Alamos Gold : Corporate Presentation – November 2020 Download PDF ()
11/19/2020 | 05:43am EST
Corporate Presentation November 2020
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 information purposes. No stock exchange, securities commission or other regulatory authority has approved or disapproved of the information contained herein. This Presentation does not constitute an offering of securities and the information contained herein is subject to the information contained in the Company's continuous disclosure documents available on the SEDAR website at www.sedar.com or on EDGAR at www.sec.gov.
Cautionary Notes
This Presentation contains statements that constitute forward-looking information as defined under applicable Canadian and U.S. securities laws. All statements in this Presentation other than statements of historical fact, which address events, results, outcomes or development that Alamos expects to occur are, or may be deemed to be "forward-looking statements". Forward-looking statements are generally, but not always, identified by the use of forward-looking terminology such as "expect", "schedule", "estimate", "budget", "continue", "potential", "outlook", "plan" or variations of such words and phrases and similar expressions or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved or the negative connotation of such terms. Forward-looking statements include information related to Alamos' net asset value, operating cash flow, free cash flow, forecast gold production, mineral reserves, mineral resources, exploration potential, gold grades, recoveries, waste-to-ore ratios, total cash cost, all-in sustaining costs, debt levels, capital expenditures, the Company's COVID-19 measures and outlook, Lynn Lake project, and future plans and objectives based on forecasts of future operational or financial results. Alamos cautions that forward-looking statements are necessarily based upon several factors and assumptions that, while considered reasonable by Alamos at the time of making such statements, are inherently subject to significant business, economic, legal, political and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors and assumptions include, but are not limited to: changes to current estimates of mineral reserves and mineral resources; the speculative nature of mineral exploration and development, risks in obtaining and maintaining necessary licenses, permits and authorizations for the Company's development stage and operating assets including the renewal of the Company's mining concessions in Turkey; timely resumption of construction and development at the Kirazlı project; Phase III expansion delays at the Island Gold mine; operations may be exposed to new diseases, epidemics and pandemics, including the effects and potential effects of the global COVID-19 widespread pandemic; the impact of the COVID-19 pandemic on the broader market and the trading price of the Company's shares; provincial and federal orders or mandates (including with respect to mining operations generally or auxiliary businesses or services required for our operations) in Canada, Mexico, the United States and Turkey; the duration of regulatory responses to the COVID-19 pandemic; governments and the Company's attempts to reduce the spread of COVID-19 which may affect many aspects of the Company's operations including the ability to transport personnel to and from site, contractor and supply availability and the ability to sell or deliver gold dore bars; fluctuations in the price of gold or certain other commodities such as, diesel fuel, natural gas, and electricity; changes in foreign exchange rates; the impact of inflation; employee and community relations (including maintaining social license to operate in Turkey); litigation and administrative proceedings; changes to production estimates (which assume accuracy of projected ore grade, mining rates, recovery timing and recovery rate estimates which may be impacted by unscheduled maintenance, labour and contractor availability and other operating or technical difficulties); disruptions affecting operations; inherent risks associated with mining and mineral processing; the risk that the Company's mines may not perform as planned; increased costs associated with mining inputs and labour; contests over title to properties; changes in national and local government legislation (including tax legislation), controls or regulations in Canada, Turkey, the United States and other jurisdictions in which the Company does or may carry on business in the future; risk of loss due to sabotage, protests and other civil disturbances; the costs and timing of construction and development of new deposits; the impact of global liquidity and credit availability and the values of assets and liabilities based on projected future cash flows; risks arising from holding derivative instruments; and business opportunities that may be pursued by the Company. Additional risk factors affecting Alamos and the Company's ability to achieve the expectations set forth in the forward-looking statements contained in this Presentation are set out in the Company's latest 40F/Annual Information Form and Management's Discussion and Analysis, each under the heading "Risk Factors" available on the SEDAR website at www.sedar.com or on EDGAR at www.sec.gov, and should be reviewed in conjunction with this Presentation. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law. Market data and other statistical information used throughout this Presentation are based on internal company research, independent industry publications, government publications, reports by market research firms or their published independent sources. Industry publications, governmental publications, market research surveys and forecasts generally state that the information contained therein has been obtained from sources believed to be reliable. Although Alamos believes such information is accurate and reliable, it has not independently verified any of the data from third party sources cited or used for the Company's management's industry estimates, nor has Alamos ascertained the underlying economic assumptions relied upon therein. While Alamos believes internal company estimates are reliable, such estimates have not been verified by any independent sources, and Alamos makes no representations as to the accuracy of such estimates.
Note to U.S. Investors
Alamos prepares its disclosure in accordance with the requirements of securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. Terms relating to mineral resources in this presentation are defined in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum's Standards, Best Practices and Guidance for Mineral Resources and Mineral Reserves. The United States Securities and Exchange Commission (the "SEC") permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. Alamos may use certain terms, such as "Measured Mineral Resources", "Indicated Mineral Resources", "Inferred Mineral Resources" and "Probable Mineral Reserves" which differ materially from the definitions in SEC Industry Guide
under the United States Securities Exchange Act of 1934, as amended. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into Mineral Reserves. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, except in very limited circumstances. Disclosure of "contained ounces" in a Mineral Resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute "Mineral Reserves" by SEC standards as in place tonnage and grade without reference to unit measures. The SEC has adopted final rules, effective February 25, 2019, to replace SEC Industry Guide 7 with new mining disclosure rules under sub-part 1300 of Regulation S-K of the U.S. Securities Act (the "SEC Modernization Rules"). The SEC Modernization Rules replace the historical property disclosure requirements included in SEC Industry Guide
As a result of the adoption of the SEC Modernization Rules, the SEC now recognizes estimates of "Measured Mineral Resources", "Indicated Mineral Resources" and "Inferred Mineral Resources". In addition, the SEC has amended its definitions of "Proven Mineral Reserves" and "Probable Mineral Reserves" to be substantially similar to international standards. The SEC Modernization Rules will become mandatory for U.S. reporting companies beginning with the first fiscal year commencing on or after January 1, 2021.
Cautionary non-GAAP Measures and Additional GAAP Measures
Note that for purposes of this section, GAAP refers to IFRS. The Company believes that investors use certain non-GAAP and additional GAAP measures as indicators to assess gold mining companies. They are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared with GAAP. "Cash flow from operating activities before changes in non-cash working capital" is a non-GAAP performance measure that could provide an indication of the Company's ability to generate cash flows from operations, and is calculated by adding back the change in non-cash working capital to "cash provided by (used in) operating activities" as presented on the Company's consolidated statements of cash flows. "cash flow per share" is calculated by dividing "cash flow from operations before changes in working capital" by the weighted average number of shares outstanding for the period. "Free cash flow" is a non- GAAP performance measure that is calculated as cash flows from operations net of cash flows invested in mineral property, plant and equipment and exploration and evaluation assets as presented on the Company's consolidated statements of cash flows and that would provide an indication of the Company's ability to generate cash flows from its mineral projects. "Mine site free cash flow" is a non-GAAP measure which includes cash flow from operating activities at, less capital expenditures at each mine site. "Return on equity" is defined as earnings from continuing operations divided by the average total equity for the current and previous year. "Mining cost per tonne of ore" and "cost per tonne of ore" are non-GAAP performance measures that could provide an indication of the mining and processing efficiency and effectiveness of the mine. These measures are calculated by dividing the relevant mining and processing costs and total costs by the tonnes of ore processed in the period. "Cost per tonne of ore" is usually affected by operating efficiencies and waste-to-ore ratios in the period. "Total cash costs per ounce", "all-in sustaining costs per ounce", and "mine-siteall-in sustaining costs" as used in this analysis are non-GAAP terms typically used by gold mining companies to assess the level of gross margin available to the Company by subtracting these costs from the unit price realized during the period. These non-GAAP terms are also used to assess the ability of a mining company to generate cash flow from operations. There may be some variation in the method of computation of these metrics as determined by the Company compared with other mining companies. In this context, "total cash costs" reflects mining and processing costs allocated from in-process and dore inventory and associated royalties with ounces of gold sold in the period. Total cash costs per ounce are exclusive of exploration costs. "All-in sustaining costs per ounce" include total cash costs, exploration, corporate and administrative, share based compensation and sustaining capital costs. "Mine-siteall-in sustaining costs" include total cash costs, exploration, and sustaining capital costs for the mine-site, but exclude an allocation of corporate and administrative and share based compensation. "Adjusted net earnings" and "adjusted earnings per share" are non-GAAP financial measures with no standard meaning under IFRS. "Adjusted net earnings" excludes the following from net earnings: foreign exchange gain (loss), items included in other loss, certain non-reoccurring items and foreign exchange gain (loss) recorded in deferred tax expense. "Adjusted earnings per share" is calculated by dividing "adjusted net earnings" by the weighted average number of shares outstanding for the period.
Additional GAAP measures that are presented on the face of the Company's consolidated statements of comprehensive income and are not meant to be a substitute for other subtotals or totals presented in accordance with IFRS, but rather should be evaluated in conjunction with such IFRS measures. This includes "Earnings from operations", which is intended to provide an indication of the Company's operating performance and represents the amount of earnings before net finance income/expense, foreign exchange gain/loss, other income/loss, and income tax expense. Non-GAAP and additional GAAP measures do not have a standardized meaning prescribed under IFRS and therefore may not be comparable to similar measures presented by other companies. A reconciliation of historical non-GAAP and additional GAAP measures are detailed in the Company's Management's Discussion and Analysis available at www.alamosgold.com.
Technical Information
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 Canadian Securities Administrator's National Instrument 43-101 ("NI 43-101"). The Qualified Persons for the NI 43-101 compliant mineral reserve and resource estimates are detailed in the tables in the appendix of this Presentation.
All figures in US$ unless otherwise indicated.
TSX:AGI ǀ NYSE:AGI
2
Strong platform for delivering long-term value
Diversified, long-life
Expanding margins &
Strong, debt-free
Long-term track
gold production from
profitability
balance sheet to
record of creating
three North American
support growth
value for all
mines
stakeholders
2020 - transformational year
Island Gold - 0.9 million ounce increase in Mineral Reserves & Resources
Young-Davidson- lower mine expansion completed July 2020
Island Gold - Phase III Shaft Expansion announced July 2020
La Yaqui Grande construction decision announced late July 2020
Transitioned to strong free cash flow generation - Q3 2020
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Sustainability - creating shared value for all our stakeholders
Environmental
Social
Governance
oZero significant environmental incidents in 2019
o Home Safe Every Day program:investing heavily in
o
90% Director Independence
a culture focused on safety first through safety &
o69% recycled water use
leadership training
o
33% of independent board members comprised of
women
5% reduction in 2019 GHG intensity per oz of gold
Carbon footprint & energy reduction initiativesoConnecting to grid power at Mulatos o Bio-diesel usage at YD & Island Gold o Battery plant project for peak load management at Young-Davidson
50% reduction in LTIFR in 2019 from 2018 1
Awarded Best Corporate Social Responsibility Practice 2019 from Cemefi, AliaRSE and Forum
Empresa for Alamos' voluntary relocation program of residents from Mulatos to Matarachi, Mexico
Gender diversity policy:50% of new director positions to be filled by female candidates
19% of employees in management positions comprised of women
o Empresa Socialmente Responsable (ESR) - CSR
o Alignment of executive pay to performance &
oIncorporating TCFD recommendations and climate-
Award received from Mexican Center for
shareholder interests
related risk into disclosures
Philanthropy for 12 consecutive years
o Advancement of Alamos'Sustainability
oAdopting innovative technologies: SAGR water
o$16m invested in 2019 towards community
Performance Management Framework
treatment plant at Young-Davidson
initiatives
o Independent annual assurance over compliance
o Responsible tailings management: support of
oPrioritize local employment & procurement
with WGC's Conflict-Free Gold Standard
Investor Mining & Tailings Safety Initiative
o 77% local & 99% in-countryemployment
o$196m spent in 2019 on local suppliers
o Alignment of practices to WGC's Responsible Gold
Mining Principles
1 Lost Time Injury Frequency Rate ("LTIFR") of 0.17 per 200,000 person-hours worked in 2019, down from 0.34 in 2018
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COVID-19: focused on the health & safety of our people & communities
Strict health & safety protocols at each operation
We continue to be diligent in taking precautions to help prevent the potential spread of COVID-19
All operations have returned to normal operating levels under strict health & safety protocols
On-sitetesting for COVID-19 implemented at Island Gold and Mulatos
COVID-19 testing facility at Island Gold
Supporting our communities
Our teams in Canada, Mexico, and Turkey have donated their time, medical equipment & supplies, food & funds to support:
Hospitals & medical clinics
Frontline workers
Vulnerable members of our communities
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Q3 2020 results - record free cash flow; well positioned to achieve guidance
Q3 2020A
Q3 2019A
Q3 YTD
Q3 YTD
Revised 2020
2020A
2019A
Guidance6
Gold production (000 oz)
117.1
121.9
306.4
372.4
405-435
Gold sales (000 oz)
116.0
119.4
302.5
367.6
-
Average realized gold price (US$/oz)
$1,882
$1,448
$1,724
$1,352
-
Cost of sales (US$/oz, includes amortization)1
$1,057
$1,066
$1,144
$1,049
$1,160
Total cash costs (US$/oz)3
$681
$730
$772
$720
$780-820
All-in sustaining costs (US$/oz)2,3
$949
$950
$1,052
$944
$1,030-1,070
Operating revenues (US$M)
$218
$173
$522
$497
-
Adjusted net earnings (US$M)3
$57
$23
$96
$51
-
Adjusted earnings per share3
$0.15
$0.06
$0.25
$0.13
-
Cash provided by operations
$130
$80
$256
$211
-
before changes in working capital (US$M)3
Cash flow per share3
$0.33
$0.20
$0.66
$0.54
-
Capital expenditures (US$M)4
$55
$66
$173
$191
$205-235
Mine-site free cash flow (US$M)3
$83
$24
$103
$44
-
Consolidated free cash flow (US$M) 3
$76
$2
$64
($8)
Cash & cash equivalents (US$M)5
$274
$183
$274
$183
-
1
Cost of sales includes mining and processing costs, royalties and amortization
4 Includes capitalized exploration of $2.9m in Q3/20, $4.3 m in Q3/19, $8.8m in the first nine months of 2020,
2
Total consolidated all-in sustaining costs include corporate and administrative and share based
$11.7m in the first nine months of 2019
compensation expenses. For the purposes of calculating all-in sustaining costs at individual mine sites, the
5 Comparative cash & cash equivalents period as of December 31, 2019
Company does not include corporate and administrative and share based compensation expenses
6 2020 guidance revised on July 29, 2020 reflecting COVID-19 related temporary operational suspensions &
3 Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures
delays during Q2 2020
63%
Increase in operating cash flow3 to record $130m in Q3 2020
$76m
record quarterly free cash flow3
33%
Increase in dividend to an annual rate of $0.08/sh starting December 2020
Debt-free
Repaid $100m drawn on revolving credit facility October 2020
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Sustainable business model that can support growing returns over the long-term
Strong free cash flow outlook
Completion of lower mine expansion at Young-Davidson
Strong ongoing performances from Island Gold & Mulatos
$76m free cash flow1 in Q3 2020
Return capital to shareholders
33% increase in dividend to $0.08/sh annually
300% increase in dividend since 2018
Share buyback
Strengthen balance sheet
$73m increase in cash to $274m at end of Q3 2020
Maintain minimal to no debt - repaid revolver in October
Re-invest in high-return internal growth projects
Island Gold Phase III Expansion
La Yaqui Grande
Balanced approach to capital allocation supporting growth & higher returns to shareholders
1 Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures.
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Diversified asset base; low political risk profile
Lynn Lake, Canada
Island Gold Mine Ontario, Canada
~500k oz1
Canada
100%
70%
Mexico
North American gold production
30%
Young-Davidson Mine
Ontario, Canada
Quartz Mountain, USA
Mulatos Mine
Sonora, Mexico
Esperanza, Mexico
Producing Assets
Exploration / Development Assets
Approximate production from existing operations and geographical distribution starting 2021
Source: Consensus analyst estimates
Proven & Probable Mineral Reserves total 9.7 million ounces of gold (202.7 mt at 1.49 g/t Au)
Average mine life based on existing operating mines
5Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures
Turkish Development
85%
Projects
Consensus Net Asset Value North American including 70%Canadian2
12 year
Average mine life supported by 9.7m oz Mineral Reserve base3,4
Production expected to increase to ~200k oz in 2021 at significantly lower costs
Capital trending lower to rate of $40-$50m per year
Total capital (US$m)
Operating cash flow (US$m)1
Mine-site free cash flow (US$m)1
$114
$113
$99
$98
$84
$51
$34
$4
$11
$13
-$24
-$31
-$95
-$80
-$87
-$82
-$108
-$100
2015A
2016A
2017A
2018A
2019A
2020 Q3 YTD
Northgate shaft
Underground mining rate (tpd)
shutdown to complete
lower mine expansion
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
Q1/14
Q2/14
Q3/14
Q4/14
Q1/15
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
Q2/19
Q3/19
Q4/19
Q1/20
Q2/20
Q3/20
1 Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures
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Young-Davidson - transition to lower mine infrastructure completed July 2020
Upper mine infrastructure
Lower mine infrastructure
Lower mine infrastructure larger, more productive & highly
automated
Upper mine
Lower mine
%
infrastructure
infrastructure
Change
Timeline
Pre-July 2020
Long term - July
2020 onward
Design ore
6,000 tpd
8,000 tpd
+33%
capacity
Skip capacity
17.5t
24.5t
+40%
Fine ore bin
500t
6,000t
+1,100%
capacity
Lateral material
Trucking
Conveying
handling
Avg. stope size
24kt
37kt
+54%
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Island Gold - multi-phase growth
One of Canada's highest grade gold mines
Phase I expansion: record production of 150k oz & mine-site free cash flow of $65m in 2019
Phase II expansion: mining rates increasing to 1,200 tpd in 2020
Record $70m mine-site free cash flow generated Q3 2020 YTD
Phase III Shaft Expansion: mining rates increasing to 2,000 tpd in 2025
1
Total capital (US$m)
2
$133
Operating cash flow (US$m)
$124
2
Mine-site free cash flow (US$m)
$76
$65
$70
$59
$41
$15
$26
$10
-$2
-$27
-$33
-$42
-$43
-$54
-$66
-$69
2015A
2016A
2017A
2018A
2019A
2020 Q3 YTD
Includes capitalized exploration
Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures
Operating results from Island Gold prior to its acquisition have been included for comparative purposes. Production attributable to Alamos totals 9,000 oz in 2017 following the closing of the Richmont Mines acquisition on Nov. 23, 2017
Growing production; declining cost profile 2,3
$803
$587
$589
$470
$495
150
99
106
83
55
2015A
2016A
2017A
2018A
2019A
Gold Production (k oz)
Total Cash Costs
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Island Gold - ongoing exploration success driving growth in size & quality
Significant Growth in Mineral Reserves & Resources Since November 2017 Acquisition
4,000
3,000
Mineral Reserves
M&I Mineral Resources Inferred Mineral Resources Mineral Reserve grade
12
10
koz Au
Cumulative oz produced
2,298
2,000
1,573
996
908
184
1,000
768
111
196
1,037
1,003
91
67
564
72
752
887
1,007
1,215
219
562
233
154
111
-
172
141
144
184
201
243
277
319
374
457
556
662
812
2011
2012
2013
2014
2015
2016
2017
2018
20192
+62%
or 463k oz increase in Mineral Reserves, net of mining depletion3
8
6
Au)
4
Grade (g/t
+131%
or 1.3m oz increase in Inferred Mineral
Resources3
~C$20/oz
Discovery cost over past five years
See Mineral Reserve and Resource estimates and associated footnotes in appendix
Includes Proven & Probable Mineral Reserves of 1.2m oz (3.6 mt at 10.37 g/t Au), Measured & Indicated Mineral Resources of 184,000 oz (0.9 mt at 6.51 g/t Au) & Inferred Mineral Resources of 2.3m oz (5.4 mt at 13.26 g/t Au)
Since completion of acquisition of Island Gold in November 2017
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Island Gold - Phase III Shaft Expansion to 2,000 tpd
• Strongest economics of five options considered
• Highest annual production & lowest operating costs
• Lowest combined LOM capital & operating costs
• Most efficient & productive option
(oz)
•
Lowest headcount, mobile equipment, carbon intensity
production
• Best upside to further Mineral Reserve & Resource growth
• Mining below 1,400 m more efficient under shaft scenario
Gold
•
Expansion self financed by Island Gold at $1,750/oz Au
Phase III Expansion Operating Parameters & Economics6
Average annual production (000 oz)5
236
Average mine-site AISC (US$/oz)4,5
$534
Growth capital (US$M)
$514
Gold price assumption (US$/oz)
$1,450
$1,750
Average annual free cash flow (US$M)4,5
$170
$210
After-tax NPV5% (US$M)1
$1,019
$1,450
After-tax IRR1,2
17%
22%
NPV and IRR are calculated for life of mine starting January 2020
IRR is calculated on the differential after-tax cash flow between the Shaft Expansion scenario and the base case of continuing to mine at 1,200 tpd with ramp only access
Acquisition cost based on the value of Richmont Mines on closing ($627 million), net of $58 million in cash on its balance sheet. Royalty repurchase in totaled $55 million
Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures
Annual averages are post completion of Shaft Expansion in 2025.
Foreign exchange rate of US$/C$ is assumed to be 0.75:1
Mulatos District - stable production; declining cost profile
Founding asset; produced 2 millionth oz of gold in 2019
Declining cost profile; connection to grid power & development of La Yaqui Grande
Cerro Pelon built for $25m in 2019; strong contributor to $64m mine-site FCF Q3 2020 YTD
La Yaqui Grande fully permitted, low-cost, high return project
Five-yearmine life with initial production expected Q3 2022
Expected to keep Mulatos production at ~150k oz per year at lower costs
Total initial capital expected to be self-financed by Mulatos at $1,750/oz Au
1
Total capital (US$m)
2
Operating cash flow (US$m)
2
Mine-site free cash flow (US$m)
$60
$86
$64
$71
$64
La Yaqui Grande
$27
$17
$36
$20
$42
Average annual production (000 oz)3
123
Average mine-site AISC (US$/oz)2,3
$578
Initial capital (US$M)3
$137
Total LOM capital (US$M)3
$196
-$13
-$29
-$22
-$33
-$35
-$47
-$44
-$54
2015A
2016A
2017A
2018A
2019A
2020 Q3 YTD
Includes capitalized exploration
Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures
See La Yaqui Grande construction decision press release dated July 28, 2020 for more details. Base case assumptions for gold and silver price were $1,450 and $18 per ounce, respectively
Gold price assumption (US$/oz)
$1,450
$1,750
After-tax NPV5% (US$M)2,3
$165
$260
After-tax IRR 2,3
41%
58%
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Peer leading, multi-stage, fully funded growth
Young-Davidson
Island Gold
Quartz Mountain
Esperanza
Lynn Lake
13%
After-tax IRR ($1,250/oz Au)1
Çamyurt
253%
After-tax IRR ($1,250/oz Au)1
Ağı Dağı
39%
After-tax IRR ($1,250/oz Au)1
Kirazlı
44%
After-tax IRR ($1,250/oz Au)1
• Completion of lower mine expansion in July 2020
13
year reserve life2
• Phase II & Phase III expansions
16
year mine life with Phase III expansion
Longer term
value creation
opportunities
Peer leading,
high-return
growth; after- tax IRR 20%+ at $1,450/oz Au1
Long-life,North
American
production;
declining cost &
Mulatos
• Development of higher grade La Yaqui Grande deposit; lower cost grid power
8
capital profile
year reserve life2
1 For more details on Turkish and Lynn Lake projects, see press releases dated February 15 & 22, 2017 and December 14, 2017, respectively. Base case assumptions for gold and silver price were $1,250 and $16 per ounce, respectively.
2 Mineral Reserve life based on Mineral Reserves as of December 31, 2019. See Mineral Reserve and Resource estimates and associated footnotes in appendix
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Growth: Lynn Lake Project - low cost, high-grade, open pit
Favourable jurisdiction: Manitoba, Canada
High-grade,open pit with significant exploration potential across large land package (58,000 ha)
Existing infrastructure in place; low-cost hydroelectric power
Feasibility Study completed December 2017
Environmental Impact Statement submitted Q2 2020; Indigenous community engagement underway
Construction decision expected 2022
Gold Price ($/oz)
After-Tax NPV5% ($M)1
After-Tax IRR (%)1
$1,250
$123
12.5%
$1,400
$223
18.0%
$1,500
$290
21.5%
$1,750
$441
28.8%
$1,950
$572
34.8%
See Lynn Lake December 2017 feasibility study as detailed in press release dated December 14, 2017 for more details. Base case assumptions for gold and silver price were $1,250 and $16 per ounce, respectively.
Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures
170k oz
Average annual production over initial six years; 143koz average over 10 year life1
$338M
Initial capital; $486M total LOM capital1
$745/oz
Average LOM mine-site AISC1,2
22%
After-tax IRR at $1,500/oz gold price2
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16
Growth: Turkish Development Projects - low-cost,high-return, fully funded
Kirazlı construction activities suspended pending renewal of mining concessions which expired October 13, 2019
Delay in concession renewal related to protests following a social media misinformation campaign
All conditions for concession renewal have been met
Federal Government & local communities supportive
~$32m spent to date of initial capital estimate for Kirazlı of $152m1
Updated timeline and budget to be provided following renewal of concessions & restart of construction
2017 Economic Studies1
After-Tax NPV8% ($M)
After-Tax IRR (%)
Gold Price ($/oz)
Kirazlı
Ağı Dağı
Çamyurt
Kirazlı
Ağı Dağı
Çamyurt
Feasibility Study
Feasibility Study
PEA
Feasibility Study
Feasibility Study
PEA
$1,250
$187
$298
$86
44%
39%
253%
$1,450
$256
$408
$113
55%
48%
322%
$1,750
$345
$551
$154
70%
60%
424%
$1,950
$400
$642
$179
78%
67%
489%
1 Please refer to press releases dated Feb 15 and Feb 22, 2017 regarding Kirazli & Agi Dagi feasibility studies & Camyurt preliminary economic assessment. Base case assumptions for gold and silver price were $1,250 and $16 per ounce, respectively.
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2 Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures
US$174 million
US$674 million US$0
392.7 million
400.6 million C$12.16
~C$4.8 billion
33%
Increase in quarterly dividend to be paid December 2020
Strong balance sheet; long-term focus on returning capital to shareholders
Cash & Total Liquidity
Balance Sheet
Cash & Cash Eq.1,2
$174m
$674M1,2,3
Total Liquidity3
Total Debt2
Capital Structure
Shares Outstanding (Basic)
$500m
Shares Outstanding (Fully Diluted)
Recent Share Price (TSX)4
Undrawn Credit Facility
Cash & cash equivalents
As of September 30, 2020
Market Capitalization
Long-term track record of returning capital to shareholders
$0.02
$0.02
per share
Dividends per share Share buybacks per share
5
US$
$0.20
$0.20
$0.20
$0.12
$0.07
$0.04
2010
2011
2012
2013
2014
2015
Unaudited as of September 30, 2020
Cash & cash equivalents and debt as of September 30, 2020, adjusted for repayment of $100m on revolving facility on October 16, 2020
Total liquidity includes cash, and cash equivalents as of September 30, 2020 and $500m credit facility, adjusted for repayment of $100m
on revolving credit facility on October 16, 2020
$0.01
$179M
$0.03
$0.08
$0.07
Returned to
$0.04
$0.02
$0.02
$0.02
2016
2017
2018
2019
6
7
shareholders through
2020E
2021E
dividends & buybacks
4 As of October 29, 2020
5 Calculated as total dollar amount invested in share buybacks divided by average shares outstanding over the period
6
2020E dividend based on quarterly dividend rate of $0.015 per share in the first, second and third quarter and $0.02 per share in the fourth quarter
18
7
TSX:AGI ǀ NYSE:AGI
2021E dividend based on quarterly dividend rate of $0.02 per share
Track record of adding value on aggregate & per share basis
Gold Production (000 oz Au)
+254%
495
140
2014A
2019A
Gold Production Per Share
(oz x 1000)
+15%
1.27
1.10
2014A
2019A2
See Mineral Reserve and Resource estimates and associated footnotes in appendix
Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures
Mineral Reserves (M oz Au)
+460%
9.7
1.7
1
2014A
2019A
Gold Reserves Per Share
(oz x 1000)
+83%
24.93
13.60
2014A
2019A 2
Cash provided by operations before changes in WC (US$M)
+482%
$297
$51
2014A
2019A2
Cash Flow Per Share
(US$, basic)
+90%
$0.76
$0.40
2014A
2019A2
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Long-term track record of delivering shareholder value
Long-term track record of
outperformance
Average annualized return since 2003 1
15%
10%
3%
AGI (TSX)
S&P/TSX Global Gold
Gold (US$/oz)
Index
1.44
2
Consensus P/NAV
1.34
1.33
1.04
1.04
0.89
0.86
0.81
0.75
0.70
0.60
0.47
0.38
PAAS
Sr
BTO
YRI
NGD
SSRM
Int
AGI
EQX
CG
ELD
IMG
OGC
Average
Average
Strong outlook; compelling valuation opportunity
1 As of October 29, 2020
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2 Source: Factset consensus estimates as of October 28, 2020. Intermediate average includes BTO, CG, ELD , EQX, IMG, NGD, PAAS, OGC, SSRM, YRI
Alamos - value creation opportunities
Diversified, long-life gold
Expanding margins &
production
profitability
Catalysts
Young-Davidson - lower mine expansion completed July 2020
Island Gold - Phase III expansion study completed July 2020
La Yaqui Grande - construction decision July 2020
Transition to strong free cash flow growth - H2 2020
Island Gold - ongoing exploration
Strong balance sheet to
Long-term track record
support growth
of creating value for all
stakeholders
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Appendices
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
Ronald E. Smith
Kenneth Stowe
Chairman
Director
Director
Director
Director
Director
Director
Director
Director
Director
Executive and Management Team
John A. McCluskey
Jamie Porter
Peter MacPhail
Christine Barwell
Chris Bostwick
Luis Chavez
President and CEO
Chief Financial Officer
Chief Operating Officer
VP, Human Resources
VP, Technical Services
Senior VP, Mexico
Nils Engelstad
Greg Fisher
Scott K. Parsons
Scott R.G. Parsons
Adrian Paulse
Rebecca Thompson
Colin Webster
VP, General Counsel
VP, Finance
VP, Investor Relations
VP, Exploration
VP, Information Technology
VP, Public Affairs
VP, Sustainability & External Affairs
23
Revised 2020 guidance
Revised 2020 Guidance5
Previous 2020
Guidance4,5
Young-Davidson
Mulatos
Island Gold4
Other
Total4
Total
Gold production (000's oz)
135-145
140-150
130-140
-
405-435
425-465
Cost of Sales (in millions)(3)
$209
$165
$113
-
$487
$491
Cost of Sales ($ per ounce)(3)
$1,490
$1,135
$840
-
$1,160
$1,103
Total cash costs ($ per ounce)(1)
$990-1,030
$840-880
$480-520
-
$780-820
$757-797
All-in sustaining costs ($ per ounce)(1)
-
-
-
-
$1,030-1,070
$1,007-1,047
Mine-siteall-in sustaining costs ($ per ounce)(1),(2)
$1,180-1,220
$940-980
$740-780
-
-
-
Amortization costs ($ per ounce)(1)
$480
$275
$340
-
$365
$340
Corporate & Administrative (in millions)
-
-
-
-
$20
$20
Capital expenditures (in millions)
Sustaining capital(1)
$30-35
$15-20
$35-40
-
$80-95
$80-95
Growth capital(1)
$45-50
$15-20
$35-40
$10
$105-120
$75-85
Capitalized exploration(1)
$1
-
$15
$4
$20
$25
Total capital expenditures(1)
$76-86
$30-40
$85-95
$14
$205-235
$180-205
Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures.
For the purposes of calculating mine-siteall-in sustaining costs at individual mine sites, the Company does not include an allocation of corporate and administrative and share based compensation expenses to the mine sites.
Cost of sales includes mining and processing costs, royalties, and amortization expense, and is calculated based on the mid-point of total cash cost guidance.
4 Island Gold and consolidated total cash costs and AISC reduced following repurchase and cancellation of 3% NSR royalty at Island Gold on March 16, 2020
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5 2020 guidance revised on July 29, 2020 reflecting COVID-19 related temporary operational suspensions & delays during Q2 2020
Revised 2020 guidance - capital budget
Revised 2020 Guidance2
Previous 2020
Guidance2
Sustaining Capital
Growth Capital
Total
Total
Operating Mines (US$M)
Young-Davidson
$30-35
$45-50
$75-85
$75-85
Island Gold
$35-40
$35-40
$70-80
$50-60
Mulatos
$15-20
$15-20
$30-40
$20-25
Total - Operating Mines
$80-95
$95-110
$175-205
$145-170
Development Projects (US$M)
Turkey
-
$5
$5
$5
Lynn Lake
-
$3
$3
$3
Other
-
$2
$2
$2
Total - Development Projects
-
$10
$10
$10
Capitalized Exploration (US$M)
Young-Davidson
-
$1
$1
$1
Island Gold
-
$15
$15
$19
Mulatos
-
-
-
-
Lynn Lake
-
$4
$4
$5
Total - Capitalized Exploration
-
$20
$20
$25
Total Consolidated Budget
$80-95
$125-140
$205-235
$180-205
1 Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures
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2 2020 guidance revised on July 29, 2020 reflecting COVID-19 related temporary operational suspensions & delays during Q2 2020
Young-Davidson - flagship, long-life production
Location: Ontario, Canada
Stage: Producing
Ownership: 100% interest
Operation: Underground
One of Canada's largest underground gold mines
13 year mine life based on YE 2019 mineral reserves
Large resource base & exploration potential to support mine life extension
Significant Canadian dollar exposure; ~95% of costs
2018A
2019A
2020E4
Q3/20A
YTD 2020A
Gold Production (k oz)
180.0
188.0
135-145
36.4
88.2
Cost of Sales1(US$/oz)
$1,266
$1,224
$1,490
$1,421
$1,617
Total Cash Costs2(US$/oz)
$822
$800
$990-1,030
$923
$1,145
Mine-site AISC2(US$/oz)
$1,017
$1,047
$1,180-1,220
$1,196
$1,370
Total Capital5(US$m)
$87
$100
$76-86
$26
$82
Mine-site FCF2(US$m)
$11
-
-
$11
($31)
Gold Reserves & Resources3
Tonnes
Grade
oz Au
(000)
(g/t Au)
(000)
P&P Mineral Reserves
37,710
2.60
3,146
M&I Mineral Resources
11,273
3.30
1,197
Inferred Mineral Resources
1,360
2.40
105
1
Cost of sales includes mining and processing costs, royalties and amortization
2
Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures
3
See Mineral Reserve and Resource estimates and associated footnotes in appendix
4
2020 guidance revised on July 29, 2020 reflecting COVID-19 related temporary operational suspensions & delays during Q2 2020
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5
Includes capitalized exploration
Young-Davidson - lower mine expansion to drive costs lower
1 Cost of sales includes mining and processing costs, royalties and amortization
2 Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures
3 Excludes Net Realizable Value ("NRV") inventory adjustments. See associated MD&A for a full reconciliation
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4 Excludes hydro rebate not attributable to Q4/15
Island Gold - high-grade,low-cost production
Location: Ontario, Canada
Stage: Producing
Ownership: 100% interest
Operation: Underground
One of Canada's highest grade & lowest cost gold mines
Phase III Shaft Expansion to 2,000 tpd announced July 2020
Significant upside potential reflecting inclusion of all Mineral Resources & ongoing exploration success
Significant exploration potential laterally & at depth
2018A
2019A
2020E7
Q3/20A
YTD 2020A
Gold Production (k oz)
105.8
150.4
130-140
39.6
97.8
Cost of Sales1(US$/oz)
$1,009
$864
$840
$715
$806
Total Cash Costs2(US$/oz)
$589
$495
$480-520
$394
$438
Mine-site AISC2(US$/oz)
$781
$656
$740-780
$575
$653
Total Capital3,4(US$m)
$51
$53
$70-80
$13
$46
Exploration Spending4(US$m)
$17
$17
$17
$3
$8
Mine-site FCF2(US$m)
$10
$65
-
$41
$70
Gold Reserves & Resources5
Tonnes
Grade
oz Au
(000)
(g/t Au)
(000)
P&P Mineral Reserves
3,643
10.37
1,215
M&I Mineral Resources
879
6.51
184
Inferred Mineral Resources
5,392
13.26
2,298
Cost of sales includes mining and processing costs, royalties and amortization
Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures
Excludes capitalized exploration
Exploration spending in Q3/20 totaled $3.0m including $2.9m of capitalized exploration
See Mineral Reserve and Resource estimates and associated footnotes in appendix
Since 1985
2020 guidance revised on July 29, 2020 reflecting COVID-19 related temporary operational suspensions & delays during Q2 2020
Highly Productive Gold Mining District
>25 Moz gold produced6
Hoyle Pond, Newmont
>35 Moz in defined reserves
Detour Lake Mine, Detour Gold
Bell Creek, Pan American
ONTARIO
Smooth Rock Falls
Black Fox, McEwen
Cochrane
Timmins West, Pan American
Marathon
Island Gold
Iroquois Falls
Holloway, Kirkland Lake
17
Timmins
Borden, Newmont
Hemlo, Barrick
Holt, Kirkland Lake
Wawa
101
Taylor,
Kirkland Lake
Eagle River, Wesdome
Dome Mine, Newmont
101
144
Magino, Argonaut
Macassa, Kirkland Lake
Lake Superior
Cote, IAMGOLD
Young-Davidson
0
50 100km
17
Porcupine, Newmont
Pamour (PJV), Newmont
Mine/
Project
City
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One of Canada's highest-grade gold mines
Mineral Reserve Grade (g/t Au)
22.1
+62%
14.4
10.4
10.2
10.2
9.2
8.7
8.4
7.0
6.5
6.5
6.4
6.1
5.7
5.3
5.3
5.1
3.1
2.6
1.6
Source: Company filings
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Island Gold Shaft Expansion - cash flow profile at $1,450/oz Au
S2000
$244
$270
$266
$229
$229
$223
$202
$188
$179
$173
$174
$161
$173
$153
$160
$134
$136
$132
$150
$151
$152
$122
$131
$103
$117
$68
$56
$68
$12
-$14
-$15
-$1
-$40
-$35
-$30
-$54
-$47
-$52
-$48
-$42
-$59
-$65
-$77
-$124
-$186
-$162
-$169
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Total capital (US$m)
Operating cash flow (US$m)
After-taxmine-site free cash flow (US$m)
Modest investment required at $1,450/oz Au
Spending on long lead items starting in 2021
$170M average annual after-tax FCF starting in 2025 (post project3)
1 Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures.
2 LOM capital is from January 1, 2020 onward
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31
3 Annual average post completion of the shaft expansion in 2025
Island Gold Shaft Expansion - cash flow profile at $1,750/oz Au
S2000
$332
$301
$302
$291
$236
$253
$251
$239
$196
$214
$220
$223
$175
$177
$203
$192
$204
$207
$195
$172
$162
$173
$137
$161
$156
$86
$98
$86
$52
-$15
-$26
-$9
-$40
-$42
-$35
-$30
-$14
-$15
-$1
-$65
-$52
-$48
-$77
-$124
-$186
-$162
-$169
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Total capital (US$m)
Operating cash flow (US$m)
After-taxmine-site free cash flow (US$m)
Self-financedat $1,750/oz Au
$210M average annual after-tax FCF starting in 2025 (post project3)
1 Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures.
2 LOM capital is from January 1, 2020 onward
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3 Annual average post completion of the shaft expansion in 2025
Island Gold Shaft Expansion - operating cost by level
Unit mining cost by elevation
Difference
(C$/tonne)
Elevation
R1200
R1600
S2000
S2000 vs
R1200
750m
$106
$104
$96
-$10
1000m
$124
$119
$98
-$26
1250m
$141
$135
$100
-$41
1500m
$159
$150
$102
-$57
Ramp access costs will continue to increase as mining goes deeper, limiting exposure to future exploration success at depth
• Shaft provides relatively stable costs, protecting against rising costs at depth
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Island Gold Shaft Expansion - detailed mine plan
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
Mill Feed mined (tonnes)
410,593
438,000 437,999 437,994 439,198 557,150
719,805
730,000
731,957
729,934
729,951
730,000
731,947
730,000
721,154
296,654
Waste mined (tonnes)
342,999
440,063
611,313
688,082
478,034
317,066
336,839
471,093
414,888
371,636
255,838
190,337
32,774
571
-
-
Total tonnes mined
753,592
878,063
1,049,312 1,126,076
917,233
874,216
1,056,643 1,201,093 1,146,845 1,101,570
985,789
920,337
764,721
730,571
721,154
296,654
Grades (g/t Au)
10.87
10.17
9.85
8.37
9.70
13.08
11.41
9.22
10.62
13.91
8.81
9.37
10.32
11.09
9.60
9.77
Gold production (oz)
137,720
138,231
133,802
113,743
132,131
226,081
254,866
208,849
241,279
314,971
199,445
212,271
234,370
251,179
214,715
89,925
Operating costs
Unit mining costs (C$/tonne)
$114
$103
$96
$97
$115
$108
$96
$84
$87
$91
$95
$95
$103
$103
$101
$92
Unit milling costs (C$/tonne)
$37
$33
$33
$33
$34
$33
$30
$30
$30
$30
$30
$30
$30
$30
$30
$33
Unit G&A costs (C$/tonne)
$49
$47
$47
$46
$48
$42
$36
$33
$34
$34
$35
$36
$39
$39
$39
$43
Total unit operating costs 2 (C$/tonne)
$214
$195
$188
$188
$211
$200
$177
$159
$165
$175
$173
$174
$187
$187
$183
$179
Total cash costs (US$/oz) 1
$478
$464
$460
$542
$527
$370
$375
$418
$375
$304
$475
$449
$438
$408
$460
$442
Mine-site AISC (US$/oz) 1
$779
$771
$818
$941
$899
$566
$531
$668
$573
$437
$651
$592
$497
$469
$465
$442
Capital expenditures
Sustaining capex (US$ M)
$41
$43
$48
$45
$49
$44
$40
$52
$48
$42
$35
$30
$14
$15
$1
$0
Growth capex (US$ M)
$36
$82
$139
$117
$120
$21
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
1 Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures.
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2 Total unit operating costs are inclusive of royalties and silver credits which average a combined C$14/tonne over the life of mine
Island Gold Mine - 2020 exploration highlights
WE
Resources as of December 31st, 2019
Crown pillar
Category
Tonnage
Grade Au g/t
Ounces Au
Measured &
878,600
6.51
184,000
Indicated:
340 Level
Inferred:
5,392,300
13.26
2,298,000
- 500 m
620 Level
840 Level
Island East
- 1000 m
1000 Level
Ramp & Development
LEGEND
620-MH2-01
29.05 g/t Au (26.67 g/t Au cut)/ 4.86 m
Mined out
Au Cut (g/t)
Au Cut * True Width (gm/t)
Diabase Dyke
< 4.0
< 8
R & R Year End 2019
4.0 < 10.0
Proven Reserves
8 < 20
Probable Reserves
10.0 < 30.0
20 < 60
Measured Resources
>= 30.0
>= 60
Indicated Resources
Inferred Resources
HOLE-ID
g/t Au Uncut (g/t Au cut) / True Width
New Drillhole Intersections
metres
Island West
Assays
Assays
Island Main
Previously Released Drillhole Intersections
cut to
cut to
225 g/t Au
160 g/t Au
- 2000 m
250 m
2 km
- 500 m
583,300 t at 16.06 g/t Au, 301,200 oz Au
- 1000 m
MH21-04
44.30 g/t Au (44.30 g/t Au cut) / 2.25 m
1,194,700 t at 18.74 g/t Au, 719,800 oz Au
MH25-03
15.38 g/t Au (14.19 g/t Au cut) / 15.02 m
MH25-04
28.97 g/t Au (26.89 g/t Au cut) / 21.76 m
- 2000 m
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Island Gold Mine East areas - surface directional drilling results
W
620m Level
840m Level
583,300 t at 16.06 g/t Au, 301,200 oz Au
- 1000 m
MH21-04 44.30 g/t Au (44.30 g/t Au cut) / 2.25 m
620-MH2-01
29.05 g/t Au (26.67 g/t Au cut)/ 4.86 m
Ramp & Development
LEGEND
Mined out
Au Cut (g/t)
Au Cut * True Width (gm/t)
Diabase Dyke
< 4.0
< 8
R & R Year End 2019
4.0 < 10.0
Proven Reserves
8 < 20
Probable Reserves
10.0 < 30.0
20 < 60
Measured Resources
>= 30.0
>= 60
Indicated Resources
Inferred Resources
HOLE-ID
g/t Au Uncut (g/t Au cut) / True Width
New Drillhole Intersections
metres
Previously Released Drillhole Intersections
100 m
- 1000 m
1,194,700 t at 18.74 g/t Au, 719,800 oz Au
MH25-03
15.38 g/t Au (14.19 g/t Au cut) / 15.02 m
MH25-04
28.97 g/t Au (26.89 g/t Au cut) / 21.76 m
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Island Gold - historical operational results
40,000
$2,000
16
1,400
35,000
$1,800
14
1,200
$1,600
30,000
12
$1,400
1,000
25,000
$1,200
10
800
20,000
$1,000
8
15,000
$800
6
600
10,000
$600
4
400
$400
200
5,000
$200
2
0
$0
0
0
Q3/14
Q4/14
Q1/15
Q2/15
Q3/15
Q4/15
Q1/16
Q2/16
Q3/16
Q4/16
Q1/17
Q2/17
Q3/17
Q4/17
Q1/18
Q2/18
Q3/18
Q4/18
Q1/19
Q2/19
Q3/19
Q4/19
Q1/20
Q2/20
Q3/20
Q3/14
Q4/14
Q1/15
Q2/15
Q3/15
Q4/15
Q1/16
Q2/16
Q3/16
Q4/16
Q1/17
Q2/17
Q3/17
Q4/17
Q1/18
Q2/18
Q3/18
Q4/18
Q1/19
Q2/19
Q3/19
Q4/19
Q1/20
Q2/20
Q3/20
Gold production (oz)
Mine-site AISC (US$/oz)
Tonnes processed per day
Milled Grades (g/t)
Q4/14
Q1/15
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
Q2/19
Q3/19
Q4/19
Q1/20
Q2/20
Q3/20
Gold production (oz)
8,974
10,764
14,997
15,076
14,203
26,589
18,617
14,031
24,086
23,772
26,110
26,659 22,063
28,100 26,700 22,000 29,000
35,600 39,500
36,700 38,600 38,800
19,400
39,600
Cost of sales1(US$/oz)
$1,000
$1,027
$1,085
$950
$852
$824
$860
$918
$780
$1,056
$715
Total cash costs (US$/oz)(2,3)
$1,144
$1,134
$772
$675
$763
$486
$588
$726
$619
$504
$431
$532
$419
$553
$587
$671
$570
$497
$473
$503
$507
$452
$501
$394
Mine-site AISC (US$/oz)(2,3)
$1,809
$1,480
$1,059
$963
$1,183
$618
$799
$1,010
$683
$640
$503
$708
$574
$633
$668
$1,051
$834
$649
$631
$693
$653
$670
$781
$575
Underground mine
Tonnes mined per day
399
552
759
669
657
853
911
735
977
1,019
1,148
917
1,026
941
902
814
1,116
1,083
991
978
1,116
1,240
819
1,209
Grades (g/t)
6.89
8.02
6.73
7.27
7.83
11.17
7.27
7.29
8.83
8.64
10.28
9.16
9.44
11.06
7.34
8.96
8.95
11.40
14.53
10.81
12.44
11.69
7.28
13.68
Development metres
1,754
2,048
1,597
1,872
1,486
2,325
2,273
1,749
2,351
2,083
1,773
1,383
1,667
1,555
1,771
1,591
1,560
1,557
1,568
1,211
1,831
1,952
931
1,430
Unit UG mining costs (CAD$)
$235
$234
$139
$140
$177
$146
$135
$151
$116
$125
$119
$127
$127
$151
$155
$162
$148
$150
$158
$171
$165
$120
$93
$106
Mill processing facility
Tonnes processed per day
507
487
787
722
656
834
878
640
903
926
940
925
919
912
976
1,016
1,146
1,133
1,130
1,115
1,021
1,164
810
1,103
Grades (g/t)
6.28
7.87
6.73
7.27
7.62
11.31
7.51
7.70
9.31
9.18
9.73
10.04
8.46
11.07
8.71
8.22
9.02
11.11
12.23
11.12
13.03
11.73
8.32
13.62
Recoveries (%)
95.3%
97.2%
96.8%
97.1%
96.0%
96.3%
96.5%
96.4%
96.9%
96.7%
97.6%
97.0%
95.9%
96.0%
96.7%
96.0%
96%
97%
97%
97%
97%
97%
96%
97%
1 Cost of sales includes mining and processing costs, royalties and amortization
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2 Please refer to Cautionary Notes on non‐GAAP Measures and Additional GAAP Measures
Mulatos - our founding operation
Location: Sonora, Mexico
Stage: Producing
Ownership: 100% interest
Operation: Open pit, heap leach
Initial production 2005
~$480m of free cash flow2 generated to date
Declining cost profile with connection to grid power & development of La Yaqui Grande
No third party royalty
Large underexplored land package (28,773 ha)
2018A
2019A
2020E6
Q3/20A
YTD 2020A
Gold Production (k oz)
175.5
142.0
140-150
41.1
119.6
Cost of Sales1(US$/oz)
$989
$982
$1,135
$1,069
$1,075
Total Cash Costs2(US$/oz)
$786
$784
$840-880
$746
$772
Mine-site AISC2(US$/oz)
$855
$868
$940-980
$928
$928
Total Capital3,4(US$m)
$32
$53
$30-40
$9
$21
Exploration Spending4(US$m)
$11
$5
$7
$1
$3
Mine-site FCF2(US$m)
$36
($13)
-
$31
$64
Gold Reserves & Resources5
Tonnes
Grade
oz Au
(000)
(g/t Au)
(000)
P&P Mineral Reserves
41,172
1.18
1,563
M&I Mineral Resources
74,238
1.09
2,608
Inferred Mineral Resources
9,300
0.90
269
Cost of sales includes mining and processing costs, royalties and amortization
Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures
Capital spending guidance for 2020 includes capital spending for Cerro Pelon and La Yaqui Grande but excludes capitalized exploration
Exploration spending: 2018 totaled $10.5m including $2.9m of capitalized exploration; 2019 totaled $5.0m including $1.3m of capitalized exploration; 2020 guidance totals $7m, none of which is to be capitalized; Q3/20 totaled $0.6m, none of which was capitalized; YTD Q3/20 totaled $3.3m including $0.7m of capitalized exploration
5 See Mineral Reserve and Resource estimates and associated footnotes in appendix
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6 2020 guidance revised on July 29, 2020 reflecting COVID-19 related temporary operational suspensions & delays during Q2 2020
Mulatos - district exploration potential
La Yaqui Grande
La Yaqui Phase I
888k oz
Combined Mineral Reserves1,2 at La Yaqui & Cerro Pelon, a 304% increase since 2014
District potential
Large underexplored land package; >70% of past drilling focused
near Mulatos mine
1 See Mineral Reserve and Resource estimates and associated footnotes in appendix
2 Includes Proven & Probable Reserves of 724,000 oz (19.2 mt at 1.17 g/t Au) for La Yaqui and Proven & Probable Reserves of 164,000 oz (2.6 mt at 1.94 g/t Au) for
Cerro Pelon
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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 tonnes of ore mined & stacked (tonnes per day ("tpd"))
10,000
Average gold grade (grams per tonne)
1.17
Gold recovery (%)
85%
Silver recovery (%)
15%
Waste-to-ore ratio (Life of Mine including pre-strip)
5.50
Waste-to-ore ratio (post pre-strip)
4.04
Operating Costs
Mining costs per tonne of material (life of mine, including pre-stripping)
$2.42
Processing costs per tonne of ore
$5.05
G&A costs per tonne of ore
$2.34
Total cash cost (per ounce sold)2
$539
Mine-siteall-in sustaining cost (per ounce sold)2
$578
Capital Costs (millions) 1
Initial capital expenditure3
$137
Sustaining capital expenditure
$24
Reclamation
$35
Total capital expenditure, including reclamation
$196
Base Case Economic Analysis1
IRR (after-tax)
41%
NPV @ 0% discount rate (millions, after-tax)
$226
NPV @ 5% discount rate (millions, after-tax)
$165
Gold & silver price assumption (average, per ounce sold)
$1,450 / $18
Exchange Rate (Mexican Peso/US Dollar)
21
Economic Analysis at $1,750 per ounce Gold Price1
IRR (after-tax)
58%
NPV @ 0% discount rate (millions, after-tax)
$345
NPV @ 5% discount rate (millions, after-tax)
$260
Gold & silver price assumption (average, per ounce sold)
$1,750 / $18
Exchange Rate (Mexican Peso/US Dollar)
21
1.
Capital spending and economic analysis (NPV and IRR) are calculated starting January 1, 2020
2.
Total cash costs and mine-siteall-in sustaining costs include royalties and silver by-product credit
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3.
Initial capital is offset by $5 million of pre-production revenue less operating costs
Development - Kirazlı, Ağı Dağı & Çamyurt
Location: Turkey
Stage: Development
Ownership: 100% interest
Operation: Open pit, heap leach
Kirazlı EIA, GSM & Forestry Permits approved
Kirazlı & Ağı Dağı feasibility studies completed February 20171 outlining 185% increase in combined after-tax NPV8%
Tax incentives & mining law supportive of industry
Kirazlı
Ağı Dağı
2017 Positive Economic Studies1
Feasibility
Feasibility
Çamyurt PEA
Study
Study
Mine Life
Years
5
6
4
Average Annual Production
oz Au
104,000
177,600
93,200
oz Ag
617,300
444,200
403,000
Average grade
g/t Au
0.79
0.67
0.92
Mine-site AISC2
US$m
$373
$411
$645
Initial Capex
US$m
$152
$250
$10
Total Capex
US$m
$180
$313
$26
After-tax NPV5%
US$m
$223
$360
$111
After-tax NPV8%
US$m
$187
$298
$86
After-tax IRR
%
44%
39%
253%
Gold Price Assumption
US$/oz
$1,250
$1,250
$1,250
>39%
After-tax IRR for each of Kirazlı, Ağı Dağı & Çamyurt1
Low cost, high return
growth
Please refer to press releases dated Feb 15 and Feb 22, 2017 regarding Kirazli & Agi Dagi feasibility studies & Camyurt preliminary economic assessment. The 185% increase is compared to the 2012 pre-feasibility study
Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures.
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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
Average annual production (ounces)1
Gold
104,000
177,600
93,200
Silver
617,300
444,200
403,000
Total ore mined (tonnes)
26,100,000
54,361,000
16,580,000
Total waste mined (tonnes)
37,900,000
55,893,000
30,874,000
Total material mined (tonnes)
64,000,000
110,254,000
47,454,000
Waste-to-ore ratio2
1.45
1.03
1.86
Average grade (grams per tonne)
Gold
0.79
0.67
0.92
Silver
12.0
5.4
6.3
Recovery (%)
Gold
81%
80%
76%
Silver
31%
25%
48%
Average throughput (tpd)
15,000
30,000
15,000
Operating Costs
Total cost per tonne of ore3
$8.49
$6.46
$14.03
Total cash cost (per ounce sold)4
$339
$374
$604
Mine-siteall-in sustaining cost (per ounce sold)4
$373
$411
$645
Capital Costs (millions)
Pre-production capital expenditure
$151.9
$250.3
$10.2
Sustaining capital expenditure
$18.1
$33.9
$9.4
Reclamation costs (net of salvage value)
$9.9
$28.8
$5.9
Total capital expenditure
$179.8
$312.9
$25.5
Economic Analysis
IRR (after-tax)
44.3%
38.7%
253.0%
NPV @ 0% discount rate (after-tax, millions)
$299.3
$492.8
$173.8
NPV @ 5% discount rate (after-tax millions)
$222.9
$360.2
$111.4
NPV @ 8% discount rate (after-tax, millions)
$186.5
$297.6
$86.2
Gold price assumption (average, per ounce sold)
$1,250
$1,250
$1,250
Silver price assumption (average, per ounce sold)
$16.00
$16.00
$16.00
Exchange Rate (Turkish Lira/US Dollar)
2.90:1
2.90:1
2.90:1
1 Average annual production is based on five full years of production for Kirazlı and Ağı Dağı and excludes pre-commercial production
Reported waste-to-ore ratio is over the life of mine. The waste-to-ore ratio during commercial production is 0.70:1 for Ağı Dağı and 1.19:1 for Kirazlı in the 2017 feasibility study
Total unit cost per tonne of ore excludes silver as a by-product credit
Total cash costs and mine-siteall-in sustaining costs include silver as a by-product credit
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Development - Lynn Lake, Esperanza & Quartz Mountain
Lynn Lake
Esperanza
Location: Manitoba, Canada
Location: Morelos State, Mexico
Ownership: 100% interest
Ownership: 100% interest
Stage: Permitting
Stage: Permitting
Operation: Open pit
Operation: Open pit, heap leach
Quartz Mountain
Location: Oregon, United States
Ownership: Right to earn a 100% interest4
Stage: Advanced Exploration
High grade, open pit with significant exploration potential
Existing infrastructure in place
Low cost hydroelectric power
Feasibility study results announced Dec 20171
Average production: 143 koz (Years 1-10)
LOM Mine-site AISC2: $745
After-taxNPV5%: $123m; IRR: 13%
Tonnes
Grade
Oz Au
(000)
(g/t Au)
(g/t Ag)
(000 Au)
(000 Ag)
P&P Reserves4
31,977
1.83
4.43
1,884
3,315
M&I Resources4
9,993
1.74
3.91
560
947
Inf. Resources
46,466
1.11
2.49
1,663
113
Excellent infrastructure; low technical risk
Low capital intensity & operating costs
Average annual production potential > 100k oz
AISC expected to be lowest quartile2
Tonnes
Grade
Oz Au
(000)
(g/t Au)
(g/t Ag)
(000 Au)
(000 Ag)
M&I Resources4
34,352
0.98
8.09
1,083
8,936
Inf. Resources
718
0.80
15.04
18
347
Located on northern extension of prolific Basin & Range Province of Nevada
Low strip ratio, favourable metallurgy3
Acquisition cost $3.5m5
Tonnes
Grade
Oz Au
(000)
(g/t Au)
(000 Au)
M&I Resources4
12,156
0.87
339
Inferred Resources
39,205
0.91
1,147
Lynn Lake December 2017 feasibility study based on gold and silver price assumptions of $1250 and $16 per ounce, respectively. See press release dated December 14, 2017 for more details
Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures
Historic column recovery tests for gold at Quartz Mountain varied between 74% and 88% for the felsic rock hosted mineralization; see Orsa Ventures press release dated February 12, 2013
See Mineral Reserve and Resource estimates and associated footnotes in appendix
Additional C$3m due on completion of feasibility study & C$15m or 2% NSR upon successful permitting
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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 mined (000 tonnes)
26,803
Total waste mined (000 tonnes)
195,188
Total material mined (000 tonnes)
221,991
Waste-to-ore ratio2
7.28
Average grade (grams per tonne)
Gold
1.89
Silver
2.99
Recovery (%)
Gold (Average MacLellan and Gordon)
92%
Silver (MacLellan only)
49%
Average mill throughput (tonnes per day ("tpd"))
7,000
Operating Costs
Total cost per tonne of ore3
$36.06
Total cash cost (per ounce sold)4
$645
Mine-siteall-in sustaining cost (per ounce sold)4
$745
Capital Costs (millions)
Pre-production capital expenditure
$338.0
Sustaining capital expenditure
$126.6
Reclamation costs
$21.1
Total capital expenditure
$485.6
Base Case Economic Analysis
IRR (after-tax)
12.5%
NPV @ 0% discount rate (millions, after-tax)
$279.0
NPV @ 5% discount rate (millions, after-tax)
$123.4
Gold price assumption (average, per ounce sold)
$1,250
Silver price assumption (average, per ounce sold)
$16.00
Exchange Rate (US Dollar/Canadian Dollar)
0.75
Average annual production excludes pre-commercial production
Reported waste-to-ore ratio is over the life of mine and includes overburden as waste. The waste-to-ore ratio during commercial production is 7.06:1
Total unit cost per tonne ("t") of ore includes royalties and silver as a by-product credit
4. Total cash costs and mine-siteall-in sustaining costs include royalties and silver as a by-product credit
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Proven & Probable Mineral Reserves
PROVEN AND PROBABLE GOLD MINERAL RESERVES (as at December 31, 2019)
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)
Young-Davidson - Surface
100
1.31
4
0
0.00
0
100
1.31
4
Young-Davidson - Underground
18,993
2.67
1,628
18,617
2.53
1,514
37,610
2.60
3,142
Total Young-Davidson
19,093
2.66
1,632
18,617
2.53
1,514
37,710
2.60
3,146
Island Gold
786
13.48
341
2,857
9.52
874
3,643
10.37
1,215
Mulatos Main Pits
1,137
0.95
35
7,669
0.88
216
8,806
0.89
251
Stockpiles
10,531
1.25
424
0
0.00
0
10,531
1.25
424
La Yaqui
0
0.00
0
0
0.00
0
0
0.00
0
La Yaqui Grande
0
0.00
0
19,205
1.17
724
19,205
1.17
724
Cerro Pelon
942
2.03
61
1,688
1.89
103
2,630
1.94
164
Total Mulatos
12,610
1.28
520
28,562
1.14
1,043
41,172
1.18
1,563
MacLellan
11,604
1.89
705
11,650
1.34
500
23,254
1.61
1,206
Gordon
2,311
2.82
210
6,412
2.27
468
8,723
2.42
678
Total Lynn Lake
13,916
2.05
915
18,061
1.67
968
31,977
1.83
1,884
Agi Dagi
1,450
0.76
36
52,911
0.66
1,130
54,361
0.67
1,166
Kirazli
670
1.15
25
33,191
0.68
727
33,861
0.69
752
Total Turkey
2,120
0.89
61
86,102
0.67
1,857
88,222
0.68
1,918
Alamos - Total
48,525
2.22
3,469
154,200
1.26
6,257
202,724
1.49
9,726
PROVEN AND PROBABLE SILVER MINERAL RESERVES (as at December 31, 2019)
Proven Reserves
Probable Reserves
Total Proven and Probable
Tonnes
Grade
Ounces
Tonnes
Grade
Ounces
Tonnes
Grade
Ounces
(000's)
(g/t Ag)
(000's)
(000's)
(g/t Ag)
(000's)
(000's)
(g/t Ag)
(000's)
La Yaqui
0
0.00
0
0
0.00
0
0
0.00
0
La Yaqui Grande
0
0.00
0
19,205
15.88
9,805
19,205
15.88
9,805
Cerro Pelon
942
18.22
552
1,688
17.33
941
2,630
17.65
1,492
MacLellan
11,604
4.94
1,844
11,650
3.93
1,471
23,254
4.43
3,315
Ağı Dağı
1,450
6.22
290
52,911
5.39
9,169
54,361
5.41
9,459
Kirazli
670
16.94
365
33,191
9.27
9,892
33,861
9.42
10,257
Alamos - Total
14,666
6.47
3,051
118,645
8.20
31,278
133,311
8.01
34,328
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Total Measured & Indicated Mineral Resources
MEASURED AND INDICATED GOLD MINERAL RESOURCES (as at December 31, 2019)
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's)
(g/t Au)
(000's)
Young-Davidson - Surface
496
1.13
18
1,242
1.28
51
1,739
1.24
69
Young-Davidson - Underground
5,456
4.23
742
4,079
2.95
386
9,535
3.68
1,128
Total Young-Davidson
5,952
3.97
760
5,321
2.56
438
11,273
3.30
1,197
Island Gold
25
4.52
4
853
6.57
180
879
6.51
184
Mulatos
8,207
1.25
329
63,112
1.08
2,189
71,319
1.10
2,518
La Yaqui
0
0.00
0
1,321
1.02
43
1,321
1.01
43
Cerro Pelon
60
1.65
3
183
1.29
8
243
1.41
11
Carricito
58
0.82
2
1,297
0.82
34
1,355
0.83
36
Total Mulatos
8,325
1.25
334
65,913
1.07
2,274
74,238
1.09
2,608
MacLellan - Open Pit
1,986
1.65
105
4,700
1.46
221
6,686
1.52
326
MacLellan - Underground
0
0.00
0
843
4.52
122
843
4.52
122
Gordon
9
1.72
0
451
1.96
28
460
1.95
29
Burnt Timber
0
0.00
0
1,021
1.40
46
1,021
1.40
46
Linkwood
0
0.00
0
984
1.16
37
984
1.17
37
Total Lynn Lake
1,994
1.65
106
7,999
1.77
455
9,993
1.74
560
Esperanza
19,226
1.01
622
15,126
0.95
462
34,352
0.98
1,084
Ağı Dağı
553
0.44
8
34,334
0.46
510
34,887
0.46
518
Kirazli
0
0.00
0
3,056
0.42
42
3,056
0.43
42
Çamyurt
513
1.00
16
17,208
0.89
492
17,721
0.89
508
Total Turkey
1,066
0.70
24
54,598
0.59
1,044
55,664
0.60
1,068
Quartz Mountain
214
0.95
7
11,942
0.87
333
12,156
0.87
339
Alamos - Total
36,803
1.57
1,856
161,752
1.00
5,185
198,555
1.10
7,041
MEASURED AND INDICATED SILVER MINERAL RESOURCES (as at December 31, 2019)
Measured Resources
Indicated Resources
Total Measured and Indicated
Tonnes
Grade
Ounces
Tonnes
Grade
Ounces
Tonnes
Grade
Ounces
(000's)
(g/t Ag)
(000's)
(000's)
(g/t Ag)
(000's)
(000's)
(g/t Ag)
(000's)
La Yaqui Grande
0
0.00
0
1,321
8
340
1,321
8
340
Cerro Pelon
60
18.80
36
183
17
101
243
18
137
MacLellan - Open Pit
1,986
3.66
234
4,700
3.65
551
6,686
3.65
785
MacLellan - Underground
0
0.00
0
843
5.98
162
843
5.98
162
Esperanza
19,226
7.25
4,482
15,126
9.16
4,455
34,352
8.09
8,936
Ağı Dağı
553
1.59
28
34,334
2.19
2,417
34,887
2.18
2,445
Kirazli
0
0.00
0
3,056
2.71
266
3,056
2.71
266
Çamyurt
513
5.63
93
17,208
6.15
3,404
17,721
6.14
3,497
Alamos - Total
22,338
6.78
4,873
76,771
4.74
11,696
99,108
5.20
16,569
46
Total Inferred Mineral Resources
INFERRED GOLD MINERAL RESOURCES (as at December 31, 2019)
Tonnes
Grade
Ounces
(000's)
(g/t Au)
(000's)
Young-Davidson - Surface
31
0.99
1
Young-Davidson - Underground
1,329
2.43
104
Total Young-Davidson
1,360
2.40
105
Island Gold
5,392
13.26
2,298
Mulatos
8,122
0.92
239
La Yaqui Grande
241
0.88
7
Cerro Pelon
37
0.62
1
Carricito
900
0.74
22
Total Mulatos
9,300
0.90
269
MacLellan - Open Pit
1,292
1.36
56
MacLellan - Underground
116
3.82
14
Gordon
615
1.30
29
Burnt Timber
23,438
1.04
781
Linkwood
21,004
1.16
783
Total Lynn Lake
46,466
1.11
1,663
Esperanza
718
0.80
18
Ağı Dağı
16,760
0.46
245
Kirazli
7,694
0.61
152
Çamyurt
2,791
0.95
85
Total Turkey
27,245
0.55
482
Quartz Mountain
39,205
0.91
1,147
Alamos - Total
129,686
1.43
5,982
INFERRED SILVER MINERAL RESOURCES (as at December 31, 2019)
Tonnes
Grade
Ounces
(000's)
(g/t Ag)
(000's)
La Yaqui Grande
241
4.03
31
Cerro Pelon
37
3.66
4
MacLellan - Open Pit
1,292
2.43
101
MacLellan - Underground
116
3.13
12
Esperanza
718
15.04
347
Ağı Dağı
16,760
2.85
1,536
Kirazli
7,694
8.71
2,155
Çamyurt
2,791
5.77
518
Alamos - Total
29,649
4.93
4,704
TSX:AGI ǀ NYSE:AGI
47
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 Canadian Securities Administrator's National Instrument 43-101 ("NI 43-101"). The Qualified Persons for the National Instrument 43-101 compliant mineral reserve and resource estimates are detailed in the following table.
Resources
Jeffrey Volk, CPG, FAusIMM
Director - Reserves and Resource, Alamos Gold Inc.
Mulatos Pits, Cerro Pelon, La Yaqui, Ağı Dağı, Kirazlı
Notes to Mineral Reserve and Resource Tables:
The Company's Mineral Reserves and Mineral Resource as at December 31, 2019 are classified in accordance with the Canadian Institute of Mining Metallurgy and Petroleum's "CIM Standards on Mineral Resources and Reserves, Definition and Guidelines" as per Canadian Securities Administrator's NI 43-101 requirements.
Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
Mineral Resources are exclusive of Mineral Reserves.
Mineral Reserve cut-off grade for the Mulatos Mine, the Cerro Pelon Pit, the La Yaqui Pits, the Kirazlı Pit and the Ağı Dağı Pit are determined as a net of process value of $0.10 per tonne for each model block
All Measured, Indicated and Inferred open pit Mineral Resources are pit constrained with the exception of those outside the Mulatos Main Pits on the Mulatos property which have no economic restrictions and are tabulated by gold cut- off grade.
Mineral Reserve estimates assumed a gold price of $1,250 per ounce and Mineral Resource estimates assumed a gold price of $1,400 per ounce. Metal prices, cut-off grades and metallurgical recoveries are set out in the table below.
Resources
Reserves
Gold Price
Cut-off
Gold Price
Cut-off
Met Recovery
Mulatos:
Mulatos Main Open Pit
$1,400
0.5
$1,250
see notes
>50%
Cerro Pelon
$1,400
0.3
$1,250
see notes
75%
La Yaqui
$1,400
0.3
$1,250
see notes
75%
Carricito
$1,400
0.3
n/a
n/a
n/a
Young-Davidson - Surface
$1,400
0.5
$1,250
0.5
91%
Young-Davidson - Underground
$1,400
1.3
$1,250
1.9
91%
Island Gold
$1,400
4.0
$1,250
2.82-4.89
96.5%
Lynn Lake - MacLellan
$1,400
0.42
$1,250
0.47
91-92%
Lynn Lake - MacLellan Underground
$1,400
2.0
n/a
n/a
n/a
Lynn Lake - Gordon
$1,400
0.62
$1,250
0.69
89-94%
Esperanza
$1,400
0.4
n/a
n/a
60-72%
Ağı Dağı
$1,400
0.2
$1,250
see notes
80%
Kirazlı
$1,400
0.2
$1,250
see notes
81%
Çamyurt
$1,400
0.2
n/a
n/a
78%
Quartz Mountain
$1,400
0.21 Oxide, 0.6 Sulfide
n/a
n/a
65-80%
TSX:AGI ǀ NYSE:AGI
48
Scott K. Parsons, CFA
VP, Investor Relations 416.368.9932 x 5439 sparsons@alamosgold.com
Alamos Gold Inc. published this content on 13 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 November 2020 10:42:01 UTC
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