Alamos Gold Inc. · TSX:AGI
Alamos Gold — Q4 2020 Earnings Presentation
23 slides from Alamos Gold's earnings presentation, Feb 25, 2021
Slide 1: Fourth Quarter and Year-End 2020 Results Presentation
Fourth Quarter and Year-End 2020 Results Presentation February 25, 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: Q4 & full-year 2020 highlights
Q4 & full-year 2020 highlights YoY % YoY % Revised 2020 Gold production (000 oz) Q4 2020A Q4 2019A 2020A 2019A Change Change Guidance4 Gold production (000 oz) 120.4 122.1 (1%) 426.8 494.5 (14%) 405-435 122 - 1% 120 Gold sales (000 oz) 121.8 127.1 (4%) 424.3 494.7 (14%) - Total cash costs (US$/oz)1
Slide 4: 2021 guidance – higher production, lower costs; fully funded organic growth
2021 guidance – higher production, lower costs; fully funded organic growth Gold production Total cash costs Sustaining & growth capital (000 oz) (US$/oz)1 (US$m)1 $761 427 470-510 $710-760 15% $210-225 Production growth from $146 20204 $82 $110-125 2020A 2021E 2020A 2021E 2020A 2021E 2020A Growth 2
Slide 5: Sustainable business model Strong free cash flow outlook
Sustainable business model Balanced approach to capital allocation supporting growth & higher returns to shareholders over the long term o 25% increase in dividend to $0.10/sh/yr Return capital to o 400% increase in dividend since 2018 shareholders Strong free cash flow o Share buyback outlook o Com
Slide 6: Financial highlights
Financial highlights Revised AISC margin (US$/oz)1,3 YoY % YoY % Q4 2020A Q4 2019A 2020A 2019A 2020 Change Change Guidance4 $933 $830 Realized gold price (US$/oz) $1,860 $1,463 27% $1,763 $1,381 28% - Operating revenues (US$M) $227 $186 22% $748 $683 10% - $572 $491 $416 Cash flow from operations (U
Slide 7: Operational highlights – Young-Davidson
Operational highlights – Young-Davidson Revised 2020 2021 Production & total cash costs2 Q4 2020A Q4 2019A 2020A 2019A Guidance4 Guidance Northgate Shaft Gold production (koz) 48.0 48.0 136.2 188.0 135-145 190-205 60 shutdown $1,800 Cost of sales, including amortization, per oz of gold sold 1 $1,264
Slide 8: Operational highlights – Island Gold
Operational highlights – Island Gold Revised 2020 2021 Production & total cash costs2 Q4 2020A Q4 2019A 2020A 2019A Guidance4 Guidance Gold production (koz) 41.2 38.6 139.0 150.4 130-140 130-145 $700 Cost of sales, incl. amortization, per oz of gold sold 1 $791 $918 $801 $864 $840 $785 40 $600 Total
Slide 9: Operational highlights – Mulatos
Operational highlights – Mulatos Revised Production & total cash costs2 2021 Q4 2020A Q4 2019A 2020A 2019A 2020 Guidance Guidance4 50 $1,000 Gold production (koz) 31.2 34.1 150.8 142.0 140-150 150-160 $900 40 Cost of sales, including amortization, per ounce of $1,327 $1,049 $1,127 $982 $1,135 $1,145
Slide 10: La Yaqui Grande – low cost, high-return project
La Yaqui Grande – low cost, high-return project 123k oz Average annual production over 5 year life1 $137m Initial capital; $196m total LOM capital1 $578/oz Average LOM mine-site AISC1,2 • Five year mine life with initial production expected Q3 2022 • Expected to keep Mulatos production at ~150k oz p
Slide 11: Alamos Consolidated Mineral Reserves and Resources as of December 31, 2020
Alamos Consolidated Mineral Reserves and Resources as of December 31, 2020 2020 2019 % Change 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) Mineral Proven & Probable Reserves 204,087 1.50 9,870 202,724 1.49 9,72
Slide 12: Island Gold – Changes in Mineral Reserves as of December 31, 2020
Island Gold – Changes in Mineral Reserves as of December 31, 2020 Planned shaft W E Crown pillar Mineral Reserves as of December 31, 2020 Category Tonnage Grade Au (g/t) Ounces Au Proven: 894,500 10.95 314,800 Probable: 3,302,900 9.37 995,200 340 Level TOTAL: 4,197,400 9.71 1,310,000 - 500 m • 239k
Slide 13: Island Gold – Changes in Mineral Resources as of December 31, 2020
Island Gold – Changes in Mineral Resources as of December 31, 2020 Planned shaft W E Crown pillar Mineral Resources as of December 31, 2020 Category Tonnage Grade Au g/t Ounces Au Measured & 718,000 7.18 165,900 Indicated: 340 Level Inferred: 6,915,300 14.43 3,208,300 - 500 m • 40% increase in Infer
Slide 14: Island Gold – growing in size & quality
Island Gold – growing in size & quality Mineral Reserve & Resource Growth Since Acquisition (koz) Reserves 5,000 M&I Resources Inferred Resources Significant growth since November 2017 acquisition Cumulative oz produced • 4.7m oz of combined Mineral Reserves & Resources at end of 2020 4,000 • 2.8m o
Slide 15: Alamos – value creation opportunities
Alamos – value creation opportunities Growing, diversified, Expanding margins & Conservative, low-risk Sustainable business intermediate gold profitability strategy model supporting producer growing returns over the long-term Catalysts 1.69 15% production growth in 2021 & further ~50% growth potenti
Slide 16: Appendices
Appendices TSX:AGI ǀ NYSE:AGI 16
Slide 17: 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 Ronald E. Smith Kenneth Stowe Chairman Director Director Director Director Director Director Direc
Slide 18: 2021 guidance
2021 guidance 2021 Guidance 2020A Young-Davidson Island Gold Mulatos Other Total Total Gold production (000’s oz) 190-205 130-145 150-160 — 470-510 427 Cost of Sales (in millions) (3) $255 $108 $177 — $540 $482 Cost of Sales ($ per ounce) (3) $1,290 $785 $1,145 — $1,105 $1,136 Total cash costs ($ pe
Slide 19: 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 20: 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 21: 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 22: 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 23: Scott K. Parsons, CFA
Scott K. Parsons, CFA VP, Investor Relations 416.368.9932 x 5439 sparsons@alamosgold.com TSX:AGI ǀ NYSE:AGI 23