Alamos Gold Inc. · TSX:AGI
Alamos Gold — Shareholder Meeting (May 2017)
25 slides from Alamos Gold's shareholder meeting presentation, May 11, 2017
Slide 1: Annual Meeting of Shareholders
John A. McCluskey President and Chief Executive Officer Annual Meeting of Shareholders May 11, 2017 1
Slide 2: Cautionary Notes
Cautionary Notes Cautionary Notes No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Certain statements in this presentation are “forward-looking statements”, including within the meaning of the United States Securitie
Slide 3: Year in Review
Year in Review 3
Slide 4: Strong share price outperformance
2016 Share Price Performance Strong share price outperformance 104% 50% 8% Alamos Gold (TSX) S&P/TSX Global Gold Index Gold (US$/oz) 4
Slide 5: Met 2016 Guidance
Met 2016 Guidance 392,000 oz met 2016 production guidance 7% Decrease in 2016 AISC1 23% decrease in 2016 capital spending $35m site free cash flow1 in 2016 1 Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures. 5
Slide 6: Young-Davidson Ramping Up
Young-Davidson Ramping Up Growing production; declining costs; declining capital 8,000 Production (000 oz Au) 7,000 +28% 200-210 6,000 170 160 5,000 4,000 2015A 2016A 2017E 3,000 Mine-site AISC1 (US$/oz Au) 2,000 -21% $986 $897 1,000 $775 0 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15
Slide 7: La Yaqui Phase I Development
La Yaqui Phase I Development Leach Pad Crushing Pad Pregnant Solution Pond Barren Solution Pond 1.4 g/t Au Top Soil Reserve grade1 68% above Mulatos 2017 budget Project & Construction Offices ~$400/oz 2017 total cash costs2, 50% below Mulatos budget CQA Lab Haulage Road Q4 2016 Received EIA approval
Slide 8: La Yaqui Phase I Development – On Track
La Yaqui Phase I Development – On Track H2-2017 Initial production – development on track 8
Slide 9: Growing Reserve Base
Growing Reserve Base 521k oz Initial mineral reserve1 declared at La Yaqui Grande 1.8m oz Initial mineral reserves declared at Kirazlı & Ağı Dağı1 +31% Increase in Proven & Probable mineral reserves1 7.7m oz Total Proven & Probable mineral reserves1,2 1 For more information, see press release dated
Slide 10: Surfacing Value Through Exploration – Mulatos District
Surfacing Value Through Exploration – Mulatos District La Yaqui & Cerro Pelon 1000 Proven & Probable Mineral Reserves Measured & Indicated Mineral Resources 900 Inferred Mineral Resources 12 Mulatos mine 115 800 700 600 Ounces (000 Au) 500 236 400 778 300 47 200 259 100 220 0 1,2 District potential
Slide 11: Surfacing Value within Development Pipeline – Turkey
Surfacing Value within Development Pipeline – Turkey Turkey After- tax NPV8% (US$m) Forestry Permits $600 +236% Granted for Kirazlı January 2017 $86m $500 $484m $400 Combined after-tax NPV8% of Kirazlı & Ağı $298m Dağı in February 2017 feasibility studies1 $300 >39% $200 After-tax IRR for each of Ki
Slide 12: Strong Safety Culture
Strong Safety Culture Young-Davidson Mulatos El Chanate 1.8 million hours or 14 2.5 million hours or 8 3.9 million hours or 29 months without an LTI as of months without an LTI as of months without an LTI as of April 2017 April 2017 April 2017 Home Safe Every Day Program 12
Slide 13: Sustainability – 2016
Sustainability – 2016 Environmental • Progressive reclamation • >20 hectares reclaimed at Mulatos • >40 hectares reclaimed at El Chanate • El Chanate certified as Industria Limpia Community Engagement • Partnerships with Matachewan & Temagami First Nations at YD • Water supply partnership for Ejido
Slide 14: Outlook
Outlook Positioned to deliver long term value 14
Slide 15: Growing Production, Declining Costs, Expanding Margins
Growing Production, Declining Costs, Expanding Margins Gold Production (000 oz) AISC1,2 (US$/oz) +6% -14% 400 – 430 $1,091 $1,010 $940 392 380 2015A 2016A 2017E Cost of Sales3 (US$/oz) 2015A 2016A 2017E $1,241 -14% AISC Margin2,4 (US$/oz) $1,103 $1,065 +35% $310 2015A 2016A 2017E $229 Total Capital
Slide 16: Peer Leading Low-Cost Growth Profile
Peer Leading Low-Cost Growth Profile Controlled, disciplined, multi-stage growth Esperanza Quartz Mountain Mulatos District Production: 104K oz Kirazlı2 Mine-site AISC1: $373/oz Aği Daği2 Production: 178K oz Mine-site AISC1: $411/oz >400k oz Producing Assets Çamyurt2 Production: 93K oz Combined annu
Slide 17: Strong Balance Sheet – Debt Free
Strong Balance Sheet – Debt Free Cash & Total Liquidity $315m High yield notes retired April 2017 $24m 1 Annual interest savings; $72m over remaining term $150m $306m $156m Better positioned to fund high return internal growth Undrawn Credit Facility Cash, cash equivalents & equity securities opport
Slide 18: Track Record of Delivering Shareholder Value
Track Record of Delivering Shareholder Value MULATOS: BLUEPRINT FOR SUCCESS $10m $70m $375m cost to acquire initial capital raised free cash flow1 Mulatos in 2003 to build Mulatos generated to date LEADING GROWTH PROFILE WITH 6 10.7m $170m DISCIPLINED M&A STRATEGY development combined M&I and total
Slide 19: 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 Q4 2016: Met consolidated 2016 production guidance Q1 2017: Received Forestry Permits for Kirazlı projec
Slide 20: Appendices
Appendices 20
Slide 21: 2016 Proven and Probable Mineral Reserves
2016 Proven and Probable Mineral Reserves PROVEN AND PROBABLE GOLD RESERVES (as at December 31, 2016) 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) You
Slide 22: 2016 Total Measured and Indicated Mineral Resources
2016 Total Measured and Indicated Mineral Resources MEASURED AND INDICATED GOLD MINERAL RESOURCES (as at December 31, 2016) 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
Slide 23: 2016 Total Inferred Mineral Resources
2016 Total Inferred Mineral Resources INFERRED GOLD MINERAL RESOURCES (as at December 31, 2016) Tonnes Grade Ounces (000's) (g/t Au) (000's) Young-Davidson - Surface 31 0.99 1 Young-Davidson - Underground 3,524 2.76 313 Total Young-Davidson 3,555 2.75 314 Mulatos 8,935 0.92 265 San Carlos UG 162 4.9
Slide 24: 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 news release. Chris Bostwick is a Qualified Person within the meaning of
Slide 25: Scott K. Parsons, CFA
Scott K. Parsons, CFA VP, Investor Relations 416.368.9932 x 5439 sparsons@alamosgold.com 25