Returning Prolific Gold Mining Camp To Profitability JULY 2014 TSX / AIM: KGI

Transcription

1 Returning Prolific Gold Mining Camp To Profitability JULY 2014

2 KIRKLAND LAKE GOLD INC. CAUTIONARY NOTE REGARDING 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 Press Release include, but may not be limited to, statements regarding the Company s production capacity and its exploration program. 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 include the Company's expectations in connection with the projects and exploration programs being met, the impact of general business and economic conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, fluctuating gold prices, currency exchange rates (such as the Canadian dollar versus the United States Dollar), possible variations in ore grade or recovery rates, changes in accounting policies, changes in the Company's corporate mineral resources, changes in project parameters as plans continue to be refined, changes in project development, construction, production and commissioning time frames, risks related to joint venture operations, the possibility of project cost overruns or unanticipated costs and expenses, higher prices for fuel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, unexpected changes in mine life, seasonality and unanticipated weather changes, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, and limitations on insurance, as well as those risk factors discussed or referred to in the Company's annual Management's Discussion and Analysis and Annual Information Form for the year ended April 30, 2014 and the Company s Management's Discussion and Analysis for the interim period ended April 30, 2014 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.

3 CORPORATE STRUCTURE SHARES OUTSTANDING 70,150,912 Basic 83,055,743 Fully diluted 52 WEEK RANGE $ week high $ week low MARKET CAP $284 million (July, , $3.95) CASH BALANCE C$38.8 million (April 30, 2014) DEBT C$120 million convertible debentures (due 2H 2017) KGI.DB: 6% coupon, $15.00 strike KGI.DB.A: 7.5% coupon, $13.70 strike ANALYST COVERAGE BMO CIBC World Markets Dundee Securities Investec Bank Macquarie Capital Mirabaud National Bank Financial Pareto Panmure Gordon OWNERSHIP European Institutions 15% NA Institutions 45% Management & Founders 20% Retail 20% MAJOR SHAREHOLDERS Eric Sprott, Equinox, Resolute Funds ABC Funds

4 EXECUTIVE MANAGEMENT AND NON-EXECUTIVE BOARD MEMBERS George Ogilvie, P.Eng, CEO More than 24 years management, operating, and technical expertise in the mining industry More than 9 years of operating experience in deep, narrow-vein gold mines (South Africa) Former CEO of Rambler Metals and Mining, leading Company s transition from explorer to free-cash flow generating producer Chris Stewart, P.Eng, Vice President, Operations More than 20 years experience operating mines in Northern Ontario in various senior-level positions Former CEO of Liberty Gold Mines where he implemented a successful turnaround strategy leading company to restart production on time and on budget Mining Engineering degree from Queen s University John Thomson, CA, CFO More than 25 years experience in various senior level finance positions Variety of senior level positions with companies such as PepsiCo Chartered Accountant who has studied at INSEAD *Non-Executive Board Members: Harry Dobson, Chairman Claude Lemasson, P.Eng, MBA, lead independent director Pam Klessig, P. Geo Dawn Whittaker, LL.B Trevor Gabriel Brian Bayley *Full director biographies are available at

5 LOCATION ONTARIO, CANADA Geo-politically and socio-economically one of the safest mining jurisdictions in the world Federal Tax decreased in recent years from 25% to 15% Ontario Provincial Tax is 12.5%. Combined tax of 27.5% Significant Canadian tax loss pools Leverage to weakening Canadian dollar Unparalleled access to quality labour and infrastructure Incentive programs e.g. NIER program, rebates up to$1.3m reduce energy

6 PROPERTY POSITION

7 INVESTMENT HIGHLIGHTS Proven improvements in head grade and costs since mine optimization plan was initiated in late 2013 Management and founders own 20% Attractive high grade reserve & resource profile long mine life Growing yearly production, declining costs, maximizing profitability and cash flow Pure gold and weakening Canadian dollar leverage Significant capital investment & infrastructure capable moving and processing 2,200 tons per day Significant exploration upside potential to extend mine life well beyond current 14 year mine life Located in Ontario, one of the safest and lowest risk mining jurisdictions globally

8 FY 2014 FINANCIAL RESULTS FY2014 FY2013 FY2014 vs FY2013 Financial Q1/14 Q2/14 Q3/14 Q4/14 Q4/14 vs Q3/14 125,273 91, % Gold Sales (ounces) 30,253 30,530 33,719 30,771-9% 1,383 1,653-16% Average Price ($) (per ounce) 1,435 1,353 1,369 1,376 +1% 173, , % Revenue (000 s) 43,421 41,316 46,165 42,356-8% % 1,078 1,109-3% Cash Operating Cost per Ton Produced Cash Operating Cost per Ounce Produced % 1,113 1,105 1,094 1,000-9% 1,986 2,432-18% AICC per Ounce Produced 2,094 2,072 1,923 1,774-9%

9 EFFECTS OF MINE OPTIMIZATION AND COST CUTTING

10 PRODUCTION GROWTH HISTORY AND FORECASTS Since 2011 there s been a 18% YoY Increase E E E

11 MINE VIEW (LOOKING NORTH EAST) #3 SHAFT #2 SHAFT 5000 LEVEL SOUTH MINE COMPLEX 5300 LEVEL HAULAGE RAMP 04 BREAK 08 BREAK

12 4750 LEVEL SOUTH MINE COMPLEX Isometric View (Looking Northwest) Showing Proven, Probable, Measured & Indicated Tons, Ounces & Grade 5025 Level P+P 89,000 oz/ton 39,000O Ounces M+I 57, oz/ton 22,000 Ounces 5025 LEVEL #2 WINZE #3 SHAFT 5300 LEVEL 5300 Level P+P 620, oz/ton 290,000 Ounces M+I 220, oz/ton 86,000 Ounces 5400 Level P+P 481, oz/ton 274,000 Ounces M+I 170, oz/ton 71,000 Ounces 5300 LEVEL Development Legend Completed Development 54 LEVEL 56 LEVEL 5600 Level P+P 290,000 oz/ton 209,000 Ounces M+I 220, oz/ton 122,000Ounces 54 LEVEL FY2015 Development FY Development 57 to 66 Level M+I 768, oz/ton 703,000 Ounces 66 LEVEL

13 FY 2015 MINE PLAN LEVEL SMC PLAN VIEW 54L (Ramps) HAULAGE RAMP To #3 SHAFT 5417 MCF / 5617 UC 0.42 opt/0.6 opt 5612 UC 0.42 opt 5409 MCF 0.4 opt 5412 LH 0.39 opt Vent Raises 5409 MCF#2 0.4 opt 54L (Track Drifts) LEGEND EXISTING DEVELOPMENT (HAULAGE RAMP) PROPOSED DEVELOPMENT (HAULAGE RAMP TO 57) PROPOSED DEVELOPMENT (5400 LEVEL & RAMPS) HAULAGE RAMP

14 EMPHASIS ON MINING HIGHER RATIOS FROM THE SOUTH MINE COMPLEX 2010: opt 2011: opt 2012: opt 2013: opt 2014 (A): opt 2015 (Est): opt

15 AICC IMPROVEMENT AND H1 FY 2015 FORECASTS

16 EXPANSION CAPITAL - PROJECTS COMPLETE #3 SHAFT New hoist added Mill Expansion Battery equipment working 3400 L 3800 L 4250 L 4500 L 4750 L 5025 L 5300 L 5700 L 2475 L 3000 L 3075 L 7000 L Loading pocket automated SOUTH MINE COMPLEX New haulage ramp

17 CAPITAL EXPENDITURES Excludes $60M spent in 2013 to buy out 50/50 JV with Queenston Mining (Osisko)

18 RESERVES AND RESOURCES MINE WIDE COMPLEX CATEGORY (CAL 2013) Proven Probable Total P+P TONS GRADE (OPT) GRADE (G/mT) OUNCES 941,000 1,843,000 2,784, , ,000 1,385,000 Measured Indicated Total M+I 1,133,000 3,019,000 4,152, ,000 1,619,000 2,055,000 Inferred 2,092, ,133,000 Due to rounding there may be some small discrepancies in the numbers. See Kirkland Lake news release dated April , a copy of which has been filed on SEDAR for further particulars. The contents of the above slide have been verified and approved by the Company s Chief Exploration Geologist, Stewart Carmichael, P.Geo, a qualified person for the purpose of National Instrument , Standards of Disclosure for Mineral projects.

19 COMPANY CLAIMS 13,000 Hectares NEAR SURFACE EXPLORATION (SURFACE TO 1,000 ) TO EXPLORE MULTIPLE MINERALIZED ZONES ASSOCIATED WITH THE AMALAGAMATED BREAK(2 DRILLS)

20 NEAR SURFACE MINERALIZATION (SURFACE TO -1,000 FEET) Estimates as at December 31st, 2013 CATEGORY (CAL 2013) Proven Probable TONS GRADE (OPT) GRADE (G/mT) OUNCES Measured Indicated - 310, ,000 Inferred 131, ,000 Due to rounding there may be some small discrepancies in the numbers. See Kirkland Lake news release dated April 28, 2014, a copy of which has been filed on SEDAR for further particulars. The contents of the above slide have been verified and approved by the Company s Chief Exploration Geologist, Stewart Carmichael, P.Geo, a qualified person for the purpose of National Instrument , Standards of Disclosure for Mineral projects.

21 EXPLORATION - SURFACE DRILLING

22 EXPLORATION UG DRILLING

23 CONTACT FOR FURTHER INFORMATION PLEASE CONTACT: George Ogilvie President, CEO and Director ext John Thomson CFO and Director Lindsay Dunlop Director of Investor Relations