Alamos Gold Inc. · TSX:AGI
Alamos Gold — Shareholder Meeting (June 2015)
18 slides from Alamos Gold's shareholder meeting presentation, Jun 3, 2015
Slide 1: Annual Meeting of Shareholders
John A. McCluskey President and Chief Executive Officer Annual Meeting of Shareholders June 3, 2015
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: Strong Platform for Delivering Long Term Value
Strong Platform for Delivering Long Term Value STABLE PRODUCTION STRONG BALANCE SHEET LOW‐COST GROWTH $350m in free cash $350m cash & Fully funded flow1 generated to date marketable securities2 development pipeline 1 Please refer to Cautionary Notes on non‐GAAP Measures and Additional GAAP Measures.
Slide 4: Long Term Track Record of Delivering Shareholder Value
Long Term Track Record of Delivering Shareholder Value Return on Equity ‐ Five Year Average1 15 10.9% 10.7% 10.7% 10 5.3% 5 3.4% 0.1% 0 SMF AGI CG NEM ELD G YRI BTO IMG NGD AEM ABX AUQ K ‐0.3% ‐0.6% ‐0.7% ‐1.0% ‐5 ‐3.4% ‐6.6% ‐10 ‐7.9% ‐15 ‐20 ‐18.6% 1 Five year average ending 2014, including only g
Slide 5: 2014 Achievements: Acquired Surface Rights at Cerro Pelon & La Yaqui
2014 Achievements Acquired Surface Rights at Cerro Pelon & La Yaqui Average production: ~33k oz/yr Total cash costs: $490 oz Modest initial capital: $21m Low‐cost production growth starting from La Yaqui in Q4 2016 & Cerro Pelon in 2017 2015 exploration budget $5.3m Please refer to Cautionary Notes
Slide 6: 2014 Achievements: Transitioned to Underground Mining at San Carlos
2014 Achievements Transitioned to Underground Mining at San Carlos Secured significant source of high grade mill feed Initial mill production October 2014 2015 budget 9.5 g/t Au 2015 exploration budget $5.7m Please refer to Cautionary Notes on non‐GAAP Measures and Additional GAAP Measures. 6
Slide 7: 2014 Achievements: Achieved 2014 Cost Guidance
2014 Achievements Achieved 2014 Cost Guidance Operating Data 2014A 2014E Guidance Production oz Au 140,500 150,000 ‐ 170,000 Cash Operating Costs1 US$/oz $639 $630‐670 Total Cash Costs1 US$/oz $703 $700‐740 All‐in Sustaining Costs1 US$/oz $1,022 $960‐1,000 Combined Gold Recovery % 65% 75% Combined T
Slide 8: 2014 Achievements: Ağı Dağı EIA Approved
2014 Achievements Ağı Dağı EIA Approved Advanced Turkish development pipeline Low‐cost production growth Çamyurt 62% higher grade; significant upside to 2012 PFS1 1 See year end 2014 mineral reserve and resource press release dated March 31, 2015, and press release dated June 28, 2012 on Turkey PFS
Slide 9: 2015 Achievements: Record Health & Safety Performance at Mulatos
2015 Achievements Record Health & Safety Performance at Mulatos Two million man hours without a lost time accident surpassed April 2015 9
Slide 10: 2015 Achievements: Solid Q1 2015 Results
2015 Achievements Solid Q1 2015 Results Operating Data Q1 2015A 2015E Guidance Production oz Au 38,000 150,000 ‐ 170,000 Cash Operating Costs1 US$/oz $728 $800 Total Cash Costs1 US$/oz $805 $865 All‐in Sustaining Costs1 US$/oz $1,115 $1,100 Combined Gold Recovery % 72% 74% Combined Throughput tpd 17
Slide 11: 2015 Achievements: Significant Progress in Turkey
2015 Achievements Significant Progress in Turkey Ağı Dağı EIA reinstated Kirazlı EIA reinstated Low‐cost, low capital intensity production growth New Turkish mining law & royalty supportive of sustainable industry Forestry fees recently reduced Attractive tax incentives in place Please refer to Caut
Slide 12: 2015 Achievements: Merger with AuRico Gold
2015 Achievements Merger with AuRico Gold Building a Stronger Platform for Growth 12
Slide 13: Alamos + AuRico Merger: Solid Platform for Growth
Alamos + AuRico Merger: Solid Platform for Growth Producing Assets in Top Mining Jurisdictions • Young‐Davidson (Canada): Flagship long‐life underground gold mine • Mulatos (Mexico): Flagship open pit, heap leach operation • El Chanate (Mexico): Stable open pit, heap leach operation Strong Developme
Slide 14: Alamos + AuRico Merger: Benefits to All Shareholders
Alamos + AuRico Merger: Benefits to All Shareholders Diversified • High quality, diversified gold production from three North American mines production • Two flagship, long‐life mines in Young‐Davidson and Mulatos Leading growth • Extensive portfolio of low cost development stage assets in safe juri
Slide 15: Alamos + AuRico Merger: Best In Class Portfolio
Alamos + AuRico Merger: Best In Class Portfolio LYNN LAKE JV (25%)(2) Stage Feasibility Est. Annual Production 145k oz Est. Cash Costs US$530/oz YOUNG‐DAVIDSON Att. Au Resources 1.2MM oz 2015E Au Production 160‐180k oz 2015E Au Cash Costs US$675‐775/oz QUARTZ MOUNTAIN 2P Au Reserves 3.8MM oz Advance
Slide 16: Larger, Diversified Portfolio in Safe Political Jurisdictions
Alamos + AuRico Merger: Larger, Diversified Portfolio in Safe Political Jurisdictions Pro Forma Asset Breakdown (1) Consensus NPV by Geography Consensus NPV by Stage Turkey 17% Development 23% Production 77% Canada 50% Mexico 33% Source: Company disclosure and analyst estimates. (1) Adjusted for 1.5
Slide 17: Alamos – Investment Case
Alamos – Investment Case • Mid‐tier gold producer with strong, low‐cost growth profile • Robust balance sheet – fully funded development pipeline • Long term track record of delivering shareholder value • Catalysts Q2 2014: Acquired surface rights at La Yaqui & Cerro Pelon Q3 2014: Transitioned
Slide 18: Scott K. Parsons, CFA
Scott K. Parsons, CFA VP, Investor Relations 416.368.9932 x 439 sparsons@alamosgold.com