Returning Prolific Gold Mining Camp
To Profitability
JULY 2014TSX / AIM: KGI
KIRKLAND LAKE GOLD INC.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
•
•
Cautionary Note Regarding Forward Looking Statements
This presentation contains statements which constitute ”forward-looking statements”, including statements regarding the plans, intentions, beliefs
and current expectations of the Company with respect to the future business activities and operating performance of the Company. The words “may”,
“would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions, as they relate to the
Company, are intended to identify such forward-looking statements. Forward-looking statements used in this Press Release include, but may not be
limited to, statements regarding the Company’s production capacity and its exploration program. Investors are cautioned that forward-looking
statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made such
as, without limitation, opinion, assumptions and estimates of management regarding the Company’s business, its ability to increase its production
capacity and decrease its production cost. Such opinions, assumptions and estimates, are inherently subject to a variety of risks and uncertainties and
other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking
statements. These factors include the Company's expectations in connection with the projects and exploration programs being met, the impact of
general business and economic conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities
based on projected future conditions, fluctuating gold prices, currency exchange rates (such as the Canadian dollar versus the United States Dollar),
possible variations in ore grade or recovery rates, changes in accounting policies, changes in the Company's corporate mineral resources, changes in
project parameters as plans continue to be refined, changes in project development, construction, production and commissioning time frames, risks
related to joint venture operations, the possibility of project cost overruns or unanticipated costs and expenses, higher prices for fuel, power, labour
and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as
anticipated, unexpected changes in mine life, seasonality and unanticipated weather changes, costs and timing of the development of new deposits,
success of exploration activities, permitting time lines, government regulation of mining operations, environmental risks, unanticipated reclamation
expenses, title disputes or claims, and limitations on insurance, as well as those risk factors discussed or referred to in the Company's annual
Management's Discussion and Analysis and Annual Information Form for the year ended April 30, 2014 and the Company’s Management's Discussion
and Analysis for the interim period ended April 30, 2014 filed with the securities regulatory authorities in certain provinces of Canada and available
at www.sedar.com. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements
prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.
Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there
may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation,
to update these forward-looking statements except as otherwise required by applicable law.
TSX / AIM: KGI
CORPORATE STRUCTURE
SHARES OUTSTANDING
70,150,912 Basic
83,055,743 Fully diluted
52 WEEK RANGE
$6.09 52 week high
$2.21 52 week low
MARKET CAP
$284 million
(July, 8 2014, $3.95)
CASH BALANCE
C$38.8 million
(April 30, 2014)
DEBT
C$120 million convertible debentures (due 2H 2017)
KGI.DB: 6% coupon, $15.00 strike
KGI.DB.A: 7.5% coupon, $13.70 strike
ANALYST COVERAGE
BMO
CIBC World Markets
Dundee Securities
Investec Bank
Macquarie Capital
Mirabaud
National Bank Financial
Pareto
Panmure Gordon
OWNERSHIP
European Institutions 15%
NA Institutions 45%
Management & Founders 20%
Retail 20%
MAJOR SHAREHOLDERS
Eric Sprott, Equinox, Resolute Funds
ABC Funds
TSX / AIM: KGI
EXECUTIVE MANAGEMENT AND NON-EXECUTIVE
BOARD MEMBERS
George Ogilvie, P.Eng, CEO
• More than 24 years management, operating,
and technical expertise in the mining industry
John Thomson, CA, CFO
• More than 25 years experience in various
senior level finance positions
• More than 9 years of operating experience in
deep, narrow-vein gold mines (South Africa)
• Variety of senior level positions with
companies such as PepsiCo
• Former CEO of Rambler Metals and Mining,
leading Company’s transition from explorer to
free-cash flow generating producer
• Chartered Accountant who has studied at
INSEAD
Chris Stewart, P.Eng, Vice President, Operations *Non-Executive Board Members:
• More than 20 years experience operating mines in
• Harry Dobson, Chairman
• Claude Lemasson, P.Eng, MBA, lead
independent director
• Former CEO of Liberty Gold Mines where he
• Pam Klessig, P. Geo
implemented a successful turnaround strategy leading
• Dawn Whittaker, LL.B
company to restart production on time and on budget
• Trevor Gabriel
• Mining Engineering degree from Queen’s University • Brian Bayley
Northern Ontario in various senior-level positions
TSX / AIM: KGI
*Full director biographies are available at www.klgold.com
LOCATION – ONTARIO, CANADA
 Geo-politically and socio-economically one of the safest mining
jurisdictions in the world
 Federal Tax decreased in recent years from 25% to 15%
 Ontario Provincial Tax is 12.5%. Combined tax of 27.5%
 Significant Canadian tax loss pools
 Leverage to weakening Canadian dollar
 Unparalleled access to quality labour and infrastructure
 Incentive programs e.g. NIER program, rebates up to$1.3M reduce energy
TSX / AIM: KGI
PROPERTY POSITION
TSX / AIM: KGI
INVESTMENT HIGHLIGHTS
Proven improvements in head grade and costs since mine optimization plan was initiated in late 2013
Management and founders own 20%
Attractive high grade reserve & resource profile – long mine life
Growing yearly production, declining costs, maximizing profitability and cash flow
Pure gold and weakening Canadian dollar leverage
Significant capital investment & infrastructure capable moving and processing 2,200 tons per day
Significant exploration upside potential to extend mine life well beyond current 14 year mine life
Located in Ontario, one of the safest and lowest risk mining jurisdictions globally
TSX / AIM: KGI
FY 2014 FINANCIAL RESULTS
FY2014
FY2013
FY2014
vs
Financial
FY2013
125,273
91,771
+37%
Gold Sales (ounces)
1,383
1,653
-16%
Average Price ($) (per ounce)
173,258
151,692
+14%
Revenue (000’s)
343
335
+2%
Cash Operating Cost per Ton
Produced
1,078
1,109
-3%
1,986
2,432
-18%
Q1/14
Q2/14
Q3/14
Q4/14
Q4/14
vs
Q3/14
30,253 30,530 33,719 30,771
1,435
1,353
1,369
-9%
1,376
+1%
43,421 41,316 46,165 42,356
-8%
344
328
347
352
+2%
Cash Operating Cost per
Ounce Produced
1,113
1,105
1,094
1,000
-9%
AICC per Ounce Produced
2,094
2,072
1,923
1,774
-9%
TSX / AIM: KGI
EFFECTS OF MINE OPTIMIZATION AND COST
CUTTING
TSX / AIM: KGI
PRODUCTION GROWTH HISTORY AND FORECASTS
Since 2011 there’s been a 18% YoY Increase
E
E
E
TSX / AIM: KGI
MINE VIEW (LOOKING NORTH EAST)
#3 SHAFT
#2 SHAFT
SOUTH MINE COMPLEX
5000 LEVEL
5300 LEVEL
HAULAGE RAMP
‘04 BREAK
‘08 BREAK
TSX / AIM: KGI
SOUTH MINE COMPLEX
Isometric View (Looking Northwest) Showing
Proven, Probable, Measured & Indicated Tons , Ounces & Grade
4750 LEVEL
5025 Level
P+P 89,000 Tons @0.44 oz/ton 39,000O Ounces
M+I 57,000 Tons @ 0.30 oz/ton 22,000 Ounces
#2 WINZE
5025 LEVEL
#3 SHAFT
5300 Level
P+P 620,000 Tons @ 0.47 oz/ton 290,000 Ounces
M+I 220,000 Tons @ 0.30 oz/ton 86,000 Ounces
5300 LEVEL
5300 LEVEL
5400 Level
P+P 481,000 Tons @ 0.57 oz/ton
274,000 Ounces
M+I 170,000 Tons @ 0.41 oz/ton
71,000 Ounces
54 LEVEL
5600 Level
P+P 290,000 Tons @0.70 oz/ton
209,000 Ounces
M+I 220,000 Tons @ 0.55 oz/ton
122,000Ounces
Development Legend
Completed Development
54 LEVEL
56 LEVEL
FY2015 Development
FY2016 + Development
57 to 66 Level
M+I 768,000 Tons @ 0.91 oz/ton
703,000 Ounces
66 LEVEL
TSX / AIM: KGI
FY 2015 MINE PLAN - 5400 LEVEL SMC PLAN VIEW
54L (Ramps)
5417 MCF / 5617 UC
0.42 opt/0.6 opt
5409 MCF
0.4 opt
5412 LH
0.39 opt
HAULAGE RAMP
To #3 SHAFT
5612 UC
54-53 Vent Raises
5409 MCF#2
0.42 opt
0.4 opt
54L (Track Drifts)
LEGEND
EXISTING DEVELOPMENT (HAULAGE RAMP)
HAULAGE RAMP
PROPOSED DEVELOPMENT (HAULAGE RAMP TO 57)
PROPOSED DEVELOPMENT (5400 LEVEL & RAMPS)
TSX / AIM: KGI
EMPHASIS ON MINING HIGHER RATIOS FROM
THE SOUTH MINE COMPLEX
2010:
48,447 @0.31 opt
2011:
81,860 @0.41 opt
2012:
100,275 @0.37 opt
2013:
91,958 @0.31 opt
2014 (A):
122,309 @0.33 opt
2015 (Est):
140,000 @0.37 opt
TSX / AIM: KGI
AICC IMPROVEMENT AND H1 FY 2015 FORECASTS
TSX / AIM: KGI
EXPANSION CAPITAL - PROJECTS COMPLETE
#3 SHAFT
New hoist
added
Mill
Expansion
Battery
equipment
working
3400 L
3800 L
2475 L
3000 L
3075 L
4250 L
4500 L
4750 L
5025 L
5300 L
5700 L
7000 L
Loading pocket
automated
SOUTH MINE COMPLEX
New haulage ramp
TSX / AIM: KGI
CAPITAL EXPENDITURES
 Excludes $60M spent in 2013 to buy out 50/50 JV with Queenston Mining (Osisko)
TSX / AIM: KGI
RESERVES AND RESOURCES – MINE WIDE
COMPLEX
CATEGORY (CAL
2013)
TONS
GRADE (OPT)
GRADE (G/mT)
OUNCES
Proven
Probable
Total P+P
941,000
1,843,000
2,784,000
0.43
0.53
0.50
14.7
18.2
17.1
401,000
984,000
1,385,000
Measured
Indicated
Total M+I
1,133,000
3,019,000
4,152,000
0.39
0.54
0.49
13.4
18.5
16.8
436,000
1,619,000
2,055,000
Inferred
2,092,000
0.54
18.5
1,133,000
Due to rounding there may be some small discrepancies in the numbers.
TSX / AIM: KGI
See Kirkland Lake news release dated April 28 2014, a copy of which has been filed on SEDAR for further particulars. The contents of the
above slide have been verified and approved by the Company’s Chief Exploration Geologist, Stewart Carmichael, P.Geo, a “qualified
person” for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral projects.
COMPANY CLAIMS
13,000 Hectares
NEAR SURFACE EXPLORATION
(SURFACE TO 1,000’) TO EXPLORE MULTIPLE
MINERALIZED ZONES ASSOCIATED WITH
THE AMALAGAMATED BREAK(2 DRILLS)
TSX / AIM: KGI
NEAR SURFACE MINERALIZATION
(SURFACE TO -1,000 FEET)
Estimates as at December 31st, 2013
CATEGORY (CAL
2013)
TONS
GRADE (OPT)
GRADE (G/mT)
OUNCES
Proven
Probable
-
-
-
-
Measured
Indicated
310,000
0.34
11.7
104,000
Inferred
131,000
0.36
12.3
48,000
Due to rounding there may be some small discrepancies in the numbers.
TSX / AIM: KGI
See Kirkland Lake news release dated April 28, 2014, a copy of which has been filed on SEDAR for further particulars. The contents of the
above slide have been verified and approved by the Company’s Chief Exploration Geologist, Stewart Carmichael, P.Geo, a “qualified
person” for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral projects.
EXPLORATION - SURFACE DRILLING
TSX / AIM: KGI
EXPLORATION – UG DRILLING
TSX / AIM: KGI
CONTACT
FOR FURTHER INFORMATION PLEASE CONTACT:
George Ogilvie
President, CEO and Director
705-567-5208 ext. 3225
[email protected]
John Thomson
CFO and Director
705-567-5208
[email protected]
Lindsay Dunlop
Director of Investor Relations
416-840-7884
[email protected]
TSX / AIM: KGI