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TSX:KGI 1 klgold.com
TSX:KGI
BMO Metals & Mining Conference | March 1, 2016
Presenter: Perry Ing, Chief Financial Officer
GROWTH & VALUE
Creating an Ontario
Focused Intermediate
Gold Producer
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TSX:KGI 2 klgold.com TSX:KGI klgold.com 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 combined production guidance for 2016, and guidance from the Macassa Mine
Complex for the financial years ended 2017 and 2018 the exploration programs and the results and timing thereof, the integration of the
East Timmins Operations resulting from the SAS acquisition, and the timing thereof.
In respect of the forward-looking information concerning the anticipated completion of the proposed Transaction and the anticipated timing thereof,
Kirkland Lake has provided them in reliance on certain assumptions that it believes are reasonable at this time, including assumptions as to the time
required to prepare and mail shareholder meeting materials, including the required information circular; the ability of the parties to receive, in a
timely manner, the necessary regulatory, court, shareholder and other third party approvals; and the ability of the parties to satisfy, in a timely
manner, the other conditions to the closing of the Transaction. These dates may change for a number of reasons, including unforeseen delays in
preparing meeting materials, inability to secure necessary shareholder, regulatory, court or other third party approvals in the time assumed or the
need for additional time to satisfy the other conditions to the completion of the Transaction. Accordingly, readers should not place undue reliance on
the forward-looking information contained in this news release concerning these times.
With respect to the forward looking information of Kirkland Lake and/or St Andrew, concerning the future gold production of Kirkland Lake and St
Andrew, future cash costs of production, the gold resources and reserves of Kirkland Lake and St Andrew, and the development of the Kirkland
Lake and St Andrew properties are subject to various key assumptions described in each party’s respective Annual Information Forms and
Technical Reports referred to herein and as filed on the SEDAR profiles of both companies at www.sedar.com.
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, 2015.
and the Company’s Management's Discussion and Analysis for the interim period ended October 31, 2015 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 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.
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TSX:KGI 3 klgold.com
Creating A New Mid-Tier Gold Producer
STRONG LEADERSHIP
ROBUST PRODUCTION AND ASSET DIVERSIFICATION FROM 4 MINES
INCREASED FINANCIAL FLEXIBILITY AND SOLID BALANCE SHEET
EXPLORATION POTENTIOAL IN TWO HISTORIC CAMPS WITHIN THE ABITIBI
SUSTAINABLE, PROFITABLE
MID-TIER GOLD PRODUCER
• Strong leadership from an experienced board of directors
and management team with proven results
• Ontario Focused Gold Producer targeting between
260-310Koz’s in 2016
• Asset diversification with 4 mines and 2 mills
• Healthy balance sheet with >$100 million in cash*
• Combined strong future cash flow generation
• Operational and corporate cost saving synergies
• Consolidation of large land holdings in the heart of two
Ontario gold camps
• Robust level of reserves and resources with 2.3 Moz’s of
P&P reserves, 4.7 Moz’s of M&I resources plus an
additional 3.9 Moz’s of inferred resources.
• Enhanced market profile with extensive coverage
universe and increased trading liquidity
• Combined entity has stronger market positioning
• Benefits with all Canadian assets leveraged to the
Canadian dollar gold price
* $120 million in debt (convertible debentures)
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TSX:KGI 4 klgold.com
Market Positioning
$3,588
$822
$354 $229 $175
Detour Gold Kirkland Lake Richmont Claude Wesdome
573
285
91 70
59
Detour Gold Kirkland Lake Richmont Claude Wesdome
Kirkland Lake widens the gap amongst pure Canadian gold producers
Market Cap (C$ MM) 2016E Production (koz)
Source: Factset streetresearch
* KGI 2016E production is the mid-range of stated guidance of between 260 – 310 koz’s.
*
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TSX:KGI 5 klgold.com
Diversified Assets In A Prolific, Mining Friendly Region
East Timmins Assets
2015E Production 107 koz Au
Q3 2015 AISC US$934/oz Au
Holt Mill 3,000 tpd (75% utilized)
Resources & Reserves*
Holt Mine 591 kozs
Holloway Mine 40 kozs
Taylor Mine 156 kozs
Total P&P
(including Hislop Mine) 0.8 Mozs
Measured & Indicated
(Property Wide) 2.7 Mozs
Inferred
(Property Wide) 2.2 Mozs
Macassa Mine Complex
SY 2015E Production 103 koz Au
Q2 SY2015 AISC US$989/oz Au
Macassa Mill 2,000 tpd (50% utilized)
Reserves & Resources*
Total P&P Reserves
(Macassa Mine Complex) 1.5 Mozs
Measured & Indicated
(Property Wide) 2.0 Mozs
Inferred (Property Wide) 1.7 Mozs
*Resources are exclusive of Reserves. See Company websites for NI 43-101 disclosure
(www.kllgold.com; www.sasgoldmines.com)
Assets in close proximity
within an 80km radius,
accessed by provincial
highways.
QUÉBEC
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TSX:KGI 6 klgold.com
Financial Position
CASH C$93.8 million 1
DEBT C$119 million 3
convertible debentures
(principal amount owing)
KGI.DB: 6% coupon/ $15.00 strike
C$56.9MM mature Jun/2017
KGI.DB.A: 7.5% coupon/ $13.70 strike
C$62.1MM mature Dec/2017
NCIB allows KGI to purchase up to 10% of each issue within a 12
month period commencing April 3, 2015, and can be renewed
annually 3
ROYALTY 2.5% NSR Franco Nevada Corporation
Option to buyback 1% by October 31, 2016, at a cost of
US$36MM less any money paid against the 1%
52 Week Performance Feb 23, 2016
HIGH C$7.53
LOW C$4.49
Current Share Price C$7.52
Major Shareholders (~50%) 2
Resolute Funds (~7%)
Eric Sprott (~8%)
Columbia Asset Management LLC (~5%)
Equinox Partners (~4%)
Van Eck Associates Corporation (~4%)
Harry Dobson (~3%)
Sprott Asset Management (~3%)
Sentry Select (~3%)
CAPITAL STRUCTURE 2
ISSUED SHARES 114.3 million
Stock Options ~4.5 million
FULLY DILUTED ~118.8 million
MARKET CAP ~860 million
1 As at December 31, 2015, and does not reflect pro-forma cash of
approximately $110M post closing. 2 As at February 1, 2016
3 As of January 18, 2016, see press release dated April 1, 2015 for details on the NCIB
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TSX:KGI 7 klgold.com
KGI Relative Share Price Performance
0%
25%
50%
75%
100%
125%
150%
175%
200%
225%
Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16
Kirkland Lake (TSX:KGI) Gold Price (US$ / oz)
4%
124%
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TSX:KGI 8 klgold.com
A Corner Stone
High-Grade Asset
MACASSA MINE
COMPLEX
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TSX:KGI 9 klgold.com
One of the Highest Grade Gold Mines In The World Select Group of Producing Assets with +1Moz’s in Reserves
Mine Operator Location Gold Grade Reserves Reserve Update
g/t Au Date
Macassa Mine Complex Kirkland Lake Gold Canada (Ontario) 19.2 1.5 Moz Dec/2014
Turquoise Ridge Barrick USA (Nevada) 16.9 4.5 Moz Dec/2014
Gosowong Newcrest Indonesia 12.0 1.2 Moz Dec/2014
Moab Khotsong AngloGold Ashanti South Africa 10.0 6.1 Moz Dec/2014
Mponeng AngloGold Ashanti South Africa 10.0 14.6 Moz Dec/2014
Red Lake Goldcorp Canada 10.0 2.1 Moz Dec/2014
Kupol/Dvoinoye Kinross Russia 8.5 2.1 Moz Dec/2014
TauTona AngloGold Ashanti South Africa 8.0 1.4 Moz Dec/2014
19.2
16.9
12.0 10.0 9.9 9.6 8.5 8.0
0.0
5.0
10.0
15.0
20.0
25.0
Macassa MineComplex
Turquoise Ridge Gosowong Red Lake Moab Khotsong Mponeng Kupol/Dvoinoye Tau Tona
Gra
de g
/t
Reserve Grades
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)
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TSX:KGI 10 klgold.com
Robust Level of Reserves & Resources Resources are Exclusive of Reserves
See Appendix for more disclosure on MRMR statement which is as of December 31, 2014.
Based on current level of reserves and a
conservative 70% conversion of M&I
resources (@ 200,000 oz p.a),
KGI has a 14 year mine life.
Property Wide SMC
Mineral Reserves (P&P)
Includes the ’04/ Main Break
and SMC
1.5 Moz’s
2.6M tons @ 0.56 opt
(19.2 g/t )
0.9 Moz’s
1.5M tons @ 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
4.2M tons @ 0.49 opt
(16.8 g/t )
0.9 Moz’s
1.4M tons @ 0.66 opt
(22.6 g/t)
Mineral Resources (Inferred)
Includes the ’04/ Main Break,
SMC, Near Surface and other
1.7 Moz’s
2.1M tons @ 0.56 opt
(19.2 g/t)
0.9 Moz’s
1.4M tons @ 0.65 opt
(22.3 g/t)
Breakout of
SMC only
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TSX:KGI 11 klgold.com
5025 Level
P+P 28,000 Tons @ 0.48 oz/ton 14,000 Oz’s
M+I 74,000 Tons @ 0.42 oz/ton 32,000 Oz’s
5300 Level
P+P 561,000 Tons @ 0.47 oz/ton 261,000 Oz’s M+I 245,0000 Tons @ 0.43 oz/ton 107,000 Oz’s
5400 Level
P+P 370,000 Tons @ 0.61 oz/ton 226,000 Oz’s M+I 174,000 Tons @ 0.42 oz/ton 72,000 Oz’s
5600 Level
P+P 239,000 Tons @ 0.77 oz/ton 183,000 Oz’s M+I 186,000 Tons @ 0.63 oz/ton 117,000 Oz’s
5700 Level
P+P 202,000 Tons @ 1.03 oz/ton 208,000 Oz’s M+I 164,000 Tons @ 0.91 oz/ton 96,000 Oz’s
South Mine Complex
Access from 5400L
and 5600L allows
delineation drilling of
resources, especially
below 5600L
Remains Open at
Depth and Across
Strike OPEN
*Drawing not to scale
5800 to 6600 Level
P+P 50,000 Tons @ 0.83 oz/ton 41,000 Oz’s
M+I 551,000 Tons @ 0.91 oz/ton 499,000 Oz’s
OPEN
OPEN
16.5 g/t
16.1 g/t
20.9 g/t
26.4 g/t
35.3 g/t
28.5 g/t
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TSX:KGI 12 klgold.com
-
50,000
100,000
150,000
200,000
250,000
14 15 SY15 16 17 18
Go
ld O
un
ce
s
OzRecovered
Guidance
Linear (OzRecovered)
April 30th Fiscal Year End Calendar Year End 8 Month Stub Year
Growing Production Profile
The Stub Year (SY) 8 month period runs from May 1 – December 31, 2015. Recovered 102,597 ounces at a head
grade of 0.42 opt (14.1 g/t), recoveries of 97.1% and achieved an average throughput of 1,016 tpd.
2016, 2017 and 2018 guidance based on stated head grade and average throughput of 1,130, 1,140 and 1,145 stpd
respectively.
0.38/ 13.0 0.37/ 12.7 0.43/ 14.7 0.44/ 15.1 0.45/ 15.4 0.46/ 15.8 Guided Head Grades (OPT/ GPT)
0.33/ 11.3 0.43/ 14.7 0.42/ 14.4 - - - Actual Head Grades Achieved (OPT/ GPT)
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TSX:KGI 13 klgold.com
Exploration Potential In A Historic Camp
Currently mining and
exploring on one of the
five mine targets.
Current Underground
Drilling Targets: Two
main areas currently
being explored from
underground.
Regional Surface
Drilling Program:
Regional exploration to
test eastwards along
strike.
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TSX:KGI 14 klgold.com
Investing In Our Future
• Initial results from our regional program do not appear to be Main Break related (Phase 1)
• Geophysics anomalies identified and follow-up targeting exercise completed as part of Phase 1a
• Phase 1a program has 2 remaining holes in progress.
• Phase 2 will target the Main Break at depth and consist of infill drilling.
Kirkland
Minerals
1.5 km
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TSX:KGI 15 klgold.com
Sustainable Assets
EAST TIMMINS
ASSETS
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TSX:KGI 16 klgold.com
East Timmins Assets
120 km strike length
Holt, Holloway, Taylor Producing Assets
Hislop Care & Maintenance
Ludgate, Aquarius Exploration Targets with existing resources
Garrison Creek Exploration Target
Source: St Andrew website (www.sasgoldmines.com)
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TSX:KGI 17 klgold.com
East Timmins Operations
Holt Mine
• ~1,200 tpd operation
• Reserves of 591 koz’s at 4.75 g/t
• ~ 7 year mine life based on current level of reserves
• Exploration potential further to the west and down-dip of main zone
Taylor Mine
• ~550 tpd operation
• Declared commercial production in November 2015
• Reserves of 156 koz’s at 6.27 g/t
• ~ 4-5 year mine life based on current level of reserves
• Exploration potential at depth and along strike
Holloway Mine
• ~500 tpd operation
• Reserves of 40 koz’s at 5.35 g/t
• ~ 2 year mine life based on current level of reserves
• Exploration potential further to the east and down-plunge of main zone
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TSX:KGI 18 klgold.com
2016 Plans for East Timmins Assets
• Ensure production remains on track while integrating the
2016 budgets.
• Assess where additional capital outlays are required and
work this into the mine plan.
• Assess cost saving synergies with suppliers and
contractors.
• Focus exploration in the shadow of the headframe to
extend the mine lives and replace resources.
• Evaluate the land position to determine a regional
program for 2017. Look for opportunities such as joint
venture’s, partnerships or divestitures.
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TSX:KGI 19 klgold.com
2016 Outlook and Expectations
Initial Guidance
Consolidated 2016 Production 260,000 – 310,000 ounces
Cash Costs Per Ounce US$600-$690
All-In Sustaining Costs Per Ounce US$950
2016 News Flow
Stub Year 2015 YE Earnings March 10
Q1/2016 Consolidated Production April 11
Updated Guidance April (on or before April 15)
Q1/2016 Consolidated Earnings May 16
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TSX:KGI 20 klgold.com
klgold.com
Suzette N Ramcharan, CPIR
Director of Investor Relations
+1-647-361-0200
TSX:KGI