Vox Royalty Corp · TSX:VOXR
Vox Royalty — Investor Presentation (August 2021)
50 slides from Vox Royalty's investor presentation, Aug 31, 2021
Slide 1: Corporate Presentation August 2021
Corporate Presentation August 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: Strong platform for delivering sustainable long-term value
Strong platform for delivering sustainable long-term value Growing, diversified, Expanding margins & Conservative, low- Sustainable business intermediate gold profitability risk strategy model supporting producer growing returns over the long-term 470-510k oz $1,025-$1,075 Safe jurisdictions Balance
Slide 4: ESG – leading on key metrics with focus on continuous improvement
ESG – leading on key metrics with focus on continuous improvement Environment Social Governance Lower GHG emissions per oz gold produced1,2 Lost time injury rate 89% 33% 0.34 Director Board members per 200,000 hours 0.59 independence are women 0.51 27% 59% tCO2e/oz worked 0.37 lower than 0.17 o Alig
Slide 5: Q2 2021 results – on track to achieve full year guidance
Q2 2021 results – on track to achieve full year guidance Q2 YTD Q2 YTD Q2 2021A Q2 2020A 2021 Guidance 2021A 2020A Gold production (000 oz) 114.2 78.4 240.0 189.3 470-510 Gold sales (000 oz) 107.6 74.6 234.1 186.5 - 240k oz Average realized gold price (US$/oz) $1,814 $1,692 $1,805 $1,626 - produced
Slide 6: Sustainable business model
Sustainable business model Balanced approach to capital allocation supporting growth & higher returns to shareholders over the long term o 67% increase in dividend since Q2/20 Return capital to o 400% increase in dividend since 2018 shareholders o Share buyback Strong free cash flow growth since Q2/
Slide 7: Diversified asset base; low political risk profile
Diversified asset base; low political risk profile Island Gold, Ontario, Canada 2021E Au Production 130-145 koz 2021E Mine-site AISC4 $750-800/oz ~500 koz Long-life annual production base; Young-Davidson, Ontario, Canada 2021E Au Production 190-205 koz growth potential to ~750 koz in 2021E Mine-site
Slide 8: Young-Davidson – lower mine expansion driving strong free cash flow growth
Young-Davidson – lower mine expansion driving strong free cash flow growth • One of Canada’s largest underground gold mines • Transitioned to new, larger, highly automated infrastructure July 2020 • Mining rates averaged 7,647 tpd in H1 2021, driving $41m mine-site FCF2 • Production growth to 190-20
Slide 9: Island Gold – Phase III Expansion to drive 70% production growth
Island Gold – Phase III Expansion to drive 70% production growth • World’s sixth highest grade gold mine1 • Phase II expansion: record mine-site FCF3 of $101m in 2020 • Phase III Shaft Expansion: 70% production growth at industry low costs • 236k oz/yr at mine-site AISC of $534/oz starting in 2025 •
Slide 10: Island Gold – ongoing exploration success driving growth in size & quality
Island Gold – ongoing exploration success driving growth in size & quality Reserve & Resource growth since 2017 acquisition 2021 exploration highlights – MH25-08 best hole drilled to date Mineral Reserves 5,000 M&I Mineral Resources 16 Inferred Mineral Resources Mineral Reserve grade Inferred Resour
Slide 11: Mulatos District – stable production; declining cost profile
Mulatos District – stable production; declining cost profile • Founding asset; produced >2 m oz of gold & ~$450m FCF2 to date • Declining cost profile with development of La Yaqui Grande • La Yaqui Grande, low-cost, high return project; initial production expected Q3 2022 • Expected to keep Mulatos
Slide 12: Growing, long-life North American production; declining cost profile
Growing, long-life North American production; declining cost profile Fully funded internal growth ~750k oz annual production potential by 2025 at ~$800/oz AISC1 800 Lynn Lake3 700 10 year reserve life2 ~170k oz per year 2025+ 600 Mulatos Production (000 oz Au) 500 7 year reserve life2 ~150k oz per y
Slide 13: Growth: Lynn Lake Project – low cost, high-grade, open pit
Growth: Lynn Lake Project – low cost, high-grade, open pit • Favourable jurisdiction: Manitoba, Canada • High-grade, open pit with significant exploration potential across large land package (58,000 ha) • Feasibility Study (Dec 2017) based on Mineral Reserves of 1.6m oz3,4 • Mineral Reserves have si
Slide 14: Strong balance sheet; long-term focus on returning capital to shareholders
Strong balance sheet; long-term focus on returning capital to shareholders Cash & Total Liquidity Balance Sheet Cash & Cash Eq.1,2 US$234 million $234m Total Liquidity3 US$734 million Total Debt2 US$0 1,2,3 $734M Capital Structure Shares Outstanding (Basic) 392.9 million $500m Shares Outstanding (Fu
Slide 15: Track record of adding value through M&A & exploration
Track record of adding value through M&A & exploration Mulatos (US$m) Young-Davidson (US$m) Island Gold (US$m) $88 $222 $1,403 $450 $1,387 $950 $624 $505 $10 Acquisition Cost (2003) Consensus NAV & Acquisition Cost (2015) Consensus NAV & Acquisition Cost (2017) & 3 Consensus NAV & Cumulative FCF Cum
Slide 16: Track record of adding value on aggregate & per share basis
Track record of adding value on aggregate & per share basis Gold Production (000 oz Au) Mineral Reserves (M oz Au) Cash provided by operations before changes in WC (US$M) +250% 490 +471% 9.9 +786% $452 140 1.7 $51 2 3,4 2014A 2021E1 2014A 2020A 2014A 2021E Gold Production Per Share Gold Reserves Per
Slide 17: Long-term track record of delivering shareholder value
Long-term track record of delivering shareholder value Long-term track record of outperformance 1.31 1 2 Average annualized return since 2003 1.18 Consensus P/NAV 13% 0.89 9% 0.82 0.81 0.79 0.78 0.74 0.71 0.65 0.50 0.49 0.45 2% AGI (TSX) S&P/TSX Global Gold Gold (US$/oz) PAAS Sr BTO CG AGI YRI SSRM
Slide 18: Alamos – value creation opportunities
Alamos – value creation opportunities Growing, diversified, Expanding margins & Conservative, low- Sustainable business intermediate gold profitability risk strategy model supporting producer growing returns over the long-term Catalysts 15% production growth in 2021 & further ~50% growth potential t
Slide 19: Appendices
Appendices TSX:AGI ǀ NYSE:AGI 19
Slide 20: 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 Kenneth Stowe Chairman Director Director Director Director Director Director Director Director Exe
Slide 21: 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 22: 2021 guidance – capital budget
2021 guidance – capital budget 2021 Guidance 2020A Sustaining Capital Growth Capital Total Total Operating Mines (US$M) Young-Davidson $40-45 $25-30 $65-75 $102 Island Gold $40-45 $80-85 $120-130 $69 Mulatos $30-35 $95-100 $125-135 $41 Total – Operating Mines $110-125 $200-215 $310-340 $212 Developm
Slide 23: COVID-19 – focused on the health & safety of our people & communities
COVID-19 – focused on the health & safety of our people & communities Strict health & safety protocols at each operation Supporting our communities • We continue to be diligent in taking precautions to help prevent the potential spread of COVID-19 • All operations have returned to normal operating l
Slide 24: Young-Davidson – flagship, long-life production
Young-Davidson – flagship, long-life production Location: Ontario, Canada Stage: Producing Ownership: 100% interest Operation: Underground • One of Canada’s largest underground gold mines • 14 year mine life based on YE 2020 Mineral Reserves • Large resource base & exploration potential to support m
Slide 25: Young-Davidson – transition to lower mine infrastructure completed July 2020
Young-Davidson – transition to lower mine infrastructure completed July 2020 Lower mine infrastructure larger, more productive & highly automated Upper mine infrastructure Upper mine Lower mine % infrastructure infrastructure Change Long term – July Timeline Pre-July 2020 2020 onward Design ore 6,00
Slide 26: Young-Davidson 2021 exploration drilling – significant potential
Young-Davidson 2021 exploration drilling – significant potential o 2021 marks first significant exploration program at YD since 2011 o Mineralization open at depth, along strike to west o Combined 14,000 m of underground exploration drilling from drill platforms in the mid-mine and lower mine o 7,50
Slide 27: Young-Davidson exploration drilling – extending gold mineralization within syenite
Young-Davidson exploration drilling – extending gold mineralization within syenite Detailed Longitudinal – 8960L drilling o Gold mineralization intersected within syenite 220 m below previous Mineral Resources in 2020 and extended an additional 150 m below Inferred Mineral Resources in 2021 YTD o Hi
Slide 28: Young-Davidson – increasing mining rates & productivity
Young-Davidson – increasing mining rates & productivity Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Gold production (oz) 44,694 39,065 42,644 43,629 44,662 40,400 47,300 55,800 56,500 41,000 39,100 49,000 5
Slide 29: Island Gold – high-grade, low-cost production
Island Gold – high-grade, low-cost production Location: Ontario, Canada Stage: Producing Ownership: 100% interest Operation: Underground • World’s sixth highest grade gold mine1 • Phase III Shaft Expansion to 2,000 tpd expected to be completed 2025 • Significant exploration potential laterally & at
Slide 30: One of Canada's highest-grade gold mines
One of Canada’s highest-grade gold mines Mineral Reserve Grade (g/t Au) 21.9 +52% 13.4 9.8 9.7 9.2 8.4 6.9 6.5 6.4 6.3 5.9 5.1 5.0 4.9 4.4 4.1 3.0 2.4 1.6 Source: Company filings TSX:AGI ǀ NYSE:AGI 30
Slide 31: Island Gold Shaft Expansion – cash flow profile at $1,450/oz Au
Island Gold Shaft Expansion – cash flow profile at $1,450/oz Au $270 $266 $244 $229 $229 $223 $202 $188 $179 $173 $174 $173 $153 $150 $151 $161 $160 $152 $134 $136 $132 $131 $122 $117 $103 $68 $56 $68 $12 -$1 -$14 -$15 -$40 -$42 -$35 -$30 -$54 -$59 -$47 -$52 -$48 -$65 -$77 -$124 -$162 -$169 -$186 20
Slide 32: Island Gold Shaft Expansion – cash flow profile at $1,750/oz Au
Island Gold Shaft Expansion – cash flow profile at $1,750/oz Au $332 $301 $302 $291 $253 $251 $236 $239 $196 $214 $220 $207 $223 $203 $192 $204 $195 $175 $177 $172 $173 $161 $162 $156 $137 $86 $98 $86 $52 -$9 -$14 -$1 -$15 -$26 -$15 -$40 -$42 -$35 -$30 -$52 -$48 -$77 -$65 -$124 -$162 -$169 -$186 202
Slide 33: Island Gold Shaft Expansion – detailed mine plan
Island Gold Shaft Expansion – detailed mine plan 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Mill Feed mined (tonnes) 438,000 437,999 437,994 439,198 557,150 719,805 730,000 731,957 729,934 729,951 730,000 731,947 730,000 721,154 296,654 Waste mined (tonnes) 440,063 61
Slide 34: 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 3,208,300 100,200 t at 11.29 g/t Au, 36,4
Slide 35: Island Gold – 2021 exploration highlights
Island Gold – 2021 exploration highlights W Planned Shaft E Crown pillar 340 Level - 500 m - 500 m 620 Level Island East 840 Level - 1000 m - 1000 m 740-471-41 1000 Level 31.58 g/t Au (28.74 g/t Au cut) / 2.43 m E MH25-07 Ramp & Development LEGEND 34.87 g/t Au (34.87 g/t Au cut) / 5.98 m Mined out A
Slide 36: Island Gold Main & East – 2021 surface & underground directional drilling results
Island Gold Main & East – 2021 surface & underground directional drilling results W E Planned Ramp & Development LEGEND Shaft Mined out Au Cut (g/t) Au Cut * True Width (gm/t) Diabase Dyke < 4.0 <8 R & R Year End 2020 840m Level 4.0 < 10.0 8 < 20 Proven Reserves 10.0 < 30.0 20 < 60 840-602-20 Probab
Slide 37: Island Gold – Trillium Mining acquisition adds to significant exploration potential
Island Gold – Trillium Mining acquisition adds to significant exploration potential Alamos Gold & Trillium Mining Land Tenure Map Surface Projection of Island Gold Mine YE 2019 Mineral Reserves & Resources • 56% increase in land package to 15,053 ha with C$25m Trillium Mining acquisition • Significa
Slide 38: Island Gold – historical operational results
Island Gold – historical operational results $1,400 16 1,400 40,000 $1,200 14 1,200 35,000 12 30,000 $1,000 1,000 25,000 10 $800 800 20,000 8 $600 600 15,000 6 $400 400 10,000 4 5,000 $200 2 200 0 $0 0 0 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19
Slide 39: Mulatos – our founding operation
Mulatos – our founding operation Location: Sonora, Mexico Stage: Producing Ownership: 100% interest Operation: Open pit, heap leach • Initial production 2005 • ~$450m of free cash flow2 generated to date • Declining cost profile with development of La Yaqui Grande • No third party royalty • Large un
Slide 40: Mulatos – district exploration potential
Mulatos – district exploration potential District potential large underexplored land package totaling 28,773 ha >70% of past drilling focused near Mulatos mine 820k oz Combined Mineral Reserves1,2 at the La Yaqui Grande & Cerro Pelon higher grade discoveries 1 See Mineral Reserve and Resource estima
Slide 41: La Yaqui Grande Internal Economic Study – 2020
La Yaqui Grande Internal Economic Study – 2020 La Yaqui Grande Project Highlights Life of Mine1 Production Mine life (years) 5 Total gold production (000 ounces) 616 Total silver production (000 ounces) 1,471 Average annual gold production (000 ounces) 123 Total ore mined (000 tonnes) 19,205 Average
Slide 42: Development – Lynn Lake, Esperanza & Quartz Mountain
Development – Lynn Lake, Esperanza & Quartz Mountain Lynn Lake Esperanza Quartz Mountain Location: Manitoba, Canada Location: Morelos State, Mexico Location: Oregon, United States Ownership: 100% interest Ownership: 100% interest Ownership: Right to earn a 100% interest4 Stage: Permitting Stage: Per
Slide 43: Lynn Lake Feasibility Study – 2017
Lynn Lake Feasibility Study – 2017 Feasibility Study Highlights - December 2017 Production Mine life (years) 10.4 Total gold production (000 ounces) 1,495 Total silver production (000 ounces) 1,263 Average annual gold production1 Years 1 to 6 (000 ounces) 170 Years 1 to 10 (000 ounces) 143 Total ore
Slide 44: Turkish Development Projects
Turkish Development Projects • $1B investment treaty claim filed against Republic of Turkey for expropriation & unfair & inequitable treatment of its Turkish gold projects1 • Construction of Kirazlı project suspended in October 2019 after government failed to grant routine renewal of the Company’s m
Slide 45: Kirazlı, Ağı Dağı & Çamyurt Economic Studies – 2017
Kirazlı, Ağı Dağı & Çamyurt Economic Studies – 2017 Feasibility Study - 2017 Preliminary Economic Assessment - 2017 Kirazlı Ağı Dağı Çamyurt Production Mine life (years) 5 6 4 Total gold production (ounces) 540,000 937,300 373,200 Total silver production (ounces) 3,141,000 2,365,200 1,612,600 Averag
Slide 46: 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 47: 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 48: 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 49: 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 50: Scott K. Parsons, CFA
Scott K. Parsons, CFA VP, Investor Relations 416.368.9932 x 5439 sparsons@alamosgold.com