Alamos Gold Inc. · TSX:AGI
Alamos Gold — Q3 2019 Earnings Presentation
23 slides from Alamos Gold's earnings presentation, Oct 31, 2019
Slide 1: Third Quarter 2019 Results Presentation
Third Quarter 2019 Results Presentation October 31, 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: Q3 2019 Highlights
Q3 2019 Highlights YoY % Q3 2019A Q3 2018A YoY % Q3 2019A Q3 2018A 2019E Production (000 ounces) Change YTD YTD Change Gold production (000 oz) 121.9 124.0 (2%) 372.4 379.4 (2%) 480-520 124 -2% 122 Total cash costs (US$/oz)1 $730 $817 (11%) $720 $813 (11%) $710-750 All-in sustaining costs ($US/oz)1,
Slide 4: Financial Highlights
Financial Highlights YoY % Q3 2019A Q3 2018A YoY % AISC margin (US$/oz)1,4 Q3 2019A Q3 2018A Change YTD YTD Change Realized gold price (US$/oz) $1,448 $1,229 18% $1,352 $1,290 5% $498 Operating revenues (US$M) $173 $147 18% $497 $489 2% $383 $347 $261 Cash flow from operations (US$M) $68 $45 50% $18
Slide 5: Operational Highlights – Young-Davidson
Operational Highlights – Young-Davidson Q3 2019A Q3 2018A Q3 YTD 2019A Q3 YTD 2018A 2019E Production & total cash costs2 Gold production (koz) 50.0 49.0 140.0 129.1 180-190 60 1,100 Cost of sales, including amortization, per ounce of gold $1,191 $1,276 $1,252 $1,298 $1,220 sold1 1,000 50 Total cash
Slide 6: Young-Davidson Lower Mine Expansion – 8990 level crusher
Young-Davidson Lower Mine Expansion – 8990 level crusher June 2019 October 2019 • Crusher room excavation • Chutes, steel, crane installed • Crusher unit installation expected in December 2019 TSX:AGI ǀ NYSE:AGI 6
Slide 7: Young-Davidson lower mine expansion – 9000 level top of shaft bins
Young-Davidson lower mine expansion – 9000 level top of shaft bins June 2019 October 2019 • Shaft bottom steel, ore and waste bins at Northgate shaft complete • Loading pocket complete • Ore passes >60% complete; scheduled for completion in Q4/19 • Construction schedule significantly de-risked with
Slide 8: Young-Davidson Lower Mine Expansion Schedule
Young-Davidson Lower Mine Expansion Schedule % 2016 2017 2018 2019 2020 Completion Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 MCM Shaft Commissioned 100% MCM Waste Pass Commissioned 100% 8900 Level Development 100% Northgate Shaft Deepening Setup/Civil Work 100% Pilot Hole 100% Ream
Slide 9: Operational Highlights – Island Gold
Operational Highlights – Island Gold Q3 YTD Q3 YTD Q3 2019A Q3 2018A 2019E 2019A 2018A Production & total cash costs2 Gold production (koz) 36.7 22.0 111.8 76.8 135-145 Cost of sales, including amortization, per ounce of gold 40 700 $860 $1,085 $845 $1,033 $855 sold1 35 Total cash costs, per ounce o
Slide 10: Island Gold – growing in size & quality
Island Gold – growing in size & quality Mineral Reserves & Resources Over Time (koz) Significant Growth Since 2017 Acquisition Reserves 3,000 M&I Resources 12 Inferred Resources Mineral Reserve grade Cumulative oz produced 2,500 10 2,000 1,573 8 Grade (g/t Au) 1,500 908 996 koz Au 196 1,000 768 6 1,
Slide 11: Island Gold – expanding high-grade mineralization
Island Gold – expanding high-grade mineralization • Ongoing exploration success expected to increase Mineral Resources in 2019 year end update • Will be incorporated into Phase III expansion study to be completed H1 2020 TSX:AGI ǀ NYSE:AGI 11
Slide 12: Operational Highlights – Mulatos
Operational Highlights – Mulatos Q3 YTD Q3 YTD Q3 2019A Q3 2018A 2019E Production & total cash costs2 2019A 2018A Gold production (koz) 32.7 43.3 107.9 139.9 150-160 60 $1,000 Cost of sales, including amortization, per ounce of $1,075 $991 $960 $988 $1,065 $900 gold sold1 45 Total cash costs, per ou
Slide 13: Kirazlı – project update
Kirazlı – project update Kirazlı Project, Turkey Project information • Kirazlı is being constructed to same high environmental standards as operations in Canada & Mexico • Located 40km away from the Kaz Dağları National Park & Mount Ida • Kirazlı will not impact Atikhisar Reservoir Kirazlı • 14km aw
Slide 14: Kirazlı – permitting update
Kirazlı – permitting update • Construction activities suspended pending renewal of mining concessions which expired October 13, 2019 • Concessions have not been revoked and can be renewed after expiration date which is not uncommon • 58% of 552 mining concessions renewed since February 2019 were ren
Slide 15: 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 Value Drivers Island Gold – ongoing exploration Consensus P/NAV1 1.88 Cerro Pelon – initial production by
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: 2019 guidance
2019 guidance 2019 Guidance 2018A Young-Davidson Mulatos Island Gold El Chanate Turkey Other (2) Total Total Gold production (000’s oz) 180-190 150-160 135-145 15-25 — — 480-520 505 Cost of Sales (in millions) (4) $226 $165 $120 $26 — — $537 $639 Cost of Sales ($/oz) (4) $1,220 $1,065 $855 $1,300 —
Slide 19: 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 20: 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 21: 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 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