CIBC 21st Annual Whistler Institutional Investor Conference

Transcription

1 TSX: KL NYSE: KL ASX: KLA January 24 26, 2018 CIBC 21st Annual Whistler Institutinal Investr Cnference OPERATIONAL EXCELLENCE ORGANIC GROWTH SHAREHOLDER RETURNS On the Rad t a Millin Ounces f Gld Per Year

2 FORWARD LOOKING STATEMENTS Cautinary Nte Regarding Frward-Lking Infrmatin This presentatin cntains statements which cnstitute frward-lking infrmatin within the meaning f applicable securities laws, including statements regarding the plans, intentins, beliefs and current expectatins f Kirkland Lake Gld with respect t future business activities and perating perfrmance. Frward-lking infrmatin is ften identified by the wrds may, wuld, culd, shuld, will, intend, plan, anticipate, believe, estimate, expect r similar expressins and include infrmatin regarding: (i) the amunt f future prductin ver any perid; (ii) assumptins relating t revenues, perating cash flw and ther revenue metrics set ut in the Cmpany's disclsure materials; and (iii) future explratin plans (iv) the temprary suspensin f peratins at the Csm Mine and the anticipated effects theref. Investrs are cautined that frward-lking infrmatin is nt based n histrical facts but instead reflect KL Gld s management s expectatins, estimates r prjectins cncerning future results r events based n the pinins, assumptins and estimates f management cnsidered reasnable at the date the statements are made. Althugh Kirkland Lake Gld believes that the expectatins reflected in such frward-lking infrmatin are reasnable, such infrmatin invlves risks and uncertainties, and undue reliance shuld nt be placed n such infrmatin, as unknwn r unpredictable factrs culd have material adverse effects n future results, perfrmance r achievements f the cmbined cmpany. Amng the key factrs that culd cause actual results t differ materially frm thse prjected in the frwardlking infrmatin are the fllwing: the ability f Kirkland Lake Gld t successfully integrate the peratins and emplyees f its Canadian and Australian peratins, and realize synergies and cst savings, and t the extent, anticipated; the ptential impact n explratin activities; the ptential impact n relatinships, including with regulatry bdies, emplyees, suppliers, custmers and cmpetitrs; the rerating ptential fllwing the cnsummatin f the merger; changes in general ecnmic, business and plitical cnditins, including changes in the financial markets; changes in applicable laws; and cmpliance with extensive gvernment regulatin. This frward-lking infrmatin may be affected by risks and uncertainties in the business f Kirkland Lake Gld and market cnditins. This infrmatin is qualified in its entirety by cautinary statements and risk factr disclsure cntained in filings made by Kirkland Lake Gld, including Kirkland Lake Gld s annual infrmatin frm, financial statements and related MD&A fr the year ended December 31, 2017 and their interim financial reprts and related MD&A fr the quarters ended March 31, June 30 and September 30, 2017 filed with the securities regulatry authrities in certain prvinces f Canada and available at Shuld ne r mre f these risks r uncertainties materialize, r shuld assumptins underlying the frward-lking infrmatin prve incrrect, actual results may vary materially frm thse described herein as intended, planned, anticipated, believed, estimated r expected. Althugh Kirkland Lake Gld has attempted t identify imprtant risks, uncertainties and factrs which culd cause actual results t differ materially, there may be thers that cause results nt t be as anticipated, estimated r intended. Kirkland Lake Gld des nt intend, and d nt assume any bligatin, t update this frward-lking infrmatin except as therwise required by applicable law. All dllar amunts in this presentatin are expressed in U.S. Dllars unless therwise nted. Use f Nn-IFRS Measures This Presentatin refers t average realized price, perating csts, all-in sustaining csts per unce f gld sld, free cash flw and cash csts f prductin because certain readers may use this infrmatin t assess the Cmpany s perfrmance and als t determine the Cmpany s ability t generate cash flw. This data is furnished t prvide additinal infrmatin and are nn-ifrs measures and d nt have any standardized meaning prescribed by Internatinal Financial Reprting Standards ( IFRS ). These measures shuld nt be cnsidered in islatin as a substitute fr measures f perfrmance prepared in accrdance with IFRS and are nt necessarily indicative f perating csts presented under IFRS. Refer t each Cmpany s mst recent MD&A fr a recnciliatin f these measures. Macassa 2

3 HIGH-GRADE, LOW-COST GOLD MINES IN LEADING MINING JURISDICTIONS 2 Key Drivers f Perfrmance 77% f 2017 Prductin Fsterville Macassa Other Mines 1 Cnslidated P&P Reserve Grade (g/t Au) Prductin (unces) 263, , , ,405 9M 2017 Op. Cash Csts ($/Oz Sld) 2, ) Includes the Hlt and Taylr mines (excludes mines n care and maintenance) 2) See Nn-IFRS Measures sectins in frward lking statements 3) Operating Cash Csts per unce reflect an average USD t CAD exchange rate f 1.31 and a USD t AUD exchange rate f See Kirkland Lake Gld News release dated Nvember 2,

4 3 PILLARS OF VALUE CREATION 1. OPERATIONAL EXCELLENCE 2. DISCIPLINED ORGANIC GROWTH Fsterville 3. FOCUS ON SHAREHOLDER RETURNS Macassa 4

5 1. OPERATIONAL EXCELLENCE Beat 2017 prductin guidance Prduced recrd 596,405 unces FY 2017 Recrd quarterly prductin f 166,579 in Q4/17 Prductin guidance increased three times in Guidance kzs; cash perating csts $475 $500/z and AISC 1 $800 $825/z Increasing mineral reserves Macassa reserves up 37% t 2.0M 20.8 g/t Fsterville reserves grw 110%, grade increased 83% (1.03M 17.9 g/t) Sund financial management $113.5M in free cash flw in 9M 2017 Apprx. $230M in cash 2 at Dec. 31/17 N debt 7.5% debentures matured Dec. 31/17 Fcused n prfitable mining Tw high-cst mines n care and maintenance Stawell mine sld Dec. 21/ PERFORMANCE VERSUS GUIDANCE $ millins unless therwise stated Nine-Mnth 2017 Results (excluding prductin) Perfrmance Guidance Prductin (kzs) (Full Year) Operating cash csts ($/z) 2,3 $508 $475 $500 AISC ($/z) 2,3 $811 $800 $825 Operating cash csts $270 $280 Capital expenditures 106 $160 $180 Explratin 38 $45 $55 Ryalty cst 15 $22 $25 G & A 16 $20 1) 2017 prductin includes: Fsterville 263,845 zs (FY) & 79,157 zs (Q4); Macassa 194,237 zs (FY) & 51,608 zs (Q4); Hlt 66,677 zs (FY) & 19,263 zs (Q4), Taylr 50,764 zs (FY) & 16,538 zs (Q4); Csm 20,595 zs (FY) & nil (Q4), Hllway 287 zs (FY) & 13 zs (Q4) 2) Operating Cash Csts per unce and AISC per unce are examples f Nn-IFRS measures. Please see the Nn-IFRS Measures sectin in frward lking statements n Slide 2. In additin, please see Kirkland Lake Gld s News Release dated Nvember 2, 2017 and Q MD&A fr additinal reprting details related t Operating Cash Csts per unce and AISC per unce results 3) Operating Cash Csts per unce and AISC per unce guidance reflects an average USD t CAD exchange rate f 1.35 and a USD t AUD exchange rate f Operating Cash Csts per unce and AISC per unce results in 9M 2017 reflect an average USD t CAD exchange rate f 1.31 and USD t AUD exchange rate f See Kirkland Lake Gld News release dated Nvember 2, ) Refers t all-in sustaining csts 2) Refers t cash and cash equivalents 5

6 2. DISCIPLINED ORGANIC GROWTH Targeting a millin unces/year in 5 7 years 1 Fsterville t reach >400 kzs by 2020 with full prductin at Swan Zne Macassa t achieve >400 kzs in 5 t 7 years with new shaft Targeting grwth at Taylr mine, resumptin f peratins at Csm Achieving significant explratin success Fsterville: Swan Zne discvery ( g/t), multiple in-mine and district targets Csm: Significant expansin f Lantern Depsit recently annunced Macassa SMC extended 259 m t east New mineralizatin discvered 1.8 km east f Taylr Aggressive investment in explratin 1) Includes examples f frward-lking statements 6

7 3. FOCUSED ON SHAREHOLDER RETURNS KL tp perfrming stck n S&P/TSX Cmp. Index in 2017 with 174.5% share price increase (n full-year basis) KL utperfrming peers (share price increased 174.5% in 2017) Repurchased 5.4M shares fr C$76.5M Intrduced dividend in July, increasing t C$0.02/share in January 2018 Used cash t eliminate debt, reduce ryalties, make strategic investments Glbal market presence listed n TSX (symbl: KL), NYSE (symbl: KL) and ASX (symbl: KLA) Clse n Friday, Jan. 19, 2018 TSX: C$19.89 NYSE: $15.93 ASX: A$23.10 S&P/TSX Glbal Gld Index 7

8 2018: HIGHER PRODUCTION, LOWER UNIT COSTS, INVESTING FOR GROWTH 1 Prductin grwth t apprx. 620 kz Grwth at Macassa ( kzs) & Taylr (60 70 kzs) Hlt prductin similar t 2017 (65 75 kzs) Fsterville targeting kzs Imprved unit csts Op. cash csts t imprve frm 2017 guidance f $475 $500/z AISC t imprve frm 2017 guidance f $800 $825/z Investing fr future grwth Sustaining capex supprts prductin ver multiple years Grwth capex reflects Macassa shaft prject, bulk f grwth capital needed t reach >400 kzs at Fsterville Increasing cmmitment t explratin in 2018 $60M $75M targeted fr Australia: Multiple targets at bth Fsterville and in Nrthern Territry Explratin in Canada t fcus n cntinued grwth f SMC at Macassa and expansin f mineralizatin at Taylr 1) Includes examples f frward-lking statements $ millins unless therwise stated 2018 Guidance Prductin (kzs) +620 Operating cash csts ($/z) 1,2 $425 $450 AISC ($/z) 1,2 $750 $800 Operating cash csts 1 $260 $270 Fsterville Sustaining capital expenditures $150 $170 Grwth capital expenditures $85 $95 Explratin $75 $90 Ryalty cst $22 $27 G & A $20 $22 1) Operating Cash Csts, Operating Cash Csts per unce and AISC per unce are examples f Nn-IFRS measures. Please see the Nn-IFRS Measures sectin in frward lking statements n Slide 2. In additin, please see Kirkland Lake Gld s News Release dated Nvember 2, 2017 and Q MD&A fr additinal reprting details Macassa related t Operating Cash Csts per unce and AISC per unce results (AISC refers t all-in sustaining csts) 2) Operating Cash Csts per unce and AISC per unce guidance reflects an average USD t CAD exchange rate f 1.25 and a USD t AUD exchange rate f

9 FOSTERVILLE: TARGETING >400 KOZS/YEAR BY 2020 Recrd prductin in g/t fr 263,845 zs Recrd quarterly prductin f 79,157 zs in Q4/17 ( g/t) Lw-cst prducer 1 Cash csts $281/z, AISC $501/z in 9M 2017 Grwing mineral reserves 2 Mre than dubled reserve unces, increased average grade 83% P&P reserves 1.03M 17.9 g/t gld (1.79 Mt) as at June 30, guidance: Prductin: kzs Cash csts: $270 $290/z FOSTERVILLE GOLD PRODUCTION (KOZS) > (F) 3 Y EAR T ARGET * Frecast (2018 Guidance) 1) See the Cmpany s MD&A fr the three and nine mnths ended September 30, 2017 dated Nvember 2, 2017 fr mre infrmatin n Fsterville s perating perfrmance. (See Slide 2 fr infrmatin regarding Nn-IFRS measures) 2) Refer t Appendix fr NI disclsure 3) Operating Cash Csts per unce guidance reflects an average USD t AUD exchange rate f

10 FOSTERVILLE: EXTENSIVE NEAR-MINE DRILLING PLANNED IN 2018 Fcus n accelerating cnversin in three prductin hrizns Lwer Phenix (Swan), Lwer Phenix Nrth and Harrier Suth Significant step-ut drilling alng plunge at Swan Zne (mineral reserve f 532, g/t) 2018 prgram cnsists f apprx. 85,000 metres f in-mine drilling Cntact f Eagle and Swan Harrier Suth Lwer Phenix 10

11 FOSTERVILLE: LARGE ORE DEPOSIT EXPLORATION ( LODE ) LODE prgram prpsed in aggressive 2-year explratin f EL3539 Fsterville Mine Apprx. 76,000 metres f drilling planned in 2018 Explratin t als include surface sil sampling, gravity gephysical surveys, 3-D seismic surveys & recnnaissance Mining lease (MIN5404:~17km 2 ) cntains ~10km strike length f Mineral Resurces ~7km n Fsterville Fault Line, and ~3km n the O Dwyer s Fault Line. Surrunding explratin leases encmpass ~1400km 2 and ~60km ptential gld-structures n 7 interpreted fault lines. 5 f the 7 lines cntain knwn gld ccurrences with histric resurces and/r histric wrkings. FGM prcessing plant within 30km f prspective targets. 11

12 MACASSA: TARGETING >400 KOZS/YEAR IN 5 TO 7 YEARS Recrd prductin in g/t fr 194,237 zs Q4/17 prductin f 51,608 zs, 2 nd best quarter ever ( g/t) Lw-cst prducer 1 Cash csts $516/z, AISC $804/z in 9M 2017 Large base f mineral reserves/mineral resurces 2 (as at Dec. 31, 2016) P&P reserves 2.01M 20.8 g/t gld (3.0 Mt) M&I resurces 1.32M 16.6 g/t gld (2.24 Mt) * Frecast (2018 Guidance) 2018 guidance: Prductin: kzs Cash csts: $475 $500/z 3 1) See the Cmpany s MD&A fr the three and nine mnths ended September 30, 2017 dated Nvember 2, 2017 fr mre infrmatin n Macassa s perating perfrmance. (See Slide 2 fr infrmatin regarding Nn-IFRS measures) 2) Refer t Appendix fr NI disclsure 3) Operating Cash Csts per unce guidance reflects an average USD t CAD exchange rate f

13 MACASSA: NEW SHAFT TO PROVIDE MULTIPLE BENEFITS Benefits: 1. De-risks peratin. 2. Supprts mre effective explratin. 3. imprves wrking cnditins. 4. leads t increased prductin & lwer unit csts Macassa #4 Shaft 21.5-ft diameter cncrete-lined shaft with 4,000 tnne-per-day histing capacity 5,450-ft depth (Phase 1) Phase 1 cmpletin Q2 2022, prductin cmmences Phase 1 capital estimate: $240M Extensin t apprx. 7,000 ft depth cntemplated (Phase 2) Phase 2 capital estimate: $80M 13

14 MACASSA: NEW SHAFT TO PROVIDE MULTIPLE BENEFITS Macassa #4 Shaft Fur Cmpartments 1. Men and material cage 52 persn capacity, 3.5-yard scps 2. Auxiliary cage tw decks, 6 peple 3. Tw prductin skips 22-tnne capacity t supprt 4,000 tnnes per day (ttal haulage)

15 TSX: KL NYSE: KL ASX: KLA January 24 26, 2018 CIBC 21st Annual Whistler Institutinal Investr Cnference OPERATIONAL EXCELLENCE ORGANIC GROWTH SHAREHOLDER RETURNS On the Rad t a Millin Ounces f Gld Per Year

16 NI DISCLOSURE Kirkland Lake Gld Qualified Persn and QA/QC All prductin infrmatin and ther scientific and technical infrmatin in this presentatin with respect t Kirkland Lake Gld and its assets were prepared in accrdance with the standards f the Canadian Institute f Mining, Metallurgy and Petrleum and Natinal Instrument Standards f Disclsure fr Mineral Prjects ( NI ) and were prepared, reviewed, verified and cmpiled by Kirkland Lake Gld s mining staff under the supervisin f, Pierre Rcque P. Eng., Kirkland Lake Gld s Vice President, Canadian Operatins r Ian Hlland, Vice President, Australian Operatins. The explratin prgrams acrss Kirkland Lake Gld s land hldings in Kirkland Lake were prepared, reviewed, verified and cmpiled by Kirkland Lake Gld s gelgical staff under the supervisin f Dug Cater, P.Ge., the Cmpany s Vice President f Explratin, Canadian Operatins r Jhn Landmark, Vice President, Explratin, Australian. All reserve and resurce estimates fr the Kirkland Lake Prperties asat December 31, 2014 have been audited and verified, and the technical disclsure has been apprved, by Kirkland Lake Gld s independent reserve and resurce engineer, Glenn R. Clark, P. Eng., f Glenn R. Clark & Assciates Limited. Mr. Clark is a qualified persn under NI The QP s fr the mineral reserves and resurces utlined under the PDFZ Prperties are Dug Cater, P. Ge, and, Pierre Rcque P. Eng., the Vice President f Technical Services respectively. Sample preparatin, analytical techniques, labratries used and quality assurance-quality cntrl prtcls used during the explratin drilling prgrams are dne cnsistent with industry standards and independent certified assay labs. REFER TO KIRKLAND LAKE GOLD ANNUAL INFORMATION FORM DATED MARCH 30, 2017, AVAILABLE ON SEDAR ( FOR COMPLETE NI NOTES AND DISCLOSURE PERTAINING TO THE RESOURCE AND RESERVE STATEMENTS QUOTED HEREIN. All updated NI TECHNICAL REPORTS IN SUPPORT OF THE COMPANY S NEWS RELEASES ISSUED ON MARCH 30, 2017, ENTITLED KIRKLAND LAKE GOLD INCREASES MINERAL RESERVES AT FLAGSHIP MACASSA MINE BY 37% AND FOSTERVILLE MINE BY 66% WHICH WAS FILED ON MARCH 30, 2017 ON SEDAR AT Qualified Persns Pierre Rcque, P.Eng., Vice President, Canadian Operatins is a "qualified persn" as defined in Natinal Instrument and has reviewed and apprved disclsure f the Mineral Reserves technical infrmatin and data fr all Kirkland Lake Gld assets in this News Release. Simn Hitchman, FAusIMM (CP), MAIG, Principal Gelgist, Try Fuller, MAIG, Gelgy Manger and In Hann, FAusIM, Mining Manager, are qualified persn as such term is defined in Natinal Instrument and has reviewed and apprved the technical infrmatin and data frm the Australian Assets included in this News Release. Dug Cater, P. Ge Vice President, Explratin, Canada is a "qualified persn" as defined in Natinal Instrument and has reviewed and apprved disclsure f the Mineral Resurces technical infrmatin and data fr the Canadian Assets included in this News Release. Cautinary Nte t U.S. Investrs - Mineral Reserve and Resurce Estimates All resurce and reserve estimates included in this news release r dcuments referenced in this news release have been prepared in accrdance with Canadian Natinal Instrument Standards f Disclsure fr Mineral Prjects ("NI ") and the Canadian Institute f Mining, Metallurgy and Petrleum (the "CIM") - CIM Definitin Standards n Mineral Resurces and Mineral Reserves, adpted by the CIM Cuncil, as amended (the "CIM Standards"). NI is a rule develped by the Canadian Securities Administratrs, which established standards fr all public disclsure an issuer makes f scientific and technical infrmatin cncerning mineral prjects. The terms "mineral reserve", "prven mineral reserve" and "prbable mineral reserve" are Canadian mining terms as defined in accrdance with NI and the CIM Standards. These definitins differ materially frm the definitins in SEC Industry Guide 7 ("SEC Industry Guide 7") under the United States Securities Act f 1933, as amended, and the Exchange Act. In additin, the terms "mineral resurce", "measured mineral resurce", "indicated mineral resurce" and "inferred mineral resurce" are defined in and required t be disclsed by NI and the CIM Standards; hwever, these terms are nt defined terms under SEC Industry Guide 7 and are nrmally nt permitted t be used in reprts and registratin statements filed with the U.S. Securities and Exchange Cmmissin (the "SEC"). Investrs are cautined nt t assume that all r any part f mineral depsits in these categries will ever be cnverted int reserves. "Inferred mineral resurces" have a great amunt f uncertainty as t their existence, and great uncertainty as t their ecnmic and legal feasibility. It cannt be assumed that all r any part f an inferred mineral resurce will ever be upgraded t a higher categry. Under Canadian rules, estimates f inferred mineral resurces may nt frm the basis f feasibility r pre-feasibility studies, except in very limited circumstances. Investrs are cautined nt t assume that all r any part f a mineral resurce exists, will ever be cnverted int a mineral reserve r is r will ever be ecnmically r legally mineable r recvered. 16

17 RECORD FULL-YEAR & QUARTERLY PRODUCTION IN 2017 Q Q Q FY 2017 FY 2016 Fsterville Ore Milled (tnnes) 118, , , , ,066 Grade (g/t Au) Recvery (%) Gld Prductin (zs) 79,157 44,406 61, , ,755 Macassa Ore Milled (tnnes) 119, ,288 93, , ,633 Run-f-Mine 119,130 74,745 92, , ,353 Lw-Grade n/a 27,543 1,014 22,011 65,280 Grade (g/t Au) Run-f-Mine Lw-Grade n/a Recvery (%) Gld Prductin (zs) 51,608 52,318 48, , ,167 Hlt Ore Milled (tnnes) 127, , , , ,048 Grade (g/t Au) Recvery (%) Gld Prductin (zs) 19,263 15,761 16,995 66,677 57,086 Taylr Ore Milled (tnnes) 89,297 48,254 71, , ,231 Grade (g/t Au) Recvery (%) Gld Prductin (zs) 16,538 10,048 11,066 50,764 42,639 Operatins n Care & Maintenance 1 Csm Gld Prductin (zs) n/a 13,307 1,290 20,595 55,765 Hllway Gld Prductin (zs) 13 9,825 n/a ,135 Stawell Gld Prductin (zs) n/a 6,971 n/a n/a 32,204 Gld Prductin (excluding peratins n care and maintenance r sld in 2017) 166, , , , ,647 Ttal Cnslidated Prductin (zs) 2 166, , , , ,751 1) The Cmpany s Csm Mine in Australia was placed n care and maintenance effective June 30, 2017 (see News Release dated May 4, 2017). The Cmpany s Hllway Mine in Canada was transitined t care and maintenance effective December 31, 2016 (see News Release dated December 12, 2016). The Cmpany s Stawell Mine in Australia was put n care and maintenance effective December 13, 2016 (see News Release dated December 12, 2016) and was subsequently sld n December 21, 2017 (see News Release dated December 11, 2017). 2) Prductin numbers may nt add t ttal due t runding. 17