Alamos Gold Inc. · TSX:AGI
Alamos Gold — Investor Presentation (April 2024)
62 slides from Alamos Gold's investor presentation, Apr 25, 2024
Slide 1: Corporate Presentation
Corporate Presentation APRIL 2024
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 Declining cost High quality, organic growth profile long-life assets in safe jurisdictions 2024E GOLD 2024E NET ASSET VALUE PRODUCTION1 A I S C / O Z 1,2,3 CANADIAN ASSETS4 Lynn Lake, Canada ~505k oz ~$1,150 89% Magino, Canada6 Quartz Mou
Slide 4: Growing intermediate gold producer in low-risk jurisdictions
Growing intermediate gold producer in low-risk jurisdictions Uniquely positioned AGI - NYSE GDX GDXJ Gold (US$/oz) S&P 500 100% High-quality, long-life operations 80% Low-risk jurisdictions 60% Fully funded, high-return growth 40% Expanding margins & profitability 20% Strong ongoing free cash flow g
Slide 5: Strong financial track record & outlook – with an attractive valuation
Strong financial track record & outlook – with an attractive valuation … in a supportive environment Growth company … with an attractive valuation for gold EBITDA (US$M)1,2 EV/EBITDA 2025E1,2 $731 17.3x 17.1x Growing global debt; ongoing 16.7x deficits; rising debt service costs $616 13.7x 12.9x 12.
Slide 6: Long-term track record of creating value
Long-term track record of creating value $3.7 billion of combined value created at Young-Davidson, Island Gold & Lynn Lake since acquisition1,2 Mulatos (US$M) Young-Davidson (US$M) Island Gold + Magino (US$M) Lynn Lake (US$M) $145 Acquisition Cost Consensus NPV1 Cumulative FCF2 $381 $3,388 $544 $516
Slide 7: Acquisition of Argonaut Gold
Acquisition of Argonaut Gold Creation of one of Canada’s largest & lowest cost gold mines Island Gold + Magino – one of Canada’s largest & lowest cost mines • >400k oz per year at first quartile costs, post Phase 3+ Expansion • 11.5M oz total Mineral Reserves & Resources1 supporting >19 year mine li
Slide 8: Strategic & financial rationale: synergies through shared infrastructure
Strategic & financial rationale Island Gold + Magino – synergies through shared infrastructure ~$515M1 of synergies expected to be created through integration of adjacent Magino & Island Gold mines Capital savings: ~$140M • through use of central mill & tailings facility at Magino • Island Gold mill
Slide 9: Strategic & financial rationale: shared infrastructure
Strategic & financial rationale Island Gold + Magino – synergies through shared infrastructure Significant capital & operating savings through central, optimized Magino mill & tailings facility Magino Mine Magino Mill Island Gold Mine Open pit mill feed Total milling rate Underground mining rate (tp
Slide 10: Strategic & financial rationale: long-term upside potential
Strategic & financial rationale Island Gold + Magino – long-term upside potential Significant long-term upside potential at both operations through single optimized milling complex • Magino mill expansion to 12,400 tpd expected in 2026 with modest capital investment • Further expansion beyond 12,400
Slide 11: Consolidation of Michipicoten Greenstone Belt
Strategic & financial rationale Consolidation of Michipicoten Greenstone Belt Growing land package, with significant near mine & regional exploration potential across underexplored Michipicoten Greenstone Belt • 2017: Richmont Mines acquisition • 9,500 ha total • 2020: Trillium Mining acquisition •
Slide 12: Alamos Gold pro forma outlook
Alamos Gold pro forma outlook Growing, long-life Canadian production; declining cost profile 1,000 $1,264 900 $1,204 $1,160 $1,150 $1,143 $1,070 > 900k oz 800 $1,100 $1,025 annual production potential of Alamos 700 pro forma with development of PDA & Production (000 oz Au) Lynn Lake 600 Magino Magin
Slide 13: Q1 2024 highlights – on track to achieve full year guidance
Q1 2024 highlights – on track to achieve full year guidance Cash flow from operations, Free cash flow (US$M)1 Production growth (000 oz) before working capital (US$M)1 Production exceeded quarterly guidance; 6% growth YoY 6% 6% 132% 136 $135 128 $127 $24 Costs in line with Q1 guidance & $11 expected
Slide 14: Producing mines: High quality, long-life production base
Producing mines: High quality, long-life production base; low geopolitical risk profile Young-Davidson, Ontario, Canada Island Gold, Ontario, Canada Mulatos District, Sonora, Mexico Underground Underground Open pit, heap leach 2024E Au production: 180-195k oz 2024E Au production: 145-160k oz 2024E A
Slide 15: Development projects: High-return organic growth
Development projects: High-return organic growth in low-risk jurisdictions Island Gold Phase 3+ Expansion Puerto Del Aire (Mulatos) Lynn Lake Expansion to create one of lowest cost & Higher-grade, underground deposit adjacent to Long-life, low-cost, open-pit project with most profitable gold mines i
Slide 16: Island Gold Phase 3+ Expansion
Island Gold Phase 3+ Expansion On track for completion H1 2026 91% of shaft area growth 57% of total Phase 3+ Updated capital estimate Headframe interior at the collar to be provided post closing of elevation with shaft jumbo capital spent & committed growth capital spent & to date committed to date
Slide 17: Island Gold: Ongoing exploration success driving growth
Island Gold Ongoing exploration success driving growth in size & value Mineral Reserve & Resource growth Consensus NPV growth (US$M)4 6.1M oz $3,388 Mineral Reserves 6,500 M&I Mineral Resources 16 total Mineral Reserves & Inferred Mineral Resources Resources2, a 16% increase YoY 5,500 Mineral Reserv
Slide 18: Island Gold 2023 Mineral Reserve & Resource additions
Island Gold 2023 Mineral Reserve & Resource additions Significant growth within main structure & hanging wall & footwall 1M oz Low-cost ~70% ~2,000 increase in Mineral Reserves & Resources, to develop given proximity to existing of 2023 increase in recently defined intersections >3 g/t Au outside Mi
Slide 19: Puerto Del Aire – Mulatos District
Puerto Del Aire – Mulatos District Growing, higher-grade underground deposit 33% 16% 55 km Significant growth potential; deposit open in Low development costs; adjacent to main Mulatos Development plan in Q2 2024 multiple directions open pit increase in Mineral increase in Reserve 2024 exploration d
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 NPV3 at $1,950/oz; increase in Mineral Reserves1,4; 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 ▪ Low-cost hydro-electric power Regional pipeline of targets within trucking distance of MacLellan mill Good infrastructure: ▪ Proximity to paved highways ▪ Burnt
Slide 22: ESG – leading on key metrics
ESG – leading on key metrics Environment Social Lower GHG emissions per oz gold produced Lost time injury frequency rate 38% 0.8 0.63 56% 0.3 hours worked per 200,000 0.20 tCO2e/oz Au 0.6 0.39 0.2 0.16 0.14 0.4 0.17 0.07 0.06 lower than 0.2 reduction in 0.1 industry average 0 LTIFR 0 Industry Averag
Slide 23: ESG – focused on continuous improvement
ESG – focused on continuous improvement Governance Improving ESG disclosure Strong relative performance1 in support of the following frameworks: 90% 38% Agency Current Rating director independent board independence members are women A Alignment of executive pay to performance & A- shareholder intere
Slide 24: Strong balance sheet
Strong balance sheet Long-term focus on returning capital to shareholders $240M cash Zero debt Fully funded & $740M total liquidity1,2 well positioned for all market conditions organic growth Long-term track record of returning capital to shareholders Dividends per share $0.02 $0.02 Share buybacks p
Slide 25: Alamos Gold – value creation opportunities
Alamos Gold – value creation opportunities Growing, diversified, Expanding margins Conservative, Sustainable business intermediate gold & profitability low-risk strategy model supporting growing producer returns over the long-term 2024 Catalysts Increase in YE2023 PDA development Closing of Argonaut
Slide 26: Appendices
Appendices
Slide 27: Board of Directors, Executive and Management Team
Board of Directors, Executive and Management Team Board of Directors Paul J. Murphy John A. McCluskey Elaine Ellingham David Fleck David Gower Claire M. C. Kennedy Monique Mercier J. Robert S. Prichard Shaun Usmar Chairman Director Director Director Director Director Director Director Director Execu
Slide 28: 2024 guidance
2024 guidance 2024 Guidance4 2023A Young-Davidson Island Gold Mulatos Lynn Lake Total Total Gold production guidance (000 oz Au) 180 - 195 145 - 160 160 - 170 — 485 - 525 529 Cost of sales (US$M)1 — — — — $620 $638 Cost of sales (US$/oz)1 — — — — $1,225 $1,212 Total cash costs (US$/oz)2 $950 – 1,000
Slide 29: 2024 guidance: capital budget
2024 guidance: capital budget 2024 Guidance2 2023A Sustaining Capital Growth Capital Total Total Operating Mines (US$M) Young-Davidson $40 - 45 $20 - 25 $60 - 70 $62 Island Gold $50 - 55 $210 - 230 $260 - 285 $222 Mulatos $3 – 5 $2 - 5 $5 - 10 $19 Total – Operating Mines $93 - 105 $232 - 260 $325 -
Slide 30: 2024 - 2026 guidance: operating mines
2024 - 2026 guidance: operating mines1 2024 2025 2026 Gold Production (000 oz) Young-Davidson 180 - 195 180 - 195 180 - 195 Island Gold 145 - 160 170 - 185 220 - 235 Mulatos District 160 - 170 120 - 130 120 - 130 Total Gold Production (000 oz) 485 - 525 470 - 510 520 - 560 Total Cash Costs2 (US$/oz)
Slide 31: 2024 guidance: production guidance increased
2024 guidance Production guidance increased; costs expected to remain flat YoY 2024E 2024E 2023A 3% increase in production guidance (previous) (current) Costs expected to remain flat YoY Gold production (000 oz) 529 470-510 485-525 Increased capital spending: inflation; higher spending on Lynn Lake;
Slide 32: Consistent execution: declining cost profile
Consistent execution Declining cost profile driven by low-cost production growth 2022 - 2026 AISC1,2 guidance 2024 Cost Structure $1,450 Maintenance $1,350 12% Contractors G&A 16% 4% $1,250 Diesel Consumables 5% FY:$1,204/oz 22% $1,150 FY: $1,160/oz Power 4% $1,050 Other Labour 6% 31% $950 2022A 202
Slide 33: Significant exploration potential; strong track record
Significant exploration potential; strong track record Mineral Reserves Growing in Size & Quality1 2024 Exploration Budget (US$M) 12,000 1.63 1.65 1.70 1.58 11,000 1.51 1.49 1.50 10,000 1.50 Mulatos 9,000 $19M 8,000 7,000 1.30 6,000 5,000 9,702 9,726 9,870 10,257 10,455 10,688 $62M Grade (g/t Au) 4,
Slide 34: Track record of adding value on aggregate & per share basis
Track record of adding value on aggregate & per share basis Gold Production Mineral Reserves Cash Flow from Operations (k oz Au) (M oz Au) (before changes in WC)3 (US$M) +261% 505 +529% 10.7 +995% $557 140 1.7 $51 1 2 4 2014A 2024E 2014A 2023A 2014A 2024E Gold Production per Share Gold Reserves per
Slide 35: Young-Davidson – long-life, low-cost production
Young-Davidson – long-life, low-cost production Location: Ontario, Canada One of Canada’s largest underground gold mines Ownership: 100% interest 15-year mine life based on YE 2023 Mineral Reserves Stage: Producing Large resource base & exploration potential to support mine life extension Operation:
Slide 36: Young-Davidson: Consistent operational & financial performance
Young-Davidson Consistent operational & financial performance $26M average quarterly mine-site free cash flow1 since 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 1,000 Upper mine 0 infrastructure Q2/15 Q3/15 Q2/16 Q3/16 Q2/17
Slide 37: Young-Davidson longitudinal – significant exploration potential
Young-Davidson longitudinal – significant exploration potential 3.3M oz Mineral Reserves, supporting a 15-year Reserve 10100 L life1 Legend 2024 Exploration 9620 South Drill Targets Mineralization open at depth, YE 2022 Mineralization and along strike to west Wireframe 9590L Mined Out Areas 9590 - F
Slide 38: Young-Davidson – historical operational results
Young-Davidson – historical operational results 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 Q4/23 Q1/24 Gold production (oz) 45,000 50,000 48,000 28,700 23,100 36,400 48,000 48,000 45,100 50,000 51,900 51,900 46,400 49,300 44,600 45,000
Slide 39: Island Gold – growing, high-grade, low-cost production
Island Gold – growing, high-grade, low-cost production Location: Ontario, Canada World’s sixth highest grade gold mine1 Ownership: 100% interest Phase 3+ Shaft Expansion to 2,400 tpd expected to be completed in H1 2026 Stage: Producing Significant exploration potential laterally & at depth Operation
Slide 40: Island Gold Phase 3+ Expansion: larger, longer-life
Island Gold Phase 3+ Expansion Larger, longer-life & lower capital intensity Phase 3+ Expansion production & cost profile ~90% 400,000 $1,100 production growth to 287k oz/yr post Expansion in 20261 350,000 $1,000 $900 300,000 Mine-site AISC (US$/oz) Gold Production (oz) $800 250,000 $700 ~30% 200,00
Slide 41: Phase 3+ Expansion Study – 2022 detailed mine plan
Phase 3+ Expansion Study – 2022 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 3
Slide 42: Island Gold + Magino – significantly larger Mineral endowment
Strategic & financial rationale Island Gold + Magino – significantly larger Mineral endowment 11.5M oz1,2 of total Mineral Reserves & Resources • 6.1M oz at Island Gold1 • 5.4M oz at Magino2 12,000 Mineral Reserves M&I Mineral Resources 9,000 Inferred Mineral Resources 4,525 K oz Au 6,000 2,912 843
Slide 43: Island Gold + Magino: Adding value within top-tier jurisdiction
Island Gold + Magino Adding value within top-tier jurisdiction Adding value on aggregate & per share basis Leading Canadian Exposure Gold Production (k oz Au) Mineral Reserves (M oz Au) Net Asset Value 3 by Geography +25% 630 +22% 13.0 Mexico 505 10.7 11% Canada 2024E 2024E Pro Forma 1 2023A 2 2024E
Slide 44: Island Gold + Magino: one of largest, lowest-cost gold mines in Canada
Island Gold + Magino One of largest, lowest-cost, & longest-life gold mines in Canada Annual production - 4th largest Canadian production – 3rd largest & growing 2023A Production1 2024E Production1 Operation Owner Company (koz) (koz) Canadian Malartic Agnico Eagle 685 Agnico Eagle 2,880 Detour Lake
Slide 45: Island Gold main structure 2023 Mineral Reserve & Resource Additions
Island Gold main structure 2023 Mineral Reserve & Resource Additions 1M oz of high-grade Mineral Reserves and Resources added, before depletion1 Low-cost to develop & produce; additions in proximity to existing infrastructure Significant ongoing upside with main structure open laterally & down plung
Slide 46: Island Gold Hanging Wall & Footwall
Island Gold Hanging Wall & Footwall Significant growth within recently defined zones ~70% of 2023 additions within HW & FW zones • >630k oz high-grade Mineral Reserves & Resources added • Low-cost to develop: 10-150m from main structure Recently defined zones driving growth • NTH: 146 oz total Miner
Slide 47: Island Gold – regional exploration highlights
Island Gold – regional exploration highlights High-grade mineralization intersected across multiple targets Pine & Breccia zone high-grade mineralization defined to 150 m depth over 50 m strike, including 29.8 g/t Au over 9.3m (23IGX057)1 88-60 zone 6.0 g/t Au over 11.2 m (23IGX066) intersected 7 km
Slide 48: Longitudinal of Canadian underground gold deposits
Longitudinal of Canadian underground gold deposits Island Gold Mine Red Lake - Campbell La Ronde • Commercial Production 1949 • Commercial Production 1988 • Commercial Production 2007 • Historical Production 20 Moz Au • Historical Production 6 Moz Au • Historical Production 1.4 Moz Au • Reserves 2.7
Slide 49: Island Gold – historical operational results
Island Gold – historical operational results 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 Q4/23 Q1/24 Gold production (oz) 39,500 36,700 38,600 38,800 19,400 39,600 41,200 42,200 33,200 28,000 37,500 24,500 37,300 31,400 40,500 32,900 30
Slide 50: Mulatos District – our founding operation
Mulatos District – our founding operation Location: Sonora, Mexico Initial production 2005; >2M oz produced & $544M FCF1 generated to date Ownership: 100% interest Low-cost growth from La Yaqui Grande driving strong ongoing FCF1 Stage: Producing Large underexplored land package (28,773 ha) Operation
Slide 51: Mulatos District: Strong track record of exploration success
Mulatos District – our founding operation Strong track record of exploration success District potential large underexplored land package totaling 28,773 ha >70% of past drilling focused near Mulatos mine 1.5M oz combined Mineral Reserves1,2 at the La Yaqui Grande & Puerto Del Aire higher grade disco
Slide 52: Mulatos District: Significant regional potential within Capulin Target
Mulatos District 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
Slide 53: Lynn Lake Project – 2023 Feasibility Study
Lynn Lake Project – 2023 Feasibility Study 2023 Feasibility Study Highlights Base Case Economic Analysis: $1,675 per ounce Gold Price Production (USD/CAD foreign exchange rate of $0.75:1) Mine life (years) 16.5 Total gold production (000 ounces) 2,185 IRR (after-tax) 17% Total silver production (000
Slide 54: 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 55: Turkish Development Projects
Turkish Development Projects • $1B investment treaty claim filed against Republic of Türkiye for expropriation & unfair & inequitable treatment of its Turkish gold projects 1 • Construction of Kirazlı project suspended in October 2019 after government failed to grant routine renewal of the Company’s
Slide 56: Top Shareholders and Analyst Coverage
Top 10 Shareholders and Analyst Coverage Top 10 Shareholders1,2 Analyst Coverage Bank of America - Harmen Puri Van Eck Associates Corporation BMO Capital Markets - Brian Quast BlackRock Investment Management Canaccord Genuity - Carey MacRury Dimensional Fund Advisors CIBC World Markets - Cosmos Chiu
Slide 57: Total Proven & Probable Mineral Reserves
Total Proven & Probable Mineral Reserves PROVEN AND PROBABLE GOLD RESERVES (as at December 31, 2023) 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) Youn
Slide 58: Total Measured & Indicated Mineral Resources
Total Measured & Indicated Mineral Resources MEASURED AND INDICATED GOLD MINERAL RESOURCES (as at December 31, 2023) 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 59: Total Inferred Mineral Resources
Total Inferred Mineral Resources INFERRED GOLD MINERAL RESOURCES (as at December 31, 2023) Tonnes Grade Ounces (000's) (g/t Au) (000's) Young-Davidson - Surface 31 0.99 1 Young-Davidson - Underground 1,350 3.31 144 Total Young-Davidson 1,381 3.26 145 Golden Arrow 2,028 1.07 70 Island Gold 7,857 14.5
Slide 60: 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 61: 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 (th
Slide 62: Scott K. Parsons, SVP, Investor Relations
SCOTT K. PARSONS, CFA SVP, Investor Relations 416.368.9932 x 5439 sparsons@alamosgold.com