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Third Quarter 2020 Conference Call and Webcast | November 5, 2020 A Leading Senior Gold Producer … LOW COSTS, FINANCIAL PERFORMANCE & STRENGTH, SHAREHOLDER RETURNS WITH EXPLORATION UPSIDE

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Page 1: A Leading Senior Gold Producer...2020/11/05  · Resources, conversion of Mineral Resources to proven and probable Mineral Reserves, and other information that is based on forecasts

Third Quarter 2020 Conference Call and Webcast | November 5, 2020

A Leading Senior Gold Producer …LOW COSTS, FINANCIAL PERFORMANCE & STRENGTH, SHAREHOLDER RETURNSWITH EXPLORATION UPSIDE

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FORWARD-LOOKING INFORMATION

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Cautionary Note Regarding Forward-Looking Information

The information in this presentation has been prepared as at November 4, 2020. This presentation contains “forward-looking statements” and "forward-looking information" within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of Kirkland Lake Gold with respect to future business activities and operating performance. Forward-looking information is often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions and include information regarding: (i) changes in Mineral Resource estimates, potential growth in Mineral Resources, conversion of Mineral Resources to proven and probable Mineral Reserves, and other information that is based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management; (ii) the amount of future production over any period; (iii) assumptions relating to revenues, operating cash flow and other revenue metrics set out in the Company's disclosure materials; and (iv) future exploration plans.

Investors are cautioned that forward-looking information is not based on historical facts but instead reflect Kirkland Lake Gold's management's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although Kirkland Lake Gold believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the combined company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: the future development and growth potential of the Canadian and Australian operations; the future exploration activities planned at the Canadian and Australian operations and anticipated effects thereof; changes in general economic, business and political conditions, including changes in the financial markets; changes in applicable laws; and compliance with extensive government regulation. Exploration results that include geophysics, sampling, and drill results on wide spacings may not be indicative of the occurrence of a mineral deposit. Such results do not provide assurance that further work will establish sufficient grade, continuity, metallurgical characteristics and economic potential to be classed as a category of mineral resource. A mineral resource that is classified as "inferred" or "indicated" has a great amount of uncertainty as to its existence and economic and legal feasibility. It cannot be assumed that any or part of an "indicated mineral resource" or "inferred mineral resource" will ever be upgraded to a higher category of resource. Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into proven and probable reserves. This forward-looking information may be affected by risks and uncertainties in the business of Kirkland Lake Gold and market conditions. This information is qualified in its entirety by cautionary statements and risk factor disclosure contained in filings made by Kirkland Lake Gold, including its annual information form for the year ended December 31, 2019, and the financial statements and related MD&A for the financial year ended December 31, 2019 and for the interim period ended September 30, 2020, which are filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although Kirkland Lake Gold has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Kirkland Lake Gold does not intend, and do not assume any obligation, to update this forward-looking information except as otherwise required by applicable law.

All dollar amounts in this presentation are expressed in U.S. dollars except as otherwise noted.

Use of Non-IFRS Measures

This Presentation refers to average realized price, operating costs, operating costs per ounce sold, all-in sustaining cost (“AISC”) per ounce of gold sold, free cash flow, sustaining capital expenditures and growth capital expenditure because certain readers may use this information to assess the Company’s performance and also to determine the Company’s ability to generate cash flow and meet its expenditure requirements. This data is furnished to provide additional information and are non-IFRS measures and do not have any standardized meaning prescribed by International Financial Reporting Standards (“IFRS”). These measures should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS and are not necessarily indicative of operating costs presented under IFRS. Refer to each Company’s most recent MD&A for a reconciliation of these measures. The most comparable IFRS Measure for operating cash costs, operating cash costs per ounce sold and AISC per ounce sold is production costs as presented in the Consolidated Statements of Operations and Comprehensive Income, while total additions and construction in progress are the most comparable measures for sustaining and growth capital expenditures.

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OTHER CAUTIONARY DISCLOSURES Cautionary Note to U.S. Investors - Mineral Reserve and Resource Estimates

All resource and reserve estimates included in this presentation or documents referenced in this news release have been prepared in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") - CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the "CIM Standards"). NI 43-101 is a rule developed by the Canadian Securities Administrators, which established standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. The terms "mineral reserve", "proven mineral reserve" and "probable mineral reserve" are Canadian mining terms as defined in accordance with NI 43-101 and the CIM Standards. These definitions differ materially from the definitions in SEC Industry Guide 7 ("SEC Industry Guide 7") under the United States Securities Act of 1933, as amended, and the Exchange Act.

In addition, the terms "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource" are defined in and required to be disclosed by NI 43-101 and the CIM Standards; however, these terms are not defined terms under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the U.S. Securities and Exchange Commission (the "SEC"). Investors are cautioned not to assume that all or any part of mineral deposits in these categories will ever be converted into reserves. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in very limited circumstances. Investors are cautioned not to assume that all or any part of a mineral resource exists, will ever be converted into a mineral reserve or is or will ever be economically or legally mineable or recovered.

Qualified Persons

Natasha Vaz, P.Eng., Senior Vice President, Technical Services and Innovation is a "qualified person" as defined in NI 43-101 and has reviewed and approved disclosure ofthe Mineral Reserves technical information and data for the Canadian Assets (excluding Detour) included in this presentation.

Eric Kallio, P. Geo., Senior Vice President, Exploration is a “qualified person” as defined in NI 43-101 and has reviewed and approved disclosure of the Mineral Resourcetechnical information and data for the Canadian Assets (excluding Detour) included in this presentation.

Andre Leite, P.Eng , AUSIMM CP (MIN), MEng, Mine Technical Services Manager is a "qualified person" as defined in NI 43-101 and has reviewed and approved disclosureof the Mineral Reserves and Mineral Resources technical information and data for Detour included in this presentation.

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Governance

Ethical conduct; Understanding our Impacts; Managing our Supply Chain

Social

Health and Safety; Human and Labour Rights; Enhancing our Communities

Environment

Environmental Stewardship; Biodiversity, Land Use, Mine Closure; Water, Energy, Climate Change

RESPONSIBLE GOLD MINING AT KIRKLAND LAKE GOLD

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ESG IMPLEMENTATION PROGRESS

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Summary Introduced needs-based approach in response to emerging legislation and

immediate needs Became member to the World Gold Council, and initiative membership to

Mining Association of Canada.

Key Initiatives Initiated corporate and site-level WGC RGMPs and MAC TSM gap-assessment

and engaged consultant for third-party review. Developed Human Rights Policy outlining compliance with international

statutes and commitments to preventing or benefitting from human rights abuses within the company or its supply chain.

Implemented Supplier Code of Conduct for responsible sourcing, which includes ability to do internal audits against Company standards.

Researched software for supply chain risk management, including for forced labor screening, segmentation and due-diligence.

Developed Communities & Stakeholder Standard to structure community and indigenous engagement approaches.

Developed Community Feedback Standard for processing of grievances, now implemented at Macassa.

Developing an auditable greenhouse gas accounting tool to track greenhouse gases on a monthly basis

Compliance & Reporting Sustainability Report ESTMA

Membership Ontario Mining Association Minerals Council of Australia World Gold Council

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GHG SUMMARY – INDUSTRY-LEADING PERFORMANCE

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Site GHG Intensity S&P Average % of

AveragetCO2e/ounce of Au

2018 Detour 0.39 0.85 46%

2019 Detour 0.45 0.85 53%

2018 Macassa 0.05 0.40 13%

2019 Macassa 0.09 0.40 23%

2018 Fosterville 0.37 0.60 62%

2019 Fosterville 0.25 0.60 42%

World Gold Council 1.02

All of Kirkland Lake Gold’s operation are considerably lower than the S&P Global’s average for gold mines and significantly lower than the World Gold Council’s average 1tonne of CO2/oz Au

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Q3 2020:STRONG QUARTERLY RESULTS

1. See Non-IFRS Measures section in forward-looking statements slide2. Refers to earnings before Interest, Taxes, Depreciation, and Amortization.3. Refers to all-in sustaining costs.

Adjusted net earnings1 of $249.3M or $0.91 per share (Net earnings: $202.0M or $0.73 per share)• Adjusted net earnings exclude increase in environmental provision, F/X losses and restructuring costs

Op. cash flow of $431.1M, free cash flow1 $275.7M

EBITDA1,2 of $384.3M

Production: 339,584 ozs; Sales: 331,959 ozs

Op. cash costs1 of $406/oz (excluding Detour Lake: $245/oz)

AISC1,3 of $886/oz (excluding Detour Lake: $622/oz)

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Q3 2020STRONG GROWTH IN FINANCIAL STRENGTH

1. See Non-IFRS Measures section in forward-looking statements slide2. Before changes in working capital

Cash of $848.5 million with no debt (58% increase from June 30, 2020)

Strong free cash flow drives increase in cash

$107.7M (C$143.2M) from sale of Osisko shares

$75M from strategic alliance with Newmont

Repurchased 2,139,300 shares for $107.4M ($143.0M)

Q3 2020 dividend payment of US$0.125/share on October 14, 2020 (third payment since doubling dividend in Q1 2020)

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Detour Lake

INVESTING IN THREE CORNERSTONE ASSETS

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Total capital expenditures of $144.1M in Q3 2020 ($345.9M in 2020)

Macassa #4 Shaft project advancing ahead of schedule, below 3,300 feet.

Significant new projects at Detour Lake

New ventilation and refinery/gold room completed at Fosterville, transformer station progressing

Macassa

Detour Lake

Fosterville

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Detour Lake

Macassa Exceptional grades intersected near contact of SMC and Amalgamated Break

Drill results expand mineralization in Lower SMC

Additional high-grade intersections along Amalgamated Break

Detour Lake New results provide increasing evidence of large, continuous corridor of

mineralization in Saddle Zone between Main and West pits

Drilling in western portion of Saddle Zone identifies mineralization 420 m below current Mineral Reserve pit shell

Drilling in eastern portion of Saddle Zone identifies mineralization 420 m below Main Pit Mineral Reserve pit shell (total depth of 820 m)

Fosterville New encouraging drill results from Swan (infill), Lower Phoenix, Cygnet,

Robbin’s Hill and Harrier

EXPLORATION – THREE INDUSTRY-LEADING PROJECTS

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C$0.01 C$0.01 C$0.02 C$0.02 C$0.03 C$0.03C$0.04 C$0.04

US$0.04 US$0.04

US$0.06

US$0.125 US$0.125 US$0.125

$0.1875

Q 2 2 0 1 7 Q 3 2 0 1 7 Q 4 2 0 1 7 Q 1 2 0 1 8 Q 2 2 0 1 8 Q 3 2 0 1 8 Q 4 2 0 1 8 Q 1 2 0 1 9 Q 2 2 0 1 9 Q 3 2 0 1 9 Q 4 2 0 1 9 Q 1 2 0 2 0 Q 2 2 0 2 0 Q 3 2 0 2 0 Q 4 2 0 2 0

Repurchased 14,029,500 shares to date in 2020 for $526.6 million

50% increase in dividend announced, to US$0.1875 per share effective Q4 2020o Doubled dividend in Q1 2020, seven increases in total since mid-2017o Returning >$200M to shareholders annually (following today’s increase)

$643M invested in share repurchases and dividend payments to date in 2020, represents $2.35 per share, $643 per ounce of production in YTD 2020

50% Increase effective Q4 2020

RETURNING CAPITAL TO SHAREHOLDERS

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Q3 2020

140,067 ozs produced in Q3 2020

Op. cash costs/oz1: $634 (vs $573 in Q2 2020, $696 in Q1 2020)

AISC/oz1: $1,259 (vs $1,090 in Q2, 2020, $1,108 in Q1 2020)

Free cash flow1: $64.0M

YTD 2020 (January 31 – September 30)

363,614 ozs produced (Guidance: 520 – 540 ozs)

Op. cash costs/oz1: $630 (Guidance: $610 – $630)

AISC/oz1: $1,156

Free cash flow1: $231.0M (>40% of total FCF)

DETOUR GOLD: THE RIGHT ACQUISITION AT THE RIGHT TIME

DETOUR LAKE: CREATING SIGNIFICANT VALUE

1. See Non-IFRS Measures section in forward-looking statements slide..

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YTD 2020 STRONG PERFORMANCE AGAINST RE-ISSUED GUIDANCE

1. See Non-IFRS Measures section in forward-looking statements slide2. Includes general and administrative costs and severance payments. Excludes non-cash share-based payment expense

$ million unless otherwise states

2020 Guidance

YTD 2020 Actuals

AISC ($/oz)1 $790 – $810 $804

Operating cash costs1 $560 – $580 $414.1

Royalty expense $80 – $85 $62.0

Sustaining capital1 $390 – $400 $286.5

Growth capital1 $95 – $105 $59.4

Exploration $130 – $150 $87.0

Corporate G&A2 $50 – $55 $38.7

Macassa Detour Lake Holt Complex Fosterville 2020 Guidance

YTD 2020 Actuals

Production – 2020 guidance (kozs) 210 – 220 520 – 540 29 590 – 610 1,350 – 1,400

Production – YTD 2020 (ozs) 130,754 363,614 29,391 476,459 1,000,218

Op. cash costs ($/oz)1 $490 – $510 610 – 630 $955 $130 – $150 $410 – $430

Op. cash costs – YTD 2020 ($/oz) 1 573 630 1,000 132 $407

YTD 2020 Performance On track to achieve all 2020 consolidated guidance Unit costs in line with guidance after 9 months Capital expenditures to increase based on new

projects/initiatives at Detour Lake Exploration to ramp up in Q4 2020

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$176.6$0.84/share $150.2

$0.54/share

$202.0$0.73/share

Q 3 2 0 1 9 Q 2 2 0 2 0 Q 3 2 0 2 0

Q3 2020EARNINGS

Q3 2020 ADJUSTED NET EARNINGS1 ($ MILLIONS)

Q3 2020 NET EARNINGS ($ MILLIONS)Difference Between Net Earnings and Adjusted Net Earnings In Q3 2020

Strong revenue growth

14% growth from Q3 2019

49% growth from Q3 2019

1. See Non-IFRS Measures section in forward-looking statements slide

Key Drivers of Q3 2020 Profitability vs. Q3 2019 & Q2 2020

Q3 2020 EPS $0.73

Exclude:

Env. Remediation Prov. 0.08

Non-cash F/X losses 0.08

Restructuring Costs 0.02

Q3 2020 Adjusted EPS $0.91

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$167.5$0.80/share

$219.3$0.79/share

$249.3$0.91/share

Q 3 2 0 1 9 Q 2 2 0 2 0 Q 3 2 0 2 0

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Q3 2020 REVENUE

Q3 2019 Q2 2020 Q3 2020

Gold sales (kozs) 256.3 341.4 332.0

Gold price ($/oz) 1,482 1,716 1,907

CONSOLIDATED REVENUE ($ millions)

Factors Driving Revenue Growth vs Q3 2019

Price impact: +$141MVolume impact: +$112MF/X impact: -$1.6

Factors Driving Revenue Growth vs Q2 2020

Price impact: +$63MVolume impact: -$16MF/X Impact: +$4.8M

$381.4

$581.0$632.8

Q3 2 0 1 9 Q2 2 0 2 0 Q3 2 0 2 0

66% growth from Q3 2019

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$296.4 $309.7

$384.3

Q3 2019 Q2 2020 Q3 2020

Q3 2020EBITDA1

Q3 2020 EBITDA vs Q3 2019

Growth in EBITDA driven by net earnings growth and impact of higher D&D expense and income tax expense

EBITDA1 ($ MILLIONS)

1. See Non-IFRS Measures section in forward-looking statements slide.

Q3 2019 Q2 2020 Q3 2020

Net earnings $176.6 $150.2 $202.0

Finance costs 0.6 1.9 2.3

Depletion & Depreciation 41.7 82.6 86.7

Current income taxes 50.9 59.0 66.1

Deferred income taxes 26.6 16.0 27.2

EBITDA $296.4 $309.7 $384.3

30% growth from Q3 2019

* Numbers may not add due to rounding

Q3 2020 EBITDA vs Q2 2020

Change in EBITDA driven by impact on net earnings of $72.8 million pre-tax F/X loss in Q2 2020 and $23.6 million pre-tax F/X loss in Q2 2020

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Q3 2020 – CASH FLOW

$537.4

$848.5

$476.3 $1.5

-$46.7

$431.1 $25.1

-$145.7$0.6

$200

$400

$600

$800

$1,000

$1,200

June 30, 2020 Op. cash f lows before

interest and income taxes

Interest received

Income taxes paid

Operat ing Invest ing F inancing F/X Sept. 30, 2020

Change in Cash: Sept. 30/20 vs June 30/20($ Millions)

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STRONG OPERATING MARGINS DRIVE CASH GENERATION

$537.4

$848.5$310.0

$109.2

$75.0

-$46.7

-$107.4 -$34.5 -$11.2 -$20.0 -$8.3 -$8.1

$45.1

Change in Cash : Q3 2020($M)

1. Other includes exploration expense and working capital movements – build up of AP at Detour due to timing and ramp up of capital spend, and FGM Royalties accrual

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FOSTERVILLE – STRONG PRODUCTION IN Q3 2020Production

Q3 2020: 161.5 kozs vs 158.3 kozs in Q3 2019 and 155.1 kozs in Q2 2020

Operating Cash Costs Per Ounce Sold1

Q3 2020: $142 vs $115 in Q3 2019 & $129 in Q2 2020YTD 2020: $132 vs $126 for YTD 2019

On Track to Exceed Production Guidance in 2020

Q3 2020Tonnes: 167,533Grade: 30.3 g/t Recovery: 99.0%Recovered: 161.5 kozs1. See Non-IFRS Measures section in forward-looking statements slide

2. Excludes capitalized exploration and depreciation expenditures

Q3 2019Tonnes: 119,412Grade: 41.8 g/t Recovery: 98.6%Recovered: 158.3 kozs

FOSTERVILLE Q2 2019 MINE PLAN

Q2 2020Tonnes: 123,473 Grade: 39.5 g/t Recovery: 99.0%Recovered: 155.1 kozs

YTD 2020: 476.5 kozs vs 427.5 kozs for YTD 2019

AISC Per Ounce Sold1

Q3 2020: $349 vs $289 in Q3 2019 & $273 in Q2 2020YTD 2020: $311 vs $306 for YTD 2019

Production: 590 – 610 kozsOp. cash costs: $130 – $150/oz

Q3 2020Q2 2020Q1 2020

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MACASSA - Q3 IMPACTED BY COVID & HEAT

Q3 2020Tonnes: 78,526 Grade: 15.4 g/t Recovery: 97.8%Recovered: 38.0 kozs

1. See Non-IFRS Measures section in forward-looking statements slide

Q3 2019Tonnes: 85,834 Grade: 23.3 g/t Recovery: 97.8%Recovered: 62.9 kozs

Q2 2020Tonnes: 77,624Grade: 17.2 g/t Recovery: 97.6%Recovered: 41.9 kozs

Production

Q3 2020: 38.0 kozs vs 62.9 kozs in Q3 2019 and 41.9 kozs in Q2 2020

Operating Cash Costs Per Ounce Sold1

Q3 2020: $648 vs $425 in Q3 2019 & $547 in Q2 2020YTD 2020: $573 vs $397 for YTD 2019

Re-issued 2020 Guidance

YTD 2020: 130.8 kozs vs 184.9 kozs for YTD 2019

AISC Per Ounce Sold1

Q3 2020: $1,081 vs $689 in Q3 2019 & $841 in Q3 2020YTD 2020: $915 vs $687 for YTD 2019

Production: 210 – 220 kozsOp. cash costs: $490 – $510/oz

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MACASSA – #4 SHAFTFOSTERVILLE Q2 2019 MINE PLANWork Completed Q3 2020:

Sinking advanced 789’ to 3,366’

Installed 39 steel sets and poured 780’ of concrete

Completed station at 2940L (excavation, station steel)

Installed booster fan in the shaft

Expect to reach >4,000 feet by year end

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DETOUR – SOLID Q3 2020 RESULTS FOSTERVILLE Q2 2019 MINE PLAN

Q3 2020 Tonnes: 5,898,694Grade: 0.81 g/t Recovery: 90.7%Recovered: 140.1 kozs

Q2 2020Tonnes: 5,655,992Grade: 0.79 g/t Recovery: 91.7%Recovered: 132.0 kozs

Production

Q3 2020: 140.1 kozs vs 132.0 kozs in Q2 2020

Operating Cash Costs Per Ounce Sold1

Q3 2020: $634 vs $573 in Q2 2020YTD 2020: $630

On Track to Achieve Re-issued 2020 Guidance

YTD 2020: 363.0 kozs

AISC Per Ounce Sold1

Q3 2020: $1,259 vs $1,090 in Q2 2020YTD 2020: $1,156

Production: 520 – 540 kozsOp. cash costs: $610 – $630/oz

1. See Non-IFRS Measures section in forward-looking statements slide 22

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FOSTERVILLE Q2 2019 MINE PLAN

MACASSA – ENCOURAGING DRILLING RESULTS NEAR CONTACT OF SMC AND AMALGAMATED BREAK

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FOSTERVILLE Q2 2019 MINE PLAN

MACASSA – EXPANDING MINERALIZATION IN LOWER SMC

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FOSTERVILLE Q2 2019 MINE PLAN

MACASSA – EXPANDING MINERALIZATION ALONG AMALGAMATED BREAK

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FOSTERVILLE Q2 2019 MINE PLAN

DETOUR LAKE – CONTINUED EXPLORATION SUCCESS IN SADDLE ZONE

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FOSTERVILLE Q2 2019 MINE PLAN

DETOUR LAKE – CONTINUED EXPLORATION SUCCESS IN SADDLE ZONE

• Growing evidence of large, continuous deposit between & around Main and West pit locations

• Intersections to depth of 820 m in eastern portion of Saddle Zone

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FOSTERVILLE Q2 2019 MINE PLAN

FOSTERVILLE – ENCOURAGING DRILL RESULTS FROM SWAN (INFILL), LOWER PHOENIX, CYGNET, ROBBIN’S HILL AND HARRIER

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FOSTERVILLE Q2 2019 MINE PLAN

KL: DELIVERING PERFORMANCE

1. See Non-IFRS Measures section in forward-looking statements slide.2. Excludes $60.5 million of restructuring costs mainly related to Detour Gold acquisition and tax instalment payment of $132.6 million made in Australia related to 2019 income.

KL: SOLID PERFORMANCE – POISED FOR STRONG FINISH IN 2020

Solid Q3 2020 earnings – Adjusted net earnings of $249.3 million/$0.91 per share

Strong free cash flow1 generation – $693.72 YTD 2020

Industry-leading financial strength – substantial liquidity, no debt

Focusing business on three cornerstone assets

Achieving considerable exploration success, significant drilling planned for Q4 2020

Returning substantial amounts of capital to shareholders

Detour Gold acquisition – The right deal at the right time

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