Management’s Discussion & Analysis...2020/09/30 · Kirkland Lake Gold Ltd. (individually, or...

Management’sDiscussion&Analysis

ForthethreeandninemonthsendedSeptember30,2020and2019

MANAGEMENT’SDISCUSSIONANDANALYSIS

ThisManagement’sDiscussionandAnalysis(“MD&A”)datedNovember4,2020forKirklandLakeGoldLtd.(the“Company”andasdefinedinthesectionentitled“BusinessOverview”)containsinformationthatmanagementbelievesisrelevanttoanassessmentandunderstandingoftheCompany’sconsolidatedfinancialpositionandtheresultsofitsconsolidatedoperationsfor the three and ninemonths ended September 30, 2020 and 2019. TheMD&A should be read in conjunctionwith theunauditedCondensedInterimConsolidatedFinancialStatementsforthethreeandninemonthsendedSeptember30,2020and2019, theannualauditedConsolidatedFinancialStatements for theyearsendedDecember31,2019and2018,whichwere prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the InternationalAccountingStandardsBoard ("IASB"),aswellas theannualMD&Afor theyearsendedDecember31,2019and2018andAnnualInformationForm("AIF")fortheyearendedDecember31,2019.

FORWARDLOOKINGSTATEMENTS

ThisMD&Amaycontainforward-lookingstatementsandshouldbereadinconjunctionwiththeriskfactorsdescribedinthe“Risk and Uncertainties” and “Forward Looking Statements” sections at the end of this MD&A and as described in theCompany’sAnnual InformationForm for theyearendedDecember31,2019.Additional information including thisMD&A,InterimFinancialStatementsforthethreeandninemonthsendedSeptember30,2020,theauditedConsolidatedFinancialStatementsfortheyearendedDecember31,2019,theCompany’sAnnualInformationFormfortheyearendedDecember31,2019,andpress releaseshavebeen filedelectronically through theSystem forElectronicDocumentAnalysisandRetrieval(“SEDAR”), the Electronic Data Gathering, Analysis and Retrieval system ("EDGAR"), and are available online under theKirkland Lake Gold Ltd. profile at www.sedar.com, www.sec.gov/edgar, www.asx.com.au and on the Company’s website(www.klgold.com).

NON–IFRSMEASURESCertainnon-IFRSmeasuresareincludedinthisMD&A,includingadjustednetcashprovidedbyoperatingactivities,freecashflow,adjustedfreecashflow,operatingcashcostsandoperatingcashcostsperouncesold,sustainingandgrowthcapitalexpenditures,all-insustainingcosts(“AISC”)andAISCperouncesold,averagerealizedgoldpriceperouncesold,adjustednetearningsandadjustednetearningspershare,earningsbeforeinterest,taxesanddepreciationandamortization(“EBITDA”)andworkingcapital. Inthegoldminingindustry,thesearecommonperformancemeasuresbutmaynotbecomparabletosimilarmeasurespresentedbyotherissuers.TheCompanybelievesthatthesemeasures,inadditiontoinformationpreparedin accordance with IFRS, provides investors with useful information to assist in their evaluation of the Company’sperformance and ability to generate cash flow from its operations. Accordingly, thesemeasures are intended to provideadditionalinformationandshouldnotbeconsideredinisolationorasasubstituteformeasuresofperformancepreparedinaccordancewithIFRS.Forfurtherinformation,refertothe“Non-IFRSMeasures”sectionofthisMD&A.

ThefollowingadditionalabbreviationsmaybeusedthroughoutthisMD&A:GeneralandAdministrativeExpenses(“G&A”);PlantandEquipment(“PE”);Gold(“Au”);TroyOunces(“oz”);GramsperTonne(“g/t”);MillionTonnes(“Mt”);Tonnes(“t”);SquareKilometre(“km2”);Metres(“m”);TonnesperDay(“tpd”);KiloTonnes(“kt”);EstimatedTrueWidth(“ETW”);andLifeofMine(“LOM”).ThroughoutthisMD&AthereportingperiodsforthethreeandninemonthsendedSeptember30,2020areabbreviated as Q3 2020 and YTD 2020, respectively, while the reporting periods for the three and nine months endedSeptember30,2019areabbreviatedasQ32019andYTD2019,respectively.Inaddition,thereportingperiodforthethree-monthperiodendedJune,2020isabbreviatedasQ22020.ThroughoutthisMD&A,referencestoQ1,Q2,Q3andQ4refertothefirst,second,thirdandfourthquarters,respectively,foranygivenyear.

REPORTINGCURRENCY

AllamountsarepresentedinU.S.dollars("$")unlessotherwisestated.Referencesinthisdocumentto“C$”aretoCanadiandollars and references to "A$"are toAustraliandollars. Unlessotherwise specified, all tabularamountsare expressed inthousandsofU.S.dollars,exceptpershareorperounceamounts.

Q3 2020 MANAGEMENT’S DISCUSSION AND ANALYSIS

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TABLEOFCONTENTS

BUSINESSOVERVIEW 3

KEYDEVELOPMENTSINQ32020 3

Q32020PERFORMANCE-EXECUTIVESUMMARY 5

FULL-YEAR2020GUIDANCE-RE-ISSUEDJUNE30,2020 11

LONGER-TERMOUTLOOK 14

EXTERNALPERFORMANCEDRIVERS 14

REVIEWOFFINANCIALPERFORMANCE 15

REVIEWOFOPERATINGMINES 23

GROWTHANDEXPLORATION 29

REVIEWOFFINANCIALCONDITIONANDLIQUIDITY 31

OFF-BALANCESHEETARRANGEMENTS 32

OUTSTANDINGSHAREANDCONVERTIBLEEQUITYINFORMATION 32

QUARTERLYINFORMATION 32

COMMITMENTSANDCONTINGENCIES 32

RELATEDPARTYTRANSACTIONS 33

CRITICALACCOUNTINGESTIMATESANDJUDGEMENTS 33

ACCOUNTINGPOLICIESANDBASISOFPRESENTATION 33

NON-IFRSMEASURES 34

INTERNALCONTROLSOVERFINANCIALREPORTINGANDDISCLOSURECONTROLSANDPROCEDURES 41

RISKSANDUNCERTAINTIES 41

FORWARDLOOKINGSTATEMENTS 41

INFORMATIONCONCERNINGESTIMATESOFMINERALRESERVESANDMEASURED,INDICATEDANDINFERREDRESOURCES 42

TECHNICALINFORMATION 43


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BUSINESSOVERVIEW

Kirkland Lake Gold Ltd. (individually, or collectively with its subsidiaries, as applicable, the “Company” or “Kirkland LakeGold”)isagrowing,Canadian,U.S.andAustralian-listed,goldproducerwithassetsinCanadaandAustralia.TheCompany’sproduction is anchored by three high-quality, cornerstone assets. These assets include two high-grade, low-costundergroundminingoperations,theMacassamine(“Macassa”)locatedinnortheasternOntario,CanadaandtheFostervillemine(“Fosterville”),locatedinthestateofVictoria,Australia,aswellastheDetourLakeMine(“DetourLake”),alarge-scaleopen-pitmining operation located inNorthernOntario. Detour Lakewas obtained by the Company on January 31, 2020through the acquisition of Detour Gold Corporation (“Detour Gold”). The Company also owns the Holt Complex, whichincludesthreewhollyownedmines,theTaylormine(“Taylor”),Holtmine(“Holt”)andHollowaymine(“Holloway”),aswellasacentralmillingfacility,theHoltmill.TheHoltComplexislocatedinnortheasternOntario.TheHollowayminewasplacedoncareandmaintenanceinMarch2020.OperationsattheremainderoftheHoltComplexweresuspendedeffectiveApril2,2020aspartoftheCompany’sresponsetotheCOVID-19pandemicandwhiletheCompanyconductedastrategicreviewoftheassets.OnJuly16,2020,theCompanyannouncedthattheoperationsatHoltComplexwouldremainsuspendeduntilfurthernotice. TheCompany’sbusinessportfolioalso includesassets in theNorthernTerritoryofAustralia. Theseassets,whichare comprisedof theCosmomine (“Cosmo”),UnionReefsmill (“UnionReefs”)aswell asanumberofexplorationproperties,arecurrentlyoncareandmaintenance.

TheCompanyconductsextensiveexplorationactivitiesonitslandholdingsinCanadaandAustralia.ThecurrentexplorationprogramsarefocusedonextendingknownzonesofmineralizationandtestingfornewdiscoveriesinordertoincreasethelevelofMineralResourcesandMineralReservesinsupportoffutureorganicgrowth.

KirklandLakeGoldisfocusedondeliveringsuperiorvalueforitsshareholdersandmaintainingapositionwithintheminingindustry as a sustainable, growing low-cost gold producer. Over the last two years, the Company has achieved bothsignificant production growth and improved unit costs,which has resulted in higher levels of profitability and cash flow.ThroughtheeffectiveoperationandadvancementofdevelopmentandexplorationprogramsattheCompany’sprofitable,cash flow generating assets, and through the acquisition of Detour Gold, with its significant expansion potential andexplorationupside,KirklandLakeGoldiswellpositionedtoachievefurtherincreasesinshareholdervalue.

InadditiontotheCompany’sportfolioofwhollyownedassets,whichasofJanuary31,2020includestheDetourLakeMine,Kirkland LakeGold hasmade strategic investments in the common shares of other public issuers in instanceswhere theCompany could gain exposure to prospective mineral properties that offer the potential for future profitable goldproduction.ShouldtheexplorationprogramsofpublicissuersinwhichtheCompanyhasinvestedresultintheestablishmentofasufficientlyattractiveeconomicdeposit,theCompanymayelecttoacquireadditionalinterestsinsuchdeposits.

KEYDEVELOPMENTSINQ32020

COVID-19

InresponsetotheextensiveglobalhealthrisksresultingfromtheCOVID-19pandemic,theCompanyintroducedanumberofmeasures inMarch 2020 to protect employees, their families and the communities inwhich theCompanyoperates. ThehealthandwellbeingoftheCompany’sworkforceisKirklandLakeGold’stoppriority.Amongthesemeasures,theCompanytooksteps to reducethenumberofpeopleatminesitesby transitioning to reducedoperationsatDetourLake (effectiveMarch23,2020)andMacassa(April2,2020),andsuspendedoperationsattheHoltComplex(April2,2020).Inaddition,theCompany introduced an extensive list of health and safety protocols including remote work wherever possible, medicalscreening,enhancedcleaningandhygienepractices, increasedfoodsafety,socialdistancingofworkersandthe increasedreliance on technology such as hosting virtual meetings. As part of the health and safety protocols, the Company alsosuspended all non-essential work at, and visits to, all of the Company’smine sites, including all exploration drilling andreducedlevelsofworkatanumberofprojects,includingthe#4ShaftprojectatMacassaandsurfaceinfrastructureprojectsat Fosterville inMarch 2020.Operations continued at Fosterville throughout this period,with the Company’s health andsafetyprotocolshavingbeenintroduced.

OnMay6,2020,theCompanyannouncedthatitwasbeginningtorecallemployeesatMacassaandDetourLake,whowereoffworkaspartoftheCOVID-19protocols.AsatJune30,2020,workforcelevelsattheseoperationshadreturnedtopre-COVID-19 levels,with the Company’s extensive list of health and safety protocols remaining in place for the foreseeable


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future.TheHoltComplexremainedonsuspensionasatJune30,2020withtheCompanyannouncingonJuly16,2020thatthe suspensionof operationswould continueuntil furthernotice.Workonmajorprojects, such as theMacassa#4 shaftresumed during Q2 2020. In addition, exploration drilling also resumed during the quarter, with the ramp up of drillingactivitiesextendingthroughtheendofQ32020.TheCompany’shealthandsafetyprotocolsremainedinplacethroughoutQ32020,withsomeadditionalmeasuresintroducedatFostervilleduetoanincreaseinCOVID-19casesinVictoriaduringthequarter,largelyintheMelbournearea.Approximately$0.7millionofCOVID-19relatedcostswereincurredatFostervilleinQ32020.TheCompanyanticipatesthatitsoperationsandbusinessactivitieswillcontinuetobeimpacted,tosomedegree,bytheCompany’sCOVID-19protocolstotheendoftheyear,anditwillcontinuetocloselymonitordevelopmentsrelatedtoCOVID-19withtheintentionofrespondingasneededtoensuretheprotectionoftheCompany’sworkers.

On June 30, 2020, the Company re-issued guidance for 2020 recognizing the progress achieved in ramping up businessactivitiesthathadbeenimpactedbytheCompany’sCOVID-19response.TheCompany'sguidanceremainedunchangedasatNovember4,2020.

AcquisitionofDetourGoldCorporation

OnJanuary31,2020,theCompanyacquiredalloftheissuedandoutstandingsharesofDetourGoldCorporation(“DetourGold”),throughaplanofarrangementannouncedonNovember25,2019.Pursuanttotheplanofarrangement,DetourGoldshareholdersreceived0.4343KirklandLakeGoldcommonsharesinexchangeforeachDetourGoldshareheldimmediatelypriortoclosingoftheArrangement.Inaggregate,theCompanyissued77,217,129commonsharesofKirklandLakeGoldtoformerDetourGoldshareholdersasconsiderationfortheirDetourGoldshares.Inaddition,alloutstandingstockoptionsofDetour were exchanged under the agreement. Subsequent to the share issuance, Kirkland Lake and former Detourshareholders owned 73% and 27%, respectively of the shares of the combined Company. With the completion of thetransaction,DetourGoldhasbecomeawhollyownedsubsidiaryofKirklandLakeGold,andtheCompanyisnowtheownerandoperatorofDetourLake,alarge-scale,open-pitgoldmineinNorthernOntario.Theacquisitionaddsathirdcornerstoneasset to the Company’s portfolio,with 2019 production atDetour Lake of 601,566 ounces. LikeMacassa and Fosterville,Detour Lake combines free cash generating operations with significant in-mine growth potential and attractive regionalexplorationupside.

From January 31, 2020 to the end of Q3 2020, Detour Lake produced 363,614 ounces of gold, with gold sales totalling384,270ounces,operatingcashcostsperounceof$630andAISCperouncesoldof$1,156.Forthesameperiod,revenuefromDetour Lake totalled $674.9million, earnings from operationswere $261.0million and themine generated $231.0millionoffreecashflow(non-IFRSmeasure).The$231.0millionoffreecashflowfortheeightmonthsendedSeptember30,2020excludestransactionrelatedcosts.

Non-CoreAssets

Recognizing the Company's intention to focus on its three cornerstone assets, Fosterville,Macassa andDetour Lake, theCompanydesignatedtheHoltComplexandassets intheNorthernTerritoryofAustraliaasnon-coreonFebruary19,2020with plans to consider all options tomaximize value. InMarch, the Company discontinued activities at two locations: ittransitionedtheHollowayMine,partof theHoltComplex, tocareandmaintenance,andalsosuspendedtestminingandprocessing, as well as all exploration drilling, in the Northern Territory. Consistent with the Company’s commitment toeffectiveenvironmentalmanagement,athree-year$60–$65millionrehabilitationprogramwaslaunchedintheNorthernTerritoryduringQ32020,whichresultedina$32.6millionincreasetotheenvironmentalremediationprovisionduringthequarter. isTheprogram,whichis intendedtoaddressenvironmental issuescausedbypriorownersoftheassets, involvesmanagingtheHowleyStreakwastedumps,rehabilitationofdamsandtreatmentofsitewaterinventory.Theobjectiveoftheprograminvolvesrestoringapproximately360hatograzinglandquality,removingwasterockdumpsandfillingexistingopenpits.

OnApril2,2020,theCompanyannouncedthesuspensionofoperationsattheremainderoftheHoltComplex,includingtheTaylorMine and HoltMine andMill as part of the Company’s COVID-19 protocols andwhile the Company conducted astrategicreviewtoconsideralloptionsformaximizingthevalueoftheseassets.OnJuly16,2020,theCompanyannouncedthatthesuspensionofoperationswouldcontinueuntilfurthernotice.

CareandmaintenancecostsrelatedtoHoltComplexandtheNorthernTerritoryassetsinQ32020totaled$14.3million,ofwhich $8.1 million related to restructuring and severance costs at Holt Complex. For YTD 2020, care and maintenance


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expensetotalled$23.7million,withrestructuringandseverancecostsaccountingfor$17.2million.Goingforward,ongoingcareandmaintenancecostsrelatedtoHoltComplexandtheNorthernTerritoryassetsareestimatedat$2.5–$3.0millionperquarter.

(1) TheKeyDevelopments inQ32020 section includesanumberofNon-IFRSmeasures.ThedefinitionandreconciliationoftheseNon-IFRSmeasuresare includedonpages34-40ofthisMD&A.

Q32020PERFORMANCE-EXECUTIVESUMMARY

The MD&A document provides a detailed review of information relevant to an assessment and understanding of theCompany’sconsolidated financialpositionand the resultsof itsconsolidatedoperations.This section is intended toassistreaders interested inacondensed,summaryreviewof theCompany'sperformancefor thethreeandninemonthsendedSeptember30,2020.ThissectionshouldbereadinconjunctionwiththeremainderoftheMD&A,whichdiscussesamongotherthings,riskfactorsimpactingtheCompany.

(inthousandsofdollars,exceptpershareamounts)

ThreeMonthsEndedSeptember30,2020


ThreeMonthsEndedJune30,2020

NineMonthsEndedSeptember30,2020


Revenue $632,843 $381,430 $580,975 $1,768,556 $967,609

Productioncosts 136,023 73,664 141,415 439,030 209,865

Earningsbeforeincometaxes 295,316 254,119 225,282 815,123 566,140

Netearnings $202,022 $176,604 $150,232 $555,132 $390,945

Basicearningspershare $0.73 $0.84 $0.54 $2.06 $1.86

Dilutedearningspershare $0.73 $0.83 $0.54 $2.05 $1.85

Cashflowfromoperatingactivities $431,119 $316,753 $222,234 $894,859 $672,290

CashinvestmentonminedevelopmentandPPE $155,428 $135,449 $128,155 $394,220 $342,104






Tonnesmilled 6,144,753 419,787 5,863,282 16,126,140 1,208,106

AverageGrade(g/tAu) 1.8 18.8 1.8 2.0 18.3

Recovery(%) 95.3% 97.9% 95.8% 95.6% 98.0%

Goldproduced(oz) 339,584 248,400 329,770 1,000,218 694,873

GoldSold(oz) 331,959 256,276 341,390 1,017,935 701,296

Averagerealizedprice($/ozsold)(1) $1,907 $1,482 $1,716 $1,734 $1,375

Operatingcashcostsperounce($/ozsold)(1) $406 $287 $374 $407 $296

AISC($/ozsold)(1) $886 $562 $751 $804 $584

Adjustednetearnings(1) $249,251 $167,532 $219,345 $647,765 $391,109

Adjustednetearningspershare(1) $0.91 $0.80 $0.79 $2.40 $1.86

Freecashflow(1) $275,691 $181,304 $94,079 $500,639 $330,186

(1) Non-IFRS-thedefinitionandreconciliationoftheseNon-IFRSmeasuresareincludedonpages34-40ofthisMD&A.


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Q32020

Production(Kozs)(1)

248.4

339.6

199.5

Q32019 Q32020 Q32020-Ex.Detour

100

150

200

250

300

350

Op.CashCosts($/oz)(2)

$287

$406

$245

Q32019 Q32020 Q32020-Ex.Detour

(3)

$200

$300

$400

$500

AISC($/oz)(2)

$562

$886

$622

Q32019 Q32020 Q32020-Ex.Detour

(4)

$500

$600

$700

$800

$900

$1,000

(1) Q32020includesnoproductionfromHoltComplexduetothesuspensionofoperationseffectiveApril2,2020(27,128ouncesinQ32019)(2) Non-IFRS-thedefinitionandreconciliationoftheseNon-IFRSmeasuresareincludedonpages34-40ofthisMD&A.(3) CalculatedbydeductingDetourLake’soperatingcashcostsandgoldsalesfromtheCompany’sconsolidatedtotals.(4) CalculatedbydeductingDetourLake’sall-insustainingcostsandgoldsalesfromtheCompany'sconsolidatedtotals.

Gold production: ConsolidatedQ3 2020 production totalled 339,584 ounces, a 37% increase from248,400 ounces inQ32019and3%higherthan329,770ouncesthepreviousquarter.Themaincontributortothestronggrowthcomparedtothesame period in 2019 was 140,067 ounces of production from Detour Lake, following the acquisition of Detour Gold onJanuary31,2020.ThecontributionfromDetourLakemorethanoffsetthe impactofthesuspensionofoperationsatHoltComplex effective April 2, 2020,which contributed 27,128 ounces inQ3 2019. Production at Fosterville totalled 161,489ouncesinQ32020,a2%increasefromthesameperiodin2019largelyduetohighertonnesprocessed,and4%higherthan155,106ounces inQ22020.Macassaproduced38,028ouncescomparedto62,945ounces inQ32019and41,865ouncesthepreviousquarter.Production inQ32020atMacassawas impactedbyreducedworkforceproductivityandequipmentavailabilitylargelyrelatedtoexcessiveheatintheminecausedbyrecordtemperaturesinKirklandLake,aswellasongoinghealth and safety protocols as part of the Company’s COVID-19 response. These factors contributed to disruptions tooperatingdevelopmentperformanceandlowerthanplannedminingrates.Miningduringthequarterfocusedonthemostaccessibleareas,whichwerelargelythelower-gradestopesplannedforthequarter.

Productioncosts:ProductioncostsinQ32020totalled$136.0millionversus$73.7millioninQ32019and$141.4millionthepreviousquarter.TheincreasefromQ32019largelyreflectedtheinclusionof$87.4millionofproductioncostsfromDetourLakeinQ32020.

Operatingcashcostsperouncesold(1):Operatingcashcostsperouncesold(1)averaged$406inQ32020comparedto$287inQ32019and$374inQ22020.ExcludingDetourLake,operatingcashcostsperouncesold(1)averaged$245,15%lowerthanQ32019 largelydue to the suspensionofoperationsat theHoltComplex, theCompany’shighest costundergroundmine,effectiveApril2,2020.Operatingcashcostsperouncesold(1)atDetourLakeaveraged$634perounce inQ32020,whichcomparedto$573thepreviousquarter,withtheincreaselargelyreflectingtherampupofminingandotheractivitiesfollowingreducedoperationsinQ22020duetoCOVID-19.Operatingcashcostsperouncesold(1)atFostervilleandMacassaincreased year over year, mainly due to the impact of lower average grades on sales volumes at both operations. AtFosterville, operating cash costsperounce sold(1) averaged$142versus$115 inQ32019and$129 thepreviousquarter.Operatingcashcostsperouncesold(1)atMacassaaveraged$648comparedto$425inQ32019,and$547inQ22020.

All-insustainingcosts(“AISC”)perouncesold(1):AISCperouncesold(1)averaged$886inQ32020comparedto$562inQ32019and$751thepreviousquarter.ExcludingtheimpactofDetourLake,whereAISCperouncesold(1)forQ32020averaged$1,259,AISCperouncesold(1)averaged$622forthequarter.AISCperouncesold(1)atFostervilleaveraged$349inQ32020versus $289 in Q3 2019 and $273 in Q2 2020,with a lower average grade contributing to the increase from both priorperiods.Inaddition,thechangefromQ32019alsoreflectedtheimpactofanew2.75%royaltyintroducedbytheVictorianGovernmenteffectiveJanuary1,2020,whichcontributed$8.0millionor$52perouncesoldtoAISCperouncesold(1)inQ32020.Theincreasefromthepreviousquarteralsoreflecteda68%increaseinsustainingcapitalexpenditures(1)fromverylowlevelsinQ22020whentheminesuspendedallnon-essentialworkaspartoftheCompany’sCOVID-19response.AISCper


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ouncesold(1)atMacassaaveraged$1,081inQ32020comparedto$689inQ32019,withreducedsalesvolumes,resultinglargelyfromaloweraveragegrade,mainlyaccountingfortheincreasefromthesameperiodin2019.AISCperouncesold(1)atMacassainQ32020comparedtoAISCperouncesold(1)of$841thepreviousquarter,withtheincreasereflectinglowersalesvolumesandhighersustainingcapitalexpenditures(1)inQ32020,astheminerampedupbusinessactivitiesfollowingreducedoperationsduringQ22020.

Revenue($M)

$381.4

$632.8

Q32019 Q32020$200

$300

$400

$500

$600

$700

AdjustedNetEarningsPerShare($/Share)(1)

$0.80

$0.91

Q32019 Q32020$0.40

$0.60

$0.80

$1.00

FreeCashFlow($M)(1)

$181.3

$275.7

Q32019 Q32020$100

$150

$200

$250

$300


Revenue:RevenueinQ32020totalled$632.8million,anincreaseof$251.4million,or66%from$381.4millioninQ32019.Of thegrowth inrevenueversusQ32019,$141millionrelatedtoa$425perounce increase in theaveragerealizedgoldprice,to$1,907perounce,while$112millionoftheincreasewasduea30%increaseinsalesvolumes(331,959ouncesinQ32020 versus 256,276 ounces in Q3 2019). Revenue in Q3 2020 was $51.8 million or 9% higher than $581.0 million thepreviousquarter,reflectinga$63millionfavourableimpactfroman11%increaseintheaveragerealizedgoldprice(1),whichmorethanoffseta$16.0millionreductioninrevenueresultingfromslightlylowergoldsales(331,959ounceversus341,390ouncesthepreviousquarter).OftheCompany’sQ32020revenue,DetourLakecontributed$262.5million($233.0millioninQ2 2020). Holt Complex, where operations were suspended effective April 2, 2020, contributed no revenue in Q3 2020versus$39.7millionofrevenueinQ32019and$4.6millionthepreviousquarter.

Cashflowgeneration:NetcashprovidedbyoperatingactivitiesinQ32020totalled$431.1millionwithfreecashflow(1)of$275.7million.OftheCompany'sfreecashflow(1)inQ32020,$64.0millionwasprovidedbyDetourLakeMine.

Cashposition:CashatSeptember30,2020totalled$848.5millioncomparedto$537.4millionatJune30,2020.The$311.1million increase in cash during Q3 2020 was driven by strong free cash flow, as well as proceeds from the sale of theCompany’s 32.6 million shares of Osisko Mining Inc. (“Osisko”) and $75.0 million received from Newmont Canada FNHoldingsULC(“Newmont”)throughastrategicallianceagreement.Partiallyoffsettingtheseadditionstocashwassignificantcashusedforsharerepurchasesanddividendpaymentsduringthequarter(seebelow).

Netearnings:NetearningsinQ32020totalled$202.0million($0.73pershare)comparedto$176.6million($0.84pershare)inQ32019and$150.2million($0.54pershare)thepreviousquarter.A66%increaseinrevenuewastheprimarydriverofnetearningsgrowthcomparedtoQ32019,whichwasonlypartiallyoffsetbyhigherproduction,depletionanddepreciationandroyaltycosts,theimpactofforeignexchangelossesinQ32020aswellashighercareandmaintenanceandcorporateG&Aexpense. In addition,Q32020net earningswere reducedby a$32.6million increase in environmental remediationprovisions, included inrehabilitationcosts, resulting fromanewthree-yearwaterrehabilitationprogram inthe NorthernTerritoryassets(seepage18formoreinformation).ThereductioninnetearningspersharefromQ32019reflectedahigherlevel of average shares outstanding in Q3 2020 due to the issuance of 77,217,129 shares in Q1 2020 related to theacquisitionofDetourGold.Comparedtothepreviousquarter,netearningsgrowthinQ32020wasdrivenbyhigherrevenueaswellasasignificantly lower levelof foreignexchange losses inQ32020versusQ22020aswellas the impactof$13.4millionofcostsrelatedtotheCompany’sCOVID-19responseinQ22020.

Adjustednetearnings(1):Adjustednetearnings(1) totalled$249.3million($0.91pershare) inQ32020,an increaseof41%from$167.5million($0.80pershare)inQ32019and$219.3million($0.79pershare)inQ22020.Thedifferencebetweennet earnings andadjustednet earnings(1) inQ32020mainly related to theexclusion fromadjustednet earnings(1) of the$32.6 million increase in environmental remediation provisions, foreign exchange losses, as well as restructuring and


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severancecostsmainlyattheHoltComplex.Thedifferencebetweennetearningsandadjustednetearnings(1) inQ32019reflectedtheexclusionfromadjustednetearnings(1)offoreignexchangegains,whilethedifferencebetweenadjustednetearnings(1) andnetearnings inQ22020mainly related to theexclusion fromadjustednetearnings(1) of foreignexchangelosses as well as the costs related to the Company’s COVID-19 response and restructuring costs resulting from thesuspensionofbusinessactivitiesintheNorthernTerritoryandatHoltComplex.

Growthcapitalexpenditures(1):Total growthcapital expenditures(1), excluding capitalizedexplorationexpenditures, inQ32020totalled$28.1million,ofwhich$11.8millionrelatedtoDetourLake,largelyrelatedtomobileequipmentprocurementinsupportofanumberofgrowthprojects.Growthcapitalexpenditures(1)atMacassatotalled$11.5million,with$8.3millionrelatedtothe#4Shaftproject.Asattheendofthequarter,the#4Shaftprojectwasapproximatelyonemonthaheadofschedule,advancingtoadepthofover3,300feetasofSeptember30,2020,withtheprojectontrackforcompletioninlate2022. Growth capital expenditures(1) at Fosterville totalled $5.0 million, largely related to the construction of a newtransformerstation.

Exploration expenditures: Total exploration expenditures totalled $27.4 million, including $2.5 million of expensedexpendituresand$24.9millionofcapitalizedexpenditures,whichcomparedto$43.6millioninQ32019and$25.0millionthepreviousquarter.ExplorationworkwassuspendedinMarch2020aspartoftheCompany’sCOVID-19response.There-deploymentofdrillsandresumptionofexplorationworkcommencedinAprilwiththerampupofdrillingactivityextendingthroughtheendof thethirdquarterof2020.Despite theongoingrampupofdrilling,significantexplorationsuccesswasachievedduringQ32020,including:

– EncouragingexplorationresultsattheDetourLakeSaddleZonethatprovideincreasedevidencethatabroadandcontinuouscorridorofmineralizationextendsbetweentheMainandWestpitlocationsextendingtoadepthofupto820mbelowsurface;thenewresultssupporttheCompany’sviewthatamuchlargerdepositexistsaroundtheMainPitandWestPitthaniscurrentlyincludedinMineralReserves;

– ExplorationsuccessatFosterville includinghigher thanexpectedgradeswithvisiblegold from infilldrilling in theSwanZone;theresultsalsoconfirmedthesubstantialscaleandcontinuedgrowthpotentialofmineralizedsystemsatCygnet,Robbin’sHillandHarrier.

– Subsequent to the end of Q3 2020, new drilling results at Macassa including exceptional gold grades beingintersected outside of existing Mineral Resources near the location where the dip of the SouthMine Complex(“SMC”)approachesthecontactwithmineralizedzonesstackedverticallyalongtheAmalgamatedBreak;theresultsalso continued to expand themineralization at depth in the Lower SMC and identified new areas of high-grademineralizationalongtheAmalgamatedBreak.

ReturnonOsiskoinvestment:DuringQ32020,$107.7million(C$143.2million)wasreceivedfromthesaleoftheCompany’s32.6million shares of OsiskoMining Inc. (“Osisko”), resulting in a realized gain of $60.6million. In accordancewith theCompany’s accounting policy, the resulting gain was not included in net earnings, but was recognized through othercomprehensiveincomeduringthequarter.

StrategicalliancewithNewmont:TheCompanyenteredintoastrategicallianceagreementwithNewmontduringQ32020withrespecttoexplorationanddevelopmentopportunitiesaroundtheCompany’sHoltComplexandNewmont’spropertiesinTimmins,Ontario.Throughtheagreement,NewmontpaidtheCompany$75million(notincludedinearnings)toacquireanoptiononminingandmineralrightsrelatedtotheCompany’sHoltMineproperty,withtheCompanyplanningtoinvesttheseproceeds inexplorationactivitiesaroundHoltComplexandatotherregionaltargets.Theagreementalso includesacommitmentbythetwocompaniestoworktogethertoidentifyadditionalregionalexplorationopportunitiesaroundtheirrespectivelandpositionswheretheymaycooperatetoadvanceprojects.

Quarterlydividend:TheQ32020dividendofUS$0.125persharewaspaidonOctober14,2020toshareholdersofrecordonSeptember30,2020.OnOctober12,2020theCompanyannounceda50%increasetothequarterlydividend,toUS$0.1875pershare,effectivefortheDecember31,2020dividendpaymentinJanuary2021.

Sharerepurchases:DuringQ32020,$107.4million(C$143.0million)ofcashwasusedtorepurchase2,139,300commonsharesthroughtheCompany’sNCIB.


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YTD2020

Production(Kozs)(1)

694.9

1,000.2

636.6

YTD2019 YTD2020 YTD2020-Ex.Detour

400

600

800

1,000

1,200


$296

$407

$271

YTD2019 YTD2020 YTD2020-Ex.Detour

(3)

$200

$250

$300

$350

$400

$450

AISC($/oz)(2)

$584

$804

$590

YTD2019 YTD2020 YTD2020-Ex.

Detour(4)

$500

$600

$700

$800

$900

(1) YTD2020includes29,391productionfromHoltComplex,whereoperationsweresuspendedeffectiveApril2,2020(82,483ouncesinYTD2020)(2) Non-IFRS-thedefinitionandreconciliationoftheseNon-IFRSmeasuresareincludedonpages34-40ofthisMD&A.(3) CalculatedbydeductingDetourLake’soperatingcashcostsandgoldsalesfromtheCompany’sconsolidatedtotals.(4) CalculatedbydeductingDetourLake’sall-insustainingcostsandgoldsalesfromtheCompany'sconsolidatedtotals.

Production: Production for the ninemonths ended September 30, 2020 totalled 1,000,218 ounces, a 44% increase from694,873 ounces for YTD 2019. Of total production in YTD 2020, Detour Lake accounted for 363,614 ounces, which wasproducedfromJanuary31,2020toSeptember30,2020.PartiallyoffsettingtheimpactofproductionfromDetourLakewasthe suspension of operations at Holt Complex effective April 2, 2020. Production at Holt Complex for YTD 2020 totaled29,391 ounces, almost all in Q1 2020,compared to 82,483 ounces for YTD 2019. Production at Fosterville for YTD 2020totalled476,459ounces,11%higherthanthesameperiod in2019,mainlyreflectinga10% increase intonnesprocessed.ProductionatMacassatotalled130,754ouncesversus184,918ouncesforthesameperiodin2019.ProductionforYTD2020was below expected levels largely due to the impact of reduced operations during Q2 2020, ongoing health and safetyprotocols,includingthoserelatedtoCOVID-19,aswellasreducedworkforceproductivityandequipmentavailabilitylargelyreflectingexcessheatinthemine.

Productioncosts:Productioncosts forYTD2020 totalled$439.0millionversus$209.9million forYTD2019.The increasefrom the prior year largely reflected the inclusion of $260.9million of production costs from Detour Lake for the eightmonthsendedSeptember30,2020,whichwasonlypartiallyoffsetbyreducedproductioncostsatHoltComplex.

Operatingcashcostsperouncesold(1):Operatingcashcostsperouncesold(1)averaged$407inYTD2020comparedto$296inYTD2019.Excludingthe impactofDetourLake,whereoperatingcashcostsperouncesold(1)averaged$630,operatingcashcostsperouncesold(1)averaged$271.Onthesamebasis,thereductioninoperatingcashcostsperouncesold(1)fromYTD2019wasmainlyduetothesuspensionofoperationsattheHoltComplex.AtFosterville,operatingcashcostsperouncesold(1)averaged$132inYTD2020,similartothe$126recordedforthesameperiodin2019.Operatingcashcostsperouncesold(1)atMacassaaveraged$573versus$397forYTD2019,withthechangelargelyreflectingtheimpactofaloweraveragegradeonsalesvolumesandhighermininganddevelopmentcosts,mainlyinthefirstquarteroftheyear.

AISCperouncesold(1): AISCperouncesoldaveraged$804forYTD2020comparedto$584forthesameperiod in2019.ExcludingtheimpactofDetourLake,whereAISCperouncesold(1)averaged$1,156,AISCperouncesold(1)averaged$590,similar to the comparable YTD 2019 level. AISC per ounce sold(1) at Fosterville averaged $311 during YTD 2020, largelyunchangedfrom$306inYTD2019.Excludingtheimpactofthenew2.75%royaltyintroducedbytheVictorianGovernmenteffectiveJanuary1,2020,whichcontributed$22.0million($47perouncesold)toFosterville’sAISC(1)forYTD2020,AISCperouncesold(1)improved14%yearoveryear.AISCperouncesold(1)atMacassaaveraged$915forYTD2020versus$687ayearearlier. The change from YTD 2019 largely resulted from the impact of a lower average grade on sales volumes, whichresulted inhigheroperating cash costs(1) and sustaining capital expendituresonaperounce soldbasis. LargelyoffsettinghigherAISCperouncesold(1)atMacassawastheimpactofsuspendingoperationsatHoltComplexeffectiveApril2,2020.


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Revenue($M)

$967.6

$1,768.6

YTD2019 YTD2020$400

$800

$1,200

$1,600

$2,000

AdjustedNetEarningsPerShare($/Share)(1)

$1.86

$2.40

YTD2019 YTD2020$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

FreeCashFlow($M)(1)

$330.2

$500.6

YTD2019 YTD2020$200

$300

$400

$500

$600


Revenue:Revenue inYTD2020totalled$1,768.6million,an increaseof$801.0millionor83%from$967.6million inYTD2019.Ofthegrowthinrevenue,$435millionrelatedtoa45%increaseingoldsales,to1,017,935ounces,while$366millionresultedfroma$359or26%improvementintheaveragerealizedgoldprice(1)inYTD2020,to$1,734perounce.DetourLakecontributed$674.9millionofrevenueforYTD2020(fromJanuary31,2020toSeptember30,2020).HoltComplexgenerated$52.0millionofrevenuepriortothesuspensionofoperations,whichcomparedtorevenueof$114.6millionforYTD2019).

Cash flow:Net cash provided by operating activities for YTD 2020 totalled $894.9millionwith free cash flow(1) totalling$500.6million.Bothnet cashprovidedbyoperatingactivitiesand freecash flow(1) forYTD2020were impactedby$60.5millionoftransactionandrestructuringcostsmainlyrelatedtotheDetourGoldacquisitioninQ12020anda$132.6milliontax paymentmade in Australia as the final tax instalment for the 2019 tax year. Excluding these uses of cash, net cashprovidedbyoperatingactivitiesandfreecashflow(1)forYTD2020totalled$1,088.0millionand$693.7million,respectively.DetourLakegenerated$231.0millionoffreecashflowfromJanuary31,2020toSeptember30,2020(excludingtransactionandrestructuringcostsrelatedtotheDetourGoldacquisition),representingapproximately33%oftheCompany’stotalfreecash flow for YTD 2020 (excluding the $60.5 million on transaction and restructuring costs and the $132.6 million taxinstalmentpayment).

Cashposition:CashatSeptember30,2020totalled$848.5millioncomparedto$707.2millionatDecember31,2019.

Netearnings:NetearningsforYTD2020totalled$555.1million($2.06perbasicshare),anincreaseof$164.2millionor42%from$390.9million($1.86perbasicshare)inYTD2019.TheincreaseinnetearningscomparedtoYTD2019mainlyreflectedthe83%increaseinrevenueyearoveryear.Partiallyoffsettingstrongrevenuegrowthwashigherproductionanddepletionand depreciation costs, increased royalty expense, the impact of foreign exchange losses for YTD 2020 versus foreignexchangegainsinYTD2019,transactionscostsinYTD2020mainlyrelatedtotheDetourGoldacquisition,the$32.6millionincreaseinenvironmentalremediationprovisionsinQ32020,highercareandmaintenanceandCorporateG&AexpenseandcostsrelatedtotheCompany’sCOVID-19response.

Net earnings per share: The increase in net earnings per share, to $2.06 for YTD 2020 versus $1.86 for YTD 2019, wasachieveddespitea$0.41unfavourable impactfromanincreaseinaveragesharesoutstanding(269.9millionforYTD2020versus210.2millionsharesforYTD2019),whichresultedfromtheissuanceof77,217,129sharesrelatedtotheDetourGoldacquisition.

Adjusted net earnings(1): Adjusted net earnings(1) for YTD 2020 totalled $647.8million ($2.40 per share), an increase of$256.7millionor66%from$391.1($1.86pershare)forthesameperiodin2019.Thedifferencebetweennetearningsandadjusted net earnings(1) for YTD 2020 related to the exclusion from adjusted net earnings(1) of transaction costs, mainlyrelated to the Detour Gold acquisition, the $32.6 million increase in environmental remediation provisions in Q3 2020,foreignexchange losses, costs related to theCompany’sCOVID-19 response,aswell as restructuringand severancecostsresultingfromthesuspensionofoperationsintheNorthernTerritoryandattheHoltComplex.Thedifferencebetweennetearningsandadjustednetearnings(1) forYTD2019mainlyrelatedtotheexclusionfromadjustednetearnings(1)offoreignexchangegains,aswellastheimpactofpurchasepriceallocationadjustmentsoninventory.


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Growth capital expenditures(1): Growth capital expenditures(1) for YTD 2020 totalled $59.4 million, excluding capitalizedexplorationexpenditures,withMacassaaccountingfor$33.2million,ofwhich$27.1millionrelatedtothe#4shaftproject.Growth capital expenditures(1) at Fosterville totalled $14.6 million, mainly related to construction of a new transformerstation,newgoldroom/refineryandAsterPlantaswellascompletionofaventilationsystemduringQ22020.Theremaininggrowthcapitalexpenditures(1)forYTD2020wereatDetourLakeandlargelyrelatedtoprocurementofmobileequipment.

Explorationexpenditures:Explorationandevaluationexpenditures(includingcapitalizedexploration)totalled$87.0millionfor YTD 2020, including $76.2 million of capitalized exploration expenditures and $10.8 million of expensed explorationexpenditures.

Dividends:Dividend payments for YTD 2020 totalled US$0.31 per share for a total payment of $81.7million. The $81.7millionpaidindividendscomparedtototaldividendpaymentsof$21.1millioninYTD2019andreflectedtheimpactoftwoincreasestothequarterlydividendsinceSeptember30,2019, includingadoublingofthedividend,toUS$0.125persharefromUS$0.06pershare,effectivewiththeQ12020dividendpayment.SubsequenttoSeptember30,2020(onOctober12,2020),theCompanyannouncedanadditional increasetothequarterlydividend,by50%toUS$0.1875pershareeffectivetheQ42020dividendpayment.

Sharerepurchases:DuringYTD2020,theCompanyrepurchasedatotalof13,198,400sharesthroughtheNCIBfor$487.2million.As atNovember 4, 2020, share repurchases through theNCIBduring 2020 totalled 14,029,500 shares for $526.6million (C$709.5 million). Based on progress to date in 2020, the Company is well positioned to achieve its goal set inFebruary2020ofrepurchasing20.0millionsharesovera12to24-monthperiod.

(1) Q3andYTD2020Performance–ExecutiveSummarysection includesanumberofNon-IFRSmeasures.Thedefinitionand reconciliationof theseNon-IFRSmeasuresareincludedonpages34-40ofthisMD&A.

FULL-YEAR2020GUIDANCE-RE-ISSUEDJUNE30,2020

OnApril1,2020,theCompanywithdrewits2020guidance,whichhadoriginallybeenreleasedonDecember18,2019andwasupdatedonFebruary19,2020toreflecttheacquisitionofDetourGold.TheCompany’s2020guidancewaswithdrawndue to uncertainties related to the COVID-19 pandemic. On May 6, 2020, the Company also withdrew its three-yearproductionguidancewhileitassessedthelong-termeffectsofCOVID-19andwhileitworkstoincorporateDetourLakeintotheCompany’slong-termbusinessplans.

On June 30, 2020, the Company re-issued guidance for 2020 recognizing the progress achieved in ramping up businessactivities that had been impacted by the Company’s COVID-19 response. Included among the re-issued guidance wasproduction of 1,350,000 – 1,400,000 ounces, approximately 90%of thewithdrawn 2020 production guidance, aswell asimproved unit costs, lower expected sustaining capital expenditures(1) and higher target growth capital expenditures(1)resulting from new growth projects at Detour Lake Mine. Changes from previous guidance were largely driven by theremovalofproduction,unitcostandexpenditureguidancefortheHoltComplexasofApril2,2020,thedatethatoperationsweresuspendedattheComplex.TheHoltComplex’sresultstoApril2,2020areincludedintheCompany’sre-issued2020guidance.There-issued2020consolidatedguidancewasmaintainedwithnochangesasofNovember4,2020.


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Full-Year2020Guidance(asofJuly30,2020)

($millionsunlessotherwisestated) Macassa DetourLake HoltComplex Fosterville Consolidated

Goldproduction(kozs) 210–220 520–540 29 590–610 1,350-1,400

Operatingcashcosts/ouncesold($/oz)(1)(2) $490-$510 $610-$630 $955 $130-$150 $410-$430

AISC/ouncesold($/oz)(1)(2) $790-$810

Operatingcashcosts($M)(1)(2) $560-$580

Royaltycosts($M) $80-$85

Sustainingcapital($M)(1) $390-$400

Growthcapital($M)(1)(3) $95-$105

Exploration($M)(4)(5) $130-$150

CorporateG&A($M)(6) $50-$55

(1) See“Non-IFRSMeasures”setoutstartingonpage34oftheMD&AforthethreeandninemonthsendedSeptember30,2020forfurtherdetails.ThemostcomparableIFRSMeasure for operating cash costs, operating cash costs per ounce sold and AISC per ounce sold is production costs, as presented in the Consolidated Statements ofOperationsandComprehensive Income,andtotaladditionsandconstruction inprogressforsustainingandgrowthcapital.Operatingcashcosts,operatingcashcostperouncesoldandAISCperouncesoldreflectanaverageUS$toC$exchangerateof1.35andaUS$toA$exchangerateof1.47.

(2) COVID-19relatedcostsof$14.2millionforYTD2020areexcludedfromoperatingcashcosts,AISCandcapitalexpendituresinre-issued2020guidance.(3) Capitalexpendituresexcludecapitalizeddepreciation.(4) ExplorationexpendituresincludecapitalexpendituresrelatedtoinfilldrillingforMineralResourceconversion,capitalexpendituresforextensiondrillingoutsideofexisting

MineralResourcesandexpensedexploration.Alsoincludescapitalexpendituresforthedevelopmentofexplorationdrifts.(5) Re-issued exploration expenditure guidance includes $18.0 million related the Northern Territory assets (no production, costs or expenditures related to the Northern

Territorywereincludedintheprevious2020guidance).(6) Includesgeneralandadministrativecostsandseverancepayments.Excludesshare-basedpaymentexpense.

YTD2020Results

($millionsunlessotherwisestated) Macassa DetourLake HoltComplex Fosterville Consolidated

Goldproduction(ozs) 130,754 363,614 29,391 476,459 1,000,218

Operatingcashcosts/ouncesold($/oz)(1)(2) $573 $630 $1,000 $132 $407

AISC/ouncesold($/oz)(1)(2) $804

Operatingcashcosts($M)(1)(2) $414.1

Royaltycosts($M) $62.0

Sustainingcapital($M)(1) $286.5

Growthcapital($M)(1)(3) $59.4

Exploration($M)(4)(5) $87.0

CorporateG&A($M)(6) $38.7

(1) See“Non-IFRSMeasures”setoutstartingonpage34oftheMD&AforthethreeandninemonthsendedSeptember30,2020forfurtherdetails.ThemostcomparableIFRSMeasure for operating cash costs, operating cash costs per ounce sold and AISC per ounce sold is production costs, as presented in the Consolidated Statements ofOperationsandComprehensive Income,andtotaladditionsandconstruction inprogressforsustainingandgrowthcapital.Operatingcashcosts,operatingcashcostperouncesoldandAISCperouncesoldreflectanaverageUS$toC$exchangerateof1.35andaUS$toA$exchangerateof1.48.

(2) COVID-19relatedcostsof$14.2millionforYTD2020areexcludedfromoperatingcashcosts,AISCandcapitalexpendituresinre-issued2020guidance.(3) Capitalexpendituresexcludecapitalizeddepreciation.(4) ExplorationexpendituresincludecapitalexpendituresrelatedtoinfilldrillingforMineralResourceconversion,capitalexpendituresforextensiondrillingoutsideofexisting

MineralResourcesandexpensedexploration.Alsoincludescapitalexpendituresforthedevelopmentofexplorationdrifts.(5) Explorationexpendituresincludes$18.0millionrelatedtheNorthernTerritoryassets(noproduction,costsorexpendituresrelatedtotheNorthernTerritorywereincludedin

theprevious2020guidance).(6) Includesgeneralandadministrativecostsandseverancepayments.Excludesshare-basedpaymentexpense.

▪ GoldproductionforYTD2020totalled1,000,218ounces,representing73%ofthemid-rangeoftheCompany’sre-issued 2020 production guidance. Entering the final quarter of the year, the Company was well positioned toachievethere-issuedfull-yearconsolidated2020guidanceof1,350,000-1,400,000ounces.AtFosterville,YTD2020productionof476,459ouncesincreased11%fromthesameperiodin2019and,togetherwithanticipatedresultsforthefinalquarteroftheyear,haspositionedtheminetobeatthere-issuedguidancefortheyearof590,000–610,000ounces. Production atDetour LakeMine for the eightmonths from January 31, 2020 to September 30,2020totaled363,614ounces,with theminecontinuing to target full-year2020productionof520,000–540,000ounces.AtMacassa,productionforYTD2020totaled130,754ounces,whichcomparedto184,918ouncesforYTD2019andre-issuedguidanceof210,000–220,000ounces.BasedonresultstotheendofQ32020,Macassaisnotexpectedtoachievetheguidancerangeof210,000–220,000ounces.


12 | Page

▪ ProductioncostsforYTD2020totalled$439.0million.Operatingcashcosts(1)forthefirstninemonthsoftheyeartotalled$414.1million,inlinewithtargetlevels.

▪ Operating cash costs per ounce sold(1) for YTD 2020 averaged $407, better than the re-issued full-year 2020guidanceof$410 -$430.Entering the finalquarterof2020,bothFostervilleandDetour Lakewere trackingwellagainstre-issuedfull-yearguidance.Fosterville’soperatingcashcostsperouncesold(1)forYTD2020averaged$132,whichcomparedfavourablytofull-yearguidanceof$130–$150.AtDetourLake,operatingcashcostsperouncesold(1)averaged$630inYTD2020,inlinewithguidanceof$610–$630.Macassa’soperatingcashcostsperouncesold(1)averaged$573versusguidanceof$490–$510.Whileoperatingcashcostsperouncesold(1)atMacassaareexpectedtoimproveinQ42020,themineisnotexpectedtoachievethere-issuedguidancerange.

▪ AISCperouncesold(1)forYTD2020averaged$804,inlinewithfull-year2020guidanceof$790-$810.

▪ Royalty costs for YTD 2020 totalled $62.0 million, in line with the Company’s re-issued guidance of $80 – $85million.

▪ Sustaining capital expenditures(1) for YTD2020 totalled $286.5million, excluding capitalizeddepreciation,whichcomparedtofull-year2020guidanceof$390–$400million.Thelevelofsustainingcapitalexpenditures(1)increasedinQ32020ascapitalprojectworkincreasedfollowingdisruptionscausedbytheCompany’sCOVID-19responseinQ2 2020, which included the suspension of a number of projects and reduced work in areas such as capitaldevelopment.Sustainingcapitalexpenditures(1) in2020arenowexpectedtobeinlinewiththere-issuedfull-yearguidancerange.

▪ Growth capital expenditures(1) totalled $59.4 million for YTD 2020 (excluding capitalized exploration), whichcomparedtore-issuedfull-year2020guidanceof$95–$105million.Oftotalgrowthcapitalexpenditures(1)forYTD2020, Macassa accounted for $33.2 million, with $27.1 million relating to the #4 Shaft project. Growth capitalexpenditures(1)atFostervilletotalled$14.6million,mainlyrelatedtoconstructionofanewtransformerstation,newgoldroom/refineryandAsterPlant,aswellascompletionofaventilationsystemduringQ22020.Theremaining$11.8 million of growth capital expenditures(1) for YTD 2020 were at Detour Lake and related largely to theprocurementofmobileequipment.Growthcapitalexpenditures(1)areexpectedtoincreaseduringthefinalquarterof2020,reflectingincreasedcapitalexpendituresatDetourLake,andareexpectedtoendtheyearinlinewiththere-issued2020guidancerange.

▪ Exploration and evaluation expenditures for YTD 2020 totalled $87.0 million (including capitalized exploration),whichcomparedtore-issuedfull-year2020guidanceof$130-$150million.TheCompany’sexplorationprogramsduringYTD2020weresuspendedneartheendofMarchaspartofitsCOVID-19response.Theresumptionofworkonexplorationprogramscommenced inAprilwiththerampupofdrillingactivitiesextendingthroughtheendofthethirdquarterof2020.ExtensivedrillingisbeingcompletedduringQ42020,withtotalexplorationexpendituresforthefull-yearexpectedtobeinlinewiththelowendofthere-issuedfull-yearguidancerange.

▪ CorporateG&AexpenseforYTD2020totalled$38.7million,inlinewithre-issuedfull-year2020guidanceof$50–$55million.

(1) TheFull-Year2020GuidancesectionincludesanumberofNon-IFRSmeasures.ThedefinitionandreconciliationoftheseNon-IFRSmeasuresareincludedonpages34-40ofthisMD&A.


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LONGER-TERMOUTLOOK

KirklandLakeGold iscommittedtogeneratingreturns forshareholdersbyachievinghigh levelsofoperationalexcellence,effectivelyallocatingcapitalandincreasingtheprofitabilityandvalueofitsoperations.TheCompanyhasachievedsignificantgrowth over the last three years, increasing production from 596,405 ounces in 2017 to 974,615 ounces in 2019, withproductionin2020expectedtogrowto1,350,000–1,400,000ounces.TheCompanycontinuestotargetsignificantorganicgrowth, including through the completionof theMacassa #4 Shaft project and through continued exploration success ateachofitsthreecornerstoneassets,Macassa,DetourLakeandFosterville.TheCompanywillalsoselectivelypursuegrowthandvaluecreationthroughadditionalexternaltransactionswhereitseesanopportunitytoenhancethevalueofassetsbyinvesting capital andapplying theCompany’sextensive technicalexpertise.The recentacquisitionofDetourGoldwasanimportantdevelopmentfortheCompanyasitseekstogeneratelong-termvalueandattractivereturns.DetourLakeMineisa large-scale, high-quality assetwith significant current production, attractive growth potential and substantial unit costsimprovement opportunities. The Company is also committed to returning capital to shareholders through dividends andsharerepurchasesandinOctober2020announceda50%increaseinthequarterlydividend,toUS$0.1875pershare.Thisincrease followed a doubling of the quarterly dividend in Q1 2020, from US$0.06 per share to US$0.125 per share. Inaddition,theCompanyhasrepurchasedatotalof14,029,500sharesduring2020(toNovember4,2020)foratotalof$526.6million.KirklandLakeGold’ssignificantfinancialstrengthandsolidfinancialpositionprovidesfinancialflexibilitytosupporttheCompany’sgrowthplans,includingcontinuedaggressiveexplorationofbothnear-termandlonger-termopportunitiesontheCompany’sdistrict-scalelandpositionsinCanadaandAustralia.

EXTERNALPERFORMANCEDRIVERS

The Company’s results of operations, financial position, financial performance and cash flows are affected by variousbusinessconditionsandtrends.Thevariabilityofgoldprices, fluctuatingcurrencyratesand increasesand/ordecreases incostsofmaterialsandconsumablesassociatedwiththeCompany’sminingactivitiesaretheprimaryeconomicfactorsthathaveimpactedfinancialresultsduringthethreeandninemonthsendedSeptember30,2020.TheCompany’skeyinternalperformance drivers are production volumes and costs which are discussed throughout this MD&A. The key externalperformancedriversarethepriceofgoldandforeignexchangerates.

GoldPrice

The price of gold is a significant external factor affecting profitability and cash flow of the Company and therefore, thefinancialperformanceof theCompany isexpectedtobeclosely linkedtothepriceofgold.Thepriceofgold issubject tovolatile fluctuations over short periods of time and can be affected by numerous macroeconomic conditions, includingsupplyanddemandfactors,valueoftheUSdollar,interestrates,andglobaleconomicandpoliticalissues.

AtSeptember30,2020,thegoldpriceclosedat$1,887perounce(basedontheclosingpriceontheLondonBullionMarketAssociation(“LBMA”)pmfix),whichis7%higherthantheclosinggoldpriceof$1,768perounceonJune30,2020and25%higherthantheclosinggoldpriceonDecember31,2019of$1,515perounce.TheCompany’saveragerealizedgoldpriceforQ32020was$1,907perounce,which compared to anaverage realized goldpriceof $1,482 inQ32019and$1,716perounceinQ22020.TheCompany'saveragerealizedgoldpriceforYTD2020was$1,734perounceversus$1,375perounceforthesameperiodin2019.

Kirkland Lake Gold does not have a precious metals hedging program and management believes the Company is wellpositionedtobenefitfrompotentialincreasesinthepriceofgoldwhilecontinuingtofocusoncostmanagementandmineefficienciesfromitsexistingmines inordertomitigateagainstgoldpricedecreases.DuringQ12020,theCompanyclosedout gold forward sales covering approximately 252,000 ounces of gold at prices between $1,300 and $1,490 per ounce,whichhadbeenestablishedbyDetourGoldpriortoJanuary31,2020.Thecoststocloseoutthesehedges,aswellashedgesrelatingtodieselfuelandcurrency,wasaone-timecashoutflowofapproximately$30.3million.


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ForeignExchangeRates

TheCompany’sreportingcurrencyistheUSdollar;however,theoperationsarelocatedinCanadaandAustralia,whereitsfunctionalcurrenciesaretheCanadianandAustraliandollars,respectively.Consequently,theCompany’soperatingresultsareinfluencedsignificantlybychangesintheUSdollarexchangeratesagainstthesecurrencies.WeakeningorstrengtheningCanadianandAustraliandollarsrespectivelydecreaseor increasecosts inUSdollartermsattheCompany’sCanadianandAustralian operations, as a large portion of the operating and capital costs are denominated in Canadian and Australiandollars.

AsatSeptember30,2020,theCanadiandollarclosedat$0.7508againsttheUSdollar(comparedto$0.7553atSeptember30,2019and$0.7368atJune30,2020)andtheAustraliandollarclosedat$0.7161(comparedto$0.6749atSeptember30,2019and$0.6902atJune30,2020).TheaverageratesforQ32020fortheCanadianandAustraliandollarswere$0.7507and$0.7149,respectively,againsttheUSdollarversus$0.7575and$0.6852,respectively,inQ32019and$0.7220and$0.6573,respectively,inQ22020.

Consistentwithgoldprices,currencyratescanbevolatileandfluctuationscanoccurasaresultofdifferentevents,includingandnotlimitedto,globaleconomies,governmentintervention,interestratechangesandpoliciesoftheU.S.,CanadianandAustraliangovernments.AsatJune30,2020,theCompanydidnothaveaforeignexchangehedgingprograminplace.

REVIEWOFFINANCIALPERFORMANCE

ThefollowingdiscussionprovideskeysummarizedconsolidatedfinancialandoperatinginformationforthethreeandninemonthsendedSeptember30,2020and2019.


15 | Page

(inthousandsexceptpershareamounts)






Revenue $632,843 $381,430 $580,975 $1,768,556 $967,609

Productioncosts (136,023) (73,664) (141,415) (439,030) (209,865)

Royaltyexpense (21,481) (10,430) (19,258) (61,988) (25,430)

Depletionanddepreciation (86,707) (41,692) (82,586) (262,132) (116,056)

Earningsfrommineoperations 388,632 255,644 337,716 1,005,406 616,258

Expenses

Generalandadministrative(1) (20,409) (10,559) (20,137) (53,108) (34,789)

Transactioncosts 707 — — (33,131) —

Exploration (2,498) (5,897) (2,384) (10,813) (24,133)

Careandmaintenance (14,256) (541) (6,570) (23,716) (952)

Rehabilitationcosts (32,626) — (2,448) (35,074) —

Earningsfromoperations 319,550 238,647 306,177 849,564 556,384

Financeandotheritems

Otherincome(loss),net (23,453) 13,850 (80,164) (31,412) 6,349

Financeincome 1,524 2,198 1,119 5,239 4,993

Financecosts (2,305) (576) (1,850) (8,268) (1,586)

Earningsbeforeincometaxes 295,316 254,119 225,282 815,123 566,140

Currentincometaxexpense (66,097) (50,946) (59,020) (195,247) (127,158)

Deferredincometaxexpense (27,197) (26,569) (16,030) (64,744) (48,037)

Netearnings $202,022 $176,604 $150,232 $555,132 $390,945

Basicearningspershare $0.73 $0.84 $0.54 $2.06 $1.86

Dilutedearningspershare $0.73 $0.83 $0.54 $2.05 $1.85

Weightedaveragenumberofcommonsharesoutstanding(in000's)

Basic 275,280 210,189 277,066 269,941 210,155

Diluted 275,471 211,593 277,265 270,146 211,730

(1) GeneralandadministrativeexpenseforQ32020(Q32019andQ22020)includegeneralandadministrativeexpensesof$11.2million($7.9millionand$12.5million)andsharebasedpaymentexpenseof$9.2million($2.7millionand$7.7million).


16 | Page

Revenue

Revenue:Q32020vsQ32019($Millions)

$381.4

$112

$141

$632.8

Q32019 Volume Price Q32020$0

$100

$200

$300

$400

$500

$600

$700

Revenue:Q32020vsQ22020($Millions)

$581.0 -$16

$63

$632.8

Q22020 Volume Price Q32020$200

$300

$400

$500

$600

$700

(1) Inadditiontovolumeandpricefactors,increaseinrevenueincludesa$1.6millionforeignexchangeimpactcomparedtoQ32019andan$4.8millionforeignexchangeimpactcomparedtoQ22020

RevenueinQ32020totalled$632.8million,anincreaseof$251.4million,or66%from$381.4millioninQ32019.DetourLakecontributed$262.5milliontotheCompany'srevenueinQ32020,theimpactofwhichwasonlypartiallyoffsetbythelossofrevenuefromHoltComplexduethesuspensionofoperationseffectiveApril2,2020.HoltComplexcontributed$39.7millionofrevenueinQ32019.OfthegrowthinrevenueversusQ32019,$141millionrelatedtoa$425perounceor29%increase in theaverage realizedprice, to$1,907perounce from$1,482perounce inQ32019,while$112millionof theincreasewasduetoa30%increaseinsalesvolumes(331,959ouncesinQ32020versus256,276ouncesinQ32019).TheincreaseingoldsalesreflectedsalesfromDetourLakeinQ32020of137,632ounces,whichmorethanoffsettheimpactofthesuspensionofoperationsatHoltComplexeffectiveApril2,2020,withHoltComplexhavingcontributed26,790ouncesofsales inQ32019, aswell as lower sales at Fosterville andMacassa compared to the sameperiod in2019. Gold sales atFosterville totalled 154,739 ounces versus 166,903 ounces in Q3 2019, while sales at Macassa totalled 39,588 ouncescomparedto62,583ouncesayearearlier.

RevenueinQ32020was$51.8millionor9%higherthan$581.0millionthepreviousquarter.Theincreasereflecteda$63million favourable impact froman11% increase in the average realized goldprice(1), from$1,716per ounce inQ22020,whichmorethanoffseta$16.0millionreductioninrevenueresultingfromlowergoldsales(331,959ounceversus341,390ounces theprevious quarter).Gold sales atDetour Lakewere largely unchanged from136,182 inQ22020,with sales atFostervilleandMacassaforthepreviousquarterwere157,251ouncesand44,328ounces,respectively.TherewerenogoldsalesfromHoltComplexinQ32020versussalesof3,629oucesthepreviousquarter.


17 | Page

Revenue:YTD2020vsYTD2019($Millions)

$967.6

$435

$366

$1,768.6

YTD2019 Volume Price YTD2020$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

RevenueinYTD2020totalled$1,768.6million,anincreaseof$801.0millionor83%from$967.6millioninYTD2019.Ofthegrowth in revenue,$435million related toa45% increase ingoldsales, to1,017,935ounces,while$366million resultedfroma359or26%increaseintheaveragedrealizedgoldprice(1),to$1,734perouncefrom$1,375perounceforYTD2019.TheincreaseinsalesmainlyreflectedthecontributionfromDetourLakesincethemine’sacquisitiononJanuary31,2020,withsalestotalling384,270ouncesfortheeightmonthsendedSeptember30,2020resultinginrevenueof674,903million.Inaddition,salesatFostervilleincreased8%,to465,742ounces,reflectingthefavourableimpactofhighertonnesprocessedonproductionlevels.ThesefactorsmorethanoffsetlowersalesfromtheHoltComplexduetooperationsbeingsuspendedeffectiveApril2,2020(33,242ouncesofsaleforYTD2020versus83,966ouncesforYTD2019),aswellasareductioninsalesat Macassa, to 134,681 ounces from 184,898 for YTD 2019, reflecting lower production levels, largely due to reducedoperations during Q2 2020, as well as the ongoing impact of health and safety protocols, including those related toCOVID-19, and lowerworkforceandequipmentavailability inQ32020 resulting fromexcessheat in themineduring thesummermonths.

NetEarningsandAdjustedNetEarnings(1)

NetEarningsandEarningsPerShare

BasicEarningsPerShare:Q32020vsQ32019($/Share)

$0.84

$0.35

$0.28 $0.01

-$0.20-$0.16

-$0.11 -$0.09 -$0.08 -$0.03 -$0.03 -$0.02 -$0.01 -$0.02 $0.73

Q32019

RealizedG

oldPrice

SalesVolum

es

Exploration&Evaluation

ChangeinSharesO/S

ProductionCosts

Depl.&Depr.

OtherIn

come/(Loss)

Rehabilitationcosts

RoyaltyCosts

Care&Maintenance

G&A

TaxRateChange

Other

Q32020

$0.00

$1.00

$2.00


18 | Page

NetearningsinQ32020totalled$202.0million($0.73pershare)comparedto$176.6million($0.84pershare)inQ32019and$150.2million($0.54pershare)thepreviousquarter.A66%increaseinrevenue,reflectingbothahigherrealizedgoldprice and increased sales volumes, was the primary driver of net earnings growth compared to Q3 2019, with lowerexpensed exploration and evaluation costs also contributing to the year-over-year increase. The reduction in explorationexpendituresreflectedtheongoingrampupofdrillingfollowingdisruptionstotheCompany’sexplorationprogramsinQ22020 due to the Company’s COVID-19 response, including the suspension of all non-essential work, aswell as a greaterproportionofexplorationandevaluationexpendituresbeingcapitalizedasopposedtoexpensed.

Partiallyoffsettingthesefavourablefactorscontributingtoearningsgrowthweretheimpactofhigherproductioncostsanddepletionanddepreciationexpense,bothofwhichmainlyreflectedthe inclusionofDetourLake intheCompany’sresultseffectiveJanuary31,2020.OtherfactorsreducingnetearningscomparedtoQ32019weretheimpactofforeignexchangelossesinQ32020,includedinOtherloss,duetoastrengtheningoftheCanadianandAustraliandollarsagainsttheUSdollar,which compared to foreign exchange gains in Q3 2019; higher royalty expense, mainly reflecting a new 2.75% royaltyintroduced by the Victorian Government on revenue from Fosterville effective January 1, 2020; higher care andmaintenanceexpense,including$8.1millionofrestructuringandseverancecostsmainlyrelatedtothecontinuedsuspensionofoperationsatHoltComplex;andincreasedcorporateG&AcostsreflectingtheCompany’scontinuedgrowth.Inaddition,Q3 2020 net earnings were reduced by a $32.6 million increase in environmental remediation provisions, included inrehabilitationcosts,relatedtotheCompany’sNorthernTerritoryassets.DuringQ32020,theCompanycommencedworkonathree-yearwaterrehabilitationprogramintheNorthernTerritoryintendedtoaddresslegacyenvironmentalissuescausedbypriorownersoftheassets,withafocusonwaterissuesinvolvingtheCosmoPitandHowleyStreak.

The reduction in net earnings per share in Q3 2020 compared to Q3 2019 reflected a higher level of average sharesoutstandinginQ32020versusQ32019(275.3millionsharesinQ32020versus210.2millionsharesinQ32019)duetotheissuanceofsharesinQ12020relatedtotheacquisitionofDetourGold,partiallyoffsetbytheimpactofsharerepurchasesthroughtheCompany’sNCIBsincetheendofQ32019.

BasicEarningsPerShare:Q32020vsQ22020($/Share)

0.54

$0.16$0.14 $0.02 $0.01

-$0.07 -$0.04 -$0.02 -$0.01 $0.73

Q22020

RealizedG

oldPrice

OtherIn

come/(Loss)

TaxRateChange

ProductionCosts

RehabilitationCosts

SalesVolum

es

Care&Maintenance

RoyaltyCosts

Q32020

$0.00

$0.50

$1.00

$1.50

Q32020netearningsof$202.0million($0.73pershare)increased34%from$150.2million($0.54pershare)thepreviousquarter.TheincreasefromQ22020resultedfroma9%increaserevenue,astheimpactofahigheraveragegoldpricemorethanoffset a reduction in gold sales, significantly lower foreignexchanges losses inQ32020 versus thepreviousquarter($23.6millioninQ32020versus$72.8millioninQ22020)aswellasaloweraveragetaxrate(31.6%inQ32020versus33.3%in Q2 2020), slightly lower production costs and the impact of $13.4million of COVID-19 related costs on Q2 2020 netearnings. Partially offsetting these factors was the $32.6million increase in environmental remediation provisions in Q32020,increasedcareandmaintenanceexpense,reflectinghigherrestructuringandseverancecostsinQ32020,andhigherroyaltyexpense.


19 | Page

BasicEarningsPerShare:YTD2020vsYTD2019($/Share)

1.86

$1.11

$0.94 $0.03

-$0.59-$0.41

-$0.37 -$0.10 -$0.09 -$0.09 -$0.08 -$0.06 -$0.05 -$0.04 $2.06

YTD2

019

SalesVolum

es

RealizedG

oldPrice

Exploration&Evaluation

ProductionCosts

ChangeinSharesO/S

Depl.&Depr.

OtherIn

come/(Loss)

RoyaltyCosts

RehabilitationCosts

TransactionCosts

Care&Maintenance

G&A

TaxRateChange

YTD2

020

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

NetearningsforYTD2020totalled$555.1million($2.06perbasicshare),anincreaseof$164.2millionor42%from$390.9million ($1.86 per basic share) for YTD 2019. The increase in net earnings compared to YTD 2019mainly reflected 83%increase in revenue due to both increased sales volumes and a higher realized gold price, as well as lower expensedexplorationandevaluationcosts.Thesefactorswerepartiallyoffsetbyhigherproductioncosts,depletionanddepreciationexpenseandroyaltycosts,theimpactofforeignexchangelossesforYTD2020versusforeignexchangegainsinYTD2019,the$32.6millionincreaseinenvironmentalremediationprovisionsinQ32020,transactionscostsinYTD2020mainlyrelatedtotheDetourGoldacquisition,costsrelatedtotheCompany’sCOVID-19response,highercareandmaintenanceexpense,including restructuringand severance costs related to the suspensionofoperationsatHoltComplexand in theNorthernTerritory, increased CorporateG&A expense and a higher effective rate (31.9% for YTD 2020 versus 30.9% for the sameperiodin2019).

Inaddition, therewasanunfavourable impactonnetearningspershareyearoveryearbyan increase inaveragesharesoutstanding, to 269.9 million in YTD 2020 from 210.2 million for the same period in 2019, reflecting the issuance of77,217,129sharesasconsiderationfortheacquisitionofDetourGoldonJanuary31,2020,partiallyoffsetbytheimpactofsharerepurchasesthroughtheCompany’sNCIB.

AdjustedNetEarnings(1)

Adjustednetearnings(1)totalled$249.3million($0.91pershare)inQ32020,anincreaseof49%from$167.5million($0.80pershare)inQ32019and$219.3($0.79pershare)inQ22020.Aswithnetearnings,thekeydriverofgrowthinadjustednetearningscomparedtobothpriorperiodswashigherrevenue,withrevenueinQ32020increasing66%fromQ32019and9%fromthepreviousquarter.Thedifferencebetweennetearningsandadjustednetearnings(1) inQ32020mainlyrelatedtotheexclusion fromadjustednetearnings(1)of the$32.6millionpre-tax ($22.8millionafter tax) increase inenvironmentalremediationprovisions;$23.6million ($18.0millionafter tax)of foreignexchange losses,aswellas the$8.1million ($5.6million after tax) of restructuring and severance costs mainly at the Holt Complex, included in care and maintenanceexpense.Thedifferencebetweennetearningsandadjustednetearnings(1) inQ32019mainlyreflectedtheexclusionfromadjustednetearnings(1)offoreignexchangegainsof$13.7million($9.1millionaftertax),whilethedifferencebetweennetearningsandadjustednetearnings(1) inQ22020relatedtotheexclusionfromadjustednetearnings(1)ofthe$72.8million($56.3millionaftertax)offoreignexchangelosses,$13.4million($9.2millionaftertax)ofcostsrelatedtotheCompany’sCOVID-19response,and$5.3million($3.7millionaftertax)ofrestructuringcosts,mainlyresultingfromthesuspensionofbusinessactivitiesintheNorthernTerritory.

Adjustednetearnings(1) forYTD2020totalled$647.8million($2.40pershare),an increaseof$256.7millionor66%from$391.1($1.86pershare) forthesameperiod in2019,withan83%increase inrevenue,reflectingbothan increase intheaverage realized gold price and higher sales volumes, mainly accounting for the growth in adjusted net earnings. Thedifference between net earnings and adjusted net earnings(1) for YTD 2020 related to the exclusion from adjusted netearnings(1) of the $33.8million ($24.9million after tax) of transaction costs, the $32.6million ($22.8million after tax) of


20 | Page

environmentalremediationprovisions inQ32020,$23.5million($21.9millionaftertax)of foreignexchange losses,$14.2million ($9.8million after tax) of COVID-19 related costs and $17.2million ($11.9million after tax) of restructuring andseverance costs related to the Holt Complex and Northern Territory assets. The difference between net earnings andadjustednetearningsforYTD2019mainlyrelatedtotheexclusionfromadjustednetearnings(1)offoreignexchangegainsof$7.1million($3.2millionaftertax)and$2.3million($1.6millionaftertax)relatedtopurchasepriceallocationadjustmentsoninventory.

CashandCashFlows

ChangeinCash:Sept.30/20vsJun.30/20($Millions)

$537.4

$848.5

$25.1

$145.7

$0.6

$431.1

06/30/20 Operating Investing Financing F/X 09/30/20$200.0

$400.0

$600.0

$800.0

$1,000.0

TheCompany’scashbalancetotalled$848.5millionatSeptember30,2020comparedtocashof$537.4millionatJune30,2020.Contributingtothechangeincashwasnetcashprovidedbyoperatingactivitiesof$431.1million,whichcomparedtonetcashprovidedbyoperatingactivitiesof$316.8millioninQ32019and$222.2millionthepreviousquarter.Theincreasefrom both prior periods largely reflected strong cash generation by the Company’s operations. Also contributing to thechange innetcashfromoperatingactivitiescomparedtothepreviousquarterwasa$132.6milliontaxpaymentmade inAustralia in Q2 2020 representing the final instalment payment related to the 2019 tax year. Net cash from investingactivitiesinQ32020totalled$25.1million,asadditionstomininginterestsandplantandequipmenttotalling$175.4millionweremore than offset the receipt of $107.7million (C$143.2million) of proceeds from the sale of the Company’s 32.6millionsharesofOsiskoand$75.0millionreceivedfromNewmontthroughastrategicallianceagreement.The CompanyearnedasignificantreturnonitsinvestmentinOsisko,withthesaleoftheOsiskosharesresultinginarealizedgainof$60.6million, which was recognized through other comprehensive income during the quarter, consistent with the historicalunrealizedmark-to-marketadjustmentsrelatingtotheinvestment.Contributingtothe$145.7millionofnetcashusedforfinancing activities inQ32020was 107.4million (C$143.0million) of cashused to repurchase2,139,300 common sharesthroughtheCompany’sNCIBand$34.5millionusedforthequarterlydividendpaymentofUS$0.125persharepaidonJuly13,2020toshareholdersofrecordasofthecloseofbusinessonJune30,2020.


21 | Page

ChangeinCash:Sept.30/20vsDec.31/19($Millions)

$707.2$848.5

$60.5 $42.6

$710.3

$955.4 $894.9

$0.7

12/31/19 Operating(Adjusted)(1)

Non-RecurringCosts

Operating(2) Investing Financing FX 09/30/20$0.0

$250.0

$500.0

$750.0

$1,000.0

$1,250.0

$1,500.0

$1,750.0

(1) Non-IFRS-thedefinitionandreconciliationoftheseNon-IFRSmeasuresareincludedonpages34-40ofthisMD&A.(2) NetcashprovidedbyoperatingactivitiesasreportedontheCondensedConsolidatedInterimStatementsofCashFlowstotalled$894.9million(including$955.4million

ofadjustednetcashprovidedbyoperatingactivitieslesscashusedfortransactionandrestructuringcosts,mainlyrelatedtotheacquisitionofDetourGold).

TheCompany’scashbalanceof$848.5millionatSeptember30,2020comparedtocashof$707.2millionatDecember31,2019.ForYTD2020,netcashprovidedfromoperatingactivitiestotalled$894.9million.Excludingtheimpactof$60.5millionoftransactionandrestructuringcostsinQ12020,mainlyrelatedtotheDetourGoldacquisition,aswellasthe$132.6milliontaxinstalmentpaymentinAustraliarelatedtothe2019taxyear,netcashprovidedbyoperatingactivitiestotalled$1,088.0million,whichcomparedto$672.3millioninYTD2019.The$42.6millionofcashusedforinvestingactivitiesmainlyrelatedto capital expenditures in the first ninemonths of 2020, largely offset by $173.9million of cash acquired as part of theDetourGoldacquisition,aswellasthe$109.1million(C$145.2million)ofproceedsfromthesaleofOsiskosharesand$75.0million received fromNewmont related to thenew strategic alliance agreementbetween the two companies. CashusedfromfinancingactivitiesforYTD2020totalled$710.3million,withthelargestcomponentbeing$487.2millionofcashusedtorepurchase13,198,400sharesthroughtheCompany’sNCIB(totalsharesrepurchasedtoNovember4,2020of14,029,500sharesfor$526.6million).AlsocontributingtocashusedforfinancingactivitiesforYTD2020were$81.7millionfordividendpayments,$98.6milliontorepayDetourGold’soutstandingdebtduringQ12020,$30.3milliontocloseoutDetourGold’shedge positions relating to forward gold sales aswell as hedges on currencies and diesel fuel and $11.1million for thepaymentofleaseobligations.

Freecashflow(1)

Freecashflow(1) inQ32020totalled$275.7million,whichcomparedtofreecashflow(1)of$181.3million inQ32019and$94.1millionthepreviousquarter.Freecashflow(1) inQ22020was impactedbythe$132.6milliontaxpaymentmade inAustraliaasthefinal instalmentforthe2019taxyear.Excludingtheimpactofthispayment,theCompanygeneratedfreecash flow(1) of $226.7million during the previous quarter.On a year-to-date basis, free cash flow(1) in YTD 2020 totalled$500.6million,or$693.7millionexcludingthe$132.6milliontaxinstalmentpaymentinQ22020aswellasthe$60.5millionof transaction and restructuring costs in Q1 2020. Of the Company’s free cash flow(1) for YTD 2020, $231.0million wasprovidedbyDetourLakefromJanuary31,2020toSeptember30,2020(excludestransactionandrestructuringcostsrelatedtotheDetourGoldacquisition),accountingforapproximately33%ofthe$693.7millionoftotalfreecashflowforYTD2020,excludingthe$132.6milliontaxinstalmentpaymentandtransactionandrestructuringcosts.

(1) TheReviewofFinancialPerformancesectionincludesanumberofNon-IFRSmeasures.ThedefinitionandreconciliationoftheseNon-IFRSmeasuresareincludedonpages34-40ofthisMD&A.


22 | Page

REVIEWOFOPERATINGMINES

CanadianMineOperations

MacassaMineComplex

TheMacassaMine is located in theMunicipality of Kirkland Lake, within Teck Township, District of Timiskaming, in thenortheast of the province of Ontario, Canadawhich is approximately 600 km north of Toronto, Canada.Macassa is theCompany’s foundation Canadianmining operation. Situated in one of Canada’smost historic and renowned goldminingdistricts,theKirklandLakeCamp,MacassahadprovenandprobableMineralreservestotalling3.3milliontonnesgradinganaverageof22.1g/tfor2.4millionouncesasatDecember31,2019.Inaddition,atyear-end2019therewere273,000tonnesgradinganaverageof10.7g/tfor93,000ouncesofMineralReservesinnear-surfacezonesalongtheAmalgamatedBreak,whichtheCompanyplanstoaccessbydrivingasurfaceramp.

OperatingresultsThreeMonthsEndedSeptember30,2020





TotalOreMilled(t) 78,526 85,834 77,624 238,406 236,505

AverageGrade(g/t) 15.4 23.3 17.2 17.5 24.8

GoldContained(oz) 38,897 64,316 42,915 133,868 188,677

Recovery(%) 97.8% 97.8% 97.6% 97.7% 98.0%

GoldProduced(oz) 38,028 62,945 41,865 130,754 184,918

GoldSold(oz) 39,588 62,583 44,328 134,681 184,898

Developmentmetres-operating 1,957 867 1,798 5,721 2,546

Developmentmetres-capital 880 865 917 3,081 3,793

Productioncosts $26,000 $26,621 $27,748 $80,156 $73,612

Operatingcashcostsperouncesold(1) $648 $425 $547 $573 $397

AISCperouncesold(1) $1,081 $689 $841 $915 $687

Totalcapitalexpenditures(inthousands) $33,412 $46,985 $24,938 $92,654 $157,495


ProductionatMacassainQ32020totaled38,028ouncescomparedtoproductionof62,945ouncesinQ32019and41,865ouncesthepreviousquarter.ProductioninQ32020resultedfromprocessing78,526tonnesatanaveragegradeof15.4g/tandaveragerecoveriesof97.8%,whichcomparedto85,834tonnesprocessedinQ32019atanaveragegradeof23.3g/tandaveragerecoveriesof97.8%and77,624tonnesatanaveragegradeof17.2g/tandaveragerecoveriesof97.6%inQ22020. The change in production from Q3 2019 largely reflected both lower than expected average grades and tonnesprocessedinQ32020.ProductionatMacassawasimpactedbyreducedworkforceproductivityandequipmentavailabilitylargelyrelatedtoexcessiveheatintheminecausedbyrecordtemperaturesinKirklandLake,aswellasongoinghealthandsafety protocols as part of the Company’s COVID-19 response. These factors contributed to disruptions to operatingdevelopmentperformanceandlowerthanplannedminingrates.Miningduringthequarterfocusedonthemostaccessibleareas,whichwerelargelythelower-gradestopesplannedforthequarter.

Productioncosts inQ32020totalled$26.0millionversus$26.6million inQ32019and$24.4millionthepreviousquarter(excluding$3.3millionrelatedtotheCompany’sCOVID-19response).Operatingcashcostsperouncesold(1)averaged$648inQ32020versus$425inQ32019and$547inQ22020.Theincreaseinoperatingcashcostsperouncesold(1)comparedtobothpriorperiodslargelyreflectedaloweraveragegradeandreducedgoldsalesinQ32020(39,588ouncesversussalesof62,583 ounces inQ3 2019 and 44,328 ounces the previous quarter). AISC per ounce sold(1) averaged $1,081 inQ3 2020comparedto$689inQ32019and$841inQ22020.Aswithoperatingcashcostsperouncesold(1),theincreaseinAISCperouncesold(1)frombothpriorperiodswaslargelydrivenbytheimpactofaloweraveragegradeonsalesvolumes.Indollarterms,AISC(1)inQ32020declinedcomparedtoQ32019($42.8millionversus$43.1millionayearearlier),whileanincreasein AISC(1) from the previous quarter was mainly due to higher sustaining capital expenditures(1). Sustaining capitalexpenditures(1)totalled$14.1million($357perouncesold)inQ32020versus$13.2million($211perouncesold)inQ32019and$10.5million($236perouncesold)thepreviousquarter.The$5.3millionincreaseinsustainingcapitalexpenditures(1)comparedtoQ22020waslargelyduetolowerthanplannedsustainingcapitalexpenditures(1)thepreviousquarterwhentheminewasonreducedoperationsaspartoftheCompany’sCOVID-19response.


23 | Page

Production(Kozs)

62.9

38.0

Q32019 Q320200

25

50

75


$425

$648

Q32019 Q32020$0

$250

$500

$750

AISC($/oz)(1)

$689

$1,081

Q32019 Q32020$0

$500

$1,000

$1,500


ProductionatMacassainYTD2020totalled130,754ounces,whichresultedfromprocessing238,406tonnesatanaveragegradeof17.5g/tandataveragerecoveriesof97.7%.YTD2020productioncomparedtoproductionof184,918ouncesforYTD 2019,which resulted from processing 236,505 tonnes at an average grade of 24.8 g/t and at average recoveries of98.0%.YTD2020productionwasbelowexpectedlevelslargelyduetotheimpactofreducedoperationsduringQ22020andongoinghealthandsafetyprotocols,aswellastheimpactonworkforceproductivityandequipmentavailabilitycausedbyexcessheat in themineduringQ32020.These factorscontributed toboth lower thanplannedmining ratesandaveragegradesonayear-to-datebasis.

ProductioncostsforYTD2020totalled$$76.8(excluding$3.3millionrelatedtotheCompany’sCOVID-19response)versus$73.6millionforYTD2019.Operatingcashcostsperouncesold(1)averaged$573comparedto$397forthesameperiodin2019withtheincreaselargelyreflectinglowersalesvolumesduetotheimpactofCOVID-19andareductionintheaveragegrade.AISCperouncesold(1)averaged$915forYTD2020versus$687ayearearlier.ThechangefromYTD2019resultedfrom the impact of a lower average grade on sales volumes and higher cash operating cost(1). Sustaining capital(1)expenditurestotalled$39.0million($290perouncesold)inYTD2020versus$45.3million($245perouncesold)inYTD2019withthereductionlargelyrelatedtoreducedoperationsduringQ22020.

Production(Kozs)

184.9

130.8

YTD2019 YTD20200

100

200


$397

$573

YTD2019 YTD2020$0

$250

$500

$750

AISC($/oz)(1)

$687

$915

YTD2019 YTD2020$0

$500

$1,000


Growthprojects:Growthcapital(1)expendituresatMacassaforYTD2020totalled$33.2million($11.5millioninQ32020).OftotalgrowthexpendituresforYTD2020,$27.1millionrelatedtothe#4shaftproject.DuringQ32020,theshaftadvanced740feetandhadreachedadepthof3,366feetasofSeptember30,2020.OnMay6,2020,theCompanyannouncedthat,based on progress to date and the results of a review of the #4 shaft project earlier in the year, the project scope andscheduleforthe#4Shaftwasrevised.Theprojectisnowexpectedtobecompletedinonephase,toadepthof6,400feet,withprojectcompletiontargetedforlate2022,overoneyearsoonerthantheinitialprojectschedule.Thecapitalcostfortheprojectisunderreviewandisexpectedtobelessthantheexistingestimateof$320million.


24 | Page

DetourLake

Detour LakeMine is the second largest gold producingmine in Canada. Detour Lake is located in northeasternOntario,approximately 300 kilometres northeast of Timmins and 185 kilometres by road northeast of Cochrane, within thenorthernmostAbitibiGreenstoneBelt.Themine is situated in theareaof thehistoricDetourLakeopenpit/undergroundmineoperatedbyPlacerDomewhichproduced1.8millionouncesofgoldfrom1983to1999.WithtotalMineralReservesof477.5million tonnesatanaveragegradeof0.97g/t fora totalof14.8millionounces,Detour LakeMinehas the largestMineralReservebaseofanygoldmineinCanada,whichsupportsaminelifeofwellover20years.



NineMonthsEnded(1)September30,2020

TotalOreMilled(t) 5,898,694 5,655,992 15,262,708

AverageGrade(g/t) 0.8 0.8 0.8

GoldContained(oz) 154,345 143,985 399,003

Recovery(%) 90.7% 91.7% 91.1%

GoldProduced(oz) 140,067 131,992 363,614

GoldSold(oz) 137,632 136,182 384,270

Productioncosts $87,354 $85,752 $260,923

Operatingcashcostsperouncesold(3) $634 $573 $630

AISCperouncesold(3) $1,259 $1,090 $1,156

Totalcapitalexpenditures(inthousands) $96,857 $66,476 $205,849

(1) DetourLakewasacquiredonJanuary31,2020;resultspresentedarefromacquisitiondatetoSeptember30,2020.(2) Non-IFRS-thedefinitionandreconciliationoftheseNon-IFRSmeasuresareincludedonpages34-40ofthisMD&A.

ProductionatDetourLake inQ32020totaled140,067ounces,which involvedprocessing5,898,694tonnesatanaveragegradeof0.81g/t at average recoveriesof 90.7%.Production inQ32020 compared toproduction inQ22020of131,992ounceswhichresultedfromprocessing5,655,992tonnesatanaveragegradeof0.79g/tandaveragerecoveriesof91.7%.The increase inproductionquarteroverquarter largely resulted fromhigherprocessingvolumes reflectingan increase inminingratesduringQ32020,aswellashigheraveragegrades,withagreaterproportionofmillfeedinQ32020comingfrommine production versus low-grade stockpiles. In Q2 2020, themine processedmore stockpiledmaterial during reducedoperationsaspartoftheCompany’sCOVID-19response.

ProductioncostsatDetourLakeMineinQ32020totalled$87.4million.Operatingcashcostsperouncesold(1)averaged$634inQ32020,which compared to $573 thepreviousquarterwith the increase largely reflecting significantly higher tonnesmined,which totaled 6,783,000 tonnes versus tonnesmilled for the quarter of 5,898,694 tonnes, the impact of reduceddeferredstrippingandincreasedmaintenanceandprocurementcostsastheminerampedupfollowingreducedoperationsinQ22020.AISCperouncesold(1)averaged$1,259versus$1,090thepreviousquarterreflectinghigheroperatingcostsandincreasedsustainingcapitalexpenditures(1).DuringQ32020,sustainingcapitalexpenditures(1)atDetourLaketotalled$80.7millionor$586perounce,whichcomparedtosustainingcapitalexpenditures(1)of$65.8millionor$483perouncesoldtheprevious quarter, with the increase in Q3 2020 mainly reflecting the ramp up of capital projects and equipmentprocurement,whichhadbeenimpactedbyreducedoperationsrelatedtotheCompany’sCOVID-19responseinQ22020.

ProductionatDetour Lake for theeightmonthsendedSeptember30,2020 totaled363,614ounces,which resulted fromprocessing15,262,708 tonnesatanaveragegradeof0.81g/twithaverage recoveriesof91.1%.Productioncosts for theeightmonthsendedSeptember30thtotalled$253.2million,excluding$7.7millionofCOVID-19relatedcosts.Operatingcashcostsperouncesold(1)averaged$630perouncesold,whileAISCperouncesold(1)averaged$1,156.Themine’ssustainingcapitalexpenditures(1)totalled$188.8million($491perouncesold).

Growth projects: Growth capital(1) expenditures at Detour Lake for both Q3 2020 and YTD 2020, excluding capitalizedexploration,totalled$11.8million.Growthcapitalexpendituresmainlyrelatedtotheprocurementofmobileequipmentandstrippinginsupportoffutureproductiongrowth.GrowthcapitalexpendituresareexpectedtoincreaseinQ42020astheminecontinuestoinvestinmobileequipmentandadvanceanumberofprojectsinitiatedsincetheCompany’sacquisitionofDetourGold.


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HoltMineComplex

The100%ownedHoltMineComplexconsistsofthreemines:TheHoltMineandMillandtheHollowayMine,whicharebothlocated east of Matheson, approximately 20 km west of the Quebec border, within the Timmins Mining District innortheasternOntario;andtheTaylorMinelocated53kmeastofTimmins,Ontario(approximately68kmbyroadwestoftheHoltMill).MineproductionfromthethreeminesisprocessedattheHoltMill,ontheHolt-Hollowaypropertypackage.TheHolt-Hollowaypropertypackageiscomprisedof48separatepropertyelementstotalling559claimsforanaggregateareaof11,528hectares (“ha”).TheTaylorMineconsistsof77claims fora totalareacovering3,080ha. In total, thethreeminescomprise total provenandprobable reserves estimated at 5.4million [email protected] g/t for 702,000ouncesof gold as atDecember31,2019.

On February 19, 2020, the Company designated the Holt Complex as a non-core asset with plans to review options formaximizing value. Inmid-March, the Company placed theHollowayMine on care andmaintenance,with no plans for afuture resumptionofoperations.EffectiveApril2,2020, theCompanysuspendedoperationsat theTaylorMineandHoltMineandMill aspartof theCompany’s response to theCOVID-19pandemicwhile theCompany continued the strategicreviewoftheHoltComplexassetsinvolvingtheconsiderationofalloptionsforthemaximizingofvalue.

HoltComplex






TotalOreMilled(t) — 214,542 6,192 215,318 600,726

AverageGrade(g/t) — 4.2 4.0 4.5 4.5

GoldContained(oz) — 28,807 806 31,408 86,845

Recovery(%) — 94.2% 100.1% 93.6% 95.0%

GoldProduced(oz) — 27,128 807 29,391 82,483

GoldSold(oz) — 26,790 3,629 33,242 83,966

Developmentmetres-operating — 2,192 7 1,812 5,498

Developmentmetres-capital — 1,268 13 2,058 4,007

Productioncosts — $27,800 $7,629 $36,054 $79,668

Operatingcashcostsperouncesold(1) — $1,037 $1,373 $1,000 $948

AISCperouncesold(1) — $1,543 $1,717 $1,407 $1,365

Totalcapitalexpenditures(inthousands) ($184) $16,380 $442 $8,883 $38,453


OnJuly16,2020,theCompanyannouncedthatthesuspensionofoperationsattheHoltComplexwasbeingextendeduntilfurthernotice.CareandmaintenanceexpenseinQ32020forHoltComplextotalled$10.9million,including$8.0millionofrestructuringandseverancecosts(YTD2020careandmaintenanceexpenseof$13.8million).NoproductionwasrecordedfromtheHoltComplexduringQ32020,withonly807ouncesbeingrecordedthepreviousquarter.DuringQ32019,atotalof27,128 ounceswas produced from processing 214,542 tonnes at an average grade of 4.2 g/t and average recoveries of94.2%.ProductioncostsinQ32019totalled$27.8million,whileoperatingcashcostsperouncesold(1)averaged$1,037andAISCperouncesold(1)averaged$1,543.Sustainingcapital(1)expendituresduringQ32019were$11.2million($419perouncesold).

ForYTD2020,HoltComplexproduced29,391ounces,almostallofwhichwasinQ12020,whichcomparedtoproductionof82,483ouncesforYTD2019.ProductioncostsforYTD2020totalled$33.6million(excluding$2.4millionofCOVD-19-relatedcosts)versus$79.7millionforYTD2019.Operatingcashcostsperouncesold(1)averaged$1,000inYTD2020versus$948perounce forYTD2019,whileAISCperouncesold(1)averaged$1,407compared to$1,365 for the firstninemonthsof2019.Sustaining capital expenditures(1) for YTD2020 totalled$9.1million ($274perounce sold) versus$29.0million ($345perouncesold)forYTD2019.


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AustralianMineOperations

FostervilleMine

The FostervilleMine is located approximately 20 km northeast of the town of Bendigo and 130 km north of the city ofMelbourne inVictoria,Australia.Withanoteworthyhistoryofgoldmining in the regiondatingback to1894, thecurrentFostervilleMinecommencedcommercialproductioninApril2005withasulphideplantthathasproducedapproximately2.9millionouncestodate.AtDecember31,2019, theexistingFostervilleMinehadtotal reservesof3.0milliontonnesatanaveragegradeof21.8g/tforatotalof2.1millionounces,withtherealsobeinganinitialMineralReserveatRobbin’sHill,apotentialsecondminingoperationtofeedtheFostervilleMillapproximately4.0kilometresfromcurrentminingoperations,totalling1.2milliontonnesatanaveragegradeof5.5g/tforatotalof218,000ounces.






TotalOreMilled(t) 167,533 119,412 123,473 409,708 370,876

AverageGrade(g/t) 30.3 41.8 39.5 36.6 36.4

GoldContained(oz) 163,112 160,498 156,617 481,469 433,683

Recovery(%) 99.0% 98.6% 99.0% 99.0% 98.6%

GoldProduced(oz) 161,489 158,327 155,106 476,459 427,472

GoldSold(oz) 154,739 166,903 157,251 465,742 432,432

Developmentmetres-operating 885 529 747 1,951 1,163

Developmentmetres-capital 1,405 1,808 1,134 4,050 5,705

Productioncosts $22,669 $19,243 $20,286 $61,897 $56,585

Operatingcashcostsperouncesold(1) $142 $115 $129 $132 $126

AISCperouncesold(1) $349 $289 $273 $311 $306

Totalcapitalexpenditures(inthousands) $35,850 $42,071 $26,916 $94,510 $118,515


TheFostervilleMineproduced161,489ouncesinQ32020basedonprocessing167,533tonnesatanaveragegradeof30.3g/tandaveragemill recoveriesof99.0%.Q32020production increasedfrom158,327ounces inQ32019,whenthemineprocessed119,412tonnesatanaveragegradeof41.8g/tandaveragerecoveriesof98.6%.Q32020productioncomparedtoproductionof155,106ouncesthepreviousquarterwhenthemineprocessed123,473tonnesatanaveragegradeof39.5g/tandataveragerecoveriesof99.0%.Theincreaseinproductionfrombothpriorperiodsreflectedhighertonnesprocessed,whichmorethanoffsettheimpactofareductionintheaveragegrade. HighertonnesprocessedresultedfromincreasedminingratesforthequarterinbothLowerPhoenixandHarrierastheminebenefitedfromrecentinvestmentsinimprovedventilationandpastefill.ThereductionintheaveragegradereflectedalowerproportionoftotalminedtonnescomingfromtheSwanZoneversusother,lower-grade,areasofthemine.

Productioncostswere$22.0million(excluding$0.7millionofCOVID-19relatedcosts)inQ32020versus19,243millioninQ32019and$20.3millionthepreviousquarter.Operatingcashcostsperouncesold(1)averaged142,comparedtooperatingcashcostsperouncesold(1)of$115inQ32019and$129thepreviousquarter.Thechangecomparedtobothpriorperiodsmainlyreflecteda loweraveragegradeinQ32020,aswellastheimpactof increasedminingrates.AISCperouncesold(1)averaged$349versus$289inQ32019and$273inQ22020.ThechangefromQ32019largelyreflectedtheimpactofanew2.75%royaltyintroducedbytheVictorianGovernmenteffectiveJanuary1,2020.Thenewroyaltycontributed$8.0millionor$52perouncesoldtoAISCperouncesold(1)inQ32020($6.9millionor$44perouncesoldinQ22020).Excludingtheimpactofthenewroyalty,AISCperouncesoldinQ32020averaged$297perounce,similartotheQ32019levelashigheroperatingcash costs were largely offset by lower levels of sustaining capital expenditures(1), reflecting reduced costs for mobileequipmentprocurementandgroundsupportrelatedtocapitaldevelopmentversusthesameperiodin2019.Comparedtothepreviousquarter,higherAISCperouncesold(1)resultedfromtheincreaseinoperatingcostsperounceaswellashigherroyaltyexpense. Inaddition,sustainingcapitalexpendituresweresignificantlyhigher inQ32020versus thepriorquarter,mainly reflecting disruptions to capital development and other projects in Q2 2020 as part of the Company’s COVID-19response. Sustaining capital expenditures(1) in Q3 2020 totalled $18.1million ($117 per ounce sold) versus $23.8million($143perouncesold)inQ32019,and$10.8million($69perouncesold)inQ22020.


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Production(Kozs)

158.3 161.5

Q32019 Q320200

100

200


$115

$142

Q32019 Q32020$0

$50

$100

$150

AISC($/oz)(1)

$289

$349

Q32019 Q32020$0

$200

$400


ProductionatFostervilleforYTD2020totaled476,459ounces,an11%increasefrom427,472ouncesforYTD2019.YTD2020productionresultedfromprocessing409,708tonnesatanaveragegradeof36.6g/tandaveragerecoveriesof99.0%.TheincreasefromYTD2019wasmainlyduetoa10%increaseintonnesprocessed,reflectingminesequencingopportunitiesandtheuseofpastefillinthestopingcycle.

Productioncostswere$61.2million(excluding$0.7millionofCOVIDrelatedcosts)forYTD2020versus$56.6millionforthesame period in 2019.Operating cash costs per ounce sold(1) and AISC per ounce sold(1) for YTD 2020 of $132 and $311,respectively,weresimilartotheprioryearlevelsof$126and$306,respectively.ContributingtoAISCperouncesold(1)forYTD2020were increased royalty paymentsof $22.0millionor $47per ounce sold resulting from thenew2.75% royaltyintroducedbytheVictorianGovernmenteffectiveJanuary1,2020.Excludingtheimpactofthenewroyalty,AISCperouncesold(1)forYTD2020improved14%fromtheYTD2019level,mainlyduetolowersustainingcapitalexpenditures(1)duringYTD2020.Sustainingcapitalexpenditures(1)forYTD2020totalled$45.0million($97perouncesold)versus$65.7million($152per ounce sold) for YTD 2019, with the reduction in YTD 2020 largely due to disruptions resulting from the Company’sCOVID-19protocols,includingthesuspensionofprojectworkandreducedcapitaldevelopmentduringQ22020.

Production(Kozs)

427.5476.5

YTD2019 YTD20200

250

500

750


$126 $132

YTD2019 YTD2020$0

$50

$100

$150

AISC($/oz)(1)

$306 $311

YTD2019 YTD2020$0

$200

$400


Growthprojects:Growthcapital(1)expendituresatFostervilleforYTD2020,excludingcapitalizedexplorationtotalled$14.6million ($5.0million inQ32020).Workduring the firstninemonthsof theyear focusedmainlyonconstructionofanewtransformerstation,newgoldroom/refineryandAsterPlant(tailingseffluentremediationplant),aswellascompletionofaventilationsystemduringQ22020.

NorthernTerritory

TheCosmomineandUnionReefsmillwereplacedoncareandmaintenanceeffectiveJune30,2017.Followingthismove,theCompanyundertookextensiveexplorationprogramsatCosmo,UnionReefsand,morerecently,otherselectedtargets.Inaddition,theCompany’sadvancedexplorationworkatboththeCosmomineandUnionReefsmill,whichresultedinthe


28 | Page

commencementoftestminingofmineralizationintheLanternDepositatCosmoandtestprocessingofthismaterialattheUnionReefsmillinOctober2019.

OnFebruary19,2020,theCompanyannouncedthattheNorthernTerritoryassetshadbeendesignatedasnon-corewiththeCompany planning to consider strategic options formaximizing the value of these assets. InMarch 2020, the Companyannouncedthesuspensionoftestminingandprocessing intheNorthernTerritoryandalsothesuspensionofexplorationactivities.Thedecisionreflectedresultsofthetestproductiontodate,aswellasotherprioritieswithintheCompany.CareandmaintenanceexpensefortheCompany’sNorthernTerritoryassetstotalled$3.3millioninQ32020and$10.0millionforYTD 2020, including $2.8 million of restructuring and severance costs recorded in Q2 2020). $0.7 million explorationexpenditureswererecordedinQ32020($18.0millionforYTD2020).

ConsistentwiththeCompany’scommitmenttoeffectiveenvironmentalmanagement,athree-year,$60–$65millionwaterrehabilitationprogramwaslaunchedintheNorthernTerritoryduringQ32020,whichresultedina$32.6millionincreaseintheenvironmental remediationprovisionsbeing recordedduring thequarter. Theprogram,which is intended toaddressenvironmental issues caused by prior owners of the assets, involves managing the Howley Streak waste dumps,rehabilitationofdamsandtreatmentofsitewaterinventory.Theobjectiveoftheprograminvolvesrestoringapproximately360hatograzinglandquality,removingwasterockdumpsandfillingexistingopenpits.

(1) TheReviewofOperatingMinessectionincludesanumberofNon-IFRSmeasures.ThedefinitionandreconciliationoftheseNon-IFRSmeasuresareincludedonpages34-40ofthisMD&A.

GROWTHANDEXPLORATION

As part of the Company’s health and safety protocols related to the COVID-19 pandemic, all exploration drilling wassuspendedinMarch2020.OnApril1,2020,theCompanywithdrewits2020guidance,includingthetargetfor$150-$170million of exploration expenditures in 2020, including capitalized exploration. In April, the Company announced plans toresumeexplorationdrillingatitsthreemainoperations,Macassa,DetourLakeandFosterville.Therampupofexplorationdrillingextendedto,andwascontinuing,asoftheendofQ32020.AsatSeptember30,2020,therewere5surfaceand8undergrounddrillsdeployedatFosterville,onesurfaceand8undergrounddrillsatMacassaandfivesurfacedrillsatDetourLake.

Canada

For YTD 2020, the Company completed approximately 84,166metres of underground drilling atMacassa, using up to 8undergrounddrillsonthe5300,5600and5700levels.ThedrillingtargetedextensionsoftheSMCtotheeast,thewestandtodepth,aswellasareasalongtheAmalgamatedBreakneartheSMC.Inaddition,thedrillingfocusedoninfilltargetswithinthe currentMineralResourcewith theaimofupgrading resourceswithin the SMC, Lower SMCandAmalgamatedBreak.TotalexplorationexpendituresatMacassa,includingcapitalizedexploration,totalled$21.8millionforYTD2020($8.1millioninQ32020).

Ofthe84,166totalundergroundmetresforYTD2020,25,791metresweredrilledtotesttheextentsoftheEast,WestandLower SMC,with an additional 13,258metres being drilled to test theAmalgamatedBreak. In addition, 1,167metres ofdrillingwerecompletedfromthe5300LeveltotesttheMainBreakontheformerKirklandMineralsproperty300metresbelowthedeepestminelevelandproximaltothelocationofthe#4shaft.Infilldrillingconsistedof43,950metresofdrillingfocusedonupgradingresourceswithintheSMCandLowerSMC.

Inaddition,theCompanycompleted12,900metresofdrillingfromsurfaceutilizinguptotwodrillstargetingbothshallowanddeepregionaltargetsassociatedwiththeAmalgamatedBreakaswellasshallowtargetsassociatedwiththe‘04/MainBreak.Ofthetotal12,900metres,845metresweredrilledtotargetdeepregionalareasoftheAmalgamatedBreak,while7,150metreswere completed to targetareasproximal to the currentnear surfaceMineralResourceassociatedwith theAmalgamatedBreakand4,905metreswerecompletedtotargetthe’04/MainBreak.

In terms of exploration development, after completing 243metres of development drifting in 2019 in support of futureundergroundexplorationdrillingtoextendthe5300Levelexplorationdrifttotheeast,whichincludedtheexcavationofanewdrill bay, an additional 343metres of development to the eastwas completedduring YTD2020which included theexcavationoftwodiamonddrillbays. Developmenttothewestonthe5300Levelwasextended254metresduring2019


29 | Page

and development was reinitiated in Q3 2020with 115metres advanced. The Company also commenced an explorationdevelopment heading east on the 5807 decline late in 2019 to target the SMC East andMain Break at depth and hascompleted a total of 582 metres of development during YTD 2020. In late Q3 2020 the Company also commenced anexplorationdevelopmentheadingonthe5150Leveltotargetthe’04BreakandpotentialextensionoftheSMCwestoftheAmikougamicross-faultandhascompleted6metresofdevelopmentduringYTD2020.

AsignificantnewprojectatMacassain2020isthedevelopmentofanexplorationdeclinetoaccessandexplorepreviouslyidentifiedhigh-gradezonesnearsurfacealongtheAmalgamatedBreak.TheportalforthedeclinewascompletedinQ22020with the first development round excavated on June 15, 2020. By the end of Q3 2020, the decline had advancedapproximately645metreswithplanstoreachapproximately1,067metresofdevelopmentbytheendof2020.

OnApril22,2020,theCompanyannouncedencouragingdrillresultsatMacassa,whichexpandedhigh-grademineralizationtotheeastof theSMCbyanadditional75metres fromexistingMineralResources. Inaddition, theCompanyannouncedthat it had identified anewcorridorof high-grademineralization700metres longand300metreshigh locatedatdepthalong thehistoricMainBreakon theKirklandMineralsproperty.Thecorridor is located incloseproximity to thenew#4shaft(currentlybeingdeveloped)andalsototheplannedlocationofthenewexplorationdriftbeingdevelopedeastoffthe5700Level.Includedinthiscorridorisanintersectionof141.3g/tover2.4metresthatislocatedwithin650metresofthe#4shaftandis50metresfurthereastfrompreviousdrillingand300metresbelowthedeepestlevelofftheKirklandMineralsshaft.Theidentificationofthenewcorridorofhigh-grademineralizationhighlightsthesignificantexplorationpotentialthatcontinues to exist along theMain Break,which accounts formost of the 25million ounces of historic production in theKirklandLakegoldcamp.

OnOctober19,2020,TheCompanyannouncedthe intersectionofexceptionalgoldgradesatMacassaoutsideofexistingMineral Resources near the location where the dip of the SMC approaches the contact withmineralized zones stackedverticallyalongtheAmalgamatedBreak.Thisareaisconsideredhighlyprospectiveasitinvolvestwoseparateareasofgoldmineralizationeffectivelycomingtogether.Theresultsalsocontinuedtoexpandthemineralizationatdepth in theLowerSMCandidentifiednewareasofhigh-grademineralizationalongtheAmalgamatedBreak,furtherincreasingtheCompany’sconfidencethatsignificantnewMineralReservescanbeaddedbydrillingalongtheBreakthroughtheKirklandLakecamp.

DetourLake

TheCompanyisalsocarryingoutanaggressivesurfaceexplorationprogramatDetourLake,tobecompletedbytheendof2021,aimedatexpandingthepresentopen-pitMineralReserveandMineralResourceestimatesbothbetweenthepresentMainandDetourWestpitsaswellasatdepthbelowthepresentopen-pitMineralResource.

ExplorationdiamonddrillingwasinitiatedontheDetourLakeMinepropertyinmid-Januarywithatotalof35,425metresofdrillingcompletedinYTD2020.Atotalof3,693metresofdrillingin12drillholestargetedthe58NZoneand31,732metresofdrillingin36holeswerecompletedbetweentheDetourWestandMainPitareas.Drillingonthe58NZonetargetedtheup-plungeandwestextensionoftheresourcewithin300metersofsurface.DrillingwestoftheMainPittargetedextensionsofmineralizationoutside thepresentMineralResource. Explorationexpenditures for YTD2020 totaled$7.2million ($4.5millioninQ32020).

On June 29, 2020, the Company announced encouraging results from initial drilling at Detour Lakemine. Drilling in theSaddleZone,westoftheMainPit,intersectedbroadzonesofmineralizationatattractiveopen-pitgrades,aswellasintervalsofhigher grade that support thepossibilityofundergroundMineralResources atdepth.Drilling at 58N intersectedhigh-grademineralizationupto175metresfromtheexistingundergroundMineralResources.IntheNorthPit,northwestoftheMainPit,drillingextendedmineralizationbothalongstrikeandtodepthofexistingopen-pitMineralResources.

OnSeptember9,2020,additionalhigh-gradeintersectionsfromdrillingintheSaddleZonewerereleasedthatcontinuedtoidentifybroadzonesofmineralizationandestablishthecontinuityofthemineralizedstructurebetweentheMainandWestpitlocations.DrillinginboththeeastandwestportionsoftheSaddleZoneintersectedmineralizationwithattractivegradesmorethan420metresbelowtheexistingMineralReserveshells(theMainPitMineralReserveshellinthecaseofdrillinginthe eastern portion and the West Pit Mineral Reserve shell for drilling in the western portion). The results providedadditionalevidencethatthereisabroadandcontinuouscorridorofmineralizationextendingbetweenthetwopitlocationstoadepthofupto820mbelowsurface.


30 | Page

Australia

Total exploration expenditures in Australia for YTD 2020, including capitalized exploration, totalled $57.6 million ($14.7millioninQ32020).Ofthe$57.6million,$39.6millionwasatFosterville,whereanextensiveprogramofexplorationdrillinganddevelopment focusedon supporting the future growthof the Fostervillemine. Theprimary targets of this programcontinuedtobetheLowerPhoenixsystem,Cygnet,Harrier,andRobbin’sHill.Inadditiontoextensivedrilling,theCompanycommenceddrivingatwinundergroundexplorationdriftfromFostervilleMinetoRobbin’sHillinJanuary2020.ThedriftwillsupportbothfutureexplorationatRobbin’sHill,apotentialsecondminingoperationtofeedtheFostervilleMill,andwillalsofacilitate the explorationof a numberof high-potential targets under other historic openpits in the area. The remaining$18.0 million of exploration expenditures in Australia for YTD 2020 were in the Northern Territory, almost all of whichincurredinthefirstquarterpriortotheCompanydiscontinuingalltestproductionandexplorationdrillinginMarch.

FostervilleMine

During YTD 2020, exploration expenditures, including capitalized exploration, at Fosterville totalled $39.6 million ($14.0millioninQ32020).DrillingwassuspendedinMarch2020aspartoftheCompany’sCOVID-19healthandsafetyprotocols,which included the suspension of all non-essential work. Prior to the suspension of drilling, therewas a total of 31,937metres of drilling completed using up to six surface drills and eight underground drills. In early Q2 2020, the Companycommencedtheprocessofresumingthe2020explorationprogram,withninedrillshavingbeendeployedbytheendofQ22020(13drillsasatSeptember30,2020).Atotalof85,996metresofsurfaceandundergrounddrillingwascompletedforYTD2020(30,156metresduringQ32020).UndergrounddrillingduringthethirdquartercontinuedtotargettheHarrierandCygnetzones,aswellastheLowerPhoenixsystem.Explorationdrillingdown-plungeintheLowerPhoenixsystemincreasedduringQ32020followingcompletionofadditionaldevelopmentthepreviousquarter, includingtheestablishmentofnewdrillplatforms.SurfacedrillingduringQ32020continuedtotestalongtheCuriefaultatRobbin’sHillinthenorthernpartoftheFostervilleMininglicence,aswellasalongtheHerschelfault,whichalsoextendsthroughtheRobbin’sHilltarget.TheCompany also commenced underground drifting towards Robbin’s Hill in January 2020 from the Falcon undergroundworkings,withover2,269metresofdriftingachievedbytheendofQ32020.

OnJuly30,2020, theCompanyannouncedencouragingdrill resultsatFosterville,which included intersectinghigherthanexpectedgradeswithvisiblegold from infilldrilling in theSwanZoneandconfirming the substantial scaleandcontinuedgrowthpotentialofmineralizedsystemsatCygnet,Robbin’sHillandHarrier.

NorthernTerritory

DuringtheQ12020,priortosuspendingexplorationworkinMarch,4,143metresofsurfacediamonddrillingwascompletedbytwodrills,withactivityfocusedatUnionReefsontheMillarsandUnionSouthtargets,andatPineCreekontheGandystarget. Rehabilitation of all surface drill sites is in progress. Total exploration expenditures during YTD 2020were $18.0million,ofwhich$15.8millionwasincurredduringQ12020.

AttheCosmoMine,priortothesuspensionofexplorationactivities,undergrounddrillingfocusedontheLanternDeposit,whereuptothreerigscompleted12,680metres,andatotalof1,071metresofdevelopmentwascompleted.

REVIEWOFFINANCIALCONDITIONANDLIQUIDITY

Kirkland LakeGold is committed tomanaging liquidity by achieving positive cash flows from itsmine operations to fundoperatingandcapitalrequirements,includingquarterlydividendpayments,aswellasdevelopmentprojects.TheCompanymonitors theexpectedsettlementof financialassetsand liabilitiesonanongoingbasis;however, therearenosignificantaccountspayable,capitalleaseobligations,orotherpaymentsthatareoutstandingpasttheirduedates.

AsatSeptember30,2020,theCompanyhadapositiveworkingcapital(1)balanceof$562.7million,includingacashbalanceof$848.5million,whichcomparestoaworkingcapital(1)of$377.7millionandcashof$707.2millionatDecember31,2019.ThestrongworkingcapitalreflectsongoingfreecashflowgenerationfromtheCompany’smineoperationsandisaidedbyincreasedrevenuesfromhighersalesvolumesandthetimingofsustainingandgrowthcapitaloutlays.

TheCompany’scashbalancesupplementedbycashflowfromoperationsareexpectedtobesufficienttofundoperationsandcapitalrequirementsforatleastthenexttwelvemonths.


31 | Page

(1) TheReviewofFinancialConditionandLiquiditysectionincludesanumberofNon-IFRSmeasures.ThedefinitionandreconciliationoftheseNon-IFRSmeasuresareincludedonpages34-40ofthisMD&A.

OFF-BALANCESHEETARRANGEMENTS

AsatSeptember30,2020,theCompanydidnothaveanyoff-balancesheetitems.

OUTSTANDINGSHAREANDCONVERTIBLEEQUITYINFORMATION

OutstandingShareInformation

AsatNovember4,2020WeightedAverage

ExercisePrice

Authorized:Unlimitednumberofcommonshares

Issued:Fullypaidcommonshares 272,984,646 —

Issued:Stockoptions 227,868 $13.52

Issued:Restrictedshareunits 390,500 —

Issued:Performanceshareunits 376,374 —

TermsoftheCompany’sequityincentiveplansareoutlinedintheCompany’sauditedConsolidatedFinancialStatementsfortheyearendedDecember31,2019and theCondensedConsolidated InterimFinancialStatements for the threeandninemonthsendedSeptember30,2020.

QUARTERLYINFORMATION

ThefollowingselectedfinancialdataforthelasteightfiscalquartershasbeenpreparedinaccordancewithIFRSandshouldbe read inconjunctionwith theCompany’sCondensedConsolidated InterimFinancial Statements foreachof theperiodsconsideredbelowandtheConsolidatedFinancialStatementsfortheyearendedDecember31,2019.

2020 2019

ThreeMonthsEnded

(inthousandsexceptpershareamounts) September2020 June2020 March2020 December2019

Revenue $632,843 $580,975 $554,738 $412,379

Earningsbeforeincometaxes $295,316 $225,282 $294,525 $232,042

Netearnings $202,022 $150,232 $202,878 $169,135

Basicearningspershare $0.73 $0.54 $0.79 $0.81

Dilutedearningspershare $0.73 $0.54 $0.77 $0.80

2019 2018

ThreeMonthsEnded

(inthousandsexceptpershareamounts) September2019 June2019 March2019 December2018

Revenue $381,430 $281,267 $304,912 $280,320

Earningsbeforeincometaxes $254,119 $153,432 $159,589 $149,336

Netearnings $176,604 $104,195 $110,146 $106,535

Basicearningspershare $0.84 $0.50 $0.52 $0.51

Dilutedearningspershare $0.83 $0.49 $0.52 $0.50

COMMITMENTSANDCONTINGENCIES

ThenatureoftheCompany’scommitmentsandcontingencieshavenotsignificantlychangedfromtheyearendedDecember31,2019,includingtheacquisitionofDetourGoldonJanuary31,2020.However,inQ22020a$132.6milliontaxpaymentwasmadeinAustraliaasthefinaltaxinstalmentforthe2019taxyear,reducingtheCompany'staxcommitmentspresentedfor the year endedDecember31, 2019. For additional disclosures refer to theCompany’s auditedConsolidated FinancialStatementsfortheyearendedDecember31,2019.


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RELATEDPARTYTRANSACTIONS

Relatedpartytransactionsaremeasuredattheexchangeamountwhichistheconsiderationagreedtobetweentheparties.AmountsareexpressedinthousandsofU.S.dollars.

The Company entered into contracts with subsidiaries of Gekko Systems, a global mineral processing and equipmentcompany.Thetotalexpensewas$17and$123duringthethreeandninemonthsendedSeptember30,2020(yearendedDecember31,2019 -$61).Ms.Elizabeth Lewis-Gray,amemberof theCompany’sBoardofDirectorsappointedeffectiveSeptember26,2019,istheCo-founder,ChairandManagingDirectorofGekkoSystems.

CRITICALACCOUNTINGESTIMATESANDJUDGMENTS

The preparation of the financial statements requires management to make judgments, estimates and assumptions thataffecttheapplicationofaccountingpoliciesandthereportedamountsofassets, liabilitiesandcontingent liabilitiesatthedateofthefinancialstatementsandreportingamountsofrevenuesandexpensesduringthereportingperiod. Estimatesand assumptions are continually evaluated and are based on management’s experience and other factors, includingexpectationsoffutureeventsthatarebelievedtobereasonableunderthecircumstances.However,actualoutcomesmaydiffermateriallyfromtheseestimates.

Theestimatesandunderlyingassumptionsarereviewedonanongoingbasis.Revisionstoaccountingestimatesaregenerallyrecognizedintheperiodinwhichtheestimatesarerevised.

Our significant judgments, estimates and assumptions are disclosed in note 4 of the audited Consolidated FinancialStatementsfortheyearendedDecember31,2019.

ACCOUNTINGPOLICIESANDBASISOFPRESENTATION

TheCompany’ssignificantaccountingpoliciesaredisclosedinnote3oftheauditedConsolidatedFinancialStatementsfortheyearendedDecember31,2019.AnychangesinoradoptionofnewaccountingpoliciesadoptedbytheCompanyinQ32020aredisclosedinnote3oftheaccompanyinginterimfinancialstatements.


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NON-IFRSMEASURES

The Company has included certain non-IFRSmeasures in this document, as discussed below. The Company believes thatthesemeasures, in addition to conventionalmeasures prepared in accordancewith IFRS, provide investors an improvedabilitytoevaluatetheunderlyingperformanceoftheCompany.Thenon-IFRSmeasuresareintendedtoprovideadditionalinformation and should not be considered in isolation or as a substitute for measures of performance prepared inaccordancewithIFRS.ThesemeasuresdonothaveanystandardizedmeaningprescribedunderIFRS,andthereforemaynotbecomparabletootherissuers.

FreeCashFlowandAdjustedFreeCashFlow

Inthegoldminingindustry,freecashflowisacommonperformancemeasurewithnostandardizedmeaning.TheCompanycalculatesfreecashflowbydeductingcashcapitalspending(capitalexpendituresfortheperiod,netofexpenditurespaidthroughfinanceleases)fromnetcashprovidedbyoperatingactivities.

TheCompanydiscloses freecash flowas itbelievesthemeasureprovidesvaluableassistanceto investorsandanalysts inevaluating the Company’s ability to generate cash flow after capital investments and build the cash resources of theCompany.TheCompanyalsodisclosesandcalculatesadjustedfreecash flowbyexcluding itemsfromfreecash flow.ThemostdirectlycomparablemeasurepreparedinaccordancewithIFRSisnetcashprovidedbyoperatingactivitieslessnetcashusedininvestingactivities.

FreecashflowandadjustedfreecashflowarereconciledtotheamountsincludedintheConsolidatedStatementsofCashFlowsasfollows:

(inthousands)ThreeMonthsEndedSeptember30,2020





Netcashprovidedbyoperatingactivities $431,119 $316,753 $222,234 $894,859 $672,290

Mineralpropertyadditions (46,475) (67,900) (57,242) (175,698) (173,570)

Property,plantandequipment (108,953) (67,549) (70,913) (218,522) (168,534)

Freecashflow $275,691 $181,304 $94,079 $500,639 $330,186






Netcashprovidedbyoperatingactivities $431,119 $316,753 $222,234 $894,859 $672,290

TransactionandrestructuringcostsrelatedtoDetouracquisition — — — 60,494 —

Adjustednetcashprovidedbyoperatingactivities 431,119 316,753 222,234 955,353 672,290

Mineralpropertyadditions (46,475) (67,900) (57,242) (175,698) (173,570)

Property,plantandequipment (108,953) (67,549) (70,913) (218,522) (168,534)

Adjustedfreecashflow $275,691 $181,304 $94,079 $561,133 $330,186

OperatingCashCostsandOperatingCashCostsperOunceSold

Operating cash costs and operating cash cost per tonne and per ounce sold are non-IFRSmeasures. In the goldminingindustry, these metrics are common performance measures but do not have any standardized meaning under IFRS.Operatingcashcosts includeminesiteoperatingcosts suchasmining,processingandadministration,butexcluderoyaltyexpenses,depreciationanddepletionand sharebasedpaymentexpensesand reclamationcosts.Operatingcashcostperouncesoldisbasedonouncessoldandiscalculatedbydividingoperatingcashcostsbyvolumeofgoldouncessold.

TheCompanydisclosesoperatingcashcostsandoperatingcashcostpertonneandperounceas itbelievesthemeasuresprovidevaluableassistance to investors andanalysts inevaluating theCompany’soperationalperformanceandability togeneratecashflow.ThemostdirectlycomparablemeasurepreparedinaccordancewithIFRSistotalproductionexpenses.OperatingcashcostsandoperatingcashcostperounceofgoldshouldnotbeconsideredinisolationorasasubstituteformeasurespreparedinaccordancewithIFRS.


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SustainingandGrowthCapital

Sustaining capital andgrowth capital areNon-IFRSmeasures. Sustaining capital isdefinedas capital required tomaintaincurrent operations at existing levels. Growth capital is defined as capital expenditures for major growth projects orenhancement capital for significant infrastructure improvements at existing operations. Bothmeasurements are used bymanagementtoassesstheeffectivenessofinvestmentprograms.






Sustainingcapital $126,501 $48,260 $96,205 $312,727 $140,005

Growthcapital(1) 55,394 87,966 33,017 141,155 248,719

Totalcapitalexpenditures $181,895 $136,226 $129,222 $453,882 $388,724

Other 6,185 — 823 6,710 —

FinanceleasesrelatedtoIFRS16 — 2,567 5,792 5,792 5,517

Totaladditionsperfinancialstatements $188,080 $138,793 $135,837 $466,384 $394,241

(1) Growthcapitalincludescapitalizedexploration.

AISCandAISCperOunceSold

AISCandAISCperounceareNon-IFRSmeasures.Thesemeasuresareintendedtoassistreadersinevaluatingthetotalcostsofproducinggoldfromcurrentoperations.Whilethereisnostandardizedmeaningacrosstheindustryforthismeasure,theCompany’sdefinitionconformstothedefinitionofAISCassetoutbytheWorldGoldCouncilinitsguidancenotedatedJune27,2013.

TheCompanydefinesAISC as the sumof operating costs (as defined and calculated above), royalty expenses, sustainingcapital, corporate expenses and reclamation cost accretion related to current operations. Corporate expenses includegeneral and administrative expenses, net of transaction related costs, severance expenses formanagement changes andinterestincome.AISCexcludesgrowthcapitalexpenditures,growthexplorationexpenditures,reclamationcostaccretionnotrelatedtocurrentoperations,interestexpense,debtrepaymentandtaxes.

TotalcashcostsandAISCReconciliation

The following tables reconciles thesenon-IFRSmeasures to themostdirectly comparable IFRSmeasuresavailable for thethreeandninemonthsendedSeptember30,2020and2019:


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ThreemonthsendedSeptember30,2020

(inthousands,exceptperounceamounts)HoltMineComplex MacassaMine DetourLakeMine

TotalCanadianOperations FostervilleMine

NorthernTerritory

TotalAustralianOperations

Generalandadministrative

TotalConsolidated

TotalConsolidatedExcludingDetour2

Productioncosts $— $26,000 $87,354 $113,354 $22,669 $— $22,669 $— $136,023 $48,669

Share-basedcompensation — (275) (137) (412) — — — — (412) (275)

COVID-19relatedcosts — (75) — (75) (713) — (713) — (788) (788)

Operatingcashcosts — 25,650 87,217 112,867 21,956 — 21,956 — 134,823 47,606

Royaltyexpense — 2,520 5,218 7,738 13,743 — 13,743 — 21,481 16,263

Stock-basedcompensation — 275 137 412 — — 1,076 8,147 9,635 9,498

Rehabilitationandremediation — — — — 11 — 11 — 11 11

Generalandadministrativeexpense — — — 3,769 — — 3,191 4,226 11,186 11,186

Depreciation-ARO — 151 (43) 108 137 — 137 — 245 288

Sustainingcapital1 41 15,062 88,962 107,413 19,055 — 19,055 33 126,501 37,539

Capitalizeddepreciation — (935) (8,288) (9,223) (986) — (986) — (10,209) (1,921)

Sustainingleases 3 62 121 186 31 51 82 299 567 446

AISC $44 $42,785 $173,324 $223,270 $53,947 $51 $58,265 $12,705 $294,240 $120,916

Ouncesofgoldsold — 39,588 137,632 177,220 154,739 — 154,739 — 331,959 194,327

Operatingcashcostperouncesold $— $648 $634 $637 $142 $— $142 $— $406 $245

Sustainingcapitalexpendituresperouncesold $— $357 $586 $554 $117 $— $117 $— $350 $183

AISCperouncesold $— $1,081 $1,259 $1,260 $349 $— $377 $— $886 $622

(1) Sustainingcapitalexcludescapitalcostsassociatedwithfinanceleasesthatwererecognizedintheperiod.(2) ExcludesresultsfromDetourGoldfromJuly1,2020toSeptember30,2020.

NinemonthsendedSeptember30,2020

(inthousands,exceptperounceamounts)HoltMineComplex MacassaMine DetourLakeMine


NorthernTerritory



TotalConsolidated


Productioncosts $36,054 $80,156 $260,923 $377,133 $61,897 $— $61,897 $— $439,030 $178,107

Share-basedcompensation (308) 400 (137) (45) — — — — (45) 92

COVID-19relatedcosts (2,436) (3,338) (7,675) (13,449) (713) — (713) — (14,162) (6,487)

By-productcredit (53) (101) — (154) (143) — (143) — (297) (297)

Purchasepriceallocation — — (10,967) (10,967) 508 — 508 — (10,459) 508

Operatingcashcosts 33,257 77,117 242,144 352,518 61,549 — 61,549 — 414,067 171,923

Royaltyexpense 3,807 7,222 12,824 23,853 38,135 — 38,135 — 61,988 49,164

Stock-basedcompensation 308 (400) 137 45 — — 1,287 13,132 14,464 14,327

Rehabilitationandremediation 1 6 225 232 47 116 163 — 395 170


Depreciation-ARO — 151 (336) (185) 137 — 137 — (48) 288

Sustainingcapital1 9,592 41,408 209,023 263,371 48,106 — 48,106 1,250 312,727 103,704

Capitalizeddepreciation (484) (2,394) (20,189) (23,067) (3,135) — (3,135) — (26,202) (6,013)

Sustainingleases 302 138 403 843 86 149 235 812 1,890 1,487

AISC $46,783 $123,248 $444,231 $631,031 $144,925 $265 $156,445 $30,494 $817,970 $373,739

Ouncesofgoldsold 33,242 134,681 384,270 552,193 465,742 — 465,742 — 1,017,935 633,665

Operatingcashcostperouncesold $1,000 $573 $630 $638 $132 $— $132 $— $407 $271

Sustainingcapitalexpendituresperouncesold $274 $290 $491 $435 $97 $— $97 $— $281 $154

AISCperouncesold $1,407 $915 $1,156 $1,143 $311 $— $336 $— $804 $590

(1) Sustainingcapitalexcludescapitalcostsassociatedwithfinanceleasesthatwererecognizedintheperiod.(2) ExcludesresultsfromDetourGoldfromJanuary31,2020toSeptember30,2020.

Q3 2020 MANAGEMENT DISCUSSION AND ANALYSIS

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ThreemonthsendedSeptember30,2019

(inthousands,exceptperounceamounts)HoltMineComplex MacassaMine


NorthernTerritory



TotalConsolidated

Productioncosts $27,800 $26,621 $54,421 $19,243 $— $19,243 $— $73,664

Share-basedcompensation (32) (40) (72) — — — — (72)

Purchasepriceallocation — — — — — — — —

Operatingcashcosts 27,768 26,581 54,349 19,243 — 19,243 — 73,592

Royaltyexpense 2,170 3,216 5,386 5,044 — 5,044 — 10,430

Share-basedcompensation 32 40 72 — — — 2,665 2,737

Rehabilitationandremediation 43 49 92 87 573 660 — 752

Generalandadministrativeexpense — — 2,307 — — 2,733 2,854 7,894

Sustainingcapital1 11,230 13,224 24,454 23,806 — 23,806 — 48,260

Sustainingleases 89 3 92 15 63 78 98 268

AISC $41,332 $43,113 $86,752 $48,195 $636 $51,564 $5,617 $143,933

Ouncesofgoldsold 26,790 62,583 89,373 166,903 — 166,903 — 256,276

Operatingcashcostperouncesold $1,037 $425 $608 $115 $— $115 $— $287

Sustainingcapitalexpendituresperouncesold $419 $211 $274 $143 $— $143 $— $188

AISCperouncesold $1,543 $689 $971 $289 $— $309 $— $562

(1) Sustainingcapitalexcludescapitalcostsassociatedwithfinanceleasesthatwererecognizedinthequarter.

NinemonthsendedSeptember30,2019



NorthernTerritory



TotalConsolidated

Productioncosts $79,668 $73,612 $153,280 $56,585 $— $56,585 $— $209,865

Share-basedcompensation (95) (120) (215) — — — — (215)

Purchasepriceallocation — — — (2,314) — (2,314) — (2,314)

Operatingcashcosts 79,573 73,492 153,065 54,271 — 54,271 — 207,336

Royaltyexpense 5,568 7,872 13,440 11,990 — 11,990 — 25,430

Share-basedcompensation 95 120 215 — — — 8,492 8,707

Rehabilitationandremediation 129 145 274 253 622 875 — 1,149

Generalandadministrativeexpense — — 7,882 — — 7,245 11,170 26,297

Sustainingcapital1 28,994 45,348 74,342 65,663 — 65,663 — 140,005

Sustainingleases 265 9 274 20 118 138 292 704

AISC $114,624 $126,986 $249,492 $132,197 $740 $140,182 $19,954 $409,628

Ouncesofgoldsold 83,966 184,898 268,864 432,432 — 432,432 — 701,296

Operatingcashcostperouncesold $948 $397 $569 $126 $— $126 $— $296

Sustainingcapitalexpendituresperouncesold $345 $245 $277 $152 $— $152 $— $200

AISCperouncesold $1,365 $687 $928 $306 $— $324 $— $584

(1) Sustainingcapitalexcludescapitalcostsassociatedwithfinanceleasesthatwererecognizedinthequarter.


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ThreemonthsendedJune30,2020


DetourLakeMine

TotalCanadianOperations

FostervilleMine

NorthernTerritory



TotalConsolidated


Productioncosts $7,629 $27,748 $85,752 $121,129 $20,286 $— $20,286 $— $141,415 $55,663

Share-basedcompensation (209) (230) — (439) — — — — (439) (439)

COVID-19relatedcosts (2,436) (3,263) (7,675) (13,374) — — — — (13,374) (5,699)

Operatingcashcosts 4,984 24,255 78,077 107,316 20,286 — 20,286 — 127,602 49,525

Royaltyexpense 418 2,480 4,547 7,445 11,813 — 11,813 — 19,258 14,711

Stock-basedcompensation 209 230 — 439 — — 1,186 6,467 8,092 8,092

Rehabilitationandremediation (26) (187) 225 12 22 54 76 — 88 (137)


Depreciation-ARO — — (293) (293) — — — — (293) —

Sustainingcapital1 485 11,285 71,840 83,610 11,741 — 11,741 854 96,205 24,365

Capitalizeddepreciation (43) (809) (6,075) (6,927) (964) — (964) — (7,891) (1,816)

Sustainingleases 205 45 150 400 28 46 74 290 764 614

AISC $6,232 $37,299 $148,471 $197,563 $42,926 $100 $47,352 $11,394 $256,309 $107,838

Ouncesofgoldsold 3,629 44,328 136,182 184,139 157,251 — 157,251 — 341,390 205,208

Operatingcashcostperouncesold $1,373 $547 $573 $583 $129 $— $129 $— $374 $241

Sustainingcapitalexpendituresperouncesold $122 $236 $483 $416 $69 $— $89 $— $259 $110

AISCperouncesold $1,717 $841 $1,090 $1,073 $273 $— $301 $— $751 $526

(1) Sustainingcapitalexcludescapitalcostsassociatedwithfinanceleasesthatwererecognizedintheperiod.(2) ExcludesresultsfromDetourGoldfromApril1,2020toJune30,2020.


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AverageRealizedPriceperOunceSold

Inthegoldminingindustry,averagerealizedpriceperouncesoldisacommonperformancemeasurethatdoesnothaveanystandardizedmeaning.ThemostdirectlycomparablemeasurepreparedinaccordancewithIFRSisrevenuefromgoldsales.Average realized price per ounce sold should not be considered in isolation or as a substitute formeasures prepared inaccordancewithIFRS.Themeasure is intendedtoassistreaders inevaluatingthetotalrevenuesrealizedinaperiodfromcurrentoperations.

Averagerealizedpriceperouncesoldisreconciledfortheperiodspresentedasfollows:

(inthousands,exceptperounceamounts)






Revenue $632,843 $381,430 $580,975 $1,768,556 $967,609

Silver — (347) — (297) (863)

Foreignexchangeimpact 156 (1,258) 4,917 (2,734) (2,524)

RealizedRevenue $632,999 $379,825 $585,892 $1,765,525 $964,222

Ouncessold 331,959 256,276 341,390 1,017,935 701,296

Averagerealizedpriceperouncesold $1,907 $1,482 $1,716 $1,734 $1,375

AdjustedNetEarningsandAdjustedNetEarningsperShare

Adjusted net earnings and adjusted net earnings per share are used by management and investors to measure theunderlyingoperatingperformanceoftheCompany.

Adjustednetearningsisdefinedasnetearningsadjustedtoexcludetheafter-taximpactofspecificitemsthataresignificant,but not reflective of the underlying operations of the Company, including foreign exchange gains and losses, transactioncostsandexecutiveseverancepayments,purchasepriceadjustmentsreflected in inventoryandother items.Adjustednetearnings per share is calculatedusing theweighted averagenumber of shares outstanding for adjustednet earnings pershare.

(inthousands,exceptpershareamounts)






Netearnings 202,022 176,604 150,232 555,132 390,945

Loss(gain)onwarrantinvestment 235 20 (148) 1,580 938

Transactioncosts — — — 33,838 —

PPAadjustmentoninventory(1) — — — — 2,314

Foreignexchangeloss(gain)(2) 23,592 (13,669) 72,826 23,474 (7,062)

Restructuring/Severance 8,132 — 5,342 17,178 1,239

COVID-19relatedcosts 788 — 13,374 14,162 —

Rehabilitationcosts 32,626 — — 32,626 —

Incometaxrelatedtoaboveadjustments (18,144) 4,577 (22,281) (30,225) 2,735

Adjustednetearnings 249,251 167,532 219,345 647,765 391,109

Weightedaveragesharesoutstanding-basic('000s) 275,280 210,189 277,066 269,941 210,155

Adjustednetearningspershare 0.91 0.80 0.79 2.40 1.86(1) Purchasepriceallocationrepresentstheallocationofdepletionofmineralinterestsacquiredwiththebusinesscombinations.(2) Restatedtoreflectadjustmentforforeignexchangeloss(gain)duringthethreeandninemonthsendedSeptmeber30,2019

EarningsbeforeInterest,Taxes,Depreciation,andAmortization(“EBITDA”)

EBITDA represents net earnings before interest, taxes, depreciation and amortization. EBITDA is an indicator of theCompany’s ability to generate liquidity by producing operating cash flow to fund working capital needs, service debtobligations,andfundcapitalexpenditures.

Q3 2020 MANAGEMENT DISCUSSION AND ANALYSIS

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ThefollowingisareconciliationofEBITDAtotheconsolidatedfinancialstatements:






Netearnings $202,022 $176,604 $150,232 $555,132 $390,945

Addback:

Financecosts 2,305 576 1,850 8,268 1,586

Depletionanddepreciation 86,707 41,692 82,586 262,132 116,056

Currentincometaxexpense 66,097 50,946 59,020 195,247 127,158

Deferredincometaxexpense 27,197 26,569 16,030 64,744 48,037

EBITDA $384,328 $296,387 $309,718 $1,085,523 $683,782

WorkingCapital

Workingcapital isaNon-IFRSmeasure. Inthegoldmining industry,workingcapital isacommonmeasureof liquidity,butdoesnothaveanystandardizedmeaning.

Themostdirectlycomparablemeasureprepared inaccordancewith IFRS iscurrentassetsandcurrent liabilities.Workingcapitaliscalculatedbydeductingcurrentliabilitiesfromcurrentassets.WorkingcapitalshouldnotbeconsideredinisolationorasasubstitutefrommeasurespreparedinaccordancewithIFRS.ThemeasureisintendedtoassistreadersinevaluatingtheCompany’sliquidity.WorkingcapitalisreconciledtotheamountsintheConsolidatedStatementsofFinancialPositionasfollows:

(inthousands) AsatSeptember30,2020 AsatDecember31,2019

Currentassets $1,050,410 $794,630

Currentliabilities 487,672 416,945

Workingcapital $562,738 $377,685


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INTERNALCONTROLSOVERFINANCIALREPORTINGANDDISCLOSURECONTROLSANDPROCEDURES

KirklandLakeGold’smanagement, including theCEOandCFO,are responsible forestablishingandmaintainingadequateinternalcontroloverfinancialreportinganddisclosurecontrolsandproceduresasdescribedinthe2019MD&A.

Due to its inherent limitations, internal controls over financial reporting and disclosure may not prevent or detect allmisstatements.Managementwillcontinuetomonitor theeffectivenessof its internalcontrolover financial reportinganddisclosurecontrolsandproceduresandmaymakemodificationsfromtimetotimeasconsiderednecessary.

Therewereno changes to theCompany’s internal controlsduringQ32020 thathavematerially affected,or are likely tomaterially affect, the Company’s internal controls over financial reporting or disclosure controls and procedures. Themanagementteamwillcontinuetomonitortheeffectivenessoftheinternalcontrolsoverfinancialreportinganddisclosurecontrolsandproceduresandwillmakechangestothecontrolsasandwhenappropriate.

RISKSANDUNCERTAINTIES

Theexploration,developmentandminingofmineraldepositsinvolvessignificantrisks,whichevenacombinationofcarefulevaluation,experienceandknowledgemaynoteliminate.KirklandLakeGoldissubjecttoseveralfinancialandoperationalrisksthatcouldhaveasignificantimpactonitscashflowsandprofitability.Themostsignificantrisksanduncertaintiesfacedby theCompany include: thepriceof gold; theuncertaintyofproductionestimates (whichassumeaccuracyofprojectedgrade, recovery rates, and tonnage estimates and may be impacted by unscheduled maintenance, labour and otheroperating,engineeringortechnicaldifficultieswithrespecttothedevelopmentof itsprojects,manyofwhichmaynotbewithinthecontroloftheCompany), includingtheabilitytoextractanticipatedtonnesandsuccessfullyrealizingestimatedgrades;thethreatofoutbreaksofvirusesorotherinfectiousdisease,includingCOVID-19;changestooperatingandcapitalcostassumptions; the inherentriskassociatedwithprojectdevelopmentandpermittingprocesses; theuncertaintyof themineral resources and their development intomineral reserves; the replacement of depleted reserves; foreign exchangerisks;changesinapplicablelawsandregulations(includingtaxlegislation);reclamationobligations;regulatory;taxmattersand foreign mining tax regimes, as well as health, safety, environmental and cybersecurity risks. For more extensivediscussion on risks and uncertainties refer to the “Risks and Uncertainties” section in the December 31, 2019 AnnualInformationFormandtheCompany’sMD&AfortheperiodendedDecember31,2019filedonSEDAR.

FORWARDLOOKINGSTATEMENTS

Certain statements in this MD&A constitute ‘forward looking statements’, including statements regarding the plans,intentions, beliefs and current expectations of the Companywith respect to the future business activities and operatingperformance of the Company. The words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”,“estimate”,“expect”andsimilarexpressions,astheyrelatetotheCompany,areintendedtoidentifysuchforward-lookingstatements.Investorsarecautionedthatforward-lookingstatementsarebasedontheopinions,assumptionsandestimatesofmanagementconsideredreasonableatthedatethestatementsaremade,andareinherentlysubjecttoavarietyofrisksanduncertaintiesandotherknownandunknownfactorsthatcouldcauseactualeventsorresultstodiffermateriallyfromthoseprojectedintheforward-lookingstatements.Thesefactorsinclude,amongothers,thedevelopmentoftheCompany’sproperties and the anticipated timing thereof, expected production from, and the further potential of the Company’sproperties,thepotentialtoincreasethelevelsofmineralresourcesandmineralreservesandpotentialconversionofmineralresources;theanticipatedtimingandcommencementofexplorationprogramsonvarioustargetswithintheCompany’slandholdingsandtheimplicationofsuchexplorationprograms(includingbutnotlimitedtoanypotentialdecisionstoproceedtocommercialproduction),theanticipatedoverallimpactoftheCompany’sCOVID19responseplans,includingmeasurestakenbytheCompanytoreducethespreadofCOVID19,includingbutnotlimitedtotherapidtestingimplementedatDetourLake,the ability to lower costs and gradually increase production, the ability of the Company to successfully achieve businessobjectives,theabilityoftheCompanytoachieveitslonger-termoutlookandtheanticipatedtimingandresultsthereof,theperformance of the Company’s equity investments and the ability of the Company to realize on its strategic goals withrespecttosuch investments,theeffectsofunexpectedcosts, liabilitiesordelays,thepotentialbenefitsandsynergiesandexpectations of other economic, business and or competitive factors, including the ability of the Company to realize oncertain planned synergies associated with the acquisition of Detour Gold Corporation, the Company's expectations inconnectionwiththeprojectsandexplorationprogramsbeingmet,theimpactofgeneralbusinessandeconomicconditions,globalliquidityandcreditavailabilityonthetimingofcashflowsandthevaluesofassetsandliabilitiesbasedonprojectedfutureconditions,fluctuatinggoldprices,currencyexchangerates(suchastheCanadiandollarversustheUSdollar),mark-


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to-marketderivativevariances,possiblevariationsinoregradeorrecoveryrates,changesinaccountingpolicies,changesinthe Company's corporate mineral resources, changes in project parameters as plans continue to be refined, changes inprojectdevelopment,construction,productionandcommissioning time frames, thepossibilityofprojectcostoverrunsorunanticipatedcostsandexpenses,higherpricesforfuel,power,labourandotherconsumablescontributingtohighercostsand general risks of themining industry, failure of plant, equipment or processes to operate as anticipated, unexpectedchangesinminelife,seasonalityandunanticipatedweatherchanges,costsandtimingofthedevelopmentofnewdeposits,successofexplorationactivities,permittingtimelines,risksrelatedtoinformationtechnologyandcybersecurity,timingandcostsassociatedwiththedesign,procurementandconstructionoftheCompany’svariouscapitalprojects,includingbutnotlimited to potential future impacts and effects of COVID19, including but not limited to potential future delays andunanticipated suspension or interruption of operations, the #4 Shaft project at theMacassaMine, the ventilation, pasteplant,transformerandwatertreatmentfacilityattheFostervilleMine,theabilitytoobtainallnecessarypermitsassociatedwiththeDetourLakemine,theabilitytoobtainthenecessarypermitsinconnectionwithallofitsvariouscapitalprojects,includingbutnotlimitedtotherehabilitationoftheMacassatailingsfacilityandthedevelopmentofanewtailingsfacilityandtheanticipatedresultsassociatedtherewith, theWestDetourproject,processingplantexpansionat theDetourLakeMine, the ability to obtain renewals of certain exploration licences in Australia, native and aboriginal heritage issues,includingbutnotlimitedtoongoingnegotiationsandconsultationswiththeCompany’sFirstNationspartners,risksrelatingto infrastructure,permittingand licenses,explorationandmining licences, government regulationof themining industry,risksrelatingtoforeignoperations,uncertaintyintheestimationandrealizationofmineralresourcesandmineralreserves,qualityandmarketabilityofmineralproduct,environmentalregulationandreclamationobligations,includingbutnotlimitedtorisksassociatedwithreclamationandclosureobligationsrelatingtotheNorthernTerritoryprojects,risksrelatingtotheNorthernTerritorywetseason,risksrelatingtolitigationandunanticipatedcoststoassumethedefenceofsuchlitigation,risksrelatingtoapplicabletaxandpotentialreassessmentsthereon,risksrelatingtochangestotaxlawandregulationsandtheCompany's interpretationthereof,foreignminingtaxregimesandthepotential impactofanychangestosuchforeigntax regimes, competition, currency fluctuations, government regulation of mining operations, environmental risks,unanticipated reclamation expenses, title disputes or claims, and limitations on insurance, as well as those risk factorsdiscussedorreferredtointheAIFoftheCompanyfortheyearendedDecember31,2019filedwiththesecuritiesregulatoryauthorities in certain provinces of Canada and available at www.sedar.com. Should one or more of these risks oruncertaintiesmaterialize,orshouldassumptionsunderlyingtheforward-lookingstatementsprove incorrect,actualresultsmay vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.AlthoughtheCompanyhasattemptedtoidentifyimportantrisks,uncertaintiesandfactorswhichcouldcauseactualresultstodiffermaterially,theremaybeothersthatcauseresultsnotbeasanticipated,estimatedorintended.TheCompanydoesnotintend,anddoesnotassumeanyobligation,toupdatetheseforward-lookingstatementsexceptasotherwiserequiredbyapplicablelaw.

Mineral resources are not mineral reserves, and do not have demonstrated economic viability, but do have reasonableprospects for eventual economic extraction. Measured and indicated resources are sufficiently well defined to allowgeologicalandgradecontinuitytobereasonablyassumedandpermittheapplicationoftechnicalandeconomicparametersinassessingtheeconomicviabilityoftheresource.Inferredresourcesareestimatedonlimitedinformationnotsufficienttoverifygeologicalandgradecontinuityortoallowtechnicalandeconomicparameterstobeapplied.Inferredresourcesaretoospeculativegeologicallytohaveeconomicconsiderationsappliedtothemtoenablethemtobecategorizedasmineralreserves.ThereisnocertaintythatMeasuredorIndicatedmineralresourcescanbeupgradedtomineralreservesthroughcontinuedexplorationandpositiveeconomicassessment.

INFORMATIONCONCERNINGESTIMATESOFMINERALRESERVESANDMEASURED,INDICATEDANDINFERREDRESOURCES

ThisMD&AhasbeenpreparedinaccordancewiththerequirementsofthesecuritieslawsineffectinCanada,whichdifferfrom the requirements of United States securities laws. The terms “mineral reserve”, “proven mineral reserve” and“probablemineralreserve”areCanadianminingtermsasdefinedinaccordancewithCanadianNationalInstrument43-101-StandardsofDisclosureforMineralProjects(“NI43-101”)andtheCanadianInstituteofMining,MetallurgyandPetroleum(the“CIM”)-CIMDefinitionStandardsonMineralResourcesandMineralReserves,adoptedbytheCIMCouncil,asamended.These definitions differ from the definitions in SEC Industry Guide 7 under the United States Securities Act of 1993, asamended(the“SecuritiesAct”).


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UnderSECIndustryGuide7standards,a“final”or“bankable”feasibilitystudyisrequiredtoreportreserves,thethree-yearhistorical averageprice isused inany reserveor cash flowanalysis todesignate reservesand theprimaryenvironmentalanalysisorreportmustbefiledwiththeappropriategovernmentalauthority.

Inaddition,theterms“mineralresource”,“measuredmineralresource”,“indicatedmineralresource”and“inferredmineralresource”aredefinedinandrequiredtobedisclosedbyNI43-101;however,thesetermsarenotdefinedtermsunderSECIndustry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC.Investorsarecautionednottoassumethatanypartorallofmineraldepositsinthesecategorieswilleverbeconvertedintoreserves.“Inferredmineralresources”haveagreatamountofuncertaintyastotheirexistence,andgreatuncertaintyastotheireconomicand legal feasibility. Itcannotbeassumedthatalloranypartofan inferredmineral resourcewilleverbeupgraded to ahigher category.UnderCanadian rules, estimatesof inferredmineral resourcesmaynot form thebasis offeasibilityorpre-feasibility studies, except in rare cases. Investors are cautionednot toassume that all or anypartof aninferredmineral resource exists or is economically or legallymineable.Disclosure of “containedounces” in a resource ispermitteddisclosureunderCanadianregulations;however, theSECnormallyonlypermits issuers toreportmineralizationthatdoesnotconstitute“reserves”bySECIndustryGuide7standardsasinplacetonnageandgradewithoutreferencetounitmeasures.

Accordingly, information contained in this Management’s Discussion and Analysis contain descriptions of our mineraldeposits thatmaynotbe comparable to similar informationmadepublicbyU.S. companies subject to the reportinganddisclosurerequirementsundertheUnitedStatesfederalsecuritieslawsandtherulesandregulationsthereunder.

Thisdocumentusestheterms“Measured”,“Indicated”and“Inferred”Resources.USinvestorsareadvisedthatwhilesuchtermsarerecognizedandrequiredbyCanadianregulations,theU.S.SecuritiesandExchangeCommissiondoesnotrecognizethem.“InferredMineralResources”haveagreatamountofuncertaintyastotheirexistence,andastotheireconomicandlegalfeasibility.ItcannotbeassumedthatalloranypartofanInferredMineralResourcewilleverbeupgradedtoahighercategory.UnderCanadianrules,estimatesofInferredMineralResourcesmaynotformthebasisofpre-feasibility,feasibilityorothereconomicstudies.U.S.investorsarecautionednottoassumethatalloranypartofMeasuredorIndicatedMineralResourceswilleverbeconvertedintoMineralReserves.U.S.investorsarealsocautionednottoassumethatalloranypartofanInferredMineralResourceexists,oriseconomicallyorlegallymineable.

TECHNICALINFORMATION

The technical contents related to Kirkland Lake Gold Ltd. mines and properties, have been reviewed and approved byNatashaVaz,P.Eng.,SeniorVicePresident,TechnicalServicesand InnovationandEricKallio,P.Geo,SeniorVicePresident,Exploration.Ms.VazandMr.Kallioare“qualifiedpersons”asdefinedinNationalInstrument43-101andhavereviewedandapproveddisclosureofthetechnicalinformationanddatainthisMD&A.


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Management’s Discussion & Analysis...2020/09/30 · Kirkland Lake Gold Ltd. (individually, or...

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Transcript of Management’s Discussion & Analysis...2020/09/30 · Kirkland Lake Gold Ltd. (individually, or...