KLGOLD.COM TSX: KL NYSE: KL ASX: KLA February 21, 2018 FY & Q4 2017 CONFERENCE CALL & WEBCAST OPERATIONAL EXCELLENCE | ORGANIC GROWTH | SHAREHOLDER RETURNS On the Road to a Million Ounces of Gold Per Year 1
KLGOLD.COM TSX:KL FORWARD LOOKING STATEMENTS NYSE:KL ASX:KLA 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 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. 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
KLGOLD.COM 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
KLGOLD.COM TSX:KL • KL: RECORD YEAR IN 2017 NYSE:KL ASX:KLA 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
KLGOLD.COM TSX:KL • 2017 PRODUCTION BEATS IMPROVED GUIDANCE NYSE:KL ASX:KLA • Production of 596.4 kozs beats improved guidance of 580 – 595 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 Production (ozs) 596,405 550,000 90% 450,000 313,653 350,000 250,000 150,000 102,597 50,000 2015 2016 2017 5 160,305
KLGOLD.COM TSX:KL • KL: STRONG UNIT COST PERFORMANCE NYSE:KL ASX:KLA • 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 1,000 13% 900 $970 800 $930 700 $812 600 16% 500 $638 400 $571 564 $481 300 200 2015 2016 2017 2017 Cost per Tonne C$197/tonne for Canadian operations A$163/tonne at Fosterville 6 1) See Non-GAAP Measures sections in forward looking statements
KLGOLD.COM TSX:KL • PRODUCTION GROWTH, LOW UNIT COSTS DRIVE STRONG EARNINGS NYSE:KL ASX:KLA • 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 Q4 2017 ($0.32/share) • Loss from continuing operations of $24.9M ($0.12/share) in 2017 from sale of Stawell • Adjusted net earnings in 2017 excludes discontinued ops., deferred tax recovery • Q4 2017 adjusted net earnings exclude discontinued ops., loss on Novo warrants and impact of deferred tax recovery 2017 Earnings ($ Millions ) Q4 2017 Earnings ($ Millions) $160 $80 $150 $70 $149.1 $71.2 $140 ($0.72/share) ($0.34/share) $60 $130 $132.4 ($0.64/share) $120 $50 $110 $40 $41.0 $100 ($0.20/share) $30 $90 $20 $80 Net Earnings Adjusted Net Earnings Net Earnings Adjusted Net Earnings 7
KLGOLD.COM TSX:KL • KL: A BUSINESS THAT GENERATES CASH NYSE:KL ASX:KLA • 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 CASH FROM OPERATING ACTIVITIES FREE CASH FLOW $200 ($ Millions) 1 ($ Millions) $330 $180 56% $178.0 $160 66% $280 $309.8 $140 $230 $120 $100 $113.9 $180 $187.0 $80 $130 $60 $40 $80 2016 2017 2016 2017 8 1) See Non-GAAP Measures sections in forward looking statements
KLGOLD.COM TSX:KL • CASH AND CASH EQUIVALENTS OF $231.6 MILLION AT DECEMBER 31, 2017 NYSE:KL ASX:KLA $ Millions 178.0 -78.0 -60.1 $231.6 $234.9 4.1 -44.0 -3.3 9 1) See Non-GAAP Measures sections in forward looking statements
KLGOLD.COM TSX:KL • Q4 2017: RECORD PRODUCTION, OPERATING CASH COSTS, FREE CASH FLOW NYSE:KL ASX:KLA • Production of 165.6 kozs, 56% increase from Q4 2016, 20% higher than Q3 2017 • 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 Production (ozs) 165,579 170,000 160,305 150,000 139,091 130,425 130,000 106,609 110,000 90,000 70,000 50,000 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 10 160,305
KLGOLD.COM TSX:KL • Q4 2017: RECORD OPERATING CASH COSTS, IMPROVED AISC NYSE:KL ASX:KLA • OCC of $412/oz, 23% better than Q4 2016, 15% improvement from Q3 2017 • 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 Q4 2016 and $278/oz sold in Q3 2017 Unit Costs ($/oz Sold) 1 900 800 $873 $900 700 $845 $816 $729 600 500 $533 $564 564 400 $482 $482 $412 300 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q4 2017 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 11 1) See Non-GAAP Measures sections in forward looking statements
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