Corporate Presentation
February 2021
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 atwww.sedar.com or on EDGAR atwww.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", "assume", "inferred", "schedule", "estimate", "budget", "continue", "potential", "outlook", "trending", "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, mine life, 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, expected completion date of the shaft expansion project at Island Gold, renewal of mining concessions in Turkey, 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 and employment 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 atwww.sedar.com or on EDGAR atwww.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. 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. Alamos may use certain terms, such as "Measured Mineral Resources", "Indicated Mineral Resources", "Inferred Mineral Resources" and "Probable Mineral Reserves". 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.
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-site all-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-site all-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 atwww.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.
TSX:AGI ǀ NYSE:AGI 2
Strong platform for delivering sustainable long-term value
Growing, diversified, intermediate gold producerExpanding margins & profitabilityConservative, low-risk strategySustainable business model supporting growing returns over the long-term
470-510k oz
2021E gold production
$1,025-$1,075
2021E AISC per ounce1,2
Safe jurisdictions
100% North American production
Balanced approach
to capital allocation
~750k oz
2025E production potential
~$800
2025E AISC per ounce1,2
Debt-free
$221m cash & $721m total liquidity4
$196m
Returned to shareholders through dividends & buybacks
12 year
average mine life3
$134m
free cash flow H2 20202
Fully funded
organic growth
1 Total consolidated all-in sustaining costs include corporate and administrative and share based compensation expenses. For the purposes of calculating all-in sustaining costs at individual mine sites, the Company does not include corporate and administrative and share based compensation expenses
2 Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures
3 Average mine life based on Proven & Probable Mineral Reserves as of December 31, 2020 at Young-Davidson and Mulatos and Phase III Expansion mine plan at Island Gold
4 Cash & cash equivalents and debt as of December 31, 2020
Long-term track record
of value creation for all stakeholders
ESG - leading on key metrics with focus on continuous improvement
tCO2e/oz
Lower GHG emissions per oz gold produced1,2
0.59
0.51
0.36
5%
reduction in 2019
AGIInt AvgSr Avg
per200,000hours worked
Lost time injury rate
0.34
2018
59% | |
0.17 | |
0.14 | reduction |
since 2018 | |
2019 | 2020 |
33%
90%
Director independenceindependent board members are women
o Alignment of executive pay to performance & shareholder interests
o Top quartile ranking in 2020 Globe and Mail Board Games
Higher water efficiency per oz gold produced1,2
waterwithdrawal m3/oz
30.8
25.5
11.0
69%
recycled water use
AGIInt AvgSr Avg
o Carbon footprint & energy reduction initiatives
o Grid power connection at Mulatos
o Automation with YD lower mine expansion
o 35% reduction in life of mine GHG emissions with Island Gold Phase III expansion
o Zero significant environmental incidents in 2020
Community investment1,3
2.4%
%revenue
Int Avg
$16m
invested in 2019
AGI
Sr Avg
o Recognition for social contributions:
o Best Corporate Social Responsibility Practice 20194
o Empresa Socialmente Responsable (ESR)5 award - 12 consecutive years
o Ethics and Values in Industry6 award
o 26% reduction in recordable injuries since 2018
o Improving ESG disclosure, reporting in accordance with:
o Adopting TCFD recommendations and incorporating climate-related risk into disclosures
o Alignment of practices to WGC's Responsible Gold
Mining Principles and Conflict-Free Gold Standard
o Responsible tailings management: support of Investor Mining & Tailings Safety Initiative
o Top quartile ranking in Credit Suisse's 2020
Precious Metals ESG Scorecard1
1 Source: 2019 data; Bloomberg, Credit Suisse 2020 Precious Metals ESG Scorecard (October 2020)
2 Intermediate average includes BTO, CG, ELD, IMG, NGD, OGC, YRI. Senior average includes AEM, GOLD, K, KL, NEM
3 Intermediate average includes BTO, CG, ELD, IMG, NGD, OGC, PAAS, SSRM, YRI. Senior average includes AEM, GOLD, K, KL, NEM
4 Best Corporate Social Responsibility Practice 2019 from Cemefi, AliaRSEand Forum Empresafor Alamos' voluntary relocation program of residents from Mulatosto Matarachi, Mexico
5 EmpresaSocialmenteResponsable(ESR) -CSR Award received from Mexican Center for Philanthropy
6 Awarded by CONCAMIN, the Industrial Chambers Confederation of Mexico
Q4 & 2020 results - achieved full-year guidance; record financial performance
Gold production (000 oz)
Gold sales (000 oz)Average realized gold price (US$/oz)
Cost of sales (US$/oz, includes amortization)1
Total cash costs (US$/oz)3
All-in sustaining costs (US$/oz)2,3
Operating revenues (US$M)
$1,860 $1,115 $733 $1,030 $227
Adjusted net earnings (US$M)3
Adjusted earnings per share3
Cash provided by operations before changes in working capital (US$M)3
Cash flow per share3
Capital expenditures (US$M)4
Mine-site free cash flow (US$M)3
$58 $0.15 $127 $0.32 $73 $67
Consolidated free cash flow (US$M) 3
Cash & cash equivalents (US$M)5
Q4 2020ARevised 2020
Q4 2019A
120.4
2020A
122.1
426.8
2019A
Guidance5
494.5
405-435
$1,463 $1,070 $722 $972 $186
$1,763 $1,136 $761 $1,046 $748
$1,381 $1,054 $720 $951 $683
- $1,160
$780-820 $1,030-1,070
$32 $0.08 $82 $0.21 $73 $18
$157 $0.40 $383 $0.98 $246 $169
$84 $0.21 $293 $0.75 $264 $62
- - - - $205-235
-$58 $221
$5 $183
$122 $221
$183
($3)
- -
1 Cost of sales includes mining and processing costs, royalties and amortization
2 Total consolidated all-in sustaining costs include corporate and administrative and share based compensation expenses. For the purposes of calculating all-in sustaining costs at individual mine sites, the Company does not include corporate and administrative and share based compensation expenses
3 Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures
4 Includes capitalized exploration of $4.0m in Q4/20, $4.3m in Q4/19, $12.8m for 2020, $17.7m for 2019
5 2020 guidance revised on July 29, 2020 reflecting COVID-19 related temporary operational suspensions & delays during Q2 2020
2021 guidance - higher production, lower costs; fully funded organic growth
Gold production | Total cash costs | Sustaining & growth capital |
(000 oz) | (US$/oz)1 | (US$m)1 |
470-510
2020A
Cost of sales (US$/oz)3
$761
2021E
2020A
2021E
All-in sustaining costs
(US$/oz)1,2
$1,136
$1,105
$1,046
$1,025-1,075
2020A
2021E
1 Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures
2020A
2021E
2 Total consolidated all-in sustaining costs include corporate and administrative and share based compensation expenses. For the purposes of calculating all-in sustaining costs at individual mine sites, the Company does not include corporate and administrative and share based compensation expenses
3 Cost of sales includes mining and processing costs, royalties and amortization
4 Based on the mid-point of 2021 guidance
2020A
2020A Growth2020A Sustaining
2021E
2021E Growth2021E Sustaining
Exploration expenditures
(US$m)
$34
2020A
2020A Capitalized2020A Expensed
2021E
2021E Capitalized2021E Expensed
Sustainable business model
Balanced approach to capital allocation supporting growth & higher returns to shareholders over the long term
Strong free cash flow outlook
o Completion of lower mine expansion at Young-Davidson
o Strong ongoing performances from Island Gold & Mulatos
o $134m free cash flow1 in H2 2020
1 Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures.
o 25% increase in dividend to $0.10/sh/yr
o 400% increase in dividend since 2018
o Share buyback
o $221m in cash and equivalents at YE 2020
o Debt free - repaid revolver October 2020
o Island Gold Phase III Expansion
o La Yaqui Grande
o Exploration
Diversified asset base; low political risk profile
1 750koz growth potential includes completion of Phase III Expansion at Island Gold and development of Lynn Lake
2 Proven & Probable Mineral Reserves total 9.9 million ounces of gold (204.1 mt at 1.50 g/t Au)
3 Average mine life based on existing operating mines
4 Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures
Young-Davidson - lower mine expansion driving strong free cash flow growth
• One of Canada's largest underground gold mines
• Transitioned to new, larger, highly automated infrastructure July 2020
• Record mining rates of 7,651 tpd & record FCF2 of $31m generated Q4/20
• Production growth to 190-205k oz at significantly lower costs & capital expected to drive record FCF2 of ~$118m3 in 2021
• Capital trending lower to rate of $40-$50m per year
1
Total capital (US$m)Operating cash flow (US$m)
2
$195
Northgate shaft shutdown to complete lower mine expansion
1 Includes capitalized exploration
2 Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures
3 Based on the mid-point of guidance and assuming an $1,800/oz gold price in 2021
Underground mining rate (tpd)
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
Q4/20
Island Gold - Phase III Expansion to drive 70% production growth
• World's sixth highest grade gold mine1
• Phase II expansion: record mine-site free cash flow3 of $101m in 2020
• Phase III Shaft Expansion: 70% production growth at industry low costs
• 236k oz/yr at mine-site AISC of $534/oz starting in 2025
• $1.45B NPV5% & 22% IRR (after-tax; $1,750/oz Au) 5,6
• Expansion self-financed by Island Gold at $1,750/oz Au
• Significant exploration potential: $25m exploration budget in 2021
2
Total capital (US$m)Operating cash flow (US$m) 3
3
$182
$180
Goldproduction(oz)
2016A
2017A
2018A
2019A
1 Source: Mines and Metals, July 13, 2020; based on reserve grade for deposits containing reserves of more than 1m oz
2 Includes capitalized exploration
3 Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures
2020A
4 Based on the mid-point of guidance and assuming an $1,800/oz gold price in 2021; operating cash flow net of exploration expense of $5 million
Shaft Expansion production & cost profile 3
350,000 300,000 250,000 200,000 150,000 100,000 50,000
-$145 2021E
4
-
5 NPV and IRR are calculated for life of mine starting January 2020. IRR is calculated on the differential after-tax cash flow between the Shaft Expansion scenario and the base case of continuing to mine at 1,200 tpd with ramp only access
6 Foreign exchange rate of US$/C$ is assumed to be 0.75:1
Gold Production (oz)Mine-site AISC (US$/oz)
$1,000 $900 $800 $700 $600 $500 $400 $300 $200
Mine-siteAISC(US$/oz)
Island Gold - ongoing exploration success driving growth in size & quality
Significant Growth in Mineral Reserves & Resources Since November 2017 Acquisition
5,000 Mineral Reserves 4,000 M&I Mineral Resources Inferred Mineral Resources Mineral Reserve grade Cumulative oz produced 3,000 2,000 1,000 768 1,037 1,003 564 - 154 172 111 141 233 144 219 184 72 562
2013 2014 2015 | 3,208 2,298 1,573 908 996 184 196 166 111 91 1,310 1,215 752 887 1,007 | 12 10 8 6 4 2 0 |
457 556 662 812 951 2016 2017 2018 2019 2020 2 |
kozAu
Increase in Mineral Reserves & Resources, net of 508k oz of mining depletion3
2.8m oz
1 See Mineral Reserve and Resource estimates and associated footnotes in appendix
Grade(g/tAu)
2 Includes Proven & Probable Mineral Reserves of 1.3m oz (4.2 mt at 9.71 g/t Au), Measured & Indicated Mineral Resources of 166,000 oz (0.7 mt at 7.18 g/t Au) & Inferred Mineral Resources of 3.2m oz (6.9 mt at 14.43 g/t Au)
3 Since completion of acquisition of Island Gold in November 2017
Mulatos District - stable production; declining cost profile
• Founding asset; produced >2 m oz of gold & $485m FCF2 to date
• Declining cost profile; connection to grid power & development of La Yaqui Grande
• Cerro Pelon built for $25m in 2019; strong driver of $68m mine-site FCF2 in 2020
• La Yaqui Grande, low-cost, high return project; 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 $1,750/oz Au
Total capital (US$m) 1
Operating cash flow (US$m)
2
$136
La Yaqui Grande
Average annual production (000 oz)3 Average mine-site AISC (US$/oz)2,3
123
$578
Initial capital (US$M)3
$137
Total LOM capital (US$M)3
$196
Gold price assumption (US$/oz) | $1,450 $1,750 |
$165 | $260 |
41% | 58% |
2 Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures | |
3 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 | |
4 Pre-tax mine-site free cash flow | TSX:AGI ǀ NYSE:AGI |
5 Based on the mid-point of guidance and assuming an $1,800/oz gold price in 2021; operating cash flow net of exploration expense of $9 million |
1 Includes capitalized exploration
2016A
2017A
2018A
2019A
2020A
-$130 2021E 4,5
After-tax NPV5% (US$M)2,3
After-tax IRR 2,3
Growing, long-life North American production; declining cost profile
~750k oz annual production potential by 2025 at ~$800/oz AISC1
Production(000ozAu)
Additional value creation opportunities with Turkish projects, Esperanza & Quartz Mountain
1 Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures
2 Mineral Reserve life based on Mineral Reserves as of December 31, 2020. Island Gold mine life based on Phase III Expansion Study. See Mineral Reserve and Resource estimates and associated footnotes in appendix
3 For more detail on Lynn Lake project, see press release dated December 14, 2017
Growth: Lynn Lake Project - low cost, high-grade, open pit
• Favourable jurisdiction: Manitoba, Canada
• High-grade, open pit with significant exploration potential across large land package (58,000 ha)
• Feasibility Study (Dec 2017) based on Mineral Reserves of 1.6m oz3,4
• Mineral Reserves have since increase 27% to 2.1m oz3,4
• Environmental Impact Statement submitted Q2 2020; Indigenous community engagement underway
• Construction decision expected 2022
$1,500
$290
21.5%
$1,750 $441 | 28.8% |
$1,950 $572 | 34.8% |
1 See Lynn Lake Dec. 2017 feasibility study as detailed in press release dated Dec. 14, 2017 for more details. Base case assumptions for gold & silver price were $1,250/oz & $16/oz
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 Proven & Probable Mineral Reserves totaled 1.6m oz (26.8 mt at 1.89 g/t Au) as of Dec. 1, 2017 and 2.1m oz (36.5 mt at 1.75 g/t Au) as of Dec. 31, 2020
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 (%)
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.
2 Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures
$1,750 $345 | $551 $154 70% 60% 424% |
$1,950 $400 | $642 $179 78% 67% 489% |
Strong balance sheet; long-term focus on returning capital to shareholders
Cash & Total Liquidity
As of December 31, 2020
Cash & Cash Eq.1,2
Balance Sheet
Total Liquidity3 Total Debt2
Capital Structure
Shares Outstanding (Basic) Shares Outstanding (Fully Diluted) Recent Share Price (TSX)4
Market Capitalization
Long-term track record of returning capital to shareholders
US$pershare
2010
2011
1 Unaudited as of December 31, 2020
2012
2 Cash & cash equivalents as of December 31, 2020
2013
2014
3 Total liquidity includes cash, and cash equivalents as of December 31, 2020 and undrawn $500m
2015
US$221 million
US$721 million
US$0
392.8 million 400.4 million
C$9.47 ~C$3.7 billion
4 As of February 23, 2021
2016
2017
2018
2019
2020
2021E6
5 Calculated as total dollar amount invested in share buybacks divided by average shares outstanding over the period
6 2021E dividend based on quarterly dividend rate of $0.025 per share
Track record of adding value through M&A & exploration
Mulatos (US$m)
Young-Davidson (US$m)
Island Gold (US$m)
$47
$485
$10
$578
Acquisition Cost (2003)Consensus NAV & Cumulative FCF
$950
$1,545
Acquisition Cost (2015)Consensus NAV &Cumulative FCF
$624
$183
$1,293
Royalty Repurchase (2020)Acquisition Cost (2017) &
3
Consensus NAV & Cumulative FCF
Acquisition Cost
Consensus NAV1
1 Based on consensus analyst net asset value (NAV) estimates
2 Cumulative free cash flow (FCF) generated since acquisition as of Q4 2020. Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures
3 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 totaled $55 million
Cumulative FCF2
Track record of adding value on aggregate & per share basis
Gold Production (000 oz Au)
+250% 490
140
Mineral Reserves (M oz Au)
+471% 9.9
1.7
2014A
2021E1
2014A
2020A2
Cash provided by operations before changes in WC (US$M)
+900% $511
$51
2014A
2021E 3,4
Gold Production Per Share | Gold Reserves Per Share | Cash Flow Per Share |
(oz x 1000) | (oz x 1000) | (US$, basic) |
+225% $1.30
+14%
1.25
1.10
2014A
2021E 1
1 2021E gold production growth from 2014 based on the mid-point of guidance of 470-510k oz Au
2 See Mineral Reserve and Resource estimates and associated footnotes in appendix
3 Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures
4 2021E operating cash flow and cash flow per share based on Factset consensus analyst estimates as of February 23, 2021
+85%
25.13
2020A 2
2014A
2014A
2021E 3,4
Long-term track record of delivering shareholder value
Average annualized return since 2003 1 13%
10%
2%
AGI (TSX)
1 As of February 23, 2021
S&P/TSX Global Gold
Index
Gold (US$/oz)
2 Source: Factset consensus estimates as of February 23, 2021. Intermediate average includes BTO, CG, ELD , EQX, IMG, NGD, OGC, PAAS, SSRM, YRI
Alamos - value creation opportunities
Catalysts
15% production growth in 2021 & further ~50% growth potential to ~750koz by 2025
24% reduction in AISC1 to ~$800/oz by 2025
Strong ongoing FCF1 generation while advancing growth initiatives at Island Gold & MulatosOngoing exploration success at Island GoldExpanded exploration programs at Young-Davidson, Mulatos & Lynn Lake
1 Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures
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 | Nils Engelstad |
President and CEO | Chief Financial Officer | Chief Operating Officer | VP, Human Resources | VP, Technical Services | Senior VP, Mexico | VP, General Counsel |
Greg Fisher | John Fitzgerald | Scott K. Parsons | Scott R.G. Parsons | Adrian Paulse | Rebecca Thompson | Colin Webster |
VP, Finance | VP, Projects | VP, Investor Relations | VP, Exploration | VP, Information Technology | VP, Public Affairs | VP, Sustainability & External Affairs TSX:AGI ǀ NYSE:AGI |
2021 guidance
2021 Guidance | 2020A | |||||
Young-Davidson | Island Gold | Mulatos | Other | Total | Total | |
Gold production (000's oz) | 190-205 | 130-145 | 150-160 | - | 470-510 | 427 |
Cost of Sales (in millions) (3) | $255 | $108 | $177 | - | $540 | $482 |
Cost of Sales ($ per ounce) (3) | $1,290 | $785 | $1,145 | - | $1,105 | $1,136 |
Total cash costs ($ per ounce) (1) | $790-840 | $430-480 | $840-890 | - | $710-760 | $761 |
All-in sustaining costs ($ per ounce) (1) | - | - | - | - | $1,025-1,075 | $1,046 |
Mine-site all-in sustaining costs ($ per ounce) (1),(2) | $1,000-1,050 | $750-800 | $1,060-1,110 | - | - | - |
Amortization costs ($ per ounce) (1) | $475 | $330 | $280 | - | $370 | $360 |
Corporate & Administrative (in millions) | - | - | - | - | $20 | $21 |
Capital expenditures (in millions) | ||||||
Sustaining capital(1) | $40-45 | $40-45 | $30-35 | - | $110-125 | $82 |
Growth capital(1) | $25-30 | $80-85 | $95-100 | $10 | $210-225 | $146 |
Total sustaining & growth capital(1) | $65-75 | $120-130 | $125-135 | $10 | $320-350 | $228 |
Capitalized exploration(1) | $7 | $20 | - | $7 | $34 | $18 |
Total capital expenditures(1) | $72-82 | $140-150 | $125-135 | $17 | $354-384 | $246 |
1 Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures.
2 For the purposes of calculating mine-site all-in sustaining costs at individual mine sites, the Company does not include an allocation of corporate and administrative and share based compensation expenses to the mine sites.
3 Cost of sales includes mining and processing costs, royalties, and amortization expense, and is calculated based on the mid-point of total cash cost guidance.
2021 guidance - capital budget
2021 Guidance | 2020A | |||
Sustaining Capital | Growth Capital | Total | Total | |
Operating Mines (US$M) | ||||
Young-Davidson | $40-45 | $25-30 | $65-75 | $102 |
Island Gold | $40-45 | $80-85 | $120-130 | $69 |
Mulatos | $30-35 | $95-100 | $125-135 | $41 |
Total - Operating Mines | $110-125 | $200-215 | $310-340 | $212 |
Development Projects (US$M) | ||||
Lynn Lake | - | $6 | $6 | $4 |
Other | - | $4 | $4 | $12 |
Total - Development Projects | - | $10 | $10 | $16 |
Capitalized Exploration (US$M) | ||||
Young-Davidson | - | $7 | $7 | $- |
Island Gold | - | $20 | $20 | $12 |
Mulatos | - | - | - | $1 |
Lynn Lake | - | $7 | $7 | $5 |
Total - Capitalized Exploration | - | $34 | $34 | $18 |
Total Consolidated Budget | $110-125 | $244-259 | $354-384 | $246 |
1 Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures
COVID-19 - focused on the health & safety of our people & communities
Strict health & safety protocols at each operation
• We continue to be diligent in taking precautions to help prevent the potential spread of COVID-19
• All operations have returned to normal operating levels under strict health & safety protocols
• On-site testing for COVID-19 implemented at all operations
Supporting our communities
• Our teams in Canada, Mexico, and Turkey have donated their time, medical equipment & supplies, food & funds to support:
• Hospitals & medical clinics
• Frontline workers
• Vulnerable members of our communities
Young-Davidson - flagship, long-life production
• One of Canada's largest underground gold mines
• 14 year mine life based on YE 2020 Mineral Reserves
• Large resource base & exploration potential to support mine life extension
• Significant Canadian dollar exposure; ~95% of costs
2019A | 2020A | 2021E | |
Gold Production (k oz) | 188.0 | 136.2 | 190-205 |
Cost of Sales1 (US$/oz) | $1,224 | $1,491 | $1,290 |
Total Cash Costs2 (US$/oz) | $800 | $1,019 | $790-840 |
Mine-site AISC2 (US$/oz) | $1,047 | $1,214 | $1,000-1,050 |
Total Capital4 (US$m) | $100 | $102 | $65-75 |
Exploration Spending4 (US$m) | - | - | $7 |
Mine-site FCF2 (US$m) | $13 | $0 | - |
Gold Reserves & Resources3 | Tonnes (000) | Grade (g/t Au) | oz Au (000) |
P&P Mineral Reserves | 41,191 | 2.44 | 3,232 |
M&I Mineral Resources | 11,011 | 3.22 | 1,140 |
Inferred Mineral Resources | 2,331 | 2.86 | 214 |
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 Total capital excludes capitalized exploration. Exploration spending guidance of $7m in 2021, all capitalized
Young-Davidson - transition to lower mine infrastructure completed July 2020
Young-Davidson - lower mine expansion to drive costs lower
H1 2021E 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 |
Mid shaft ore trucking from below 9590 L | trucking | n/a | C$1.00/tonne |
Fine ore bin capacity | 500t | 6,000t | No hoisting downtime between blasting & shift changes |
Skip size | 17.5t | 24.5t | + 2,343 tpd capacity |
Sub level spacing | 30m | 35m | 6 km less development; C$20 million capital plus C$0.25/tonne operating cost savings |
Average stope size | 24,000t | 37,000t | less stopes mined (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 |
C$10/t decreaseLOM
Young-Davidson - increasing mining rates & productivity
Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 | ||
Gold production (oz) | 39,365 38,201 44,694 39,065 42,644 43,629 44,662 40,400 47,300 55,800 56,500 41,000 39,100 49,000 50,900 45,000 45,000 50,000 48,000 28,700 23,100 36,400 | 48,000 |
Cost of sales1 (US$/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 | $1,264 |
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 | $792 |
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 | $934 |
Underground mine | ||
Tonnes mined per day | 5,149 5,081 5,911 5,776 6,123 5,467 6,675 6,400 6,377 6,544 7,227 6,501 6,087 6,005 6,402 6,540 6,728 6,606 7,000 4,290 2,686 6,713 | 7,651 |
Grades (g/t) | 2.6 2.6 2.6 2.6 2.4 2.8 2.4 2.6 2.6 2.9 2.7 2.4 2.4 2.6 2.7 2.5 2.4 2.6 2.7 2.2 2.5 2.24 | 2.20 |
Development metres | 3,789 3,619 3,769 3,490 3,168 2,677 3,044 3,242 3,425 3,344 2,776 3,144 3,079 2,811 2,975 2,900 2,877 2,817 2,925 3,202 2,894 3,231 | 3,223 |
Unit UG mining costs (US$/t) | $33 $32 $294 $31 $34 $34 $32 $36 $33 $34 $34 $43 $41 $41 $38 $39 $40 $39 $39 $57 $82 $34 | $34 |
Unit UG mining costs (CAD$/t) | $41 $41 $384 $42 $44 $45 $42 $47 $44 $43 $44 $54 $53 $54 $51 $52 $53 $51 $51 $77 $114 $45 | $44 |
Mill processing facility | ||
Tonnes processed per day | 7,677 7,680 7,630 7,342 7,006 6,833 7,552 7,718 6,917 7,553 7,786 7,437 6,574 7,293 8,104 6,777 7,516 7,124 6,761 5,107 4,344 6,430 | 7,932 |
Grades (inc. OP stockpile) | 2.0 1.9 2.2 2.1 2.1 2.4 2.2 2.2 2.5 2.7 2.6 2.2 2.2 2.4 2.4 2.5 2.3 2.5 2.7 1.9 1.85 2.19 | 2.21 |
Recoveries (%) | 88% 92% 91% 90% 92% 93% 90% 89% 92% 93% 92% 90% 92% 93% 92% 90% 91% 92% 92% 91% 93% 93% | 91% |
1 Cost of sales includes mining and processing costs, royalties and amortization
2 Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures
3 Excludes Net Realizable Value ("NRV") inventory adjustments. See associated MD&A for a full reconciliation
4 Excludes hydro rebate not attributable to Q4/15
Island Gold - high-grade, low-cost production
Location: Ontario, Canada
Ownership: 100% interestStage: Producing
Operation: Underground
• World's sixth highest grade gold mine1
• Phase III Shaft Expansion to 2,000 tpd expected to be completed 2025
• Significant exploration potential laterally & at depth
2019A | 2020A | 2021E | |
Gold Production (k oz) | 150.4 | 139.0 | 130-145 |
Cost of Sales2 (US$/oz) | $864 | $801 | $785 |
Total Cash Costs3 (US$/oz) | $495 | $451 | $430-480 |
Mine-site AISC3 (US$/oz) | $656 | $660 | $750-800 |
Total Capital4,5 (US$m) | $53 | $69 | $120-130 |
Exploration Spending5 (US$m) | $17 | $13 | $25 |
Mine-site FCF3 (US$m) | $65 | $101 | - |
Gold Reserves & Resources6 | Tonnes (000) | Grade (g/t Au) | oz Au (000) |
P&P Mineral Reserves | 4,197 | 9.71 | 1,310 |
M&I Mineral Resources | 718 | 7.18 | 166 |
Inferred Mineral Resources | 6,915 | 14.43 | 3,208 |
1 Source: Mines and Metals, July 13, 2020; based on reserve grade for deposits containing reserves of more than 1m oz
2 Cost of sales includes mining and processing costs, royalties and amortization
3 Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures
4 Excludes capitalized exploration
5 Exploration spending: Q4/20 totaled $4.3m, of which $3.8m was capitalized; FY/20 totaled $12.9m, of which $11.9m was capitalized; 2021 guidance of $25m includes $20m of capitalized exploration
6 See Mineral Reserve and Resource estimates and associated footnotes in appendix
7 Since 1985
Highly Productive Gold Mining District
Mine/ProjectCity
One of Canada's highest-grade gold mines
Mineral Reserve Grade (g/t Au)
22.1
Source: Company filings
S2000
2020
2021
2022
2023
2024
2025
Total capital (US$m)
2026
Operating cash flow (US$m)
• Modest investment required at $1,450/oz Au
• Spending on long lead items starting in 2021
2027
2028
2029
After-tax mine-site free cash flow (US$m)
• $170M average annual after-tax FCF starting in 2025 (post project3)
2030
2031
2032
2033
2034
2035
S2000
$332
2020
2021
2022
2023
2024
2025
Total capital (US$m)
2026
2027
2028
Operating cash flow (US$m)
2029
2030
2031
2032
After-tax mine-site free cash flow (US$m)
2033
2034
2035
Island Gold Shaft Expansion - detailed mine plan
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 | |
Mill Feed mined (tonnes) | 438,000 437,999 437,994 439,198 557,150 719,805 730,000 731,957 729,934 729,951 730,000 731,947 730,000 721,154 296,654 |
Waste mined (tonnes) | 440,063 611,313 688,082 478,034 317,066 336,839 471,093 414,888 371,636 255,838 190,337 32,774 571 - - |
Total tonnes mined | 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) | 10.17 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) | 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) | $103 $96 $97 $115 $108 $96 $84 $87 $91 $95 $95 $103 $103 $101 $92 |
Unit milling costs (C$/tonne) | $33 $33 $33 $34 $33 $30 $30 $30 $30 $30 $30 $30 $30 $30 $33 |
Unit G&A costs (C$/tonne) | $47 $47 $46 $48 $42 $36 $33 $34 $34 $35 $36 $39 $39 $39 $43 |
Total unit operating costs 2 (C$/tonne) | $195 $188 $188 $211 $200 $177 $159 $165 $175 $173 $174 $187 $187 $183 $179 |
Total cash costs (US$/oz) 1 | $464 $460 $542 $527 $370 $375 $418 $375 $304 $475 $449 $438 $408 $460 $442 |
Mine-site AISC (US$/oz) 1 | $771 $818 $941 $899 $566 $531 $668 $573 $437 $651 $592 $497 $469 $465 $442 |
Capital expenditures | |
Sustaining capex (US$ M) | $43 $48 $45 $49 $44 $40 $52 $48 $42 $35 $30 $14 $15 $1 $0 |
Growth capex (US$ M) | $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.
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 - changes in Mineral Reserves as of December 31, 2020
Planned shaft
Crown pillar
- 1500 m
LEGEND
Ramp & Development Mined out
Diabase Dyke
R & R Year End 2020
Proven Reserves
Probable Reserves Measured Resources
Indicated Resources
Inferred Resources
340 Level
Mineral Reserves as of December 31, 2020
Category | Tonnage | Grade Au (g/t) | Ounces Au |
Proven: | 894,500 | 10.95 | 314,800 |
Probable: | 3,302,900 | 9.37 | 995,200 |
TOTAL: | 4,197,400 | 9.71 | 1,310,000 |
- 500 m |
620 Level
840 Level
1,003,000 t at 9.14 g/t Au, 294,600 oz Au
(Gain of 93,800 oz Au)
Island East
1000 Level
998,900 t at 8.42 g/t Au, 270,400 oz Au
(Gain of 93,700 oz Au)
E
- 1000 m
- 1500 m
Island Gold - changes in Mineral Resources as of December 31, 2020
Crown pillar
E
LEGEND
Ramp & Development Mined out
Diabase Dyke
R & R Year End 2020
Proven Reserves
Probable Reserves Measured Resources
Indicated Resources
Inferred Resources
- 1500 m
Island Gold - Trillium Mining acquisition adds to significant exploration potential
• 56% increase in land package to 15,053 ha with C$25m Trillium Mining acquisition
• Significant exploration potential added in proximity to existing Mineral Resources & regionally
Island Gold - historical operational results
40,000
$2,000
16
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
0
Q4/14
$1,800
$1,600
$1,400
$1,200
$1,000
$800
$600
$400
$200
$0
14
12
10
8
6
4
2
Q1/15
1,400 1,200 1,000 800 600 400 200 0
Q2/15
Q3/15
Q4/15
Q1/16
Q2/16
Q3/16
Q4/16
Q1/17
Q2/17
Q3/17
Gold production (oz)
Q4/17
Q1/18
Q2/18
Q3/18
Q4/18
Q1/19
Q2/19
Q3/19
Q4/19
Mine-site AISC (US$/oz)
Q1/20
Q2/20
Q3/20
Q4/20
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
Tonnes processed per day
Q2/18
Q3/18
Q4/18
Q1/19
Q2/19
Q3/19
Q4/19
Milled Grades (g/t)
Q1/20
Q2/20
Q3/20
Q4/20
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 Q4/20 |
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 | 41,200 |
Cost of sales1 (US$/oz) | $1,000 $1,027 $1,085 $950 $852 $824 $860 $918 $780 $1,056 $715 | $791 |
Total cash costs (US$/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 | $481 |
Mine-site AISC (US$/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 | $676 |
Underground mine | ||
Tonnes mined per day | 399 552 759 669 657 853 911 735 977 1,019 1,148 917 1,026 941 902 814 1,116 1,083 991 978 1,116 1,240 819 1,209 | 1,234 |
Grades (g/t) | 6.89 8.02 6.73 7.27 7.83 11.17 7.27 7.29 8.83 8.64 10.28 9.16 9.44 11.06 7.34 8.96 8.95 11.40 14.53 10.81 12.44 11.69 7.28 13.68 | 10.77 |
Development metres | 1,754 2,048 1,597 1,872 1,486 2,325 2,273 1,749 2,351 2,083 1,773 1,383 1,667 1,555 1,771 1,591 1,560 1,557 1,568 1,211 1,831 1,952 931 1,430 | 1,854 |
Unit UG mining costs (CAD$) | $235 $234 $139 $140 $177 $146 $135 $151 $116 $125 $119 $127 $127 $151 $155 $162 $148 $150 $158 $171 $165 $120 $93 $106 | $121 |
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 | 1,147 |
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 | 11.88 |
Recoveries (%) | 95.3% 97.2% 96.8% 97.1% 96.0% 96.3% 96.5% 96.4% 96.9% 96.7% 97.6% 97% 96% 96% 97% 96% 96% 97% 97% 97% 97% 97% 96% 97% | 97% |
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
Mulatos - our founding operation
• Initial production 2005
• ~$485m of free cash flow2 generated to date
• Declining cost profile with connection to grid power & development of La Yaqui Grande
• No third party royalty
• Large underexplored land package (28,773 ha)
2019A | 2020A | 2021E | |
Gold Production (k oz) | 142.0 | 150.8 | 150-160 |
Cost of Sales1 (US$/oz) | $982 | $1,127 | $1,145 |
Total Cash Costs2 (US$/oz) | $784 | $816 | $840-890 |
Mine-site AISC2 (US$/oz) | $868 | $1,032 | $1,060-1,110 |
Total Capital3 (US$m) | $53 | $41 | $125-135 |
Exploration Spending3 (US$m) | $5 | $5 | $9 |
Mine-site FCF2 (US$m) | ($13) | $68 | - |
Gold Reserves & Resources4 | Tonnes (000) | Grade (g/t Au) | oz Au (000) |
P&P Mineral Reserves | 33,935 | 1.24 | 1,351 |
M&I Mineral Resources | 74,193 | 1.09 | 2,600 |
Inferred Mineral Resources | 9,291 | 0.91 | 271 |
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 Exploration spending: 2020 totaled $5.1m including $0.9m capitalized; 2021 guidance of $9m all expected to be expensed
4 See Mineral Reserve and Resource estimates and associated footnotes in appendix
Mulatos - district exploration potential
1 See Mineral Reserve and Resource estimates and associated footnotes in appendix
2 Includes Proven & Probable Reserves of 732,000 oz (18.2 mt at 1.25 g/t Au) for La Yaqui and Proven & Probable Reserves of 87,000 oz (1.4 mt at 1.9 g/t Au) for
Cerro Pelon
La Yaqui Grande Internal Economic Study - 2020
La Yaqui Grande Project Highlights | Life of Mine1 |
Production | |
Mine life (years) Total gold production (000 ounces) Total silver production (000 ounces) Average annual gold production (000 ounces) Total ore mined (000 tonnes) Average tonnes of ore mined & stacked (tonnes per day ("tpd")) Average gold grade (grams per tonne) Gold recovery (%) Silver recovery (%) Waste-to-ore ratio (Life of Mine including pre-strip) Waste-to-ore ratio (post pre-strip) | 5 616 1,471 123 19,205 10,000 1.17 85% 15% 5.50 4.04 |
Operating Costs | |
Mining costs per tonne of material (life of mine, including pre-stripping) Processing costs per tonne of ore G&A costs per tonne of ore Total cash cost (per ounce sold)2 Mine-site all-in sustaining cost (per ounce sold)2 | $2.42 $5.05 $2.34 $539 $578 |
Capital Costs (millions) 1 | |
Initial capital expenditure3 Sustaining capital expenditure Reclamation Total capital expenditure, including reclamation | $137 $24 $35 $196 |
Base Case Economic Analysis1 | |
IRR (after-tax) NPV @ 0% discount rate (millions, after-tax) NPV @ 5% discount rate (millions, after-tax) Gold & silver price assumption (average, per ounce sold) Exchange Rate (Mexican Peso/US Dollar) | 41% $226 $165 $1,450 / $18 21 |
Economic Analysis at $1,750 per ounce Gold Price1 | |
IRR (after-tax) NPV @ 0% discount rate (millions, after-tax) NPV @ 5% discount rate (millions, after-tax) Gold & silver price assumption (average, per ounce sold) Exchange Rate (Mexican Peso/US Dollar) | 58% $345 $260 $1,750 / $18 21 |
1. Capital spending and economic analysis (NPV and IRR) are calculated starting January 1, 2020
2. Total cash costs and mine-site all-in sustaining costs include royalties and silver by-product credit
3. Initial capital is offset by $5 million of pre-production revenue less operating costs
Development - Kirazlı, Ağı Dağı & Çamyurt
Location: Turkey Ownership: 100% interest
Stage: Development
Operation: Open pit, heap leach
• Kirazlı EIA, GSM & Forestry Permits approved
• Kirazlı & Ağı Dağı feasibility studies completed February 20171 outlining 185% increase in combined after-tax NPV8%
• Tax incentives & mining law supportive of industry
2017 Positive Economic Studies1 | Kirazlı Feasibility Study | Ağı Dağı Feasibility Study | Çamyurt PEA | |
Mine Life | Years | 5 | 6 | 4 |
Average Annual Production | oz Au | 104,000 | 177,600 | 93,200 |
oz Ag | 617,300 | 444,200 | 403,000 | |
Average grade | g/t Au | 0.79 | 0.67 | 0.92 |
Mine-site AISC2 | US$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 |
1 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
2 Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures.
Kirazlı, Ağı Dağı & Çamyurt Economic Studies - 2017
Feasibility Study - 2017 | Preliminary Economic Assessment - 2017 | ||
Kirazlı | Ağı Dağı | Çamyurt | |
Production | |||
Mine life (years) Total gold production (ounces) Total silver production (ounces) Average annual production (ounces)1 Gold Silver Total ore mined (tonnes) Total waste mined (tonnes) | 5 540,000 3,141,000 104,000 617,300 26,100,000 37,900,000 | 6 937,300 2,365,200 177,600 444,200 54,361,000 55,893,000 | 4 373,200 1,612,600 93,200 403,000 16,580,000 30,874,000 |
Total material mined (tonnes) Waste-to-ore ratio2 Average grade (grams per tonne) Gold Silver Recovery (%) Gold Silver | 64,000,000 1.45 0.79 12.0 81% 31% 15,000 | 110,254,000 1.03 0.67 5.4 80% 25% 30,000 | 47,454,000 1.86 0.92 6.3 76% 48% 15,000 |
Average throughput (tpd) | |||
Operating Costs | |||
Total cost per tonne of ore3 Total cash cost (per ounce sold)4 Mine-site all-in sustaining cost (per ounce sold)4 | $8.49 $339 $373 | $6.46 $374 $411 | $14.03 $604 $645 |
Capital Costs (millions) | |||
Pre-production capital expenditure Sustaining capital expenditure Reclamation costs (net of salvage value) | $151.9 $18.1 $9.9 | $250.3 $33.9 $28.8 | $10.2 $9.4 $5.9 |
Total capital expenditure | $179.8 | $312.9 | $25.5 |
Economic Analysis | |||
IRR (after-tax) NPV @ 0% discount rate (after-tax, millions) NPV @ 5% discount rate (after-tax millions) NPV @ 8% discount rate (after-tax, millions) | 44.3% $299.3 $222.9 $186.5 | 38.7% $492.8 $360.2 $297.6 | 253.0% $173.8 $111.4 $86.2 |
Gold price assumption (average, per ounce sold) Silver price assumption (average, per ounce sold) Exchange Rate (Turkish Lira/US Dollar) | $1,250 $16.00 2.90:1 | $1,250 $16.00 2.90:1 | $1,250 $16.00 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
2 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
3 Total unit cost per tonne of ore excludes silver as a by-product credit
4 Total cash costs and mine-site all-in sustaining costs include silver as a by-product credit
Development - Lynn Lake, Esperanza & Quartz Mountain
Lynn Lake Location: Manitoba, Canada Ownership: 100% interest Stage: Permitting Operation: Open pit | |||||
| |||||
Tonnes | Grade | Oz Au | |||
(000) | (g/t Au) | (g/t Ag) | (000 Au) | (000 Ag) | |
P&P Reserves4 | 36,542 | 1.75 | 4.39 | 2,060 | 3,925 |
M&I Resources4 | 8,178 | 1.74 | 5.45 | 457 | 799 |
Inf. Resources | 45,873 | 1.10 | 2.06 | 1,622 | 86 |
Esperanza Location: Morelos State, Mexico Ownership: 100% interest Stage: Permitting Operation: Open pit, heap leach | |||||
| |||||
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 |
Quartz Mountain Location: Oregon, United States Ownership: Right to earn a 100% interest4 Stage: Advanced Exploration | |||
| |||
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 |
1 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
2 Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures
3 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
4 See Mineral Reserve and Resource estimates and associated footnotes in appendix
5 Additional C$3m due on completion of feasibility study & C$15m or 2% NSR upon successful permitting
Lynn Lake Feasibility Study - 2017
Feasibility Study Highlights - December 2017 | |
Production | |
Mine life (years) Total gold production (000 ounces) Total silver production (000 ounces) Average annual gold production1 Years 1 to 6 (000 ounces) Years 1 to 10 (000 ounces) Total ore mined (000 tonnes) Total waste mined (000 tonnes) | 10.4 1,495 1,263 170 143 26,803 195,188 |
Total material mined (000 tonnes) Waste-to-ore ratio2 Average grade (grams per tonne) Gold Silver Recovery (%) Gold (Average MacLellan and Gordon) Silver (MacLellan only) Average mill throughput (tonnes per day ("tpd")) | 221,991 7.28 1.89 2.99 92% 49% 7,000 |
Operating Costs | |
Total cost per tonne of ore3 Total cash cost (per ounce sold)4 Mine-site all-in sustaining cost (per ounce sold)4 | $36.06 $645 $745 |
Capital Costs (millions) | |
Pre-production capital expenditure Sustaining capital expenditure Reclamation costs | $338.0 $126.6 $21.1 |
Total capital expenditure | $485.6 |
Base Case Economic Analysis | |
IRR (after-tax) NPV @ 0% discount rate (millions, after-tax) NPV @ 5% discount rate (millions, after-tax) Gold price assumption (average, per ounce sold) Silver price assumption (average, per ounce sold) Exchange Rate (US Dollar/Canadian Dollar) | 12.5% $279.0 $123.4 $1,250 $16.00 0.75 |
1. Average annual production excludes pre-commercial production
2. 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
3. Total unit cost per tonne ("t") of ore includes royalties and silver as a by-product credit
4. Total cash costs and mine-site all-in sustaining costs include royalties and silver as a by-product credit
Proven & Probable Mineral Reserves
PROVEN AND PROBABLE GOLD MINERAL RESERVES (as at December 31, 2020) | |||
Proven Reserves | Probable Reserves | Total Proven and Probable | |
Tonnes (000's)Grade (g/t Au)Ounces (000's) | Tonnes (000's)Grade (g/t Au)Ounces (000's) | Tonnes (000's)Grade (g/t Au)Ounces (000's) | |
Young-Davidson | 20,614 2.50 1,657 | 20,577 2.38 1,574 | 41,191 2.44 3,232 |
Island Gold | 894 10.95 315 | 3,303 9.37 995 | 4,197 9.71 1,310 |
Mulatos Main Pits Stockpiles La Yaqui Grande Cerro Pelon | 668 8,854 0 502 0.97 21 1.30 369 0.00 0 1.89 31 | 4,779 0 18,203 929 0.92 142 0.00 0 1.25 732 1.91 57 | 5,447 8,854 18,203 1,431 0.93 163 1.30 369 1.25 732 1.90 87 |
Total Mulatos | 10,024 1.30 420 | 23,911 1.21 931 | 33,935 1.24 1,351 |
MacLellan Gordon | 12,059 2,311 1.83 710 1.83 210 | 15,761 6,412 1.33 672 2.27 468 | 27,820 8,723 1.54 2.42 1,382 678 |
Total Lynn Lake | 14,370 1.99 920 | 22,172 1.60 1,140 | 36,542 1.75 2,060 |
Ağı Dağı Kirazlı | 1,450 670 0.76 36 1.15 25 | 52,911 33,191 0.66 0.68 1,130 727 | 54,361 33,861 0.67 0.69 1,166 752 |
Total Turkey | 2,120 0.89 61 | 86,102 0.67 1,857 | 88,222 0.68 1,918 |
Alamos - Total | 48,022 2.18 3,373 | 156,065 1.29 6,498 | 204,087 1.50 9,870 |
PROVEN AND PROBABLE SILVER MINERAL RESERVES (as at December 31, 2020) | |||
Proven Reserves | Probable Reserves | Total Proven and Probable | |
Tonnes (000's)Grade (g/t Ag)Ounces (000's) | Tonnes (000's)Grade (g/t Ag)Ounces (000's) | Tonnes (000's)Grade (g/t Ag)Ounces (000's) | |
La Yaqui Grande Cerro Pelon MacLellan Ağı Dağı Kirazlı | 0 0.00 0 502 21.03 339 12,059 4.94 1,914 1,450 6.22 290 670 16.94 365 | 18,203 19.55 11,442 929 20.74 619 15,761 3.97 2,011 52,911 5.39 9,169 33,191 9.27 9,892 | 18,203 19.55 11,442 1,431 20.84 959 27,820 4.39 3,925 54,361 5.41 9,459 33,861 9.42 10,257 |
Alamos - Total | 14,681 6.16 2,909 | 120,995 8.52 33,133 | 135,676 8.26 36,042 |
Total Measured & Indicated Mineral Resources
MEASURED AND INDICATED GOLD MINERAL RESOURCES (as at December 31, 2020)
Measured Resources | Indicated Resources | Total Measured and Indicated | ||||||
Tonnes | Grade | Ounces | Tonnes | Grade | Ounces | Grade | Ounces | |
(000's) | (g/t Au) | (000's) | (000's) | (g/t Au) | (000's) | (g/t Au) | (000's) | |
Young-Davidson - Surface | 496 | 1.13 | 18 | 1,242 | 1.28 | 51 | 1.24 | 69 |
Young-Davidson - Underground | 6,019 | 3.44 | 665 | 3,253 | 3.88 | 406 | 3.59 | 1,071 |
Total Young-Davidson | 6,515 | 3.26 | 683 | 4,495 | 3.16 | 457 | 3.22 | 1,140 |
Island Gold | 14 | 4.61 | 2 | 704 | 7.23 | 164 | 7.18 | 166 |
Mulatos | 8,207 | 1.25 | 329 | 63,112 | 1.08 | 2,189 | 1.10 | 2,518 |
La Yaqui Grande | 0 | 0.00 | 0 | 1,237 | 0.81 | 32 | 0.80 | 32 |
Cerro Pelon | 74 | 1.92 | 5 | 208 | 1.39 | 9 | 1.54 | 14 |
Carricito | 58 | 0.82 | 2 | 1,297 | 0.82 | 34 | 0.83 | 36 |
Total Mulatos | 8,339 | 1.25 | 336 | 65,854 | 1.07 | 2,264 | 1.09 | 2,600 |
MacLellan - Open Pit | 902 | 2.07 | 60 | 3,532 | 1.71 | 194 | 1.78 | 254 |
MacLellan - Underground | 0 | 0.00 | 0 | 123 | 3.54 | 14 | 3.54 | 14 |
Gordon | 105 | 1.86 | 6 | 1,511 | 2.06 | 100 | 2.05 | 106 |
Burnt Timber | 0 | 0.00 | 0 | 1,021 | 1.40 | 46 | 1.40 | 46 |
Linkwood | 0 | 0.00 | 0 | 984 | 1.16 | 37 | 1.17 | 37 |
Total Lynn Lake | 1,007 | 2.04 | 66 | 7,172 | 1.70 | 391 | 1.74 | 457 |
Esperanza | 19,226 | 1.01 | 622 | 15,126 | 0.95 | 462 | 0.98 | 1,084 |
Ağı Dağı | 553 | 0.44 | 8 | 34,334 | 0.46 | 510 | 0.46 | 518 |
Kirazlı | 0 | 0.00 | 0 | 3,056 | 0.42 | 42 | 0.43 | 42 |
Çamyurt | 513 | 1.00 | 16 | 17,208 | 0.89 | 492 | 0.89 | 508 |
Total Turkey | 1,066 | 0.70 | 24 | 54,598 | 0.59 | 1,044 | 0.60 | 1,068 |
Quartz Mountain | 214 | 0.95 | 7 | 11,942 | 0.87 | 333 | 0.87 | 339 |
Alamos - Total | 36,381 | 1.49 | 1,740 | 159,891 | 1.00 | 5,115 | 6,855 |
Tonnes (000's) 1,739 9,272 11,011 718 71,319 1,237 282 1,355 74,193
984 8,178 34,352 34,887 3,056 17,721 55,664 12,156 196,272
4,434
1,617
1,021
123
1.09
MEASURED AND INDICATED SILVER MINERAL RESOURCES (as at December 31, 2020) | |||
Measured Resources | Indicated Resources | Total Measured and Indicated | |
Tonnes (000's)Grade (g/t Ag)Ounces (000's) | Tonnes (000's)Grade (g/t Ag)Ounces (000's) | Tonnes (000's)Grade (g/t Ag)Ounces (000's) | |
La Yaqui Grande Cerro Pelon MacLellan - Open Pit MacLellan - Underground Esperanza Ağı Dağı Kirazlı Çamyurt | 0 0.00 0 74 16.80 40 902 8.55 248 0 0.00 0 19,226 7.25 4,482 553 1.59 28 0 0.00 0 513 5.63 93 | 1,237 11 448 208 17 114 3,532 4.64 527 123 6.05 24 15,126 9.16 4,455 34,334 2.19 2,417 3,056 2.71 266 17,208 6.15 3,404 | 1,237 11 448 282 17 154 4,434 5.44 775 123 6.05 24 34,352 8.09 8,936 34,887 2.18 2,445 3,056 2.71 266 17,721 6.14 3,497 |
Alamos - Total | 21,268 7.15 4,890 | 74,824 4.84 11,655 | 96,092 5.36 TSX:AGI ǀ NYS1E6:A,5G4I5 |
Total Inferred Mineral Resources
INFERRED GOLD MINERAL RESOURCES (as at December 31, 2020) | |
Tonnes (000's)Grade (g/t Au)Ounces (000's) | |
Young-Davidson - Surface Young-Davidson - Underground | 31 2,301 0.99 1 2.88 213 |
Total Young-Davidson | 2,331 2.86 214 |
Island Gold | 6,915 14.43 3,208 |
Mulatos La Yaqui Grande Cerro Pelon Carricito | 8,122 243 26 900 0.92 239 1.12 9 0.71 1 0.74 22 |
Total Mulatos | 9,291 0.91 271 |
MacLellan - Open Pit MacLellan - Underground Gordon Burnt Timber Linkwood | 1,227 1.11 44 72 3.69 9 132 1.36 6 23,438 1.04 781 21,004 1.16 783 |
Total Lynn Lake | 45,873 1.10 1,622 |
Esperanza | 718 0.80 18 |
Ağı Dağı Kirazlı Çamyurt | 16,760 7,694 2,791 0.46 245 0.61 152 0.95 85 |
Total Turkey | 27,245 0.55 482 |
Quartz Mountain | 39,205 0.91 1,147 |
Alamos - Total | 131,579 1.65 6,962 |
INFERRED SILVER MINERAL RESOURCES (as at December 31, 2020) | |
Tonnes (000's)Grade (g/t Ag)Ounces (000's) | |
La Yaqui Grande Cerro Pelon MacLellan - Open Pit MacLellan - Underground Esperanza Ağı Dağı Kirazlı Çamyurt | 243 7.35 57 26 4.99 4 1,227 1.98 78 72 3.26 8 718 15.04 347 16,760 2.85 1,536 7,694 8.71 2,155 2,791 5.77 518 |
Alamos - Total | 29,531 4.95 4,703 |
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 Resources as at December 31, 2020 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 Pit, 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.
• With the exception of the Mulatos main open pit, 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. As the Mulatos main open pit has a Mineral Reserve life remaining of less than two years, a gold price of $1,400 was used.
• 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 | See notes | 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 | 1.7 | 91% |
Island Gold | $1,400 | 3.5 | $1,250 | 2.18-4.66 | 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% |
Scott K. Parsons, CFA
VP, Investor Relations 416.368.9932 x 5439sparsons@alamosgold.com
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Alamos Gold Inc. published this content on 26 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 February 2021 09:32:07 UTC.