click to edit master title style · 2019. 6. 20. · tsx:kgi 10 klgold.com q2/16 financial results...

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TSX:KGI 1 klgold.com

TSX:KGI

GROWTH VALUE

A Focused Gold

Producer

Q2 2016 Earnings Call and Webcast

August 5, 2016



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TSX:KGI 2 klgold.comTSX:KGI klgold.com2

Forward-Looking Statements

Cautionary Note Regarding Forward-Looking Statements.

Statements made in the Company’s handouts and as part of the corporate presentation contain statements which

constitute ”forward-looking statements”, including statements regarding the plans, intentions, beliefs and current

expectations of the Company with respect to the future business activities and operating performance of the Company. The

words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar

expressions, as they relate to the Company, are intended to identify such forward-looking statements. Forward-looking

statements used in this presentation include, but may not be limited to; statements regarding the Company’s

guidance metrics for 2016 including, gold production, head grade, cash operating costs, AISC, and capital

expenditures; the exploration programs and associated budgets with respect to the Kirkland Lake Camp and East

Timmins Assets and the results and timing thereof, the medium to long-term strategy and potential of the

Company to continue to grow by way of organic growth and/or through various strategic transactions, including

mergers and acquisitions; increased throughput at the Holt and Taylor mines, and Company’s ability to further

reduce costs through various efficiency projects across the operations and the timing thereof.

With respect to the forward-looking information of Kirkland Lake Gold, concerning gold resources and reserves of the Kirkland Lake properties and

the East Timmins properties, the development of such properties are subject to various key assumptions described in the Annual Information Forms

and Technical Reports of both Kirkland Lake Gold and St Andrew Goldfields Ltd. referred to herein and as filed on the SEDAR profiles of both

companies at www.sedar.com and on the Company’s website at www.klgold.com.

Investors are cautioned that forward-looking statements are based on the opinions, assumptions and estimates of management considered

reasonable at the date the statements are made such as, without limitation, opinion, assumptions and estimates of management regarding the

Company’s business, its ability to increase its production capacity and decrease its production cost. Such opinions, assumptions and estimates, are

inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ

materially from those projected in the forward-looking statements. These factors are discussed in length in the Company's annual Management's

Discussion and Analysis for the interim period ended June 30, 2016, and Annual Information Form for the year ended December 31, 2015 filed with

the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove

incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or

expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to

differ materially, there may be others that cause results not to be as anticipated, estimated or intended. The Company does not intend,

and does not assume any obligation, to update these forward-looking statements except as otherwise required by applicable law.

http://www.sedar.com/http://www.klgold.com/http://www.sedar.com/



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2016 Second Quarter Earnings Call

For the 3 and 6 month period ending June 30, 2016 (Q2/16)

Non-GAAP Measures

• Average Realized Price Per Ounce of Gold Sold

• Cash Operating Cost Per Tonne

• Cash Operating Cost Per Ounce Sold

• All-in Sustaining Costs per Ounce Sold

• Free Cash Flow

Change in Year End

Changed from April 30th to a calendar year end as

of January 1, 2016.

Comparative period for reporting purposes:

Q2/16 is compared to Q1/SY15

(covers the three month period from May 1 to

July 31, 2015)

Conversion CalculationsShort Tons Metric Tonnes

Troy Ounce Grams per Tonne



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Management In Attendance

Anthony (Tony) Makuch President & CEO

Perry Ing, CPA-CA, CFA CFO

Chris Stewart, P.Eng VP Operations

Doug Cater, P.Geo VP Exploration

Suzette N Ramcharan, CPIR Director, Investor

Relations



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Q2 and H1 2016 Production Highlights

Q2/16Three months ended

June 30, 2016

H1/16Six months ended

June 30, 2016

Ounces Produced 68,338 130,613

Ounces Sold 72,144 141,153

Production derived from the Macassa Mine Complex, and the Holt-Holloway

and Taylor mines.



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Q2 and H1 2016 Financial Highlights

Q2/16Three months ended

June 30, 2016

H1/16Six months ended

June 30, 2016

Average Realized Price of Gold

Sold1 (US$/Oz)$1,271 $1,211

Operating Cost Per Ounce Sold1

(US$/Oz)$641 $667

AISC Per Ounce Sold1 (US$/Oz) $990 $925

Based on total production expenses of C$81.7M C$159.5M

Free Cash Flow1 C$31.9M C$57.3M

Based on cash flow from operations of C$53.0M C$96.7M

1 non-GAAP Measures

Average realized price per ounce sold of C$1,638 in Q2/16 and C$1,611 for H1/16



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Q2 and H1 2016 Highlights

Meet guidance

Improve productivity and lower costs

across all of the operations

Become more aggressive in our

exploration efforts

Our focus for the remainder of

2016 is to:



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Q2/16 Financial Results

COSTS

Operating Expenses C$62 M

Amortization & Depletion C$15 M

Royalty C$5 M

Total Production Expenses C$82 M

Operating Cost Per Tonne1 C$208/tonne

Operating Cost Per Ounce1US$667/Oz

AISC Per Ounce1 US$990/Oz

For the three month period ending June 30, 2016

1 non-GAAP Measures



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PROFITABILITY

Gross Profits C$36 M

G&A Expense C$6.4 M

Exploration Expense C$4.1 M

Finance Expense C$5.6 M

Net Income C$26.3 M

Earnings Per Share $0.12

Effective Tax Rate 37%




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CASH FLOW

Free Cash Flow1 C$39.1 M

Cash Balance C$157.5 M

Flow-through Financing

(closed subsequent to quarter end)~C$15M

Cash Balance including Flow-through raise ~C$170M


1 non-GAAP Measures



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Year-to-date Results Against Guidance

Guidance Guidance Metrics H1/16 Results

270 – 290 koz’sProduction (Ounces)

130.6 koz’s

7.7Grade (g/t)

8.2

US$600 – US$650Operating Cost 1

(Per Ounce Sold) US$667

C$120 MCapital Expenditures

(millions)C$35.5 M

US$1,000 – US$1,050AISC 1 (Per Ounce Sold)

US$925

1 non-GAAP Measures



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Highlights of Operational Performance

Q2/16(period ending June 30, 2016)

Q1/SY15(period ending July 31, 2015)

Cost per tonne (C$) $208/tonne $407/tonne

Cost per Ounce1 (US$/ Oz

Sold)US$ 641/Oz US$ 678/Oz

Capital Expenditures (C$) $21.0M $10.9M

AISC1 (US$/ Oz Sold) US$ 990/Oz US$ 956/Oz

ST2G battery powered Scooptram

1 non-GAAP Measures



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Macassa Mine Complex

Tonnes MilledGrade(g/t)

Ounces Produced

Cost/tonne

Macassa Mine Complex 89,436 13.8 38,215 -

Low Grade Stockpiles 13,616 1.8 714 -

TOTAL MACASSA PRODUCTION 103,052 12.2 38,929 C$302



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Holt-Holloway & Taylor Mines

Tonnes MilledGrade(g/t)

Ounces Produced

Cost/tonne

Holt 97,738 4.4 12,862 C$125

Holloway 40,295 4.1 4,826 C$174

Taylor 51,994 7.1 11,408 C$125

Taylor – Low Grade Stockpile 4,566 2.3 313 -

TOTAL PRODUCTION 194,052 5.0 29,409 C$135



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Long Section Views of Holt-Holloway and Taylor

150m

Surface

Bourgois ClaimShoot Zone

Bulk Sample

#1

1004 Lens

1006-1 Lens

1008-1 Lens

1008-2 Lens

100m

250m

350m 1006-2 Lens

500m

View looking north

OPEN

Underexplored Area

HOLT MINE

Production derived from Zone 4 and Zone 6

HOLLOWAY MINE

Production derived from Smoke Deep and

Blacktop

TAYLOR MINE

Production derived from

1004 East Lens



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2016 Production Guidance

Guidance of

270 – 290 kOzs

H1/16 Production

130,613 Ounces

The Company is on track to meet its production guidance for 2016



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Kirkland Lake Camp – Exploration Programs

Kirkland

Minerals

Underground Drilling (testing the SMC further to east and south and the ‘04 Break mineralization above the 3400’ Level)

Surface Drilling (testing the SMC extension along strike, the Main Break at depth and the Amalgamated Break)

SMC Drilling

’04 Break Drilling



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SMC Drill Results from 5300’ Level



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4250’ Level Drilling on the ‘04 Break Mineralization



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Holloway Property – Long Section

Deep ThunderZone

Lightning Zone

Canamax Zone

Smoke Zone

Holloway North 2016 Exploration target

Black Top Zone



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Taylor Property – Long Section

West Porphyry Zone (WPZ)

Indicated 248 koz

1.63M tonnes @ 4.7 g/t

Inferred 251 koz

1.86M tonnes @ 4.2 g/t



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Exploration Programs For Remainder of 2016

Kirkland Lake Camp

~ 68,000 metres of planned

drilling

~ 9 drills (6 on surface and 3 underground)

• SMC along strike

• Main Break at depth

• Amalgamated Break

Porcupine-Destor Fault Zone

~ 56,000 metres of planned

drilling

~ 5 drills (4 on surface and 1 underground)

• Holt-Holloway and Taylor

• Following up on other targets along the

120km land package



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A Mid-Tier Gold Producer

LEADERSHIP

PRODUCTION

PROFITABLE LOW COST

SUSTAINABLE, LONG TERM, PRODUCTION

ORGANIC GROWTH AND EXPLORATION

POTENTIAL

• 2016 targeted gold production 270-290k Ozs

• Cash costs



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www.klgold.com

Suzette N Ramcharan, CPIR

Director of Investor Relations

+1-647-361-0200

Mobile: +1-647-284-5315

[email protected]

TSX:KGI
mailto:[email protected]

click to edit master title style · 2019. 6. 20. · tsx:kgi 10 klgold.com q2/16 financial results...

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