Alamos Gold Inc. · TSX:AGI
Alamos Gold — Investor Presentation (August 2022)
58 slides from Alamos Gold's investor presentation, August 2022
Slide 1: Corporate Presentation August 2022
Corporate Presentation August 2022
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 13 year average mine life supported by 10.3M oz Mineral Reserve base4 Fully funded ~460k oz ~800k oz organic growth 2022E gold production1 Longer-term production potential Lynn Lake, Canada Declining ~$1,215 <$1,000 Island Gold, Canada cost profile 20
Slide 4: Sustainable business model supporting long-term value creation
Sustainable business model supporting long-term value creation Conservative, low-risk Balanced approach to Long-term track record strategy capital allocation of value creation Return capital to shareholders Safe jurisdictions Strong ongoing Strengthen Counter-cyclical cash flow2 Approach to M&A, acq
Slide 5: ESG – leading on key metrics with focus on continuous improvement
ESG – leading on key metrics with focus on continuous improvement Environment Social Governance Lower GHG emissions per oz gold eq. produced1,2 Lost time injury rate 89% 33% 0.69 0.34 Director Board members per 200,000 hours independence are women 0.54 31% 38% tCO2e/oz 0.21 worked 0.37 lower than 0.
Slide 6: ESG – strong relative performance & positive rating trend
ESG – strong relative performance & positive rating trend ESG disclosure and reporting 2018 2019 2020 2021 Current Trend Score/notes o Adopting TCFD recommendations and incorporating climate-related risk into Medium risk; 20th percentile in disclosures - 47 39 29 29 gold subindustry o Completed CDP
Slide 7: Q2 2022 results – on track to achieve full year guidance
Q2 2022 results – on track to achieve full year guidance Q2 YTD Q2 YTD 2022 Q2 2022A Q2 2021A 2022A 2021A Guidance Gold production (000 oz) 103.9 114.2 202.8 240.0 440-480 104k oz Gold sales (000 oz) 102.2 107.6 200.6 234.1 - Production in line; costs lower Average realized gold price (US$/oz) $1,87
Slide 8: 2022 catalysts
2022 catalysts ✓ February 2022 ✓ June 2022 ✓ June 2022 o H2 2022 o Q4 2022 Mineral Reserves La Yaqui Grande Island Gold Higher production Lynn Lake 4% increase to 10.3M oz; initial production Phase 3+ Expansion & lower costs EIS approval 5% higher grades1 announced Groundbreaking for Island Gold Pha
Slide 9: High quality, long-life production base; low geopolitical risk profile
High quality, long-life production base; low geopolitical risk profile Young-Davidson, Ontario, Canada Low-cost operation with 15-year Mineral Reserve life3 Underground o One of Canada’s largest underground gold mines ❑ 2022E Au production: 185-200k oz o Completed lower mine expansion in 2020 ❑ 2022
Slide 10: High-return organic growth in safe jurisdictions
High-return organic growth in safe jurisdictions Island Gold Phase 3+ Expansion La Yaqui Grande (Mulatos) Lynn Lake Ontario, Canada Sonora, Mexico Manitoba, Canada IRR1,2: 23% IRR1,2: 25% IRR3: 41% IRR3: 58% IRR4: 13% IRR4: 22% NPV5% 1: $1.6B NPV5% 1: $2.0B NPV5% 3: $165M NPV5% 3: $260M NPV5% 4: $12
Slide 11: Island Gold Phase 3+ Expansion Study – highlights
Island Gold Phase 3+ Expansion Study – highlights Higher production, longer-life Industry low costs • 287k oz/yr average gold production2 • $576/oz average mine-site AISC1,2 • 22% increase from P3 2020 study • consistent with P3 2020 study5 • 18 year mine life • $260m/yr average mine-site free cash
Slide 12: Island Gold – Phase 3+ Expansion to 2,400 tpd
Island Gold – Phase 3+ Expansion to 2,400 tpd Phase 3+ Expansion production & cost profile 1 400,000 $1,000 350,000 300,000 $800 Mine-site AISC (US$/oz) Gold Production (oz) 250,000 200,000 $600 150,000 100,000 $400 50,000 2 - $200 2021A 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 20
Slide 13: Island Gold - largest, most valuable operation in Canada not held by a major
Island Gold - largest, most valuable operation in Canada not held by a major Annual production - 7th largest Lowest cost Profitability - top 5 2021A Production3 2021A AISC1,3 Annual Profitability Operation Owner Operation Operation (US$M) (AISC Margin2 (koz) (US$/oz) x annual production) Agnico Eagl
Slide 14: Island Gold – ongoing exploration success driving growth in size & quality
Island Gold – ongoing exploration success driving growth in size & quality Reserve & Resource growth since 2017 acquisition Changes in Reserves & Resources as of December 31, 2021 Mineral Reserves M&I Mineral Resources Inferred Mineral Resources Mineral Reserve grade Inferred Resource grade 16 5,000
Slide 15: La Yaqui Grande – initial low-cost production achieved June 2022
La Yaqui Grande – initial low-cost production achieved June 2022 5k oz Produced in June; construction completed ahead of schedule Open pit Processing circuit – carbon columns $451/oz Q2/22 total cash costs 1 ~30% Expected reduction in Mulatos costs in H2 20222 Crushing circuit & heap leach facility
Slide 16: Lynn Lake Project – low cost, high-grade, open pit
Lynn Lake Project – low cost, high-grade, open pit Lower risk: ✓ Favorable jurisdiction: Manitoba, Canada ✓ Good infrastructure: access to low-cost hydro electric power ✓ Brownfield site: paved highways in proximity to site ✓ Low-cost, high-grade, conventional open-pit, milling project Significant u
Slide 17: Growing, long-life North American production; declining cost profile
Growing, long-life North American production; declining cost profile 800 $1,215 $1,125 Lynn Lake3 700 $1,000 13 year reserve life2 Production (000 oz Au) 600 500 Island Gold 18 year mine life2 400 300 Mulatos 6 year reserve life2,4 200 100 Young-Davidson 15 year reserve life2 0 2022E 2023E 2024E 202
Slide 18: 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 $122M zero debt, well positioned for all market conditions 1,2,3 $622M $122M Fully funded Cash & $622 total liquidity1,2,3 organic growth $500M Undrawn Credit Facility Cash &
Slide 19: Track record of adding value through M&A & exploration
Track record of adding value through M&A & exploration Mulatos (US$m) Young-Davidson (US$m) Island Gold (US$m) $250 $201 $323 $1,251 $1,619 $950 $491 $640 $10 Acquisition Cost (2003) Consensus NPV & Acquisition Cost (2015) Consensus NPV & Acquisition Cost (2017) Consensus NPV & Cumulative FCF Cumula
Slide 20: Track record of adding value on aggregate & per share basis
Track record of adding value on aggregate & per share basis Gold Production (000 oz Au) Mineral Reserves (M oz Au) Cash provided by operations before changes in WC (US$M) +226% 457 +506% 10.3 +706% $411 140 1.7 $51 1 2,3 2014A 2021A 2014A 2021A 2014A 2021A Gold Production Per Share Gold Reserves Per
Slide 21: Long-term track record of delivering shareholder value
Long-term track record of delivering shareholder value Long-term track record of outperformance 2 Average annualized return since 2003 1 Consensus P/NAV 1.15 1.12 12% 1.01 0.89 0.88 0.84 0.83 0.78 9% 0.72 0.71 0.71 0.65 0.63 0.51 0.44 0.43 0.39 0.33 1% PAAS K NEM AEM SSRM YRI BTO AGI CG Sr Average O
Slide 22: Alamos – value creation opportunities
Alamos – value creation opportunities Growing, diversified, Expanding margins & Conservative, low- Sustainable business intermediate gold profitability risk strategy model supporting producer growing returns over the long-term Catalysts ✓ 4% increase in YE 2021 Mineral Reserves1 at 5% higher grades
Slide 23: Appendices
Appendices TSX:AGI ǀ NYSE:AGI 23
Slide 24: Board of Directors, Executive and Management Team
Board of Directors, Executive and Management Team Board of Directors Paul J. Murphy John A. McCluskey Elaine Ellingham David Fleck David Gower Claire M. C. Kennedy Monique Mercier J. Robert S. Prichard Kenneth Stowe Chairman Director Director Director Director Director Director Director Director Exe
Slide 25: 2022 guidance
2022 guidance 2022 Guidance 2021A Young-Davidson Island Gold Mulatos Other Total Total Gold production (000 oz) 185-200 125-135 130-145 — 440-480 457 Cost of sales (US$M) (3) — — — — $610 $534 Cost of sales (US$/oz) (3) — — — — $1,325 $1,167 Total cash costs (US$/oz) (1) $850-900 $550-600 $1,225-1,2
Slide 26: 2022 guidance: capital budget
2022 guidance: capital budget 2022 Guidance 2021A2 Sustaining Capital Growth Capital Total Total Operating Mines (US$M) Young-Davidson $50-55 $5-10 $55-65 $82 Island Gold $35-40 $145-160 $180-200 $101 Mulatos $5-10 $50-55 $55-65 $127 Total – Operating Mines $90-105 $200-225 $290-330 $310 Development
Slide 27: 2022 - 2024 guidance: operating mines
2022 - 2024 guidance: operating mines1 2022 2023 2024 Gold Production (000 oz) Young-Davidson 185-200 185-200 185-200 Island Gold 125-135 115-125 140-155 Mulatos 130-145 160-175 135-145 Total Gold Production 440-480 460-500 460-500 Total cash costs (US$/oz) (2) $875-925 $775-875 $650-750 All-in sust
Slide 28: Significant exploration potential; strong track record
Significant exploration potential; strong track record Mineral Reserves growing in size & quality1 2022 Exploration Budget (US$M) 1.58 1.50 1.51 1.50 1.49 1.30 9,832 9,702 9,726 9,870 10,257 $40M 7,696 Island Gold Drill Rig 2016 2017 2018 2019 2020 2021 P&P Mineral Reserve (Koz) Grade (g/t Au) Islan
Slide 29: COVID-19 – focused on the health & safety of our people & communities
COVID-19 – focused on the health & safety of our people & communities Amending COVID-19 health & safety protocols Supporting our communities • Adopting the advice of public health authorities; adhering to government regulations • On-site testing for COVID-19 on a voluntary basis • Vaccinations offer
Slide 30: 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 2021 Mineral Reserves • Large resource base & exploration potential to support m
Slide 31: Young-Davidson – transition to lower mine infrastructure completed July 2020
Young-Davidson – transition to lower mine infrastructure completed July 2020 Lower mine infrastructure larger, more productive & highly automated Upper mine infrastructure Upper mine Lower mine % infrastructure infrastructure Change Long term – July Timeline Pre-July 2020 2020 onward Design ore 6,00
Slide 32: Young-Davidson longitudinal – significant exploration potential
Young-Davidson longitudinal – significant exploration potential o Mineral Reserves increased 5% in 2021 to 3.4m oz supporting 15 year Reserve life1 o Mineralization open at depth, along strike to west o 21,600 m of underground exploration drilling planned in 2022 focused on expanding Resources o 3,5
Slide 33: Young-Davidson exploration drilling – extending gold mineralization within syenite
Young-Davidson exploration drilling – extending gold mineralization within syenite Detailed Longitudinal – 8960L drilling o Gold mineralization intersected within syenite 220 m below previous Mineral Resources in 2020 and extended an additional 150 m below Inferred Mineral Resources in 2021 YTD o Hi
Slide 34: Young-Davidson – increasing mining rates & productivity
Young-Davidson – increasing mining rates & productivity 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 Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Gold production (oz) 40,400 47,300 55,800 56,500 41,000 39,100 49,000 50,900 45,000 45,000 50,000 48,000 28,700
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 2026 • Significant exploration potential laterally & at d
Slide 36: One of Canada’s highest-grade gold mines
One of Canada’s highest-grade gold mines Mineral Reserve Grade (g/t Au) 16.3 15.3 +58% 10.1 9.2 8.4 7.0 6.7 6.5 6.4 6.4 5.8 5.1 4.7 4.5 4.2 4.1 3.0 2.4 1.6 Source: Company filings TSX:AGI ǀ NYSE:AGI 36
Slide 37: Island Gold Phase 3+ Expansion to 2,400 tpd - larger, more valuable operation
Island Gold Phase 3+ Expansion to 2,400 tpd - larger, more valuable operation P3 2000 (2020)5 P3+ 2400 (2022) % change Throughput (tpd) tpd 2,000 2,400 20% Larger operation Total production (life of mine) 000 oz Au 3,104 4,460 44% Bigger ore body Average production (post project) 2 000 oz Au 236 287
Slide 38: Phase 3+ Expansion – cash flow profile at $1,650/oz Au
Phase 3+ Expansion – cash flow profile at $1,650/oz Au $446 $394 $401 $398 $399 $342 $327 $328 $324 $306 $269 $271 $270 $280 $283 $235 $246 $251 $246 $226 $225 $207 $205 $196 $186 $188 $184 $169 $164 $133 $139 $86 -$2 -$19 -$4 -$12 -$43 -$45 -$36 -$45 -$34 -$27 -$61 -$62 -$57 -$63 -$58 -$52 -$97 -$1
Slide 39: 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 40: 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 41: Island Gold – changes in Mineral Reserves as of December 31, 2021
Island Gold – changes in Mineral Reserves as of December 31, 2021 TSX:AGI ǀ NYSE:AGI 41
Slide 42: Island Gold – changes in Mineral Resources as of December 31, 2021
Island Gold – changes in Mineral Resources as of December 31, 2021 TSX:AGI ǀ NYSE:AGI 42
Slide 43: Island Gold – gold metal factor long section
Island Gold – gold metal factor long section Gold Metal Factor (Grade x True Width) C-Zone & E1E-Zone as of December 31, 2021 TSX:AGI ǀ NYSE:AGI 43
Slide 44: Longitudinal of Canadian underground gold deposits
Longitudinal of Canadian underground gold deposits • Underground gold deposits in Canadian shield can extend well below a depth of 3km • Island Gold has been drilled to a depth of 1.7km & remains open laterally & down plunge TSX:AGI ǀ NYSE:AGI 44
Slide 45: Island Gold – historical operational results
Island Gold – historical operational results 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 Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Gold production (oz) 26,110 26,659 22,063 28,100 26,700 22,000 29,000 35,600 39,500 36,700 38,600 38,800 19,400 39,600 41,200 42,
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 & ~$323M 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% of past drilling focused near Mulatos mine 1.2M oz Combined Mineral Reserves1,2 at the La Yaqui Grande & Puerto Del Aire higher grade discoveries 1 See Mineral Reserve and Resource es
Slide 48: La Yaqui Grande Internal Economic Study – 2020
La Yaqui Grande Internal Economic Study – 2020 La Yaqui Grande Project Highlights Life of Mine1 Production Mine life (years) 5 Total gold production (000 oz) 616 Total silver production (000 oz) 1,471 Average annual gold production (000 oz) 123 Total ore mined (000 tonnes) 19,205 Average tonnes of o
Slide 49: Lynn Lake Feasibility Study – 2017
Lynn Lake Feasibility Study – 2017 Feasibility Study Highlights - December 2017 Production Mine life (years) 10.4 Total gold production (000 oz) 1,495 Total silver production (000 oz) 1,263 Average annual gold production1 Years 1 to 6 (000 oz) 170 Years 1 to 10 (000 oz) 143 Total ore mined (000 tonn
Slide 50: 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 51: Kirazlı, Ağı Dağı & Çamyurt Economic Studies – 2017
Kirazlı, Ağı Dağı & Çamyurt Economic Studies – 2017 Feasibility Study - 2017 Preliminary Economic Assessment - 2017 Kirazlı Ağı Dağı Çamyurt Production Mine life (years) 5 6 4 Total gold production (ounces) 540,000 937,300 373,200 Total silver production (ounces) 3,141,000 2,365,200 1,612,600 Averag
Slide 52: Top Shareholders and Analyst Coverage
Top 10 Shareholders and Analyst Coverage Top 10 Shareholders1,2 Analyst Coverage Van Eck Associates Corporation Bank of America - Lawson Winder BMO Capital Markets - Brian Quast BlackRock Investment Management Canaccord Genuity - Dalton Baretto Dimensional Fund Advisors CIBC Word Markets - Cosmos Ch
Slide 53: Total Proven & Probable Mineral Reserves
Total Proven & Probable Mineral Reserves PROVEN AND PROBABLE GOLD MINERAL RESERVES (as at December 31, 2021) 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 54: Total Measured & Indicated Mineral Resources
Total Measured & Indicated Mineral Resources MEASURED AND INDICATED GOLD MINERAL RESOURCES (as at December 31, 2021) 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 55: Total Inferred Mineral Resources
Total Inferred Mineral Resources INFERRED GOLD MINERAL RESOURCES (as at December 31, 2021) Tonnes Grade Ounces (000's) (g/t Au) (000's) Young-Davidson – Surface 31 0.99 1 Young-Davidson – Underground 2,062 3.02 200 Total Young-Davidson 2,093 2.99 201 Island Gold 7,906 13.59 3,454 Mulatos 507 0.92 15
Slide 56: 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 presentation. Chris Bostwick is a Qualified Person within the meani
Slide 57: 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 58: Scott K. Parsons, CFA
Scott K. Parsons, CFA VP, Investor Relations 416.368.9932 x 5439 sparsons@alamosgold.com