Alamos Gold Inc. · TSX:AGI
Alamos Gold — Shareholder Meeting (May 2018)
24 slides from Alamos Gold's shareholder meeting presentation, May 7, 2018
Slide 1: Annual Meeting of Shareholders
John A. McCluskey President & Chief Executive Officer Annual Meeting of Shareholders May 7, 2018
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, this “Presentation”) has been prepared by Alamos Gold Inc. (“Alamos”) solely for information purp
Slide 3: Year in Review
™ Year in Review ALAMOS GOLD INc.
Slide 4: Record Operational Performance
Record Operational Performance Gold Production (000 oz) +13% 429 429k oz Record production 392 380 2015A 2016A 2017A ‐8% Decrease in AISC1,2 AISC1,2 (US$/oz) $1,091 ‐14% $1,010 $933 Met Guidance 2015A 2016A 2017A 1 Please refer to Cautionary Notes on non‐GAAP Measures and Additional GAAP Measures. 2
Slide 5: Record Financial Performance
Record Financial Performance Operating Revenues (US$m) Cash Provided by Operations (US$m)1 (before changes in working capital) Record revenues +53% +181% $183 $148 $543 $482 $355 Record cash flow $65 2015 2016 2017 2015 2016 2017 Mine‐site free cash flow more Cash Flow per Share (US$)1 than doubled
Slide 6: Added to High Quality, Long-Life Reserve Base
Added to High Quality, Long‐Life Reserve Base Proven & Probable Mineral Reserves1,2 2.1m oz +67% 2017 increase in Mineral Reserves through Island Gold, La Yaqui Grande & Lynn Lake Ounces Au (Millions) 15 9.8 10 7.7 5 5.9 81% 0 Mineral Reserves located in North America 2015 2016 2017 Reserve Life Ind
Slide 7: Advanced Development Pipeline
Advanced Development Pipeline La Yaqui initial production September 2017 ahead of schedule and on budget Kirazlı site development underway 7
Slide 8: Home Safe Every Day – New Safety Milestones Achieved
Home Safe Every Day – New Safety Milestones Achieved El Chanate Young‐Davidson 5.2 million hours 3.1 million hours without an LTI without an LTI as of April 2018 as of April 2018 8
Slide 9: Sustainability – 2017
Sustainability – 2017 Environmental Community Engagement • Continued partnerships with Matachewan & • El Chanate certified as Industria Limpia Temagami First Nations at Young‐Davidson • El Chanate significantly increased reforestation • Water supply support for community of Altar and efforts complet
Slide 10: Strengthened Outlook
Strengthened Outlook Island Gold $315m Solidified operating base with acquisition of High yield notes retired in April growing, high‐grade, low‐cost underground gold mine in Canada $24m Annual interest savings; $72m over remaining term 10
Slide 11: Share Price Performance
Share Price Performance Short‐term underperformance; long‐term track record of outperformance 2017 Average Annualized Return since 2003 14% 14% 9% 0% 0% ‐12% Alamos Gold (TSX) S&P/TSX Global Gold Index Gold (US$/oz) 11
Slide 12: Outlook
Outlook Positioned to deliver long term value 12
Slide 13: Top North American Gold Producer
Top 10 North American Gold Producer YOUNG‐DAVIDSON (ONTARIO, CANADA) North American Production KIRAZLI (TURKEY) – Permitting3 2018E Au Production 200‐210 koz Average Au Production 104 koz 2018E Au Mine‐site AISC US$850/oz Mine‐site AISC2 $373/oz After‐tax IRR +44% Mexico ISLAND GOLD (ONTARIO, CANADA
Slide 14: Leading Production Growth: 2014 – 2018E
Leading Production Growth: 2014 – 2018E 263% 314% Gold production growth 263% since 20141 144% 126% 84% 50% 53% 47% 39% 32% 26% 14% 16% 8% 9% Alamos Randgold SEMAFO Northern Star Regis Detour New Gold Endeavour Mining OceanaGold Agnico Saracen B2Gold Centamin Centerra Kirkland Lake 1 Source: BMO Cap
Slide 15: Sustainable, High Return, Long-Term Growth
Sustainable, High Return, Long‐Term Growth Controlled, disciplined, multi‐stage growth Mulatos District Island Gold District Exploration Esperanza Quartz Mountain 44% Kirazlı After‐tax IRR1 Permitting & Development Ağı Dağı Çamyurt 39% After‐tax IRR1 253% >400 koz After‐tax IRR1 Combined annual prod
Slide 16: Peer Leading Balance Sheet – Debt Free
Peer Leading Balance Sheet – Debt Free Cash & Total Liquidity $232m Debt Free 3 $632m $400m Well positioned to fund Undrawn Credit Facility Cash & cash equivalents pipeline of growth projects As of March 31, 2018 Net Cash / (Debt) (US$m)5 $414 $274 $232 $193 $83 ‐$105 ‐$130 ‐$143 ‐$225 ‐$555 ‐$678 ‐
Slide 17: Track Record of Delivering Shareholder Value
Track Record of Delivering Shareholder Value 1950% Alamos Gold Share Price (TSX) S&P/TSX Global Gold Index 14% 1450% Gold (US$/oz) Annualized return since 20031 950% 589% 450% 272% $122m 5% Dividends paid to ‐50% date 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Co
Slide 18: Alamos – Investment Case
Alamos – Investment Case Diversified intermediate gold producer Low‐cost growth profile Strong balance sheet to support Long term track record of delivering growth shareholder value Catalysts Q3 2017: Initial production at La Yaqui Q4 2017: Closing of Richmont acquisition Q4 2017: Met consolid
Slide 19: Appendices
Appendices 19
Slide 20: 2017 Proven & Probable Mineral Reserves
2017 Proven & Probable Mineral Reserves PROVEN AND PROBABLE GOLD MINERAL RESERVES (as at December 31, 2017) 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'
Slide 21: 2017 Total Measured & Indicated Mineral Resources
2017 Total Measured & Indicated Mineral Resources MEASURED AND INDICATED GOLD MINERAL RESOURCES (as at Dec 31, 2017) 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: 2017 Total Inferred Mineral Resources
2017 Total Inferred Mineral Resources INFERRED GOLD MINERAL RESOURCES (as at Dec 31, 2017) 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 2,958 9.55 908 Mulatos 8,804 0.92 261
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 24