OPERATIONAL EXCELLENCE ORGANIC GROWTH SHAREHOLDER RETURNS On the Road to a Million Ounces of Gold Per Year

Transcription

1 TSX: KL NYSE: KL ASX: KLA February 21, 2018 FY & Q CONFERENCE CALL & WEBCAST OPERATIONAL EXCELLENCE ORGANIC GROWTH SHAREHOLDER RETURNS On the Road to a Million Ounces of Gold Per Year 1

2 FORWARD LOOKING STATEMENTS Cautionary Note Regarding Forward-Looking Information This presentation contains statements which constitute forward-looking information within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of Kirkland Lake Gold with respect to future business activities and operating performance. Forward-looking information is often identified by the words may, would, could, should, will, intend, plan, anticipate, believe, estimate, expect or similar expressions and include information regarding: (i) the amount of future production over any period; (ii) assumptions relating to revenues, operating cash flow and other revenue metrics set out in the Company's disclosure materials; and (iii) future exploration plans (iv) the temporary suspension of operations at the Cosmo Mine and the anticipated effects thereof. Investors are cautioned that forward-looking information is not based on historical facts but instead reflect KL Gold s management s expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although Kirkland Lake Gold believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the combined company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: the ability of Kirkland Lake Gold to successfully integrate the operations and employees of its Canadian and Australian operations, and realize synergies and cost savings, and to the extent, anticipated; the potential impact on exploration activities; the potential impact on relationships, including with regulatory bodies, employees, suppliers, customers and competitors; the re-rating potential following the consummation of the merger; changes in general economic, business and political conditions, including changes in the financial markets; changes in applicable laws; and compliance with extensive government regulation. This forward-looking information may be affected by risks and uncertainties in the business of Kirkland Lake Gold and market conditions. This information is qualified in its entirety by cautionary statements and risk factor disclosure contained in filings made by Kirkland Lake Gold, including Kirkland Lake Gold s annual information form, financial statements and related MD&A for the year ended December 31, 2017 and their interim financial reports and related MD&A for the quarters ended March 31, June 30 and September 30, 2017 filed with the securities regulatory authorities in certain provinces of Canada and available at Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although Kirkland Lake Gold has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Kirkland Lake Gold does not intend, and do not assume any obligation, to update this forward-looking information except as otherwise required by applicable law. All dollar amounts in this presentation are expressed in U.S. Dollars unless otherwise noted. Use of Non-GAAP Measures This Presentation refers to average realized price, operating costs, all-in sustaining costs per ounce of gold sold, free cash flow and cash costs of production because certain readers may use this information to assess the Company s performance and also to determine the Company s ability to generate cash flow. This data is furnished to provide additional information and are non-gaap measures and do not have any standardized meaning prescribed by International Financial Reporting Standards ( IFRS ). These measures should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS and are not necessarily indicative of operating costs presented under IFRS. Refer to each Company s most recent MD&A for a reconciliation of these measures. 2

3 TSX: KL NYSE: KL ASX: KLA February 21, 2018 CEO OVERVIEW TONY MAKUCH OPERATIONAL EXCELLENCE ORGANIC GROWTH SHAREHOLDER RETURNS On the Road to a Million Ounces of Gold Per Year

4 KL: RECORD YEAR IN 2017 Beat improved production guidance: 596,405 ozs produced Low unit costs: Operating cash costs $481/oz, AISC $812/oz Strong earnings and free cash flow Solid year-end financial position: $231.6 million of cash 36% Growth in Mineral Reserves, Strong Growth in Mineral Resources 4

5 2017 PRODUCTION BEATS IMPROVED GUIDANCE Production of kozs beats improved guidance of kozs Fosterville production of 264 kozs, driven by significantly higher grades Macassa production increases 11% due to improved grades and tonnes milled 25% production growth at both Taylor and Holt 550, ,000 Production (ozs) 90% 596, , , , ,000 50, , ,305 5

6 KL: STRONG UNIT COST PERFORMANCE Operating cash costs ( OCC ) achieves improved guidance of $475 $500/oz AISC/oz sold $812/oz in line with improved guidance of $800 $825/oz Fosterville OCC $264/oz, AISC $491/oz; Macassa OCC $523/oz; AISC $845/oz Unit Costs ($/oz Sold) 1 1, % $970 $638 $930 $571 16% 564 $812 $ Cost per Tonne C$197/tonne for Canadian operations A$163/tonne at Fosterville 1) See Non-GAAP Measures sections in forward looking statements 6

7 PRODUCTION GROWTH, LOW UNIT COSTS DRIVE STRONG EARNINGS Strong growth in revenue, improved unit costs and lower tax rate drive earnings growth Earnings from continuing operations of $157.3M ($0.76/share) in 2017, $65.9M in Q ($0.32/share) Loss from continuing operations of $24.9M ($0.12/share) in 2017 from sale of Stawell Adjusted net earnings in 2017 excludes discontinued ops., deferred tax recovery Q adjusted net earnings exclude discontinued ops., loss on Novo warrants and impact of deferred tax recovery $ Earnings ($ Millions) $80 Q Earnings ($ Millions) $150 $140 $130 $120 $132.4 ($0.64/share) $149.1 ($0.72/share) $70 $60 $50 $71.2 ($0.34/share) $110 $100 $90 $40 $30 $41.0 ($0.20/share) $80 Net Earnings Adjusted Net Earnings $20 Net Earnings Adjusted Net Earnings 7

8 KL: A BUSINESS THAT GENERATES CASH Free cash flow reached $178.0M in 2017, 56% increase from 2016 Op cash flow growth of 66% to $309.8M in 2017 vs $187.0M in 2016 $200 $180 $160 $140 $120 FREE CASH FLOW ($ Millions) 1 56% $178.0 $330 $280 $230 CASH FROM OPERATING ACTIVITIES ($ Millions) 66% $309.8 $100 $80 $60 $113.9 $180 $130 $187.0 $ $ ) See Non-GAAP Measures sections in forward looking statements 8

9 CASH AND CASH EQUIVALENTS OF $231.6 MILLION AT DECEMBER 31, 2017 $ Millions $ $ ) See Non-GAAP Measures sections in forward looking statements 9

10 Q4 2017: RECORD PRODUCTION, OPERATING CASH COSTS, FREE CASH FLOW Production of kozs, 56% increase from Q4 2016, 20% higher than Q Record quarter at Fosterville: >79 kozs with average grade of 21.5 g/t Record quarterly results at Taylor (16.5 kozs) and Holt (19.3 kozs) Macassa has second best quarter ever, producing 51.6 kozs 170, , , ,000 90, ,609 Production (ozs) 130, , , ,579 70,000 50,000 Q Q Q Q Q ,305 10

11 Q4 2017: RECORD OPERATING CASH COSTS, IMPROVED AISC OCC of $412/oz, 23% better than Q4 2016, 15% improvement from Q AISC/oz improves from both prior periods despite increased sustaining capital Sustaining capital expenditures weighted to end of 2017 ($312/oz versus $291/oz in Q and $278/oz sold in Q Unit Costs ($/oz Sold) $900 $873 $729 $845 $ $533 $ $482 $482 $412 Q Q Q Q Q Q Cost per Tonne Improved 11% quarter over quarter to C$171/ tonne for Canadian operations Averaged A$187/ tonne at Fosterville reflecting reduced tonnes at higher grade 1) See Non-GAAP Measures sections in forward looking statements 11

12 Q4 2017: STRONG GROWTH IN FREE CASH FLOW Earnings from continuing operations of $65.9M or $0.32 per share Free cash flow in Q totaled $64.5M, 42% higher than Q and 105% Op cash flow $103.4M in Q4 2017, 51% increase from Q and 55% better than previous quarter $80 FREE CASH FLOW ($ Millions) 1 $120 CASH FROM OPERATING ACTIVITIES ($ Millions) $70 $60 $50 $64.5 $100 $80 $103.4 $40 $30 $20 $45.3 $31.5 $60 $40 $68.5 $66.8 $10 Q Q Q $20 Q Q Q ) See Non-GAAP Measures sections in forward looking statements 12

13 2018: PRODUCTION GROWTH, LOWER COSTS, INVESTING FOR THE FUTURE CANADA OPS. AUSTRALIAN OPS. $ million unless otherwise states Macassa Taylor Holt Fosterville 2018 Guidance Gold Production (kozs) Op. cash costs ($/oz) 1,2 $475 $500 $625 $650 $625 $650 $270 $290 $425 $450 AISC ($/oz) 1,2 $750 $800 Operating cash costs 1 $260 $270 Royalty expense $22 $27 Sustaining capital 1 $150 $170 Growth capital 1 $85 $95 Exploration $75 $90 Corporate G & A $20 $22 (1) Operating cash costs, operating cash costs/ounce and AISC/ounce sold reflect an average US$to C$exchange rate of 1.300and a US$ to A$ exchange rate of (2) Non-IFRS - the definition and reconciliation of these Non-IFRS measures are included on pages of the Company s MD&A for the year and three months ended December 31,

14 2018: PRODUCTION GROWTH, LOWER COSTS, INVESTING FOR THE FUTURE CANADA OPS. AUSTRALIAN OPS. $ million unless otherwise states Macassa Taylor Holt Fosterville 2018 Guidance Gold Production (kozs) Op. cash costs ($/oz) 1,2 $475 $500 $625 $650 $625 $650 $270 $290 $425 $450 AISC ($/oz) 1,2 $750 $800 Operating cash costs 1 $260 $270 Royalty expense $22 $27 Sustaining capital 1 $150 $170 Growth capital 1 $85 $95 Exploration $75 $90 Corporate G & A $20 $22 Targeting year-over-year production growth Potential for higher production (1) Operating cash costs, operating cash costs/ounce and AISC/ounce sold reflect an average US$to C$exchange rate of 1.300and a US$ to A$ exchange rate of (2) Non-IFRS - the definition and reconciliation of these Non-IFRS measures are included on pages of the Company s MD&A for the year and three months ended December 31,

15 2018: PRODUCTION GROWTH, LOWER COSTS, INVESTING FOR THE FUTURE CANADA OPS. AUSTRALIAN OPS. $ million unless otherwise states Macassa Taylor Holt Fosterville 2018 Guidance Gold Production (kozs) Op. cash costs ($/oz) 1,2 $475 $500 $625 $650 $625 $650 $270 $290 $425 $450 AISC ($/oz) 1,2 $750 $800 Operating cash costs 1 $260 $270 Royalty expense $22 $27 Sustaining capital 1 $150 $170 Growth capital 1 $85 $95 Exploration $75 $90 Corporate G & A $20 $22 Sustaining capex at Fosterville supports production for multiple years AISC/oz sold to improve in 2018 (1) Operating cash costs, operating cash costs/ounce and AISC/ounce sold reflect an average US$to C$exchange rate of 1.300and a US$ to A$ exchange rate of (2) Non-IFRS - the definition and reconciliation of these Non-IFRS measures are included on pages of the Company s MD&A for the year and three months ended December 31,

16 2018: PRODUCTION GROWTH, LOWER COSTS, INVESTING FOR THE FUTURE CANADA OPS. AUSTRALIAN OPS. $ million unless otherwise states Macassa Taylor Holt Fosterville 2018 Guidance Gold Production (kozs) Op. cash costs ($/oz) 1,2 $475 $500 $625 $650 $625 $650 $270 $290 $425 $450 AISC ($/oz) 1,2 $750 $800 Operating cash costs 1 $260 $270 Royalty expense $22 $27 Sustaining capital 1 $150 $170 Growth capital 1 $85 $95 Exploration $75 $90 Corporate G & A $20 $22 ~$35M at Fosterville in 2018 is bulk of growth capital required to reach 400 koz/year Growth capital at Macassa mainly for shaft project (1) Operating cash costs, operating cash costs/ounce and AISC/ounce sold reflect an average US$to C$exchange rate of 1.300and a US$ to A$ exchange rate of (2) Non-IFRS - the definition and reconciliation of these Non-IFRS measures are included on pages of the Company s MD&A for the year and three months ended December 31,

17 MACASSA: NEW SHAFT TO PROVIDE MULTIPLE BENEFITS Benefits: 1. De-risks operation. 2. Supports more effective exploration. 3. improves working conditions. 4. leads to increased production & lower unit costs Macassa #4 Shaft 21.5-foot diameter concrete-lined shaft with 4,000 tonne-per-day hoisting capacity 5,450-foot depth (Phase 1) Phase 1 completion Q2 2022, production commences Phase 1 capital estimate: $240M Extension to approx. 7,000 foot depth contemplated (Phase 2) Phase 2 capital estimate: $80M 17

18 2018: PRODUCTION GROWTH, LOWER COSTS, INVESTING FOR THE FUTURE CANADA OPS. AUSTRALIAN OPS. $ million unless otherwise states Macassa Taylor Holt Fosterville 2018 Guidance Gold Production (kozs) Op. cash costs ($/oz) 1,2 $475 $500 $625 $650 $625 $650 $270 $290 $425 $450 AISC ($/oz) 1,2 $750 $800 Operating cash costs 1 $260 $270 Royalty expense $22 $27 Sustaining capital 1 $150 $170 Growth capital 1 $85 $95 Exploration $75 $90 Corporate G & A $20 $22 Focus of exploration is on Fosterville and Northern Territory Investments support goal of reaching a million ounces per year in 5 7 years (1) Operating cash costs, operating cash costs/ounce and AISC/ounce sold reflect an average US$to C$exchange rate of 1.300and a US$ to A$ exchange rate of (2) Non-IFRS - the definition and reconciliation of these Non-IFRS measures are included on pages of the Company s MD&A for the year and three months ended December 31,

19 TSX: KL NYSE: KL ASX: KLA February 21, 2018 CFO FINANCIAL REVIEW PHILLIP YEE OPERATIONAL EXCELLENCE ORGANIC GROWTH SHAREHOLDER RETURNS On the Road to a Million Ounces of Gold Per Year 19

20 KL: SOLID PROFITABILITY IN 2017 Strong growth in revenue, improved unit costs and lower tax rate drive earnings growth Full-year impact of Australian operations key to both revenue growth, lower unit costs Net earnings include earnings from continuing ops of $157.3M ($0.76/share) and loss on discontinued ops of $24.9M ($0.12/share) related to Stawell $140 Net Earnings ($ Millions) $160 Adjusted Net Earnings ($ Millions) $120 $100 $80 228% $132.4 ($0.64/share) $140 $120 $ % $149.1 ($0.72/share) $60 $80 $40 $20 $0 $42.1 ($0.35/share) $60 $40 $20 $67.9 ($0.56/share) adjusted net earnings of $149.0M ($0.72/s hare) exclude loss on discontinued ops, $10M ($0.05/s hare) deferred tax recovery 20

21 STRONG 2017 REVENUE AND EBITDA Higher revenue reflects 80% increase in sales, to 592,674 ounces, largely due to addition of Australian operations in Nov Gold sales at Fosterville of 258,315 ounces in 2017 (19,408 ounces for one month in 2016) Gold sales from CDN operations increased 13% (ex. Impact of Holloway mine) Average gold price of $1,261/ounce in 2017 versus $1,234/ounce in Revenue: $747.5 Million 2017 EBITDA 1 $800 $700 $600 $500 $400 $300 $200 Net Earnings ($ Millions) 85% growth from Q $ $747.5 $400 $350 $300 $250 $200 $150 $100 $ $100 $ $50 $0 EBITDA ($ Millions) 137% increase from ) See Non-GAAP Measures sections in forward looking statements 21

22 $ Millions HIGHER PRODUCTION COST REFLECTS PRODUCTION GROWTH 2017 Production Costs $350 $300 $288.3 $250 $200 $150 $ % increase from 2016 largely reflects Australian operations $100 $50 $

23 LOW UNIT OPERATING COSTS KEY TO PROFITABILITY AND CASH FLOW 1, Unit Costs ($/oz Sold) 1 Op. Cash Costs AISC Unit Costs by Mine Operating Cost/Oz AISC/Oz Fosterville $264 $491 Macassa $523 $845 Taylor $610 $972 Holt $685 $1,043 Cosmo $1,667 $1,996 Consolidated $481 $812 O perating cash costs improve 16% f rom 2016, largely driven by Fosterville AISC per ounce improved 13% f rom 2016 due to low er operating cash costs and reduced s ustaining capital per ounce sold 1) See Non-GAAP Measures sections in forward looking statements 23

24 ADDITIONAL EXPENSES IN 2017 Higher depreciation and depletion reflects fair valuing assets from Newmarket acquisition Corporate G&A of $22M vs $11M in 2016 due to business growth Care and maintenance expense of $11.9M mainly reflects Cosmo Exploration expense triples, to $48M, reflects commitment to growth and success achieved in

25 SOLID PROFITABILITY IN Q Strong growth in revenue, improved unit costs and lower tax rate drive earnings growth Impact of Novo warrants: $17.9M pre-tax loss Q4 2017, $19.2M pre-tax gain Q Q net earnings: earnings from continuing ops. of $65.9M ($0.32/share) and loss from discontinued ops. of $24.9M EBITDA of $103.9M versus $45.2M in Q and $98.1M in Q $60 $50 $40 $30 $20 $10 $0 Net Earnings ($ Millions) $3.1 ($0.02/share) $43.8 ($0.21/share) $41.0 ($0.20/share) Q Q Q $22.8 ($0.16/share) $110 $100 $90 $80 $70 $60 $50 $ $30 ($0.14/share) $20 $10 $0 Q EBITDA 1 $71.2 ($0.34/share) $103.9 EBITDA ($ Millions) 130% increase from Q % increase from Q ) See Non-GAAP Measures sections in forward looking statements 25

26 ADJUSTED NET EARNINGS OF $0.34/SHARE 160% increase in adjusted net earnings quarter over quarter Q adjusted net earnings exclude: Loss on discontinued operations: $0.12/share Impact of $17.6M pre-tax loss on Novo warrants: $0.08/share Deferred tax recovery: $0.05/share $80 $70 $60 $50 $40 $30 $20 $10 $0 Adjusted Net Earnings ($ Millions) $22.8 ($0.16/share) 160% $27.4 ($0.14/share) $71.2 ($0.34/share) Q Q Q % increase in revenue, improved unit costs key drivers of growth in adjusted net earnings quarter over quarter 26

27 CASH AND CASH EQUIVALENTS OF $231.6 MILLION AT DECEMBER 31, 2017 $ Millions ) See Non-GAAP Measures sections in forward looking statements 27

28 TSX: KL NYSE: KL ASX: KLA February 21, 2018 REVIEW OF RESERVES AND RESOURCES OPERATIONAL EXCELLENCE ORGANIC GROWTH SHAREHOLDER RETURNS On the Road to a Million Ounces of Gold Per Year 28

29 MINERAL RESERVE AND MINERAL RESOURCE ESTIMATES (DECEMBER 31, 2017) 36% growth in consolidated Mineral Reserves 4.4M 11.1 g /t versus 3.4M 9.0 g /t at D ec. 31/16 Fosterville Mineral Reserves increase to 1.7M 23.1 g /t Swan Zone more t han doubles to 1.16M 61.2 g /t Macassa replaces Mineral Reserves (2.0M 21.0 g /t) 58% growth in M&I Mineral Resources, 48% increase in Inferred Strong growth in Mineral Resources supports plans for future growth in Mineral Reserves 29

30 FOSTERVILLE: TRANSFORMATIONAL YEAR IN 2017 Record production in 2017 o o g/t for 263,845 ozs Record quarterly production of 79,157 ozs in Q4/17 ( g/t) Low-cost producer o Cash costs $264/oz, AISC $491/oz in guidance: o Production: kozs o Cash costs: $270 $290/oz 2 * Forecast (2018 Guidance) Growing mineral reserves 3 o 247% growth Mineral Reserves from Dec. 31/16 o Large increase in Mineral Resources 1) See the Company s MD&A for the three and nine months ended September 30, 2017 dated November 2, 2017 for more information on Fosterville s operating performance. (See Slide 2 for information regarding Non-IFRS measures) 2) Operating Cash Costs per ounce guidance reflects an average USD to AUD exchange rate of ) Refer to Appendix for NI disclosure 30

31 FOSTERVILLE MINERAL RESERVES GROWTH 247% FROM DECEMBER 31, 2016 Fosterville Mineral Reserves (Dec. 31/17 vs. Dec. 31/16) Fosterville Tonnes (000's) December 31, 2017 December 31, 2016 % Change (g/t) Gold Ounces (000 s) Tonnes (000's) (g/t) Gold Ounces (000 s) Gold Gold Ounces Proven % 48% Probable 2, ,590 1, % 284% Proven + Probable 2, ,700 1, % 247% Fosterville Mineral Reserves (Dec. 31/17 vs. June 30/17) December 31, 2017 June 30, 2017 % Change Fosterville Tonnes (000's) (g/t) Gold Ounces (000 s) Tonnes (000's) (g/t) Gold Ounces (000 s) Gold Gold Ounces Proven % -1% Probable 2, ,590 1, % 73% Proven + Probable 2, ,700 1, ,030 29% 65% Swan Mineral Reserves (Dec. 31/17 vs. June 30/17) Swan Tonnes (000's) December 31, 2017 June 30, 2017 % Change (g/t) Gold Ounces (000 s) Tonnes (000's) (g/t) Gold Ounces (000 s) Gold Proven % 0% Gold Ounces Probable , % 117% Proven + Probable , % 118% 31

32 FOSTERVILLE MINERAL RESERVES GROWTH 247% FROM DECEMBER 31, 2016 Fosterville Mineral Resources (Dec. 31/17 vs. Dec. 31/16) (Inclusive of Mineral Reserves Fosterville Measured + Indicated Tonnes (000's) December 31, 2017 December 31, 2016 % Change (g/t) Gold Ounces (000 s) Tonnes (000's) Fosterville Mineral Resources (Dec. 31/17 vs. June 30/17) (Exclusive of Mineral Reserves) Fosterville (g/t) Gold Ounces (000 s) Gold Swan Mineral Resources (Dec. 31/17 vs. June 30/17) (Exclusive of Mineral Reserves) Gold Ounces 15, ,190 14, ,640 51% 59% Inferred 8, ,900 5, % 140% Measured + Indicated Tonnes (000's) December 31, 2017 June 30, 2017 % Change (g/t) Gold Ounces (000 s) Tonnes (000's) (g/t) Gold Ounces (000 s) Gold Gold Ounces 13, ,150 13, ,940 10% 11% Inferred 8, ,900 5, ,040 22% 82% Swan (1) Measured + Indicated Tonnes (000's) December 31, 2017 June 30, 2017 % Change (g/t) Gold Ounces (000 s) Tonnes (000's) (g/t) Gold Ounces (000 s) Gold Gold Ounces % 643% Inferred % 158% 32

33 FOSTERVILLE: EXTENSIVE NEAR-MINE DRILLING PLANNED IN 2018 Focus on accelerating conversion in three production horizons Lower Phoenix (Swan), Lower Phoenix North and Harrier South Significant step-out drilling along plunge at Swan Zone 2018 program consists of approx. 85,000 metres of in-mine drilling Approx. $10M on Large Ore Deposit Exploration ( LODE ) in 2017 Contact of Eagle and Swan 33

34 MACASSA: STRONG PERFORMANCE IN 2017 Record production in 2017 o o g/t for 194,237 ozs Q4/17 production of 51,608 ozs, 2 nd best quarter ever ( g/t) Low-cost producer 1 o Cash costs $523/oz, AISC $845/oz in guidance: o Production: kozs o Cash costs: $475 $500/oz 3 * Forecast (2018 Guidance) Large base of mineral reserves/mineral resources 2 (as at Dec. 31, 2016) o Replaced Mineral Reserves after depletion in 2017 o 58% increase in M&I Resources and 48% increase in Inferred 1) See the Company s MD&A for the year and three months ended December 31, 2017 for more information on Macassa s operating performance. (See Slide 2 for information regarding Non-IFRS measures) 2) Refer to Appendix for NI disclosure 3) Operating Cash Costs per ounce guidance reflects an average USD to CAD exchange rate of

35 MACASSA MINERAL RESERVES REPLACED WITH 2017 DRILLING FOCUSED ON RESOURCE EXPANSION Mineral Reserves increase 1% after depletion of 190,000 ozs in 2017 Strong growth in Mineral Reserves to support future growth in Mineral Reserves Macassa Mineral Reserves (Dec. 31/17 vs. Dec. 31/16) December 31, 2017 December 31, 2016 % Change Macassa Tonnes (000's) (g/t) Gold Ounces (000 s) Tonnes (000's) (g/t) Gold Ounces (000 s) Gold Gold Ounces Proven % -38% Probable 2, ,830 2, ,670 0% 10% Proven + Probable 3, ,030 3, ,010 1% 1% 35

36 MACASSA: STRONG GROWTH IN MINERAL RESOURCES 259 metre extension of South Mine Complex was focus of resource drilling 58% increase in M&I Mineral Resources 48% increase in Inferred Mineral Resources Macassa Mineral Resources (Dec. 31/17 vs. Dec. 31/16) December 31, 2017 December 31, 2016 % Change Macassa Tonnes (000's) (g/t) Gold Ounces (000 s) Tonnes (000's) (g/t) Gold Ounces (000 s) Gold Gold Ounces Measured + Indicated 3, ,090 2, ,320 4% 58% Inferred 1, ,370 1, % 48% 36

37 KL: 3 PILLARS OF VALUE CREATION Operational Excellence Strong performance against guidance Generated strong earnings, free cash flow Discipline Organic Growth Growing reserves and resources Targeting a million ounces/year from existing mines Focused on Shareholders Returns Strong share price performance Repurchasing shares Paying dividends 37