A RICH HISTORY A LONG & PROFITABLE FUTURE

Transcription

1 Northern Mines Expo The Big Event Gala Dinner May 26, 2015 Presenter: Chris Stewart P.Eng, Vice-President Operations A RICH HISTORY A LONG & PROFITABLE FUTURE

2 Forward Looking Statements Cautionary Note Regarding Forward Looking Statements. This presentation contains statements which constitute forward-looking statements, including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to the future business activities and operating performance of the Company. The words may, would, could, should, will, intend, plan, anticipate, believe, estimate, expect and similar expressions, as they relate to the Company, are intended to identify such forward-looking statements. Forward-looking statements used in this Presentation include, but may not be limited to; statements regarding the Company s guidance for fiscal 2015 including ounces produced and grade assumptions, cash operating cost per ounce and AICC, sustaining capital, revenue, operating cash flow and free cash flow generation; the ability to bring more higher grade stopes online from the 5400 level and access to the 5600 level and the timing thereof; the exploration programs and the results and timing thereof. Investors are cautioned that forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made such as, without limitation, opinion, assumptions and estimates of management regarding the Company s business, its ability to increase its production capacity and decrease its production cost. Such opinions, assumptions and estimates, are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors are discussed in length in the Company's annual Management's Discussion and Analysis and Annual Information Form for the year ended April 30, and the Company s Management's Discussion and Analysis for the interim period ended January 31, 2015 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 statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company 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. The Company does not intend, and does not assume any obligation, to update these forward-looking statements except as otherwise required by applicable law. 2

3 Kirkland Lake Camp The Kirkland Lake gold camp has been producing gold for over 100 years. KL GOLD owns five former producing high grade mines Historical production of ~22 Moz s of gold Average head grade of 0.44 opt or 15.1 g/t Almost 25 Moz s has been produced to date, from seven mines. Based on grade, it is one of the highest grade gold camps in the world. 3

4 Grade g/t One of the Highest Grade Gold Mines In The World Select Group of Producing Assets with +1Moz s in Reserves Reserve Grades Mine Operator Location Gold Grade Reserves MRMR g/t Au Date Macassa Mine Complex Kirkland Lake Gold Canada (Ontario) (0.56 opt) Moz Dec/2014 Turquoise Ridge Barrick USA (Nevada) Moz Dec/2014 Pogo Gold Sumitomo Corp. USA Moz Dec/2013 Gosowong Newcrest Indonesia Moz Dec/2014 Moab Khotsong AngloGold Ashanti South Africa Moz Dec/2013 Mponeng AngloGold Ashanti South Africa Moz Dec/2013 Red Lake Gold Goldcorp Canada Moz Dec/2014 TauTona AngloGold Ashanti South Africa Moz Dec/2013 Kupol/Dvoinoye Kinross Russia Moz Dec/2014 Company Source This is a select group of Companies that illustrate producing mines only with mineral reserves in excess of 1Moz s (gold only, no equivalent Au ounces shown) 4

5 Key Features of KL Gold Contributed ~6% of Ontario s Gold Production in F2014 Generated $173MM in Revenue in F % of Jobs are Located in Northern Ontario Employees over 1,000 Employees Source: PWC Report, January

6 Our Employee Base and What We Offer as an Employer KL GOLD EMPLOYMENT

7 Employer to a Number of Regions KIRKLAND LAKE GOLD EMPLOYEES 4% 3% 3% KIRKLAND LAKE 5% TIMISKAMING ENGLEHART 9% SUDBURY QUEBEC 11% 64% OTHER TIMMINS NORTH BAY Source: PWC Report, January

8 Employee Benefits Competitive wages and benefits Located within minutes of the community center. Medical practitioner hired exclusively for employees of KL Gold and their families. Work schedules that accommodate regional employees. One Target One Team approach Commitment to the community through sponsorship initiatives. 8

9 Fitness for Duty KL Gold has a Zero Tolerance Policy We require ALL EMPLOYEES to be fit at all times to perform their assigned duties. While at work, we do not tolerate the use of: Alcohol Illicit Drugs Medication (that can cause impairment) 9

10 KL GOLD ECONOMIC IMPACT Direct and Indirect Impacts to Kirkland Lake and neighboring communities and regions

11 Direct and Indirect Impact KL Gold will have contributed ~$350MM to Ontario s GDP in F2015 Indirect Contribution Direct Contribution Source: PWC Report, January

12 Dollar Spend in F2015 ~$35MM to Suppliers and Contractors Kirkland Lake (and area - within 50km) $ 15.5MM Timmins, New Liskeard, Val D'or $ 6.8MM Sudbury/North Bay Area $ 12.3MM Source: Company Source 12

13 A Successful Turnaround Story with a Long and Profitable Future KL GOLD AS AN INVESTMENT

14 KGI 12 Month Share Price Performance KGI Share Price Vs Gold Price (C$) Over a 12 month Period (May 2014 May 2015) KGI share price has outperformed the POG by 84% Steady increase in KGI share price since January

15 F2015 Achievements Sold 155,709 Ounces of Gold Achieved Mid-Range of Revised Guidance Average Head Grade of 0.43 OPT or 14.1 g/t Beat Grade Guidance by 13% Ended the year with $80.3MM in Cash and Cash Equivalents As at Q3_F2015, on track to meet all other Guidance Metrics: Operating Cost/Ounce (Target of C$800-C$850/Oz) AICC (Target of C$1,250-C$1,350/Oz) Free Cash Flow Generation (Target of C$30-C$35MM) 15

16 Reserves & Resources (Resources are Exclusive of Reserves) Property Wide SMC Mineral Reserves (P&P) Includes the 04 & Main Break and SMC 1.5 Moz s 2.6M 0.56 opt (19.2 g/t ) 0.9 Moz s 1.5 M 0.65 opt (22.3 g/t ) Mineral Resources (M&I) Includes the 04 & Main Break, SMC, Near Surface and other 2.0 Moz s 4.2 M 0.49 opt (16.8 g/t ) Breakout of SMC only 0.9 Moz s 1.4 M 0.66 opt (22.6 g/t ) Mineral Resources (Inferred) Includes the 04 & Main Break, SMC, Near Surface and other 1.2 Moz s 2.1 M 0.56 opt (19.2 g/t) 0.9 Moz s 1.4 M 0.65 opt (22.3 g/t ) Based on current level of Reserves and 70% conversion of Resources (@ 200,000 oz p.a), KGI has a 14 year Mine Life See Appendix for more disclosure on MRMR statement which is as of December 31,

17 Exploration Potential In A Historic Camp Currently mining and exploring on one of these five targets. Current Underground and Surface Drilling Targets Three main areas currently being explored from surface and underground. Regional exploration to test eastwards will be next phase of drilling. 17

18 Board of Directors Experienced Team Eric Sprott, Chairman of the Board (Non-executive Director) Barry Cooper, B.Sc., MBA (Non-executive Director) Pamela Klessig, P.Geo (Non-executive Director) Barry Olson, M.Sc. (Non-executive Director) Jeffrey Parr, CA, BA, MBA (Non-executive Director) Dawn Whittaker, LLB (Non-executive Director) Senior Management George Ogilvie, P.Eng. Director, President & CEO John Thomson, CA Director, Executive VP & CFO Chris Stewart, P.Eng. VP Operations Suzette N Ramcharan, CPIR Director, Investor Relations Kevin Fearn, CHRP Director, Human Resources Heather Laxton Corporate Secretary 18

19 TSX /AIM: KGI Suzette N Ramcharan, CPIR Director of Investor Relations Mobile: sramcharan@klgold.com