Alamos Gold Inc. · TSX:AGI
Alamos Gold — Technical Presentation (July 2021)
43 slides from Alamos Gold's technical presentation, Jul 13, 2021
Slide 1: Young-Davidson Virtual Site Tour
Young-Davidson Virtual Site Tour July 13, 2021
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: Introduction
Introduction Our team John A. McCluskey – President & CEO Jamie Porter – CFO Peter MacPhail – COO Luc Guimond – General Manager, Young-Davidson Mine Scott R.G. Parsons – VP, Exploration Chris Bostwick – VP, Technical Services Scott K. Parsons – VP, Investor Relations 3
Slide 4: Introduction – Jamie Porter, Chief Financial Officer
Introduction Jamie Porter Chief Financial Officer 4
Slide 5: Strong platform for delivering sustainable long-term value
Strong platform for delivering sustainable long-term value Growing, diversified, Expanding margins & Conservative, low- Sustainable business intermediate gold profitability risk strategy model supporting producer growing returns over the long-term 470-510k oz $1,025-$1,075 Safe jurisdictions Balance
Slide 6: Diversified asset base; low political risk profile
Diversified asset base; low political risk profile Island Gold, Ontario, Canada 2021E Au Production 130-145 koz 2021E Mine-site AISC4 $750-800/oz ~500 koz Long-life annual production base; Young-Davidson, Ontario, Canada 2021E Au Production 190-205 koz growth potential to ~750 koz in 2021E Mine-site
Slide 7: Growing, long-life North American production; declining cost profile
Growing, long-life North American production; declining cost profile ~750k oz annual production potential by 2025 at ~$800/oz AISC1 800 Lynn Lake3 700 10 year reserve life2 ~170k oz per year 2025+ 600 Mulatos Production (000 oz Au) 500 7 year reserve life2 ~150k oz per year 2021+ 400 Island Gold 15
Slide 8: Track record of adding value through M&A & exploration
Track record of adding value through M&A & exploration Mulatos (US$m) Young-Davidson (US$m) Island Gold (US$m) $69 $209 $1,404 $460 $1,387 $950 $624 $506 $10 Acquisition Cost (2003) Consensus NAV & Acquisition Cost (2015) Consensus NAV & Acquisition Cost (2017) & 3 Consensus NAV & Cumulative FCF Cum
Slide 9: Sustainable business model
Sustainable business model Balanced approach to capital allocation supporting growth & higher returns to shareholders over the long term o 67% increase in dividend since Q2/20 Return capital to o 400% increase in dividend since 2018 shareholders o Share buyback Strong free cash flow growth since Q2/
Slide 10: Young-Davidson overview – Peter MacPhail, COO
Young-Davidson overview Peter MacPhail Chief Operating Officer 10
Slide 11: Young-Davidson – flagship, long-life production
Young-Davidson – flagship, long-life production Location: Ontario, Canada Stage: Producing Ownership: 100% interest Operation: Underground • One of Canada’s largest underground gold mines • Stable jurisdiction, close to major centres • 14 year mine life based on YE 2020 Mineral Reserves • Large reso
Slide 12: Regional map
Regional map Kidd Creek Mine Clavos Mine Black Fox Holloway Bell Creek Mine Taylor Mine Mine Hoyle Pond Holt Mine Timmins Dome Mine West Hollinger Mine Operating mines/projects Mine Mine City Macassa Mine Young-Davidson Mine >100M oz historic production from underground gold mines in Timmins & Kirkl
Slide 13: Young-Davidson – recent history
Young-Davidson – recent history 2017 2012 • Produced a record 200k oz • Q1 - mill commissioned • Generated record $34m free • Apr 30: first gold pour 2015 cash flow1 2020 2008 • Sept 1: commercial Alamos & • Completed MCM waste pass Completion of 2005 • NXG reports total UG 2010 production (mill & O
Slide 14: Young-Davidson operational overview – Luc Guimond
Young-Davidson operational overview Luc Guimond General Manager, Young-Davidson 14
Slide 15: Virtual site tour
DX Virtual site tour ALaMos GOLD INc. CRUSHER 9025 LEVEL ROCK BREAKER Fed directly from orepass eliminating truck/scoop ore haulage™ =
Slide 16: ESG – Safety and Social
ESG – Safety and Social Safety Social o Fostering positive relationships with all stakeholders Lost Time Injury Frequency Rate1 o Partnerships with local communities 0.40 o Matachewan and Temagami First Nations o Keepers of the Circle training program 0.25 38% o Regional economic engine improvement
Slide 17: ESG – leading on key environmental metrics
ESG – leading on key environmental metrics 40,116 40,676 tCO2e total & per oz produced 38,503 • Reducing carbon intensity with increased automation from Improving GHG emissions 0.30 lower mine expansion, energy reduction initiatives, and lower development requirements intensity 0.21 0.21 driven by c
Slide 18: Mining – highly productive bulk mining supporting 8,000 tpd capacity
Mining – highly productive bulk mining supporting 8,000 tpd capacity Mining method • Transverse long hole stoping • For wider zones (12-40m) • 94% of Mineral Reserve • 35m sub levels in lower mine – an increase from 30m sub levels in upper mine • Paste backfill • Mining recovery ~92%; dilution ~10%
Slide 19: Dual shaft system – excess skipping capacity post tie-in
Dual shaft system – excess skipping capacity post tie-in Combined Skipping Skipping Capacity Northgate Shaft MCM Shaft Capacity (ore + waste) Shaft system Friction hoist Dual drum hoist Material movement Ore + waste Waste + personnel & materials Post tie-in capacity (ore + waste) 9,995 tpd 900 tpd 1
Slide 20: Mining rates approaching lower mine design capacity
Mining rates approaching lower mine design capacity Capacity of new lower-mine infrastructure 8,000 3 7,000 Capacity of decommissioned upper-mine infrastructure Underground mining rate (TPD) 6,000 2.5 5,000 g/t Au 4,000 2 3,000 2,000 1.5 1,000 0 1 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/1
Slide 21: Mill capacity of 8,000 tpd
Mill capacity of 8,000 tpd 9,000 100% 8,000 98% 7,000 96% Mill throughput (TPD) 6,000 94% Recoveries (%) 5,000 92% 4,000 90% 3,000 88% 2,000 86% 1,000 84% 0 82% Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q
Slide 22: 2021 guidance – on track to achieve design mining rates in H2 2021
2021 guidance – on track to achieve design mining rates in H2 2021 2019A 2020A 2021E Guidance Q1 2021A Gold Production (k oz) 188 136 190-205 48 Cost of Sales1 (US$/oz) $1,224 $1,491 $1,290 $1,291 Total Cash Costs2 (US$/oz) $800 $1,019 $790-$840 $873 Mine-site AISC2,3 (US$/oz) $1,047 $1,214 $1,000-$
Slide 23: Unit costs & currency sensitivities
Unit costs & currency sensitivities Unit costs per tonne (C$) 2019A 2020A 2021E Q1 2021A LOM Underground $52 $60 $49 $48 $45 Mill Processing1 $20 $20 $18 $17 $17 Administration1 $5 $6 $8 $8 $6 YD Cost Structure - 2021 $114 Other $77 Royalties 4% 3% Underground mining cost Equipment & $54 $53 $54 $53
Slide 24: Capital outlook – declining intensity
Capital outlook – declining intensity 2022 – 2023E 2024 – 2030E Capital Estimates (US$m)1 2021E >2031E Average Average Sustaining $40-45 $35-40 - - Growth $25-30 $15-20 - - Total $65-75 $50-60 $40-50 $20-25 • TIA 1 construction • Additional ventilation & Major capital projects • Declining infrastruc
Slide 25: Growing production & declining costs
Growing production & declining costs Production & mine-site AISC 60,000 $2,000 $1,800 50,000 $1,600 $1,400 40,000 $1,200 30,000 $1,000 $800 20,000 $600 $400 10,000 $200 0 $0 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 1,2 Production (oz Au) Mine-site AISC (US$/oz) •
Slide 26: Young-Davidson free cash flow summary – quarterly
Young-Davidson free cash flow summary – quarterly $50 $44 $39 $36 $31 $27 $27 $23 $24 $24 $23 $24 $22 $12 $11 $8 $7 $5 $4 $3 $2 $1 $1 -$3 -$19 -$19 -$20 -$23 -$22 -$23 -$22 -$24 -$23 -$22 -$27 -$27 -$27 -$26 -$30 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 1 2 2 Tot
Slide 27: Young-Davidson free cash flow summary – annual
Young-Davidson free cash flow summary – annual $195 $114 $113 $118 $99 $98 $101 $34 $11 $13 $4 $0 -$80 -$77 -$87 -$95 -$100 -$102 3 2016A 2017A 2018A 2019A 2020A 2021E 1 2 2 Total capital (US$m) Operating cash flow (US$m) Mine-site free cash flow (US$m) • Mine-site free cash flow expected to exceed
Slide 28: Questions?
Questions? m™ ALamos GoLp INc. 28
Slide 29: Exploration – Scott RG Parsons, VP Exploration
Exploration Scott RG Parsons VP, Exploration 29
Slide 30: 2021 exploration drilling – significant potential
2021 exploration drilling – significant potential Composite longitudinal, looking north Mineralization open at depth, Northgate MCM Historic W Historic Shaft Shaft MCM Mine E along strike to west YD Pit Surface Drill Target 8,000 m of underground exploration drilling from the Surface Drill Target lo
Slide 31: Underground exploration drilling – 8960 and 8990 levels
Underground exploration drilling – 8960 and 8990 levels Young-Davidson Mine Longitudinal 31
Slide 32: Exploration drilling – extending gold mineralization within syenite
Exploration drilling – extending gold mineralization within syenite Detailed Longitudinal – 8960L drilling 2020: gold mineralization intersected 220m below previous Mineral Resources (at YE 2019) YTD 2021: gold mineralization extended an additional 150 m below Inferred Mineral Resources (YMEX21-8960
Slide 33: Exploration drilling – high-grade mineralization in hanging wall & footwall
Exploration drilling – high-grade mineralization in hanging wall & footwall High-grade mineralization intersected 200 m outside of the syenite in the hanging wall mafic- ultramafic stratigraphy (YMEX20- 8960-014) High-grade mineralization also intersected 100 m from the syenite contact in the footwa
Slide 34: 2021 regional exploration program
2021 regional exploration program 7,500 m of surface exploration drilling H2 2021 (2 & 3) OK03-26 (2003 ddh) 4.58gpt/4.2m No. 29 (1937 ddh) 37.23gpt/0.91m No. 40A ( 1945 ddh) (2 & 3) 19.2gpt/0.61m 1. Morrison Break – Investigate historic SO96-04 (1996 ddh) 6.17gpt/6.0m showings, follow up and target
Slide 35: Questions?
Questions? m™ ALamos GoLp INc.
Slide 36: Appendix
Appendix 36
Slide 37: Detailed historical operating results
Detailed historical operating results Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Gold production (oz) 38,201 44,694 39,065 42,644 43,629 44,662 40,400 47,300 55,800 56,500 41,000 39,100 49,000 50,900 45,00
Slide 38: Mill flow sheet
Mill flow sheet Process Line CYCLONE OVERFLOW Carbon Line Primary Cyclone Trash Eluate Solution Line Screen MIRON BELT CYCLONE UNDERFLOW AUTO Conditioning Regrind Cyclone SAMPLER Tank Regrind cyc MILL FEED SAG Mill Floatation Cells circulating load: Flotation Concentrate Mill Process Primary Thicken
Slide 39: Proven & Probable Mineral Reserves
Proven & Probable Mineral Reserves PROVEN AND PROBABLE GOLD MINERAL RESERVES (as at December 31, 2020) 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 40: Total Measured & Indicated Mineral Resources
Total Measured & Indicated Mineral Resources MEASURED AND INDICATED GOLD MINERAL RESOURCES (as at December 31, 2020) 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 41: Total Inferred Mineral Resources
Total Inferred Mineral Resources INFERRED GOLD MINERAL RESOURCES (as at December 31, 2020) Tonnes Grade Ounces (000's) (g/t Au) (000's) Young-Davidson – Surface 31 0.99 1 Young-Davidson – Underground 2,301 2.88 213 Total Young-Davidson 2,331 2.86 214 Island Gold 6,915 14.43 3,208 Mulatos 8,122 0.92
Slide 42: 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 43: Scott K. Parsons, CFA – VP, Investor Relations
Scott K. Parsons, CFA VP, Investor Relations 416.368.9932 x 5439 sparsons@alamosgold.com 43