Corporate Presentation December 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
TSX:AGI ǀ NYSE:AGI | 3 |
Sustainability - creating shared value for all our stakeholders
Environmental | Social | Governance | ||
o Zero 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 & | |||
o 69% 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 initiatives o Connecting 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 & | ||
o Incorporating 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 | |||
o Adopting 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 | o Prioritize local employment & procurement | with WGC's Conflict-Free Gold Standard | |
Investor Mining & Tailings Safety Initiative | o 77% local & 99% in-countryemployment | ||
o $196m spent in 2019 on local suppliers | o Alignment of practices to WGC's Responsible Gold | ||
Mining Principles | |||
1 Lost Time Injury Frequency Rate ("LTIFR") of 0.17 per 200,000 person-hours worked in 2019, down from 0.34 in 2018 | TSX:AGI ǀ NYSE:AGI | 4 |
COVID-19: focused on the health & safety of our people & communities
Strict health & safety protocols at each operation
- We continue to be diligent in taking precautions to help prevent the potential spread of COVID-19
- All operations have returned to normal operating levels under strict health & safety protocols
- On-sitetesting for COVID-19 implemented at Island Gold and Mulatos
COVID-19 testing facility at Island Gold
Supporting our communities
- Our teams in Canada, Mexico, and Turkey have donated their time, medical equipment & supplies, food & funds to support:
- Hospitals & medical clinics
- Frontline workers
- Vulnerable members of our communities
TSX:AGI ǀ NYSE:AGI | 5 |
Q3 2020 results - record free cash flow; well positioned to achieve guidance
Q3 2020A | Q3 2019A | Q3 YTD | Q3 YTD | Revised 2020 | |
2020A | 2019A | Guidance6 | |||
Gold production (000 oz) | 117.1 | 121.9 | 306.4 | 372.4 | 405-435 |
Gold sales (000 oz) | 116.0 | 119.4 | 302.5 | 367.6 | - |
Average realized gold price (US$/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
TSX:AGI ǀ NYSE:AGI | 6 |
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. | TSX:AGI ǀ NYSE:AGI | 7 |
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
TSX:AGI ǀ NYSE:AGI | 8 |
Young-Davidson - lower mine expansion driving strong free cash flow growth
- One of Canada's largest underground gold mines
- Transition to new, larger infrastructure completed July 2020
- $11m mine-site free cash flow Q3/20; strong growth expected Q4/20
- 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 | TSX:AGI ǀ NYSE:AGI | 9 |
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% |
TSX:AGI ǀ NYSE:AGI | 10 |
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 | |||||||||||||||
TSX:AGI ǀ NYSE:AGI | 11 |
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
TSX:AGI ǀ NYSE:AGI | 12 |
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
Shaft Expansion production & cost profile 4 | |||||||||||||
350,000 | $1,000 | ||||||||||||
300,000 | $900 | ||||||||||||
$800 | (US$/oz) | ||||||||||||
250,000 | |||||||||||||
$700 | |||||||||||||
200,000 | AISC | ||||||||||||
$600 | |||||||||||||
150,000 | site-Mine | ||||||||||||
$500 | |||||||||||||
100,000 | |||||||||||||
$400 | |||||||||||||
50,000 | |||||||||||||
$300 | |||||||||||||
- | $200 | ||||||||||||
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
4 | ||
Gold Production (oz) | Mine-site AISC (US$/oz) | |
$1.45B
NPV5% & 22% IRR (after-tax; $1,750/oz Au)1,2,6
$624M
combined 2017 acquisition cost & 2020 royalty repurchase3
TSX:AGI ǀ NYSE:AGI | 13 |
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% |
TSX:AGI ǀ NYSE:AGI | 14 |
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 $16 per ounce, respectively.
2 Mineral Reserve life based on Mineral Reserves as of December 31, 2019. See Mineral Reserve and Resource estimates and associated footnotes in appendix | TSX:AGI ǀ NYSE:AGI | 15 |
Growth: Lynn Lake Project - low cost, high-grade, open pit
- Favourable jurisdiction: Manitoba, Canada
- High-grade,open pit with significant exploration potential across large land package (58,000 ha)
- Existing infrastructure in place; low-cost hydroelectric power
- Feasibility Study completed December 2017
- Environmental Impact Statement submitted Q2 2020; Indigenous community engagement underway
- Construction decision expected 2022
Gold Price ($/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
TSX:AGI ǀ NYSE:AGI | 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. | TSX:AGI ǀ NYSE:AGI | 17 | |||||
2 Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures |
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 November 25, 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 |
$0.40 | |
2014A | 2019A2 |
TSX:AGI ǀ NYSE:AGI | 19 |
Long-term track record of delivering shareholder value
Long-term track record of
outperformance
Average annualized return since 2003 1
15% |
10% |
2% |
AGI (TSX) | S&P/TSX Global Gold | Gold (US$/oz) |
Index |
2 | ||||||||||||
1.36 | Consensus P/NAV | |||||||||||
1.18 | 1.12 | |||||||||||
0.92 | ||||||||||||
0.83 | 0.82 | 0.81 | 0.78 | 0.77 | ||||||||
0.64 | 0.58 | |||||||||||
0.43 | 0.41 | |||||||||||
PAAS | Sr | BTO | YRI | SSRM | NGD | Int | AGI | CG | EQX | ELD | IMG | OGC |
Average | Average |
Strong outlook; compelling valuation opportunity
1 As of November 25, 2020 | TSX:AGI ǀ NYSE:AGI | 20 |
2 Source: Factset consensus estimates as of November 25, 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 |
TSX:AGI ǀ NYSE:AGI | 21 |
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 | $180-205 |
- Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures.
- For the purposes of calculating mine-siteall-in sustaining costs at individual mine sites, the Company does not include an allocation of corporate and administrative and share based compensation expenses to the mine sites.
- Cost of sales includes mining and processing costs, royalties, and amortization expense, and is calculated based on the mid-point of total cash cost guidance.
4 Island Gold and consolidated total cash costs and AISC reduced following repurchase and cancellation of 3% NSR royalty at Island Gold on March 16, 2020 | TSX:AGI ǀ NYSE:AGI | 24 |
5 2020 guidance revised on July 29, 2020 reflecting COVID-19 related temporary operational suspensions & delays during Q2 2020 |
Revised 2020 guidance - capital budget
Revised 2020 Guidance2 | Previous 2020 | ||||
Guidance2 | |||||
Sustaining Capital | Growth Capital | Total | Total | ||
Operating Mines (US$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 | $180-205 | |
1 Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures | TSX:AGI ǀ NYSE:AGI | 25 | |||
2 2020 guidance revised on July 29, 2020 reflecting COVID-19 related temporary operational suspensions & delays during Q2 2020 |
Young-Davidson - flagship, long-life production
Location: Ontario, Canada | Stage: Producing |
Ownership: 100% interest | Operation: Underground |
- One of Canada's largest underground gold mines
- 13 year mine life based on YE 2019 mineral reserves
- Large resource base & exploration potential to support mine life extension
- Significant Canadian dollar exposure; ~95% of costs
2018A | 2019A | 2020E4 | Q3/20A | YTD 2020A | |||||||
Gold Production (k oz) | 180.0 | 188.0 | 135-145 | 36.4 | 88.2 | ||||||
Cost of Sales1 (US$/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 | TSX:AGI ǀ NYSE:AGI | 26 | ||||||||
5 | Includes capitalized exploration |
Young-Davidson - lower mine expansion to drive costs lower
H2 2020E mining cost per tonne | C$50/t | |||
Upper mine | Lower mine | Incremental improvement | ||
Lateral material handling | trucking | conveying | C$2.00/tonne; excluding productivity | |
improvements | ||||
LOM | ||||
Mid shaft ore trucking from below | trucking | n/a | C$1.00/tonne | |
9590 L | decrease | |||
Fine ore bin capacity | 500t | 6,000t | No hoisting downtime between | |
blasting & shift changes | ||||
C$10/t | ||||
Skip size | 17.5t | 24.5t | + 2,343 tpd capacity | |
6 km less development; C$20 million | ||||
Sub level spacing | 30m | 35m | capital plus C$0.25/tonne operating | |
cost savings | ||||
less stopes mined | ||||
Average stope size | 24,000t | 37,000t | (slots/binder/cablebolts) | |
(C$0.25/tonne) | ||||
Economies of scale | 6,500 tpd | 8,000 tpd | Fixed costs across more tonnes | |
(C$6.50/tonne) | ||||
Long term average mining cost per tonne | C$40/t | |||
TSX:AGI ǀ NYSE:AGI | 27 |
Young-Davidson - increasing mining rates & productivity
Underground ramp up driving production higher
Gold production (oz)
60,000 | 8,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
50,000 | 7,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
40,000 | 6,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
30,000 | 5,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
20,000 | 4,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
10,000 | 3,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
0 | 2,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Q3/14 | Q4/14 | Q1/15 | Q2/15 | Q3/15 | Q4/15 | Q1/16 | Q2/16 | Q3/16 | Q4/16 | Q1/17 | Q2/17 | Q3/17 | Q4/17 | Q1/18 | Q2/18 | Q3/18 | Q4/18 | Q1/19 | Q2/19 | Q3/19 | Q4/19 | Q1/20 | Q2/20 | Q3/20 |
Underground TPD
Gold ounces produced | Tonnes mined per day | |||||||||||||||||||||||||
Q2/15 | Q3/15 | Q4/15 | Q1/16 | Q2/16 | Q3/16 | Q4/16 | Q1/17 | Q2/17 | Q3/17 | Q4/17 | Q1/18 | Q2/18 | Q3/18 | Q4/18 | Q1/19 | Q2/19 | Q3/19 | Q4/19 | Q1/20 | Q2/20 | Q3/20 | |||||
Gold production (oz) | 39,365 | 38,201 | 44,694 | 39,065 | 42,644 | 43,629 | 44,662 | 40,400 | 47,300 | 55,800 | 56,500 | 41,000 | 39,100 | 49,000 | 50,900 | 45,000 | 45,000 | 50,000 | 48,000 | 28,700 | 23,100 | 36,400 | ||||
Cost of sales1 (US$/oz) | $1,298 | $1,165 | $986 | $1,058 | $1,182 | $1,032 | $1,077 | $1,148 | $1,113 | $966 | $1,107 | $1,273 | $1,350 | $1,276 | $1,184 | $1,293 | $1,278 | $1,191 | $1,149 | $1,515 | $2,059 | $1,421 | ||||
Total cash costs per oz. (2,3) | $697 | $681 | $617 | $616 | $738 | $607 | $667 | $710 | $677 | $572 | $690 | $824 | $890 | $824 | $764 | $839 | $822 | $781 | $766 | $1,093 | $1,564 | $923 | ||||
Mine-site AISC per oz.(2,3) | $1,008 | $979 | $980 | $846 | $965 | $849 | $926 | $851 | $895 | $744 | $859 | $994 | $1,083 | $1,029 | $974 | $1,068 | $1,077 | $960 | $1,083 | $1,242 | $1,809 | $1,196 | ||||
Underground mine | ||||||||||||||||||||||||||
Tonnes mined per day | 5,149 | 5,081 | 5,911 | 5,776 | 6,123 | 5,467 | 6,675 | 6,400 | 6,377 | 6,544 | 7,227 | 6,501 | 6,087 | 6,005 | 6,402 | 6,540 | 6,728 | 6,606 | 7,000 | 4,290 | 2,686 | 6,713 | ||||
Grades (g/t) | 2.6 | 2.6 | 2.6 | 2.6 | 2.4 | 2.8 | 2.4 | 2.6 | 2.6 | 2.9 | 2.7 | 2.4 | 2.4 | 2.6 | 2.7 | 2.5 | 2.4 | 2.6 | 2.7 | 2.2 | 2.5 | 2.24 | ||||
Development metres | 3,789 | 3,619 | 3,769 | 3,490 | 3,168 | 2,677 | 3,044 | 3,242 | 3,425 | 3,344 | 2,776 | 3,144 | 3,079 | 2,811 | 2,975 | 2,900 | 2,877 | 2,817 | 2,925 | 3,202 | 2,894 | 3,231 | ||||
Unit UG mining costs (US$/t) | $33 | $32 | $294 | $31 | $34 | $34 | $32 | $36 | $33 | $34 | $34 | $43 | $41 | $41 | $38 | $39 | $40 | $39 | $39 | $57 | $82 | $34 | ||||
Unit UG mining costs (CAD$/t) | $41 | $41 | $384 | $42 | $44 | $45 | $42 | $47 | $44 | $43 | $44 | $54 | $53 | $54 | $51 | $52 | $53 | $51 | $51 | $77 | $114 | $45 | ||||
Mill processing facility | ||||||||||||||||||||||||||
Tonnes processed per day | 7,677 | 7,680 | 7,630 | 7,342 | 7,006 | 6,833 | 7,552 | 7,718 | 6,917 | 7,553 | 7,786 | 7,437 | 6,574 | 7,293 | 8,104 | 6,777 | 7,516 | 7,124 | 6,761 | 5,107 | 4,344 | 6,430 | ||||
Grades (inc. OP stockpile) | 2.0 | 1.9 | 2.2 | 2.1 | 2.1 | 2.4 | 2.2 | 2.2 | 2.5 | 2.7 | 2.6 | 2.2 | 2.2 | 2.4 | 2.4 | 2.5 | 2.3 | 2.5 | 2.7 | 1.9 | 1.85 | 2.19 | ||||
Recoveries (%) | 88% | 92% | 91% | 90% | 92% | 93% | 90% | 89% | 92% | 93% | 92% | 90% | 92% | 93% | 92% | 90% | 91% | 92% | 92% | 91% | 93% | 93% | ||||
1 Cost of sales includes mining and processing costs, royalties and amortization | ||||||||||||||||||||||||||
2 Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures | ||||||||||||||||||||||||||
3 Excludes Net Realizable Value ("NRV") inventory adjustments. See associated MD&A for a full reconciliation | TSX:AGI ǀ NYSE:AGI | 28 | ||||||||||||||||||||||||
4 Excludes hydro rebate not attributable to Q4/15 |
Island Gold - high-grade,low-cost production
Location: Ontario, Canada | Stage: Producing |
Ownership: 100% interest | Operation: Underground |
- One of Canada's highest grade & lowest cost gold mines
- Phase III Shaft Expansion to 2,000 tpd announced July 2020
- Significant upside potential reflecting inclusion of all Mineral Resources & ongoing exploration success
- Significant exploration potential laterally & at depth
2018A | 2019A | 2020E7 | Q3/20A | YTD 2020A | |||||
Gold Production (k oz) | 105.8 | 150.4 | 130-140 | 39.6 | 97.8 | ||||
Cost of Sales1 (US$/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 | TSX:AGI ǀ NYSE:AGI | 29 | |||
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 | TSX:AGI ǀ NYSE:AGI | 30 |
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 | TSX:AGI ǀ NYSE:AGI | 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
- $210M average annual after-tax FCF starting in 2025 (post project3)
1 Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures.
2 LOM capital is from January 1, 2020 onward | TSX:AGI ǀ NYSE:AGI | 32 |
3 Annual average post completion of the shaft expansion in 2025 |
Island Gold Shaft Expansion - operating cost by level
Unit mining cost by elevation | Difference | |||
(C$/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 | -$57 |
- Ramp access costs will continue to increase as mining goes deeper, limiting exposure to future exploration success at depth
• Shaft provides relatively stable costs, protecting against rising costs at depth | TSX:AGI ǀ NYSE:AGI | 33 |
Island Gold Shaft Expansion - detailed mine plan
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 | 2033 | 2034 | 2035 | |
Mill Feed mined (tonnes) | 410,593 | 438,000 437,999 437,994 439,198 557,150 | 719,805 | 730,000 | 731,957 | 729,934 | 729,951 | 730,000 | 731,947 | 730,000 | 721,154 | 296,654 | ||||
Waste mined (tonnes) | 342,999 | 440,063 | 611,313 | 688,082 | 478,034 | 317,066 | 336,839 | 471,093 | 414,888 | 371,636 | 255,838 | 190,337 | 32,774 | 571 | - | - |
Total tonnes mined | 753,592 | 878,063 | 1,049,312 1,126,076 | 917,233 | 874,216 | 1,056,643 1,201,093 1,146,845 1,101,570 | 985,789 | 920,337 | 764,721 | 730,571 | 721,154 | 296,654 | ||||
Grades (g/t Au) | 10.87 | 10.17 | 9.85 | 8.37 | 9.70 | 13.08 | 11.41 | 9.22 | 10.62 | 13.91 | 8.81 | 9.37 | 10.32 | 11.09 | 9.60 | 9.77 |
Gold production (oz) | 137,720 | 138,231 | 133,802 | 113,743 | 132,131 | 226,081 | 254,866 | 208,849 | 241,279 | 314,971 | 199,445 | 212,271 | 234,370 | 251,179 | 214,715 | 89,925 |
Operating costs | ||||||||||||||||
Unit mining costs (C$/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. | TSX:AGI ǀ NYSE:AGI | 34 |
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
TSX:AGI ǀ NYSE:AGI | 35 |
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
TSX:AGI ǀ NYSE:AGI | 36 |
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 | TSX:AGI ǀ NYSE:AGI | 37 |
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 | TSX:AGI ǀ NYSE:AGI | 38 |
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 | ||
TSX:AGI ǀ NYSE:AGI | 39 |
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 | TSX:AGI ǀ NYSE:AGI | 40 |
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.
TSX:AGI ǀ NYSE:AGI | 41 |
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
TSX:AGI ǀ NYSE:AGI | 42 |
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
TSX:AGI ǀ NYSE:AGI | 43 |
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 | TSX:AGI ǀ NYSE:AGI | 44 |
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 | |||
TSX:AGI ǀ NYSE:AGI | 45 |
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. | Young-Davidson, Lynn Lake |
Raynald Vincent, P.Eng., M.G.P. | Chief Geologist - Island Gold | Island Gold |
Marc Jutras, P.Eng | Principal, Ginto Consulting Inc. | Mulatos Pits, Cerro Pelon, La Yaqui, Carricito, Esperanza, Ağı Dağı, Kirazlı, Çamyurt, Quartz Mountain |
Reserves | ||
Chris Bostwick, FAusIMM | VP Technical Services, Alamos Gold Inc. | Young-Davidson, Lynn Lake |
Nathan Bourgeault, P.Eng | Chief Engineer - Island Gold | Island Gold |
Herb Welhener, SME-QP | VP, Independent Mining Consultants 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
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Disclaimer
Alamos Gold Inc. published this content on 27 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 November 2020 18:18:02 UTC