Alamos Gold Inc. · TSX:AGI
Alamos Gold — Investor Presentation (October 2023)
59 slides from Alamos Gold's investor presentation, Oct 26, 2023
Slide 1: Corporate Presentation November 2023
Corporate Presentation November 2023
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: Growing, diversified, intermediate gold producer
Growing, diversified, intermediate gold producer Fully funded ~520k oz ~800k oz longer-term production organic growth 2023E gold production1 potential Lynn Lake, Canada Island Gold, Canada Young-Davidson, Canada Declining ~$1,150 <$1,000 Quartz Mountain, USA cost profile 2023E AISC/oz1,2,3 2025+ AIS
Slide 4: Uniquely positioned – growing intermediate gold producer in low-risk jurisdictions
Uniquely positioned – growing intermediate gold producer in low-risk jurisdictions 80% ✓ High-quality, long-life operations AGI - NYSE GDX GDXJ Gold (US$/oz) 60% ✓ Low-risk jurisdictions S&P 500 40% ✓ Fully funded, high-return growth 20% ✓ Expanding margins & profitability 0% ✓ Strong ongoing free c
Slide 5: Strong financial track record & outlook – with an attractive valuation
Strong financial track record & outlook – with an attractive valuation Growth …with an attractive …in a supportive company valuation environment for gold EBITDA (US$M) 1,2 EV/EBITDA 2024E1,2 $532 16.7x 15.9x 15.6x $490 • Growing global debt; ongoing $402 12.9x 12.6x deficits; rising debt service cos
Slide 6: Track record of creating value
Track record of creating value Mulatos (US$M) Young-Davidson (US$M) Island Gold (US$M) $2.2 billion $192 combined value2,3 added at $331 Young-Davidson & Island Gold since acquisition $467 $2,071 $1,203 $950 $524 $640 $10 $14/oz cost to discover 4.1M oz of Mineral Acquisition Cost Consensus NPV & Ac
Slide 7: ESG – leading on key metrics with focus on continuous improvement
ESG – leading on key metrics with focus on continuous improvement Environment Social Lower GHG emissions per oz gold produced Lost time injury frequency rate 0.8 0.63 0.25 0.20 per 200,000 hours tCO2e/oz Au 0.6 38% 0.4 0.39 0.17 63% 0.2 0.15 0.16 0.14 worked lower than 0.2 reduction in LTIFR 0.1 0.0
Slide 8: ESG – strong relative performance
ESG – strong relative performance Governance Rating Score/notes2 Key issue score of 5.3; better than industry 90% 38% A average of 4.3 director independent board independence members are women ESG score of 77/100; 91st percentile for A- metals & mining companies o Top 35% ranking in 2022 Globe and M
Slide 9: Q3 2023 highlights – full year production guidance increased
Q3 2023 highlights – full year production guidance increased Q3 Q3 2023 Guidance • Production exceeded quarterly guidance, 10% Q3 2023A Q3 2022A YoY % Change 2023A 2022A YoY % Change YTD YTD Revised Original increase YoY Gold production (000 oz) 135.4 123.4 10% 399.8 326.2 23% 515-530 480-520 • Prod
Slide 10: Continued execution – declining cost profile despite industry-wide cost pressures
Continued execution – declining cost profile despite industry-wide cost pressures 2022 - 2025 AISC1,2 guidance 2023 cost structure $1,250 $1,200 FY:$1,204/oz Contractors, 19% $1,150 Q3 YTD: $1,136/oz Consumables, 24% Diesel, 7% $1,100 Power, 4% $1,050 Labour, 30% $1,000 Other, 16% $950 2022A 2023E 2
Slide 11: Growing, long-life North American production; declining cost profile
Growing, long-life North American production; declining cost profile 800 $1,204 $1,150 Lynn Lake 700 $1,025 $1,000 17 year reserve life3,4 Production (000 oz Au) 600 500 Island Gold 17 year mine life3 400 300 Mulatos (excluding PDA) 5 year reserve life3,5 200 100 Young-Davidson 15 year reserve life3
Slide 12: Fully funded growth with strong ongoing free cash flow
Fully funded growth with strong ongoing free cash flow Consolidated free cash flow outlook (US$M)1,2 $200 $150 $100 $50 $0 2023E 2024E 2025E 2026+ US$1,750/oz Au US$1,850/oz Au US$1,950/oz Au Balanced approach to growth – no Strong ongoing free cash flow Significant free cash flow significant capita
Slide 13: High quality, long-life production base; low geopolitical risk profile
High quality, long-life production base; low geopolitical risk profile Young-Davidson, Ontario, Canada Island Gold, Ontario, Canada Mulatos (inc. LYG), Sonora, Mexico Underground Underground Open pit, heap leach ❑ 2023E Au production: 185-200k oz ❑ 2023E Au production: 120-135k oz ❑ 2023E Au product
Slide 14: High-return organic growth in low-risk jurisdictions
High-return organic growth in low-risk jurisdictions Island Gold Phase 3+ Expansion Puerto Del Aire (Mulatos) Lynn Lake Ontario, Canada Sonora, Mexico Manitoba, Canada IRR1,2: 23% IRR1,2: 25% IRR3: 17% IRR3: 22% New development plan NPV5% 1: $1.6B NPV5% 1: $2.0B NPV5% 3: $428M NPV5% 3: $670M Q4 2023
Slide 15: Island Gold Phase 3+ Expansion – larger, longer-life & lower capital intensity
Island Gold Phase 3+ Expansion – larger, longer-life & lower capital intensity Phase 3+ Expansion production & cost profile 1 400,000 $1,000 115% production growth to 287k oz/yr in 20261 350,000 300,000 $800 $576/oz Mine-site AISC (US$/oz) Gold Production (oz) 250,000 average mine-site AISC1,2,3 , 3
Slide 16: Phase 3+ Expansion growth capital – on track & on budget
Phase 3+ Expansion growth capital – on track & on budget 88% of shaft area 45% of total Phase 3+ On budget & on Headframe growth capital spent growth capital spent & track for completion & committed to date committed to date Q1 2026 Warehouse (in US$M) As of Sept 30, 2023 P3+ 2400 Committed to % Spe
Slide 17: Island Gold – ongoing exploration success driving growth in size & value
Island Gold – ongoing exploration success driving growth in size & value Reserve & Resource growth since 2017 acquisition Island Gold consensus NPV growth (US$M)4 Mineral Reserves M&I Mineral Resources 16 Inferred Mineral Resources $2,071 5,000 Mineral Reserve grade Inferred Resource grade Cumulativ
Slide 18: Island Gold – 2023 exploration demonstrating significant ongoing growth potential
Island Gold – 2023 exploration demonstrating significant ongoing growth potential Island Gold Main Structure (C & E1E Zones)1: Island Gold Hanging Wall & Footwall Structures1: ▪ Drilling continues to extend high-grade • High-grade mineralization intersected within recently defined sub-parallel & per
Slide 19: Mulatos District – La Yaqui Grande driving strong free cash flow growth
Mulatos District – La Yaqui Grande driving strong free cash flow growth Near-term value driver: La Yaqui Grande 165k oz $948/oz Q3 YTD 2023 Mulatos District mine-site AISC1,2 Q3 YTD production; up 93% YoY 2023; 34% decrease YoY Long-term value driver: PDA growing, higher-grade UG deposit $115M 71% Q
Slide 20: Lynn Lake Project – 2023 Feasibility Study highlights
Lynn Lake Project – 2023 Feasibility Study highlights Higher production Lower-cost Attractive economics Larger operation 176k oz $699/oz $670M 44% average annual production over average mine-site AISC2 over initial after-tax NPV4 at $1,950/oz; increase in Mineral Reserves1,3; initial 10 years; up 23
Slide 21: Lynn Lake Project – substantially de-risked; significant exploration upside
Lynn Lake Project – substantially de-risked; significant exploration upside Project significantly de-risked1 Significant exploration upside Favourable jurisdiction: ✓ Manitoba, Canada Regional pipeline of targets within trucking distance of MacLellan mill ✓ Low-cost hydro-electric power o Burnt Timb
Slide 22: Strong balance sheet; long-term focus on returning capital to shareholders
Strong balance sheet; long-term focus on returning capital to shareholders Cash & Total Liquidity Conservative balance sheet $216M zero debt, well positioned for all market conditions 1,2 $716M $216M Fully funded $500M cash & $716M total liquidity1,2 organic growth Undrawn Credit Facility Cash & Cas
Slide 23: Alamos Gold – value creation opportunities
Alamos Gold – value creation opportunities Growing, diversified, Expanding margins & Conservative, low- Sustainable business intermediate gold profitability risk strategy model supporting producer growing returns over the long-term Catalysts ✓ 2% increase in YE 2022 Mineral Reserves at 3% higher gra
Slide 24: Appendices
Appendices Appendices TSX:AGI ǀ NYSE:AGI 24
Slide 25: Board of Directors, Executive and Management Team
Board of Directors, Executive and Management Team Board of Directors Paul J. Murphy John A. McCluskey Elaine Ellingham David Fleck David Gower Claire M. C. Kennedy Monique Mercier J. Robert S. Prichard Shaun Usmar Chairman Director Director Director Director Director Director Director Director Execu
Slide 26: 2023 guidance
2023 guidance 2023 Guidance 2022A Young-Davidson Island Gold Mulatos Lynn Lake Total Total Revised production guidance (000 oz Au) 515 - 530 460 Original production guidance (000 oz Au) 185 - 200 120 - 135 175 - 185 — 480 - 520 460 Cost of sales (US$M)3 — — — — $625 $609 Cost of sales (US$/oz)3 — —
Slide 27: 2023 guidance: capital budget
2023 guidance: capital budget 2023 Guidance 2022A Sustaining Capital Growth Capital Total Total Operating Mines (US$M) Young-Davidson $50 - 55 $5 - 10 $55 – 65 $67 Island Gold $45 - 50 $165 - 185 $210 – 235 $139 Mulatos $10 $5 - 10 $15 – 20 $60 Total – Operating Mines $105 - 115 $175 - 205 $280 – 32
Slide 28: 2023 - 2025 guidance: operating mines
2023 - 2025 guidance: operating mines1 2023 2024 2025 Current Previous Current Previous Current Gold Production (000 oz) Young-Davidson 185 - 200 185 - 200 185 - 200 185 - 200 185 - 200 Island Gold 120 - 135 115 - 125 145 - 160 140 - 155 175 - 190 Mulatos District 175 - 185 160 - 175 140 - 150 135 -
Slide 29: Significant exploration potential; strong track record
Significant exploration potential; strong track record Mineral Reserves Growing in Size & Quality1 2023 Exploration Budget (US$M) 1.70 11,200 1.58 1.58 1.60 1.51 1.49 1.50 1.50 10,200 1.40 9,200 1.30 10,728 8,200 9,702 9,726 9,870 10,257 1.20 $54M 7,200 1.10 6,200 1.00 Island Gold 2018 2019 2020 202
Slide 30: Track record of adding value on aggregate & per share basis
Track record of adding value on aggregate & per share basis Gold Production (k oz Au) Cash Flow from Operations Mineral Reserves (M oz Au) (before changes in WC)3 (US$M) +272% 523 +529% 10.7 +863% $491 140 1.7 $51 1 2 4 2014A 2023E 2014A 2022A 2014A 2023E Gold Production per Share Gold Reserves per
Slide 31: Young-Davidson – long-life, low-cost production
Young-Davidson – long-life, low-cost production Location: Ontario, Canada Stage: Producing Ownership: 100% interest Operation: Underground • One of Canada’s largest underground gold mines • 15 year mine life based on YE 2022 Mineral Reserves • Large resource base & exploration potential to support m
Slide 32: Young-Davidson – transition to lower mine infrastructure driving strong FCF
Young-Davidson – transition to lower mine infrastructure driving strong FCF $26M average quarterly mine-site free cash flow1 following completion of lower mine expansion in July 2020 Underground Mining Rate (tpd) 8,000 7,000 6,000 5,000 4,000 3,000 2,000 Upper mine infrastructure 1,000 0 Q1/15 Q2/15
Slide 33: Young-Davidson longitudinal – significant exploration potential
Young-Davidson longitudinal – significant exploration potential Historic Northgate MCM Historic West YD Mine Shaft Shaft MCM Mine East 10100 Surface o 3.3M oz Mineral Reserves, L MCM Drilling supporting a 15 year Reserve life1 -500m o Mineralization open at depth, 9590L 9770 - FW East and along stri
Slide 34: Young-Davidson – historical operational results
Young-Davidson – historical operational results Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Gold production (oz) 49,000 50,900 45,000 45,000 50,000 48,000 28,700 23,100 36,400 48,000 48,000 45,100 50,000 51,900 51,900
Slide 35: Island Gold – high-grade, low-cost production
Island Gold – high-grade, low-cost production Location: Ontario, Canada Stage: Producing Ownership: 100% interest Operation: Underground • World’s sixth highest grade gold mine1 • Phase 3+ Shaft Expansion to 2,400 tpd expected to be completed in 2026 • Significant exploration potential laterally & a
Slide 36: Island Gold – largest, most valuable operation in Canada not held by a major
Island Gold – largest, most valuable operation in Canada not held by a major Annual production - 6th largest Lowest cost Profitability - top 3 Annual Profitability 2022A Production3 2022A AISC1,3 (US$M) (AISC Operation Owner Operation Operation (koz) (US$/oz) Margin2 x annual production) Canadian Ma
Slide 37: Phase 3+ Expansion – cash flow profile at $1,850/oz Au
Phase 3+ Expansion – cash flow profile at $1,850/oz Au $514 $463 $460 $463 $456 $397 $377 $358 $380 $383 $332 $316 $326 $315 $289 $281 $289 $294 $289 $262 $245 $219 $235 $242 $232 $215 $213 $220 $164 $164 $157 $103 $35 -$19 -$4 -$12 -$43 -$31 -$45 -$36 -$45 -$34 -$27 -$62 -$57 -$63 -$58 -$52 -$72 -$
Slide 38: Phase 3+ Expansion – detailed mine plan
Phase 3+ Expansion – detailed mine plan 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 Mill Feed mined (000’s tonnes) 438 438 439 479 699 876 878 876 876 876 878 876 876 876 878 875 874 542 Waste mined (000’s tonnes) 493 579 647 676 537 393 393 370 427 412
Slide 39: Island Gold – 2022 Mineral Reserve & Resource additions
Island Gold – 2022 Mineral Reserve & Resource additions 1 See Mineral Reserve and Resource estimates and associated footnotes in appendix TSX:AGI ǀ NYSE:AGI 39
Slide 40: Island Gold – 2023 exploration highlights
Island Gold – 2023 exploration highlights Extending high-grade mineralization beyond Mineral Reserves & Resources1 across deposit 1 See Mineral Reserve and Resource estimates and associated footnotes in appendix TSX:AGI ǀ NYSE:AGI 40
Slide 41: Island Gold West 2023 exploration highlights – NS1 perpendicular structure
Island Gold West 2023 exploration highlights – NS1 perpendicular structure NS1 Zone – recently defined perpendicular structure • Currently being developed & mined - beyond 2023 mine plan & Reserves & Resources1 • Low-cost to develop & produce - in proximity to existing underground infrastructure • H
Slide 42: Island Gold 2022 exploration highlights – Island West sub-parallel B-Zone
Island Gold 2022 exploration highlights – Island West sub-parallel B-Zone High-grade mineralization intersected in newly defined sub-parallel zones in proximity of existing infrastructure TSX:AGI ǀ NYSE:AGI 42
Slide 43: Island Gold – increasing grade & ounces per vertical metre below 1,000m level
Island Gold – increasing grade & ounces per vertical metre below 1,000m level TSX:AGI ǀ NYSE:AGI 43
Slide 44: Longitudinal of Canadian underground gold deposits
Longitudinal of Canadian underground gold deposits Red Lake - Campbell La Ronde Island Gold Mine • Commercial Production 1949 • Commercial Production 1988 • Commercial Production 2007 • Historical Production 20 Moz Au • Historical Production 6 Moz Au • Historical Production 1.2 Moz Au • Reserves 2.9
Slide 45: Island Gold – historical operational results
Island Gold – historical operational results Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Gold production (oz) 22,000 29,000 35,600 39,500 36,700 38,600 38,800 19,400 39,600 41,200 42,200 33,200 28,000 37,500 24,500 37,
Slide 46: Mulatos District – our founding operation
Mulatos District – our founding operation Location: Sonora, Mexico Stage: Producing Ownership: 100% interest Operation: Open pit, heap leach • Initial production 2005 • More than 2M oz produced & ~$467M of free cash flow2 generated to date • Declining cost profile with low-cost production from La Ya
Slide 47: Mulatos – district exploration potential
Mulatos – district exploration potential District potential large underexplored land package totaling 28,773 ha >70% CAPULIN TARGET of past drilling focused near Mulatos mine 1.4M oz combined Mineral Reserves1,2 at the La Yaqui Grande & Puerto Del Aire higher grade discoveries 1 See Mineral Reserve
Slide 48: Mulatos – Puerto Del Aire (PDA): growing, higher-grade underground deposit
Mulatos – Puerto Del Aire (PDA): growing, higher-grade underground deposit Significant growth & exploration upside: Development plan Q4 2023: • 70% increase in Mineral Reserves to 728k oz; 4% increase in grades to 4.84 g/t Au • PDA adjacent to main Mulatos pit • 1M oz total Mineral Reserves & Resour
Slide 49: Mulatos – significant regional potential within Capulin Target
Mulatos – significant regional potential within Capulin Target • Wide, significant intervals of gold mineralization intersected within breccia adjacent to Capulin Fault, including: • 2.73 g/t Au over 120.85 m1 - best hole drilled to date • Significant regional potential ~4 km east of the Mulatos ope
Slide 50: Lynn Lake Project – 2023 Feasibility Study
Lynn Lake Project – 2023 Feasibility Study 2023 Feasibility Study Highlights Production Mine life (years) 16.5 Total gold production (000 ounces) 2,185 Total silver production (000 ounces) 2,623 Average annual gold production Base Case Economic Analysis: $1,675 per ounce Gold Price Years 1 to 5 (000
Slide 51: Lynn Lake Project – 2023 Feasibility Study detailed mine plan
Lynn Lake Project – 2023 Feasibility Study detailed mine plan Y-3 Y-2 Y-1 Y+1 Y+2 Y+3 Y+4 Y+5 Y+6 Y+7 Y+8 Y+9 Y+10 Y+11 Y+12 Y+13 Y+14 Y+15 Y+16 Y+17 Y+18 Mining - Gordon Ore Mined (000 tonnes) - - 6 790 1,631 2,946 1,679 817 - - - - - - - - - - - - - Au Grade (g/t) - - 3.08 2.11 2.36 2.36 2.34 3.33
Slide 52: Turkish Development Projects
Turkish Development Projects • $1B investment treaty claim filed against Republic of Türkiye for expropriation & unfair & inequitable treatment of its Turkish gold projects1 • Construction of Kirazlı project suspended in October 2019 after government failed to grant routine renewal of the Company’s
Slide 53: Top Shareholders and Analyst Coverage
Top 10 Shareholders and Analyst Coverage Top 10 Shareholders1,2 Analyst Coverage Van Eck Associates Corporation Bank of America - Harmen Puri BMO Capital Markets - Brian Quast BlackRock Investment Management Canaccord Genuity - Carey MacRury Dimensional Fund Advisors CIBC Word Markets - Cosmos Chiu
Slide 54: Total Proven & Probable Mineral Reserves
Total Proven & Probable Mineral Reserves PROVEN AND PROBABLE GOLD MINERAL RESERVES (as at December 31, 2022) 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 55: Total Measured & Indicated Mineral Resources
Total Measured & Indicated Mineral Resources MEASURED AND INDICATED GOLD MINERAL RESOURCES (as at December 31, 2022) 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 56: Total Inferred Mineral Resources
Total Inferred Mineral Resources INFERRED GOLD MINERAL RESOURCES (as at December 31, 2022) Tonnes Grade Ounces (000's) (g/t Au) (000's) Young-Davidson - Surface 31 0.99 1 Young-Davidson - Underground 1,586 2.89 147 Total Young-Davidson 1,617 2.85 148 Golden Arrow 2,028 1.07 70 Island Gold 8,066 13.6
Slide 57: Notes to Mineral Reserve and Resource estimates
Notes to Mineral Reserve and Resource estimates Qualified Persons Chris Bostwick, FAusIMM, Alamos Gold’s Senior Vice President, Technical Services, has reviewed and approved the scientific and technical information contained in this news release. Chris Bostwick is a Qualified Person within the meani
Slide 58: Cautionary Note to U.S. Investors
Cautionary Note to U.S. Investors All resource and reserve estimates included in this Presentation have been prepared in accordance with Canadian National Instrument 43-101 -Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy and Petroleum (the
Slide 59: Scott K. Parsons, CFA
Scott K. Parsons, CFA SVP, Investor Relations 416.368.9932 x 5439 sparsons@alamosgold.com