Alamos Gold Inc. · TSX:AGI
Alamos Gold — Investor Presentation (February 2007)
43 slides from Alamos Gold's investor presentation, February 2007
Slide 1: Alamos Gold Inc.
MY ATAMos GOLD INC.
Slide 2: Building Momentum
Building John A. Momentum McCluskey
Slide 3: Forward Looking Statements
Forward Looking Statements No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain “forward-looking statements”. All statements other than statements of historical fact, included in this r
Slide 4: Company Snap Shot
Company Snap Shot Building Momentum 2006 Gold production >101,000 oz. 2006 Gold sales revenues $54.7 M (unaudited) Expanding resources in proximity to existing operation 4
Slide 5: A Record of Achievement
A Record of Achievement BUILDING MOMENTUM PRODUCTION CONSTRUCTION PERMITS FEASIBILITY ACQUISITION Present 2003 2004 2004 2005 2006 2007 5
Slide 6: Investment Highlights
Investment Highlights Expanding Production & Growing Cash Flow 8 Year Mine Life & 10+ Year Resource Life Aggressive Exploration Program to Grow Reserves & Resources Politically Stable Environment Unhedged & Leveraged to Gold Highly Experienced Management Team 6
Slide 7: Building Production
4 Atamos Gotp INc. Building Production
Slide 8: World Class Assets
World Class Assets EW Atamos Go p INc.
Slide 9: Operations - Production Site
Operations - Production Site 9
Slide 10: Mulatos Mine - Gold Production
Mulatos Mine - Gold Production Building Momentum Ounces of Gold Produced1 31,720 24,880 23,620 20,950 Q1 2006 Q2 2006 Q3 2006 Q4 2006 1 Q1 2006 and Q2 2006 reported gold production has been adjusted to reflect final settlement amounts. Q3/Q4 2006 reported gold production is subject to final settleme
Slide 11: Mulatos Mine - Costs per Tonne Summary
Mulatos Mine - Costs per Tonne Summary 2006 Production and Cost 2006 Mining Cost Per Tonne $1.12 Waste-to-ore Ratio 2.26 Mining Cost per Tonne of Ore $3.66 Crushing Cost per Tonne of Ore $1.84 Processing Cost per Tonne of Ore $1.86 Administration Cost per Tonne of Ore $1.10 Cost per Tonne of Ore $8.
Slide 12: Gold Sales
Gold Sales Q1 Q2 Q3 Q4 YTD 2006 2006 2006 2006 2006 Gold Sales - Ounces 22,670 23,780 19,500 25,270 91,220 Gold Sales Revenues (000s) $12,490 $14,700 $12,165 $15,299 $54,654 Realized Gold Price per Ounce $551 $618 $624 $605 $599 Average Gold Price for Period (London PM Fix) $554 $627 $622 $613 $604
Slide 13: Financial Results
Financial Results 9 Months Ended (000s (000s of of $US) $US) Sept 30, 2006 Operating Revenues Gold Sales $39,355 Operating Expenses Mining & Processing 18,763 Royalties 1,373 Amortization 5,625 Exploration 3,374 Corporate & Administrative 2,827 Stock-based Compensation 1,170 Accretion of Asset Retir
Slide 14: Strong Balance Sheet
Strong Balance Sheet CURRENT ASSETS Sept 30, 2006 Dec 31, 2005 Cash and Cash Equivalents $9,419 $4,519 Restricted Cash 81 1,219 Fair Value of Forward Contracts - 966 Amounts Receivable 5,235 3,862 Advances and Prepaid Expenses 1,362 1,935 Inventory 25,404 9,989 Total 41,501 22,490 Deferred Financing
Slide 15: Status of Expansion
Status of Expansion Feasibility Expansion Increase Study Ore 10,000 15,000 50% Waste 15,000 30,000 100% Total Material 25,000 45,000 80% 15
Slide 16: Operation Goes to 4th Stage Crushing
Operation Goes to 4th Stage Crushing Improves discharge size & increases capacity 7’ standard crusher purchased in December to provide 4th stage Engineering nearing completion Scheduled to Come On-line in Q2/07 16
Slide 17: Focused Exploration
O A = O UO 6 : < oe Focused Exploration
Slide 18: Near Pit Resource Development
Near Pit Resource Development GAP EL VICTOR SAN CARLOS ESCONDIDA EL SALTO PUERTA DEL AIRE ESTRELLA PIT 18
Slide 19: Exploration
Exploration (Open) El Victor San Carlos Gap 1996 (Open) Feasibility Study Pit Outline 0m 500m Escondida Post 1996 Drill indicated (Open) grade-thickness El Salto Puerto del Aire >100m g/t Au >25m g/t Au 1996 Feasibility study grade-thickness >100m g/t Au Estrella Pit >25m g/t Au (Open) Areas w/ High
Slide 20: Exploration - Drilling
Exploration - Drilling EW Atamos Go p INc.
Slide 21: Exploration - Drilling
Exploration - Drilling EW Atamos Gotp Inc.
Slide 22: Escondida Long Section
Escondida Long Section SW NE El Salto Escondida Exploration Tunnel Mina Vieja Escondida Zone El Salto Zone LEGEND Landslide Material Rhyodacite Porphyry Post Mineral Volcanics CG Volcaniclastic FG Volcaniclastic Lower Dacite Porphyry Low-grade Disseminated Hanging Wall Zone 0m 100m Mineralization 22
Slide 23: Escondida Resource Table
Escondida Resource Table Au Au Measured Measured Resource Resource Indicated Indicated Resource Resource Total Total M M ++ II Resource Resource Cutoff Cutoff Tonnes Tonnes Au Au Au Tonnes Tonnes Au Au Tonnes Tonnes Au Au (g/t) (000) (g/t) Au Ozs Ozs (000) (g/t) Au Au Ozs Ozs (000) (g/t) Au Au Ozs O
Slide 24: Escondida HWZ Resource Upside Potential
Escondida HWZ Resource Upside Potential Accurate grade determination a critical factor Gold particle size (<30 mm) dictates multi-bulk samples only way to accurately determine grade Average gold grade increases with sample size due to nugget effect Mean Au grade of drift round samples 25.48 g/t comp
Slide 25: Nugget Effect in HW Drift
Nugget Effect in HW Drift 25
Slide 26: Follow Up Work in High Grade Ore
Follow Up Work in High Grade Ore 25-tonne sample being shipped to SGS in Canada for bulk testing Arranging 3,000 tonnes of high grade for shipment to existing mill facility 26
Slide 27: El Victor, Gap & San Carlos
El Victor, Gap & San Carlos (Open) El Victor San Carlos 9.0m @ 12.1 g/t Au Gap 1996 El Victor (Open) Feasibility San Carlos Study Pit Outline 0m 500m 26.0m @ 4.20 g/t Au 48.8m @ 23.0m @ 0.91 g/t Au 4.69 g/t Escondida Au Post 1996 Drill indicated (Open) grade-thickness Gap El Salto Puerto del Aire >1
Slide 28: El Victor Project Summary of underground development
El Victor Project Summary 891 of underground development Meters 7,000 of core drilled (101 drill holes) Meters 6,000 of surface RC holes drilled (36 holes) Meters 28
Slide 29: El Victor/GAP Resource Drilling
El Victor/GAP Resource Drilling 0 25 50 100 Meters El Victor 5800N East Portal El Victor 49.0m @ Portal 3.02 g/t Cross Section Line 5700N 325-145 Azimuth 22.9m @ El Victor 1.54 g/t Resource Area 5600N GAP Resource Area 52.0m @ 1.37 g/t El Victor Resource Areas 21.3m @ Surface & Underground Drilling
Slide 30: El Victor Highlights
El Victor Highlights Significant new holes at El Victor/Gap boundary: 33.54m @ 4.09 g/t (06EV048) 25.9m @ 3.85 g/t Au (06EV047) 600m strike length to El Victor mineralized zone, continuous into Gap Resource estimation on track for 2H 2007 All new resource ounces 30
Slide 31: Gap High-Grade Potential
Gap High-Grade Potential Down-faulted covered block between Escondida and El Victor and along trend strike Key geologic characteristics of Escondida Hanging Wall Zone present in Gap Drilling in progress, with blind silica altered zone in first two holes extended 100m to south and east of previous Pl
Slide 32: El Victor - San Carlos Long Section
El Victor –San Carlos Long Section SW NE El Victor Resource Area San Carlos Resource Area 1100 41.0m@ 1.02 g/t 22.7m@ 6.10m@ 46.0m@ 5.21 g/t 1.48 g/t 3.06 g/t 1000 36.6m@ 22.2m@ 1.44 g/t 2.37 g/t 10.7m@ 16.8m@ 2.09 g/t 1.24 g/t 45.6m@ 18.2m@ 4.69 g/t 33.6m@ 10.7m@ 0.96 g/t 3.07 g/t 2.15 g/t 13.7m@ 1
Slide 33: Pipeline of Projects at All Stages
Pipeline of Projects at All Stages Phase I Phase II Phase III Phase IV Phase V GRASS ROOTS Pelon EXPLORATION Carricito Jaspe MINERALIZED INTERCEPTS Halcon Yaqui STEP-OUT DRILLING West Bajios OF MULTIPLE Realito INTERCEPTS San Carlos RESOURCE El Victor & RESERVE DEFINITION Gap RESERVE DEFINITION Esco
Slide 34: Experienced Management
Experienced Management JOHN A. MCCLUSKEY President and CEO JON MORDA JOHN F. VAN DE BEUKEN Chief Financial Officer Chief Operating Officer SHARON L. FLEMING KEN BALLEWEG Corporate Secretary Vice President of Exploration VICTORIA VARGAS JAMIE PORTER Investor Relations Controller 34
Slide 35: Capital Expenditures
Capital Expenditures 2006 2007E Capex Budget $19.5 M $10.1 M Exploration $8.4 M $5.8 M 35
Slide 36: Investment Highlights
Investment Highlights Expanding Production & Growing Cash Flow 8 Year Mine Life & 10+ Year Resource Life Aggressive Exploration Program to Grow Reserves & Resources Politically Stable Environment Unhedged & Leveraged to Gold Highly Experienced Management Team 36
Slide 37: Alamos Gold Inc.
MY ATAMos GOLD INC.
Slide 38: Building Momentum
« ALAMOS GOLD ING. Building | Momentum
Slide 39: Appendix
4 Atamos GoLp INc. 2006 Presentation Appendix ote ~*
Slide 40: Mexico
Mexico Stable political environment Benefits of NAFTA membership Alamos is socially active in local community 98% of employees are Mexican nationals Medical & educational services provided 40
Slide 41: Mulatos Mine
Mulatos Mine Open pit Gold mine Achieved commercial operation April 2006 Initial ore production in Estrella Pit Approximately 1.96 million contained oz. gold 15,000 tonnes/day crushed ore Expanded leach pad in operation Considering options to improve recovery rates to achieve 72.9% in Feasibility St
Slide 42: 2006 Exploration Highlights
2006 Exploration Highlights Escondida Hanging Wall and Main Zone drilling completed: 103 underground core holes (7,757m), 69 surface RC holes (6,762m), seven metallurgical core holes (494m) El Victor drilling completed, Gap Zone in progress: 101 underground core holes (6,939m), 36 surface RC holes (
Slide 43: Share Structure
Share Structure (000s (000s of of $CDN) $CDN) as at Feb 15/07 Shares Outstanding 93,724,513 Options Outstanding 5,171,500 Total 98,896,013 Conversion Ratio (18.86792) Shares Issued upon Conversion 282,264 Total of # Shares Fully Diluted 99,178,277 Price as at February 15, 2007 8.98 Market Capitaliza