KLGOLD.COM TSX: KL OTCQX: KLGDF May 2017 AGM PRESENTATION Anthony (Tony) Makuch, President & CEO TIER ONE GOLD PRODUCTION | DISTRICT SCALE EXPLORATION | VALUATION UPSIDE 1
KLGOLD.COM FORWARD LOOKING STATEMENTS TSX:KL 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 first quarter ended March 31, 2017 and their interim financial reports and related MD&A for the period ended March 31, 2017 filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com . 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. Use of Non-GAAP Measures Operating cash cost per ounce sold, all-in sustaining costs per ounce sold, average realized gold price per ounce and working capital are Non-GAAP measures. In the gold mining industry, these are common performance measures but do not have any standardized meaning, and are considered Non-GAAP measures. The Company believes that, in addition to conventional measures prepared in accordance with International Financial Reporting Standards ("IFRS" or "GAAP"), certain investors use such Non-GAAP measures to evaluate the Company's performance and ability to generate cash flow. Accordingly, they are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. A reconciliation of operating costs per ounce and AISC per ounce to total operating costs for the most recent reporting period, the three months ended March 31, 2017 and the three months ended March 31, 2016, is set out on the Company's MD&A for the period ended March 31, 2017 filed on SEDAR at www.sedar.com and available on the Company’s website at www.klgold.com .
KLGOLD.COM 2016 FULL YEAR HIGHLIGHTS TSX:KL • Transformational Year Completed Acquisition of St Andrew Goldfields Ltd. and Business Combination with Newmarket Gold Inc. resulting in the creation of a mid-tier gold producer • Increased cash and Financial Flexibility: US$234 million 1,2 as at December 31, 2016 providing financial flexibility to manage low debt Strong Balance Sheet • Decreased Royalties: Royalty rate to Franco-Nevada on gold revenue from Macassa down from 2.5% to 1.5% 1 • District Scale Significantly expanded district scale land packages in established gold camps Exploration Potential • +20 drill rigs in operation across Canada & Australia Strong Value Proposition 3 8.6 $4,000 5.6 Enterprise value $2,536 2017 Price to to ounce of 2017 Cash flow production KL Gold Peer Average KL Gold Peer Average 1.Refer to Slide 2 “Forward Looking Information. 2. See Kirkland Lake Gold News Release dated April 12, 2017 for additional details. 3 Source: Company filings, FactSet and available equity research at April 28, 2017. Production and Cash Flow are broker consensus averages exclude Kirkland Lake 3
KLGOLD.COM 2016 OPERATIONAL HIGHLIGHTS 1 TSX:KL Record Gold Production: Consolidated operations achieved attributable gold production of 314,495 ounces, including 18,657 ounces from operations in Australia for the one month ended December 31, 2016, surpassing previously announced 2016 production guidance. Low Operating Costs and AISC: Total production costs of $198.4 million resulted in operating cost per ounce 2 and AISC per ounce 2 of $571 and $923 respectively; below the lower range of 2016 operating cost guidance of $600 - $650 per ounce and AISC guidance of $1,000 - $1,050 per ounce. 2016 Pro-forma Production by Mine 2016 Consolidated Costs Below guidance of $1,000 - $1,050 $1,000 $900 $923 $800 Below guidance of $600 - $650 $700 $600 $500 $571 $400 $300 $200 $100 $0 Operating Cost Per Ounce (US$) AISC per Ounce (US$) (1) Full Year 2016 results include the results of Kirkland Lake Gold Inc. (“former Kirkland Lake”) operations for the full ye ar; the results of the Newmarket operations for December 2016, being the period following the completion of the business combination between the former Kirkland Lake and Newmarket; and the results of the St Andrew operations for the period starting on January 26, 2016, being the period following the completion of the acquisition of St Andrew by former Kirkland Lake. (2) Non GAAP Measures Operating cash cost per ounce sold, all-in sustaining costs per ounce sold, average realized gold price per ounce, working capital and free cash flow are Non-GAAP measures. In the gold mining industry, these are common performance measures but do not have any standardized meaning, and are considered Non-GAAP measures. The Company believes that, in addition to conventional 4 measures prepared in accordance with International Financial Reporting Standards (“IFRS” or “GAAP”), certain investors use su ch Non- GAAP measures to evaluate the Company’s performance and ability to generate cash flow. Accordingly, they are intended to pro vide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. A reconciliation of operating cost per ounce and AISC per ounce to total operating costs for the most recent reporting period, the three and twelve months ended December 31, 2016 and the eight months ended December 31, 2015, is set out on the Company’s MD& A for the period ended December 31, 2016 filed on SEDAR at www.sedar.com and at www.klgold.com. Please refer to the “Forward Lo oki ng Statements” on page 61.
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