Alamos Gold Inc. · TSX:AGI
Alamos Gold — Investor Presentation (December 2010)
43 slides from Alamos Gold's investor presentation, December 2010
Slide 1: Alamos Gold Inc. December Corporate Presentation
ALAMOS GOLD INC. TSX: AGI December Corporate Presentation
Slide 2: Forward Looking Statements
Forward Looking Statements No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This presentation includes certain “forward-looking statements”. All statements other than statements of historical fact, included in this p
Slide 3: Who is Alamos Gold?
Who is Alamos Gold? Alamos is a low-cost emerging mid-tier gold producer that has positioned itself to be one of the highest growth companies in the gold mining sector Owns and operates the Mulatos Mine in Mexico: One of the lowest cost heap-leach gold mines in the sector Adding a mill to process hi
Slide 4: Financial Position & Capital Structure
Financial Position & Capital Structure Strongest Balance Sheet in Company’s History Shares Outstanding1 116,215,406 Employee Options1 7,041,100 Fully Diluted 123,256,106 Recent Share Price C$19.67 Market Capitalization C$2.29 billion Cash & Equivalents1 > US$180 million Debt None Gold Hedging None S
Slide 5: Increasing Reserves & Resources
Increasing Reserves & Resources 8 2P Reserves 7 Measured & Indicated Inferred 6 2.39 Ounces (millions) 5 4 2.05 1.69 3.15 3 2 1.66 3.02 1.93 1 1.52 1.04 0.45 0 2004 2007 2008 2009 2009 Mulatos Mine mineral Reserves and Resources as at December 31, 2008 at 0.5 g/t Au cut-off. Only oxide Aği Daği and
Slide 6: Increasing Production
Increasing Production 400,000 350,000 300,000 250,000 Production (oz.) 200,000 178.5 k 160 - 175 k 151 k 150,000 101.2 k 106.2 k 100,000 50,000 0 2006 2007 2008 2009 2010E 2011E 2012E 2013E 6
Slide 7: A First Quartile Low-Cost Producer
A First Quartile Low-Cost Producer $798 $798 $800 $700 Q3-2010 Total Cash Costs (US$/oz) $600 $577 $508 $500 $477 $441 $454 $431 $435 $439 $416 $394 $400 $372 $300 $200 $100 $0 Source: RBC Capital Markets (November 19, 2010) 7
Slide 8: Strong Financial Performance
Strong Financial Performance Semi-Annual Dividend Increased 17% to $0.035/share Q3 Q2 Q1 Q4 YoY % 2010 2010 2010 2009 2009 2008 Change Strong Quarterly Production Total Production (oz Au) 30,200 38,400 41,600 48,000 178,500 151,000 +18% Industry Leading Low Costs Cash Operating Cost ($/oz) $312 $283
Slide 9: Alamos Continues to Outperform
Alamos Continues to Outperform 250% 200% 150% 100% 50% 0% -50% -100% 2008 2009 2010 Alamos Gold (C$) S&P/TSX Global Gold Miners Index (C$) Gold Bullion (US$) 9
Slide 10: Mulatos Mine, Mexico
Mulatos Mine, Mexico Project Overview Open pit, heap leach operation (100% ownership): ~11.5-year reserve life at the end of 2009 2010 production guidance of 160,000 to 175,000 ounces: Cash cost guidance of $300 per ounce (+ 5% royalty) 2011 production guidance of 160,000 to 175,000 ounces: Cash cos
Slide 11: Mulatos Deposit & Occurrences / Mines
al to! Mulatos Deposit & Occurrences / Mines PIEDRAS VERDES ma . LA CIENEGA : TAY OLTITA MEXICO 11
Slide 12: Existing Mining Operations Pit Expansion Activities
Existing Mining Operations Pit Expansion Activities 12
Slide 13: South Mulatos Heap and North Mulatos Heap
Existing New South Mulatos Heap North Mulatos Heap 13
Slide 14: Stacking of overlift on the new North Mulatos Heap
Stacking of overlift on the new North Mulatos Heap began during the first week of November 14
Slide 15: Crusher circuit expansion
Phase I of crusher circuit expansion commissioned in mid-October The new scalping screen is expected to increased throughput by up to 20% Targeting average throughput of15,700 tonnes of ore per day in 2011 15
Slide 16: Escondida Coarse Native Gold Nugget Effect
Escondida Coarse Native Gold Nugget Effect 16
Slide 17: Mulatos: High-Grade Mill
Mulatos: High-Grade Mill Project Economics at 500 tpd 500 tonnes per day operation Gravity Recovery: 90% Gravity plus leach recovery >95% (based upon lab studies) 1 Initial Capital Cost : $17.5 million (includes 20% contingency) Effective Grade 10.54 g/t Au2 15 g/t Au 20 g/t Au 25.48 g/t Au3 1 oz/t
Slide 18: Mulatos: Pipeline of Projects
Mulatos: Pipeline of Projects Advancing both Exploration and Development Projects Detection Discovery Definition Design Development El Carricito GRASS ROOTS Las Carboneras EXPLORATION San Nicolas La Dura MINERALIZED El Jaspe Los Bajios INTERCEPTS East Estrella STEP-OUT DRILLING OF El Realito MULTIPL
Slide 19: Mulatos District Map
LA CHIPRIONA Pb-Zn-Ag 3,180,900 N OSTIMURI Au-Ag * mM LA INDIA Au CT LA VIRUELA Au oraz. 7 : LA CRUZ Au jens" t : 3,160,000 N §| SAN NICOLAS : : fl 3,180,000 | Vas CIENEGUITA Au LR “* EL REALITO Au JULIANA Au LA DURA Au = ESCONDIDA Au local EL VICTOR Au D v1 PUERTO DEL AIRE Au 3,170,008 N * ZARAGOSA
Slide 20: El Carricito Gold Geochemistry
El Carricito Gold Geochemistry More than 10 Prospective Drill Target Areas Identified Geochemistry Legend (g/t Au | ppm Au) Highest: 1.125 Lowest: <0.005 Outline of silica 1 km alteration 1 kilometre 20
Slide 21: Mulatos District: El Carricito
Mulatos District: El Carricito Advancing a Prospective Grassroots Target Largest area of favourable silicic and advanced argillic alteration in the Mulatos District Large silica body exposed at surface: 5,500 m long, up to 2,700 m wide, up to 300 m thick in outcrop Abundant vuggy silica and hydrothe
Slide 22: View of the southern side of El Carricito project area
View of the southern side of El Carricito project area (facing north) 22
Slide 23: Mulatos: Near-Pit Resource Expansion
Mulatos: Near-Pit Resource Expansion Silica Alteration (2004 vs. 2009) 23
Slide 24: Recent Exploration Activity – Greater Mulatos Pit Area
Recent Exploration Activity – Greater Mulatos Pit Area (View to South) Carricito Cerro Pelon Las Carboneras East Estrella Estrella PdA El Salto / Mina Vieja PdA Extension Escondida Gap LEGEND El Victor Mineralized trends +1 opt intercepts San Carlos 24 September 30, 2009
Slide 25: Mulatos: San Carlos
Mulatos: San Carlos Advancing Another Near-Pit High-Grade Project Gold mineralization occurs in the same stratigraphic horizon as that hosting the high-grade mineralization at Escondida Recent drilling highlights: 10SC124 25.9 g/t Au over 18.4 m 10SC120 15.0 g/t Au over 29.0 m 10SC109 11.6 g/t Au ov
Slide 26: Mulatos: San Carlos
Mulatos: San Carlos Mineralization Remains Open to the Northeast 26
Slide 27: Puerto del Aire Extension
Puerto del Aire Extension Southern Extensions to San Carlos Dyke Swarm Identified San Carlos Dyke Swarm PdA Extension Dyke Swarms Naranjo Dyke Swarm 27
Slide 28: Turkey: Ağı Dağı and Kirazlı Gold Projects
Turkey: Ağı Dağı and Kirazlı Gold Projects The First Chapter of Growth Outside of Mulatos Infrastructure: Paved roads Grid power Water Eager workforce Modern telecommunications 2 established camps Core storage 28
Slide 29: Infrastructure in Place
Infrastructure in Place View toward Kirazlı, power line parallels left side of road 29
Slide 30: Infrastructure in Place
Infrastructure in Place Electrical generating station in nearby Çan 30
Slide 31: Excellent Facilities
Excellent Facilities Electrical generating station in nearby Çan 31
Slide 32: Drilling Underway
Drilling Underway Six Core Rigs: 3 at Ağı Dağı and 3 at Kirazlı 32
Slide 33: Ağı Dağı & Kirazlı: PEA Highlights
Ağı Dağı & Kirazlı Preliminary Economic Assessment Highlights Total gold production: 1.139 million ounces Average total cash cost1 of $314 per ounce Average annual production of 135,000 ounces of gold over the first eight years Low waste-to ore ratio of 1.24:1 Total initial and sustaining capital co
Slide 34: Ağı Dağı & Kirazlı: After-Tax NPV
Ağı Dağı & Kirazlı After-Tax NPV1 (millions) Discount Gold Price ($/oz) Rate $800 $1,000 $1,200 $1,400 $1,600 $1,800 0.0% $248 $445 $637 $829 $1,021 $1,213 5.0% $134 $273 $410 $548 $686 $824 7.5% $94 $212 $330 $448 $566 $684 10% $61 $163 $265 $367 $468 $570 IRR 18% 29% 39% 49% 58% 66% 1 Management e
Slide 35: Ağı Dağı & Kirazlı: Project Milestones
Ağı Dağı & Kirazlı Project Milestones 2010 2011 2012 2013 2014 Scoping Study In-fill & Extension Drilling Exploration Drilling Pre-feasibility Study EIA Preparation EIA Approval Period Kirazlı Mine Permitting & Construction Production Start-up Ağı Dağı Mine Permitting & Construction Production Start
Slide 36: Ağı Dağı & Kirazlı: Pipeline of Projects
Ağı Dağı & Kirazlı: Pipeline of Projects Aggressive Exploration Program to Drive Organic Growth Detection Discovery Definition Design Development Kale GRASS ROOTS Rock Pile EXPLORATION Iri MINERALIZED INTERCEPTS Çamyurt STEP-OUT DRILLING OF Fire Tower MULTIPLE Ayitepe Kirazlı Feeder Zone INTERCEPTS
Slide 37: Ağı Dağı - Target Areas
Ağı Dağı - Target Areas Ağı Dağı Exploration Targets 37
Slide 38: Ağı Dağı: Çamyurt Discovery
Ağı Dağı: Çamyurt Discovery Drilling Resumed in November 2010 3 km southeast of Baba deposit 700 m of strike tested by previous operators 800+ m of additional strike to be tested with drilling Oxidized volcanic and breccia zones Outcrops intensely silicified Vuggy silica present Drilling resumed in
Slide 39: Corporate Strategy
Corporate Strategy Focused on Sensible and Sustainable Growth Increasing Production Processing high-grade ore at Mulatos in 2012 Advancing Kirazlı & Ağı Dağı towards production for 2013 and 2014, respectively Increase Gold Reserves Rapidly advance satellite projects up the development pipeline Growt
Slide 40: Mulatos: Proven and Probable Reserves
Mulatos: Proven and Probable Reserves As of December 31, 2009 40
Slide 41: Mulatos: Mineral Resources
Mulatos: Mineral Resources As of December 31, 2009 (exclusive of reserves) 41
Slide 42: Ağı Dağı and Kirazlı: Mineral Resources
Ağı Dağı and Kirazlı: Mineral Resources As of December 31, 2009 - Only oxide Aği Daği and Kirazlı gold mineral resources as at December 31, 2009 presented at 0.2 g/t Au cut-off. - It is anticipated that the economic cut-off grade will be approximately 0.2 g/t Au for oxide and 1.0 g/t Au for sulfide.
Slide 43: Alamos Gold Inc. Contact
ALAMOS GOLD INC. For additional information, please contact: Jeremy Link, M.Eng., P.Eng. Investor Relations Manager 416.368.9932 × 201 866.788.8801 × 201 jlink@alamosgold.com www.alamosgold.com 43