. Parsons, CFA
Scott K. Parsons, CFA VP, Investor Relations 416.368.9932 x 5439 sparsons@alamosgold.com