Alamos Gold Inc. · TSX:AGI
Alamos Gold — Investor Presentation (May 2013)
39 slides from Alamos Gold's investor presentation, May 2013
Slide 1: May 2013 Corporate Presentation
May 2013 Corporate Presentation
Slide 2: Cautionary Notes
Cautionary Notes TSX: AGI | NYSE: AGI 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 Un
Slide 3: A Strong Company Positioned to Lead
A Strong Company Positioned to Lead TSX: AGI | NYSE: AGI • Low‐cost, mid‐tier gold producer • Met guidance and increased production by 32% in 2012 to 200,000 ounces at a cash operating cost (pre‐5% royalty) of $355/oz • Production guidance of 180,000‐200,000 ounces Au in 2013 • Cash cost guidance of
Slide 4: We Expect Alamos to Remain…
We Expect Alamos to Remain… TSX: AGI | NYSE: AGI • A leader in growing low‐cost production • A leader in financial performance • A leader in delivering shareholder value Alamos has consistently achieved these key objectives throughout its history and they remain the focus of our strategy going forwa
Slide 5: A Leader in Growing Low-Cost Production: Leading growth profile
A Leader in Growing Low‐Cost Production TSX: AGI | NYSE: AGI • Leading growth profile Objective: Top 25 producer 5
Slide 6: A Leader in Growing Low-Cost Production: First quartile cash cost performance
A Leader in Growing Low‐Cost Production TSX: AGI | NYSE: AGI • First quartile cash cost performance Objective: Maintain top 10 cash cost performance Source: GFMS 6
Slide 7: 2013E All-in Sustaining Costs (US$/oz)
A Leader in Growing Low‐Cost Production TSX: AGI | NYSE: AGI • Among the lowest on an all‐in sustaining cost basis 2,000 1,718 1,610 1,800 1,600 2013E All‐in Sustaining Costs (US$/oz) 1,366 1,320 1,292 1,275 1,257 1,245 1,400 1,168 1,129 1,126 1,120 1,050 1,200 992 954 945 928 893 1,000 812 800 600
Slide 8: Replacing reserves enables production growth
A Leader in Growing Low‐Cost Production TSX: AGI | NYSE: AGI • Replacing reserves enables production growth1 1 Please refer to press releases dated April 1, 2013 and June 28, 2012 on the 2012 Mineral Reserves and Resources statement and Çamyurt initial mineral resource estimate, respectively. 8
Slide 9: A Leader in Financial Performance: Continued margin expansion
A Leader in Financial Performance TSX: AGI | NYSE: AGI • Continued margin expansion 9
Slide 10: A Leader in Financial Performance
A Leader in Financial Performance TSX: AGI | NYSE: AGI 1Cash and cash equivalents and short‐term investments as reported in the Company’s Statements of Financial Position. 2After changes in working capital. 10
Slide 11: A Leader in Delivering Shareholder Value
A Leader in Delivering Shareholder Value TSX: AGI | NYSE: AGI • Track record of outperformance Source: Capital IQ 11
Slide 12: Mexico: Mulatos Mine
Mexico: Mulatos Mine TSX: AGI | NYSE: AGI • Open‐pit, heap leach operation (100% ownership) • 17,000 tpd throughput budgeted in 2013 • 500 tpd gravity mill for Escondida high‐grade ore • Achieving design throughput and budgeted grades • Large exploration package (30,325 ha/117 sq. miles) • ~56,000 m
Slide 13: Mexico: The High-Grade Story Continues
Cerro Pelon Mexico: The High‐Grade Story Continues East Estrella Estrella PdA El Salto/ PdA Mina Vieja Extension Escondida Gap El Victor April 2013 LEGEND Mineralized trends San Carlos +1 opt intercepts 13
Slide 14: Mexico: San Carlos – Potential to Double High-Grade Mill Feed
Mexico: San Carlos – Potential to Double High‐Grade Mill Feed 200m N High Grade Structural trend San Carlos 2012 Reserve Pit San Carlos Recent Results Include: Underground 12SC177 – 4.65m at 7.729g/t workings 12SC178 – 17.55m at 3.839g/t 12SC178B – 17.3m at 5.154g/t 12SC182 – 6.09m at 12.850g/t El V
Slide 15: Mexico: El Victor – Plan View
Mexico: El Victor – Plan View Recent Results Include: 12EV242 – 76.22m at 2.04g/t N 12EV248 – 50.80m at 1.735g/t 12EV289 – 27.44m at 1.304g/t 200m El Victor2012 Please refer to press release dated April 1, 2013 – Resources and Reserves for year‐end 2012. Reserve Pit 15
Slide 16: Mexico: El Victor – New Reserve Pit Expansion
Mexico: El Victor – New Reserve Pit Expansion TSX: AGI | NYSE: AGI N Extension to 2011 pit from new 2012 reserves 45.7 m @ 1.59 g/t Au 35.1 m @ 1.86 g/t Au 35.1 m @ 6.43 g/t Au 1 Please refer to press release dated April 1, 2013 on Intercepts > 0.35 grams per tonne Au the 2012 Mineral Reserves and R
Slide 17: Turkey: Low-Cost Production Growth
Turkey: Low‐Cost Production Growth 17
Slide 18: Turkey: Ağı Dağı and Kirazlı – Path To Production
Turkey: Ağı Dağı and Kirazlı – Path To Production TSX: AGI | NYSE: AGI Ağı Dağı First Gold Pour (18 Months After Kirazli) Positive Pre‐feasibility Permitting and Construction Study1,2 Kirazli First Gold Pour IRR: 22.3%3 EIA Positive Certificate Issued NPV5%: $276M3 Permitting and Construction (18 Mo
Slide 19: Turkey: Ağı Dağı and Kirazlı
Turkey: Ağı Dağı and Kirazlı 1,2,3 TSX: AGI | NYSE: AGI • Çamyurt would enhance robust mine plan LOM total production: 1.5Moz Au Combined annual production: 166,000 oz Au 545,000 oz Ag 1 Please refer to press release dated June 28, 2012 on Turkey PFS and Çamyurt initial mineral resource estimate. 2
Slide 20: Turkey: Çamyurt – Significant Economic Upside Opportunity
Turkey: Çamyurt – Significant Economic Upside Opportunity TSX: AGI | NYSE: AGI N • 640,000 oz @ 0.81 185.7 m @ 36.5 m @ 151.2 m @ g/t Au1 pit‐ 1.60 g/t Au 3.2 g/t Au 1.62 g/t Au constrained inferred resources • Higher grades = chance to reduce combined operating cost • Capex synergy – Çamyurt expect
Slide 21: Succeeding in Turkey – An Alignment of Interests
Succeeding in Turkey – An Alignment of Interests TSX: AGI | NYSE: AGI Turkey Needs Mining • Government calls mining a key to economic growth • New Mining Law 2010; New Commercial Code 2012 • 2011 current account deficit 9.9% of GDP • New investment system promotes foreign direct investment • Tax inc
Slide 22: A Leader in Financial Performance – Robust Balance Sheet
A Leader in Financial Performance – Robust Balance Sheet TSX: AGI | NYSE: AGI Cash & Equity Investments1 ~US$490 million Working Capital1 ~US$500 million Debt None Gold Hedging None Semi‐Annual Dividend US$0.10/share Shares Outstanding1 127.5 million Employee Options1 4.8 million Fully Diluted 132.3
Slide 23: Appendices
TSX: AGI | NYSE: AGI Appendices 23
Slide 24: Board of Directors and Executive and Management Team
Board of Directors and Executive and Management Team TSX: AGI | NYSE: AGI Board of Directors Executive and Management Team Mark Wayne Chairman John A. McCluskey President and Chief Executive Officer John A. McCluskey Director Jamie Porter Chief Financial Officer David Gower Director Manley Guarducci
Slide 25: A Leader in Growing Low-Cost Production
A Leader in Growing Low‐Cost Production TSX: AGI | NYSE: AGI • Among the lowest of its peer group 2013 Average Cash Costs ($/oz) – Net of By‐products Source: Analyst reports. 1 Based on Alamos guidance (includes royalties). 25
Slide 26: Mulatos Alteration Map
La Chipriona Pb-zn-Ag” San Nicolas * La Cieneguita Mulatos imuri Ad: fae) Laindial , Iteration M Sailer Bp, Yagil Ge *E| Realito mathe EEN TS | San Nicolas LaViruelay ,ba Cruz E Uaspe La Palma Juliana — Escondida A tee LEGEND”) ace 45an Carlos Silicic’Alteration == Argillic Alteration Labura —aee* a
Slide 27: San Carlos – The High-Grade Story Continues
San Carlos – The High‐Grade Story Continues TSX: AGI | NYSE: AGI • Potential to double high‐grade mill feed for gravity mill • ‘Underground’ mineral reserves 1,124,000 tonnes @ 4.92 g/t Au (177,900 oz)1 • ‘In‐pit’ mineral reserves: 2,416,000 tonnes @ 0.81 g/t Au (62,866 oz)1 • Recent drilling highli
Slide 28: San Carlos: Underground Development
San Carlos: Underground Development1 TSX: AGI | NYSE: AGI • Underground Mining Mulatos MINING ZONES LEVEL 970 LEVEL 955 ACCESS LEVEL 940 LEVEL 900 1 ‘Conceptual’ underground workings. 28
Slide 29: El Victor – Reserve and Resource Growth
El Victor – Reserve and Resource Growth TSX: AGI | NYSE: AGI • Potential to expand reserves along and across trend • Silica alteration identical to El Victor deposit • Believed to be northern extension of El Victor reserves • Extends pit north and west of present pit limits • Recent drilling highlig
Slide 30: Turkey Pre-feasibility (PFS) – Strong Cash Flow Generation
Turkey Pre‐feasibility (PFS)1 – Strong Cash Flow Generation TSX: AGI | NYSE: AGI Highlights Value 1.5M oz Au LOM production (combined 9‐year mine life) 4.9M oz Ag 166,000 oz Au Combined annual production 545,000 oz Ag $544/oz2 Cash costs (by‐product) $8.60/tonne of ore Capital expenditure Initial: $
Slide 31: Turkey PFS Highlights – Robust Project Economics
Turkey PFS Highlights1 – Robust Project Economics TSX: AGI | NYSE: AGI AFTER TAX NPV(millions) Discount Rate (%) Ağı Dağı Kirazlı Combined 0% $258.3 $214.2 $472.5 3% $167.7 $175.9 $343.6 5% $121.5 $154.1 $275.6 10% $40.9 $109.8 $150.7 Spot 2(@ 5% discount) $362.2 $242.4 $604.6 AFTER TAX IRR (%) Silv
Slide 32: Turkey 2012 Resource Highlights
Turkey 2012 Resource Highlights1 Pit‐Constrained Inferred Ounces Likely to Boost Production TSX: AGI | NYSE: AGI Ağı Dağı 500m 251,000 oz Au mineable, pit‐constrained inferred mineral ounces Inferred mineral ounces (pit‐constrained) Measured mineral ounces Indicated mineral ounces Kirazli 156,259 oz
Slide 33: Ağı Dağı Project: Map
N Ağı Dağı Project: Map Deli Pit Alteration Types Baba Pit Propylitic Argillic Çamyurt Pit Advanced Argillic Silica 2012 Resource Pit Outlines 33 33 1 Please refer to press release dated April 1, 2013 on Reserve and Resource calculations for 2012.
Slide 34: Kirazlı Project: Map
N Kirazlı Project: Map Kirazli Pit Alteration Types Argillic Advanced Argillic Silica 2012 Resource Pit Outlines 1 Please refer to press release dated April 1, 2013 on Reserve and Resource calculations for 2012. 34 34
Slide 35: Ağı Dağı and Kirazlı – Excellent Infrastructure
Ağı Dağı and Kirazlı – Excellent Infrastructure TSX: AGI | NYSE: AGI Kirazlı Hill Sea port Paved roads and power lines Access to power grid 35
Slide 36: 2012 Mulatos Proven and Probable Reserves
2012 Mulatos Proven and Probable Reserves (1) TSX: AGI | NYSE: AGI 1,2,3,4,5,6,8 Proven and Probable Reserves as at December 31, 2012 2 2 2 Proven Probable Proven + Probable Tonnes Grade Contained Tonnes Grade Contained Tonnes Grade Contained Reserve Area (000s) (g/t Au) Ounces (000s) (g/t Au) Ounce
Slide 37: 2012 Global Measured and Indicated Mineral Resources
2012 Global Measured and Indicated Mineral Resources TSX: AGI | NYSE: AGI 1,2,3,4,5,6,8 Global Measured & Indicated Mineral Resources as at December 31, 2012 Cut‐off Tonnes Grade Grade Contained Contained (g/t Au) (000s) (g/t Au) (g/t Ag) Ounces Au Ounces Ag Mexico Mulatos 0.5 78,235 0.99 2,481,018
Slide 38: 2012 Global Inferred Mineral Resources
2012 Global Inferred Mineral Resources TSX: AGI | NYSE: AGI 1,3,4,5,6,7,8 Global Inferred Mineral Resources as at December 31, 2012 Cut‐off Tonnes Grade Grade Contained Contained (g/t Au) (000s) (g/t Au) (g/t Ag) Ounces Au Ounces Ag Mexico Mulatos 0.5 15,991 0.90 461,257 San Carlos UG 2.5 14 6.07 2,
Slide 39: Investor Relations Contacts
Jo Mira Clodman Vice President, Investor Relations 416.368.9932 x 401 jmclodman@alamosgold.com Scott K. Parsons, CFA Manager, Investor Relations 416.368.9932 x 439 sparsons@alamosgold.com