A Leading Senior Gold Producer - LOW COSTS, FINANCIAL PERFORMANCE & STRENGTH, SHAREHOLDER RETURNS WITH EXPLORATION UPSIDE
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A Leading Senior Gold Producer
LOW COSTS, FINANCIAL PERFORMANCE & STRENGTH, SHAREHOLDER RETURNS …
WITH EXPLORATION UPSIDE
TD Mining Conference
January 27-28, 2021
FORWARD-LOOKING
INFORMATION Cautionary Note Regarding Forward-Looking Information
The information in this presentation has been prepared as at January 26, 2021. 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.
2
Fosterville Macassa
Three high-quality producers in low-risk
jurisdictions
Highly profitable, generate substantial FCF
Detour Lake
Significant value creation potential
through continued exploration success
3
RESPONSIBLE GOLD MINING AT KIRKLAND LAKE GOLD
Environment
Environmental Stewardship; Biodiversity, Land Use, Mine Closure; Water,
Energy, Climate Change
Social
Health and Safety; Human and Labour Rights; Enhancing our Communities
Governance
Ethical conduct; Understanding our Impacts; Managing our Supply Chain
4
ESG MILESTONES IN 2020
Adopted World Gold Council’s Responsible Gold Mining Principles; Completed Year One External
Assurance
Finalized policies and standards on Human Rights, Supplier Code of Conduct and Grievance
Resolution
Verified that all active tailings facilities meet or exceed all MAC/CDA and ANCOLD guidelines
Received Tom Peters Memorial Mine Reclamation Award in recognition of Detour Lake Mine’s
Progressive Reclamation Program aimed at reclaiming 10 hectares of land per year commencing in
2019
Achieved greenhouse gas (“GHG”) emissions well below industry averages, with Macassa continuing
to have among the lowest GHG intensity rates in the industry
Macassa purchased industry’s first 50-tonne battery-powered underground haul truck in 2020, with
delivery scheduled for Q1 2021
Launched $20 million donation program to support local health care agencies and community
support groups in areas where the Company operates; A$1.0 million donated to support Australian
bush fire relief and prevention.
5
STRONG PERFORMANCE IN ENVIRONMENTAL MANAGEMENT
GHG SUMMARY – AN INDUSTRY LEADER
All of Kirkland Lake Gold’s
operations are considerably
lower than the S&P
Global’s average for gold
mines and significantly
lower than the World Gold
Council’s average 1tonne of
CO2/oz Au
6
HIGH-QUALITY ASSETS IN CANADA AND AUSTRALIA
Highly profitable operations, three of the most compelling exploration stories
Detour1
Reserves: 14.8 Mozs @ 0.97 g/t
Production: 516.8 kozs FY 20202,3
Guidance: 680 – 720 kozs in 2021 – 23,
800 kozs in 20254
Exploration: Increasing evidence that
much larger and higher-grade deposit
exists than is currently in Mineral
Reserves
Fosterville1 Consolidated Guidance
Reserves: 2.1 Mozs @ 21.8 g/t 2021: 1,300 – 1,400 kozs
Robbin’s Hill: 218 kozs @ 5.5 g/t Macassa1 2022: 1,300 – 1,445 kozs
Production: 640.5 kozs FY 2020 Reserves: 2.4 Mozs @ 22.1 g/t 2023: 1,405 – 1,545 kozs
Guidance: 400 – 425 kozs in 2021, 325 – 400 kozs Production: 183.0 kozs FY 20203
2022 and 20234 Guidance: 220 – 255 kozs 2021, 295 – 325
kozs 2022, 400 – 425 kozs 20234
Exploration: Large mineralized systems at Lower Key project: New #4 Shaft to be
Phoenix, Cygnet, Robbin’s Hill and Harrier; completed in late 2022
Significant potential for additional high-grade zones
Exploration: SMC continues to grow, high-
grade mineralization intersected along
both Amalgamated and Main Breaks
1) See information on Mineral Reserve and Mineral Resource estimates at end of full presentation.
2) For period from January 31, 2020 to December 31, 2020.
3) Transitioned to reduced operations due to COVID-19 near end of March 2020, workers recalled beginning in May 2020. 7
4) See press release dated December 10, 2020 for more information on the Company’s 2021 and 3-year production guidance.
STRONG PRODUCTION GROWTH, LOW UNIT COSTS
STRONG PRODUCTION GROWTH LOW AISC/OUNCE SOLD1
(KOZS) (US$/oz)
1,369.7
$930
$812 $804
974.6
$685
723.7 $564
596.4
313.7
2016 2017 2018 2019 2020 2016 2017 2018 2019 2 0 2 0 (9 M)
1) Refers to All-In Sustaining Costs per ounce sold (See Non-IFRS Measures section in forward-looking statements slide). 8
KL: LEADER IN LOW-COST PRODUCTION
CONSENSUS ESTIMATES: 2021 AISC/OUNCE SOLD1
(US$/oz)
$988 $991
$953
$926
KL Guidance $911
$790 – $810
$792
K i r k l an d Lake N ewc rest A gn i c o Eagl e Bar r i c k N ew mo nt K i n ro s s
Gold
Source: CIBC Global Mining Group – Gold Comps (Jan. 4, 2021)
1) Refers to All-In Sustaining Costs per ounce sold (See Non-IFRS Measures section in forward-looking statements slide). 9
STRONG GROWTH IN EARNINGS AND CASH FLOW
All dollar amounts in US dollars unless otherwise indicated
NET EARNINGS ($ MILLIONS)
104% increase in 2019
$560.1
2019
$2.67/share
$273.9
2018
$1.30/share
$132.4
2017
$0.64/share
$42.1
2016
$0.35/share
$10 $30 $50 $70 $90$110$130$150$170$190$210$230$250$270$290$310$330$350$370$390$410$430$450$470$490$510$530$550$570$590
FREE CASH FLOW1 ($ MILLIONS)
81% growth in 2019
2019 $463.0
2018 $255.2
2017 $178.0
2016 $113.9
$10 $30 $50 $70 $90 $110 $130 $150 $170 $190 $210 $230 $250 $270 $290 $310 $330 $350 $370 $390 $410 $430 $450 $470 $490
1) See Non-IFRS Measures section in forward-looking statements slide. 10YTD 2020: CONTINUED STRONG PERFORMANCE
YTD 2020 Refers to Period from January 1, 2020 to September 30, 2020
YTD NET EARNINGS ($ MILLIONS)
42% increase from first nine months of 2019
YTD 2020
$555.1
$2.06/share
YTD 2019
$390.9 YTD 2020 adjusted net earnings
$1.86/share of $647.8M or $2.40/share
$0 $20 $40 $60 $80$100$120$140$160$180$200$220$240$260$280$300$320$340$360$380$400$420$440$460$480$500$520$540$560
YTD FREE CASH FLOW1 ($ MILLIONS)
52% growth from first nine months of 2019
YTD 2020 $500.6
YTD 2019 YTD 2020 FCF totalled $693.7M
$330.2 excluding $60.5 million of transaction
costs and $132.6M non-recurring
income tax payment in Australia
related to 2019 income.
1) See Non-IFRS Measures section in forward-looking statements slide 11UNSURPASSED FINANCIAL STRENGTH
Cash at December 31, 2020: $848 million with no debt
Cash increased $141M or 20% in 2020
$731.6 million used for share purchases in 2020
$116.0 million used for dividends in 2020
$174.4 million received from sale of investments in Osisko Mining Inc., Novo
Resources Corp. and De Grey Mining Ltd.
Impact of Detour Gold acquisition:
o Added $173.9 million of cash
o Repaid Detour Gold’s $98.6 million of debt
o Used $30.3 million to close our hedge positions
o $60.5 million in transaction and restructuring costs
12RETURNING CAPITAL TO SHAREHOLDERS
Returned $847.6M to shareholders in 2020 through share repurchases and dividends
o Equates to $3.16 per share and $619 per ounce of FY 2020 production
Repurchased 18,925,900 shares in 2020 for $731.6 million
o 1,074,100 shared repurchased in first week of January 2021 for $46.3 million
o Company achieved goal of repurchasing 20 million shares as of January 8, 2021
Quarterly dividend tripled during 2020 reflecting two dividend increases
o Doubled dividend in Q1 2020, from US$0.06/share to US$0.125/share $0.1875
o 50% increase effective Q4 2020 payment, to US$0.1875/share
US$0.125 US$0.125 US$0.125
50% Increase effective Q4 2020
US$0.06
US$0.04 US$0.04
C$0.04 C$0.04
C$0.02 C$0.03 C$0.03
C$0.01 C$0.01 C$0.02
Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020
13MACASSA – GROWING TO OVER 400,000 OZ/YEAR
Building a new, modern mine with exceptional upside
Macassa is a high-grade underground mine located in Ontario, Canada
High-grade Mineral Reserve base (Reserves & Resource estimates as at Dec. 31 2019)1
o Mineral Reserves of 2.4M ozs @ 22.1 g/t, Near Surface: 0.1M ozs @ 10.7 g/t
o M&I Mineral Resources of 0.7M ozs @ 13.8 g/t, Near Surface: N/M Ontario Detour Lake
o Inferred Mineral Resources of 0.6M ozs @ 16.7 g/t, Near Surface: 0.1M ozs @ 11.5 g/t
One of the lowest GHG emitters in the world Holt Complex
Macassa
• World leader in the use of battery-powered equipment
Sinking new #4 Shaft – Target completion late 2022
• Expected to grow gold production to over 400 koz per year at lower unit costs by 2023
Significant exploration success being achieved
• Extending South Mine Complex to east and west, identifying high-grade mineralization along the
Amalgamated Break, identified new, high-grade corridor along Main Break near new shaft location
FY 2020 production of 183.0 kozs; 9M 2020 op. cash costs3 of $573/oz, AISC2,3 of $915/oz
• Reduced operations due to COVID-19, returned to normal workforce level by end of Q2 2020
Gold Production (koz) 400 – 425 Op. Cash Costs ($/oz)3
$573
295 – 325 $450 – $470
$426 $414
241 220 – 255
183
2019 2020 2 0 2 1 (F ) 2 0 2 2 (F ) 2 0 2 3 (F ) 2018 2019 2 0 2 0 (9 M) 2 0 2 1 (F )
Refer to Slide 2 “Cautionary Language” regarding forward-looking information
(F): Forecast
(1) As at December 31, 2019. Refer to Reserve and Resource Statements in Appendix of this presentation
(2) Refers to all-in sustaining costs
(3) Example of Non-IFRS measures, see Slide 2 for more information about Non-IFRS measures
14MACASSA – #4 SHAFT
4,000 tpd hoisting capacity
FOSTERVILLE Q2 2019 MINE PLAN
To be completed in one phase to 6400’ by late
2022
Benefits include production growth, lower unit
costs, improved ventilation and working
conditions and support L/T exploration across KL
camp
Production to reach 400,000 – 425,000 in 2023
Unit costs to improve substantially
Sinking advanced to 4,240 feet as at Dec. 31/20
Project ahead of schedule
15MACASSA: KEY EXPLORATION TARGETS
16MACASSA – SIGNIFICANT EXPLORATION POTENTIAL
New high-grade corridor
identified along Main Break,
below historic mining
Areas of high-grade
mineralization identified along
Amalgamated Break
Significant potential at depth as
Main/’04 and Amalgamated
Breaks plunge together
17MACASSA – ENCOURAGING DRILL RESULTS
Exceptional Grades Intersected Near Contact of SMC & Amalgamated Break
FOSTERVILLE Q2 2019 MINE PLAN
18EXPANDING LOWER SMC
FOSTERVILLE Q2 2019 MINE PLAN
19ENCOURAGING RESULTS ALONG AMALGAMATED BREAK
FOSTERVILLE Q2 2019 MINE PLAN
20NEW HIGH-GRADE CORRIDOR
21DETOUR LAKE – RIGHT ACQUISITION AT RIGHT TIME
A Large-scale open pit with transformational potential
Large base of Mineral Reserve base (Reserves & Resource estimates as at Dec. 31 2019)1
o Mineral Reserves of 14.8M ozs @ 0.97 g/t
o M&I Mineral Resources of 3.9M ozs @ 1.08 g/t, Underground: 0.5M ozs @ 5.80 g/t Ontario
o Inferred Mineral Resources of 1.1M ozs @ 0.82 g/t, Underground: 0.1M ozs @ 4.35g/t Detour Lake
Annual production increasing to 680 – 720 kozs in 2021, with current Mineral Reserve life of well Holt Complex
over 20 years
Targeting significant growth in Mineral Reserves through extensive drilling Macassa
o Growth in reserves to support strong production growth, improved unit costs
o Achieving exploration success: Saddle Zone (Main and West Pits), 58 N, North Pit, regional exploration upside
Generated 40% of KL’s total FCF from in first nine months of 2020 ($231 million2)
FY 2020 production of 516.8 kozs, YTD 2020 op. cash costs3 of $630/oz, AISC3,4 of $1,156/oz
o Reduced operations due to COVID-19 starting from mid-March
•
Gold Production (koz)
680 – 720 680 – 720 680 – 720
602 AISC3,4/oz Sold
517 9M 2020: $1,156
2021 Guidance:DETOUR LAKE – GEOLOGICAL VIEW
23CONTINUED EXPLORATION SUCCESS IN SADDLE ZONE
FOSTERVILLE Q2 2019 MINE PLAN
24CONTINUED EXPLORATION SUCCESS IN SADDLE ZONE
FOSTERVILLE Q2 2019 MINE PLAN
• 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
• Intersections up to 550 m below reserve shell in west portion of Saddle Zone
• High-grade intersections at depth support potential for underground mining operations
• Mineralization intersected 200 m west of west pit location 25FOSTERVILLE – HIGHLY-PROFITABLE PRODUCTION
Low-cost operations – Highly leveraged to continued exploration success
Fosterville is a high-grade, low cost-underground mine located in Victoria State, Australia Northern Territory
High-grade Mineral Reserve base (Reserves & Resource estimates as at Dec. 31, 2019)1
o Mineral Reserves of 2.1M ounces at 21.8 g/t, Robbin’s Hill: 0.2M ozs @ 5.5 g/t
o M&I Mineral Resources of 2.1M ozs @ 5.3 g/t, Robbin’s Hill: 0.4M ozs @ 3.5 g/t
o Inferred Mineral Resources of 1.7M ozs @ 6.4 g/t, Robbin’s Hill: 0.4M ozs @ 4.5 g/t
Australia
Record FY 2020 production of 640.5 kozs, 3% increase from 619.4 kozs in 2019
YTD 2020, op. cash costs2 of $132/oz and AISC2,3 of $311/oz Fosterville
Reducing production to increase sustainability of operations while exploration continues
Substantial exploration potential – Lower Phoenix (including Swan Zone), Robbin’s Hill,
Cygnet and Harrier
Robbin’s Hill provides potential for second mining operation to feed Fosterville Mill
Gold Production (koz) Op. Cash Costs ($/oz)2
619 640
$230 – $250
$200
400 – 425 325 – 400 325 – 400
$132
$119
2019 2020 2 0 2 1 (F ) 2 0 2 2 (F ) 2 0 2 3 (F ) 2018 2019 2 0 2 0 (9 M) 2 0 2 1 (F )
Refer to Slide 2 “Cautionary Language” regarding forward-looking information
(F): Forecast
(1) As at December 31, 2019. Refer to Reserve and Resource Statements in Appendix of this presentation
(2)
(3)
Example of Non-IFRS measures, see Slide 2 for more information about Non-IFRS measures
Refers to all-in sustaining costs
26FOSTERVILLE – ENCOURAGING DRILL RESULTS
27FOSTERVILLE – SWAN AND CYGNET
Infill Drilling at Swan
Key intercepts:
976 g/t Au over 7.4 m (ETW 7.0 m); Infill drilling in
933 g/t Au over 6.4 m (ETW 5.8 m); Swan Zone
416 g/t Au over 6.8 m (ETW 5.6 m); and returns higher
222 g/t Au over 8.1 m (ETW 7.3 m) than expected
grades
Extension drilling at Cygnet 950 M
Key intercepts: extension of
Significant potential
13.6 g/t Au over 6.6 m (ETW 5.9 m); Phoenix
12.7g/t Au over 2.1 m (ETW 2.1 m); and structure at Cygnet
5.4 g/t Au over 9.7 m (ETW 8.0 m)
28FOSTERVILLE – RECENT DRILLING
29FOSTERVILLE – ROBBIN’S HILL
Demonstrated
substantial scale of
mineralized system
Intersected high-
grades with VG 950 m Cygnet zone
down-plunge of 650 m strike
Mineral Resources length, 300 m
vertical depth
30KL: QUALITY ASSETS – POISED FOR VALUE CREATION
Macassa, Detour Lake, Fosterville – highly profitable, cash flow generating
assets with growth
Strong earnings and cash flow performance
Unsurpassed financial strength – substantial liquidity, no debt
Committed to returning capital to shareholders
Projects advancing well in support of long-term performance of key assets
Achieving substantial exploration success
Detour Lake – Right acquisition at the right time
KL: DELIVERING PERFORMANCE WITH VALUE CREATION UPSIDE
31FOSTERVILLE MACASSA DETOUR LAKE
Appendix
32ESG IMPLEMENTATION PROCESS
Summary
Introduced needs-based approach in response to emerging legislation and
immediate needs
Became member of 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. Compliance & Reporting
Developed Human Rights Policy outlining compliance with international Sustainability Report
statutes and commitments to preventing or benefitting from human rights ESTMA
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 Membership
labor screening, segmentation and due-diligence.
Ontario Mining Association
Developed Communities & Stakeholder Standard to structure community and
indigenous engagement approaches. Minerals Council of Australia
Developed Community Feedback Standard for processing of grievances, now World Gold Council
implemented at Macassa.
Developing an auditable greenhouse gas accounting tool to track greenhouse
gases on a monthly basis
33KIRKLAND LAKE GOLD
A COMMITTED AND VALUED MEMBER OF THE COMMUNITY
Significant employer in Northern Ontario and Victoria
~3,000 (hourly, staff, contractors)
$270M in labour costs (CDN Ops in 20192)
Annual total investments & expenditures
~$1.5 Billion
Total goods & services expenditures2 (CDN Ops.)
~$400M in goods & services
(38% in N. Ontario, 74% in Ontario, 97% in Canada)
Total goods & services expenditures2 (Aus Ops.)
~$110M in goods & services
(7% in Bendigo, 53% in Victoria, 98% Australia)
Donations and other Community Support
Committed to donating $20 million in support of local
health care and community groups
1. Includes operating costs, capital expenditures and exploration spending.
2. Pro forma to include Detour Lake.
34KEY DEVELOPMENTS – NON-CORE ASSETS
Holt Complex and Northern Territory assets designated non-core in February 2020
Holloway Mine transitioned to care and maintenance
Discontinued all test mining and milling in Northern Territory – ceased all exploration
o $60 – $65m rehabilitation program commenced Q3 2020
Suspended operations at remainder of Holt Complex effective April 2, 2020
o July 2020 – Announced suspension of operations would be extended indefinitely; over 200 workers re-
assigned and/or offered new roles within Canadian Operations, remainder of workforce given
severance
o Strategic alliance agreement signed with Newmont Canada related to exploration opportunities around
each company’s land positions in Northern Ontario
• Agreement provides Newmont with option on claims at Holt Mine
35FY 2021 – GUIDANCE
2021
Macassa Detour Lake Fosterville
Guidance
Production – 2021 guidance (kozs) 220 – 255 680 – 720 400 – 425 1,300 – 1,400
Op. cash costs ($/oz)1 $450 – $470 $580 – $600 $230 – $250 $450 – $475
Three-Year Production Guidance
$ million unless 2021
otherwise states Guidance
Kozs 2021 2022 2023
AISC ($/oz)1 $790 – $810
Macassa 220 – 255 295 – 325 400 – 425
Operating cash costs1 $600 – $630
Detour Lake 680 – 720 680 – 720 680 – 720
Royalty expense $82 – $88
Sustaining capital1 $280 – $310 Fosterville 400 – 425 325 – 400 325 – 400
Growth capital1 $250 – $275 Consolidated 1,300 – 1,400 1,300 – 1,445 1,405 – 1,545
Exploration $170 – $190
Corporate G&A2 $50 – $55
1. See Non-IFRS Measures section in forward-looking statements slide
2. Includes general and administrative costs and severance payments. Excludes non-cash share-based payment expense 36Q4 & FY 2020 – PRODUCTION RESULTS
Production Results Q4 2020 Q4 2019 Q3 2020 FY 2020 FY 2019
Fosterville
Ore Milled (tonnes) 183,635 121,998 167,533 593,343 492,874
Grade (g/t Au) 28.1 49.3 30.3 33.9 39.6
Recovery (%) 98.9 99.2 99.0 98.9 98.8
Gold Production (ozs) 164,008 191,893 161,489 640,467 619,366
Macassa
Ore Milled (tonnes) 74,353 87,573 78,526 312,758 324,077
Grade (g/t Au) 22.4 20.5 15.4 18.6 23.6
Recovery (%) 97.7 97.8 97.8 97.7 97.9
Gold Production (ozs) 52,283 56,379 38,028 183,038 241,297
Detour Lake1
Ore Milled (tonnes) 5,829,230 - 5,898,694 21,091,938 -
Grade (g/t Au) 0.89 - 0.81 0.83 -
Recovery (%) 91.8 - 90.7 91.3 -
Gold Production (ozs) 153,143 - 140,067 516,757 -
Holt Complex2
Ore Milled (tonnes) - 252,801 - 215,318 853,528
Grade (g/t Au) - 4.1 - 4.5 4.4
Recovery (%) - 94.1 - 93.6 94.7
Gold Production (ozs) - 31,469 - 29,391 113,952
Total Consolidated Production (ozs)3 369,434 279,742 339,584 1,369,652 974,615
Total Consolidated Gold Sales (ozs) 371,009 278,438 331,959 1,388,944 979,733
1) The Detour Lake Mine was acquired on January 31, 2020. FY 2020 production represents output from that date to December 31, 2020.
2) The Holloway Mine, a component of Holt Complex, was placed on care and maintenance in March 2020 with no plans for a resumption
of operations. The remainder of the Holt Complex was placed on temporary suspension effective April 2, 2020 as part of the Company’s
COVID-19 response. In July 2020, the Company announced that operations at the Holt Complex would remain suspended until further
notice
3) Production numbers may not add to totals due to rounding.
37Q3 & FIRST NINE MONTHS 2020 PERFORMANCE
(in thousands of dollars, except per Three Months Ended Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended
share amounts) September 30, 2020 September 30, 2019 June 30, 2020 September 30, 2020 September 30, 2019
Revenue $632,843 $381,430 $580,975 $1,768,556 $967,609
Production costs 136,023 73,664 141,415 439,030 209,865
Earnings before income taxes 295,316 254,119 225,282 815,123 566,140
Net earnings $202,022 $176,604 $150,232 $555,132 $390,945
Basic earnings per share $0.73 $0.84 $0.54 $2.06 $1.86
Diluted earnings per share $0.73 $0.83 $0.54 $2.05 $1.85
Cash flow from operating activities $431,119 $316,753 $222,234 $894,859 $672,290
Cash investment on mine development
and PPE $155,428 $135,449 $128,155 $394,220 $342,104
Three Months Ended Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended
September 30, 2020 September 30, 2019 June 30, 2020 September 30, 2020 September 30, 2019
Tonnes milled 6,144,753 419,787 5,863,282 16,126,140 1,208,106
Average Grade (g/t Au) 1.8 18.8 1.8 2.0 18.3
Recovery (%) 95.3 % 97.9 % 95.8 % 95.6 % 98.0 %
Gold produced (oz) 339,584 248,400 329,770 1,000,218 694,873
Gold Sold (oz) 331,959 256,276 341,390 1,017,935 701,296
Average realized price ($/oz sold)(1) $1,907 $1,482 $1,716 $1,734 $1,375
Operating cash costs per ounce ($/oz
sold)(1) $406 $287 $374 $407 $296
AISC ($/oz sold)(1) $886 $562 $751 $804 $584
Adjusted net earnings(1) $249,251 $167,532 $219,345 $647,765 $391,109
Adjusted net earnings per share(1) $0.91 $0.80 $0.79 $2.40 $1.86
Free cash flow(1) $275,691 $181,304 $94,079 $500,639 $330,186
1. See Non-IFRS Measures section in forward-looking statements slide general and administrative costs and severance payments. Excludes non-cash
38YTD 2020 – PERFORMANCE AGAINST GUIDANCE
2020 YTD 2020
Macassa Detour Lake Holt Complex Fosterville
Guidance Actuals
Production – 2020 guidance (kozs) 210 – 220 520 – 540 29 590 – 610 1,350 – 1,400
Production – FY 2020 (ozs) (Full-Year) 183,038 516,757 29,391 640,467 1,369,652
Op. cash costs ($/oz)1 $490 – $510 $610 – $630 $955 $130 – $150 $410 – $430
Op. cash costs – YTD (9M) 2020 ($/oz) 1 $573 $630 $1,000 $132 $407
$ million unless 2020 YTD (9M) 2020
otherwise states Guidance Actuals YTD (9 Months) 2020 Performance
AISC ($/oz)1 $790 – $810 $804 On track to achieve all 2020 consolidated guidance
Operating cash costs1 $560 – $580 $414.1 Unit costs in line with guidance after 9 months
Royalty expense $80 – $85 $62.0 Capital expenditures to increase based on new
Sustaining capital1 $390 – $400 $286.5 projects/initiatives at Detour Lake
Growth capital1 $95 – $105 $59.4 Exploration to ramp up in Q4 2020
Exploration $130 – $150 $87.0
Corporate G&A2 $50 – $55 $38.7
1. See Non-IFRS Measures section in forward-looking statements slide
2. Includes general and administrative costs and severance payments. Excludes non-cash share-based payment expense 39HOLT COMPLEX
Three underground mines feeding a central mill facility in Ontario, Canada
The Holt Complex comprises three mines (Holt, Holloway, and Taylor), all
feeding the Holt Mill in Ontario, Canada
Resumed operations at Holloway in early 2019 after the Holloway royalty
agreement was revised and amended
o Had been on care and maintenance since December 2016
Holloway Mine returned to care and maintenance in March 2020
Operations designated as non-core on February 19, 2020, Company
reviewing strategic options for maximizing value.
Holt Complex operations temporarily suspended effective April 2, 2020
Suspension of operations extended until further notice in July 2020
Produced 29,391 ounces, mostly in Q1 2020
Gold Production (koz) 180-190 Ontario Detour Lake
150-160
121 117 127 114 Holt Complex
Macassa • Holt
• Taylor
• Holloway
2016 2017 2018 2019E 2020E 2021E
Refer to Slide 2 “Cautionary Language” regarding forward-looking information
40NORTHERN TERRITORY
Group of mineral tenements which include the Cosmo Mine and Union Reefs Mill
• Northern Territory is comprised of a group of mineral tenements totaling
over 2,000 km2 in the Northern Territory of Australia
• Operations placed on care and maintenance in 2017
• Exploration programs continued, advanced exploration commenced in 2018
• Commenced test processing of Lantern Deposit material at the Union
Reefs mill in October 2019
• Operations designated as non-core on February 19, 2020, Company
reviewing strategic options for maximizing value.
• Test mining/processing and exploration work discontinued in March 2020;
extensive rehabilitation program underway
Regional Production History Owned by Kirkland Lake Gold Northern Territory
Years of Grade Production Production
Goldfield Tonnes
Operation (g/t) (koz Gold) (tonnes)
Union Reefs 1994-2017 30,360,000 1.69 1,532 47.7
Pine Creek 1986-1996 12,280,000 2.37 774 24.1
Cosmo/Howley
Goodall
1987-1995
1988-1993
10,910,000
4,100,000
2.17
1.99
670
228
20.9
7.1
Australia
Moline 1988-1992 1,600,000 2.14 100 3.1
Brocks Creek 1996-2000 5,570,000 1.64 270 8.4
Mt. Bundy/Toms Gully 1988-2011 1,640,000 5.14 240 7.5 Fosterville
Mt. Todd 1993-2000 12,010,000 0.90 347 10.8
Mt. Bonnie 1983-1986 670,000 3.50 75 2.3
Rustlers Roost (Heap Leach) 1994-1998 4,580,000 0.75 110 3.4
Total 83,720,000 1.79 4,346 135.3
Refer to Slide 2 “Cautionary Language” regarding forward-looking information
41KIRKLAND LAKE GOLD MINERAL RESERVE ESTIMATE
December 31, 2019 December 31, 2018
Tonnes Grade Gold Ozs Depleted Oz Tonnes Grade Gold Ozs
Proven and Probable
(000's) (g/t) (000’s) 2019 (000’s) (000's) (g/t) (000’s)
Macassa 3,320 22.1 2,360 246 3,190 21.9 2,250
Macassa Near Surface 273 10.7 93 - - - -
Holt Complex(1) 5,432 4.0 702 120 4,588 4.4 644
Hislop(1) 176 5.8 33 - 176 5.8 33
Total CDN Underground 9,200 10.8 3,190 367 7,950 11.4 2,920
Detour Lake Pit 397,680 0.99 12,640
West Detour Pit 54,920 0.94 1,660
North Pit 5,950 0.98 187
Detour Low Grade Fines 18,900 0.59 360
Total CDN Open Pit 477,450 0.97 14,846 0 0 0.00 0
Total CDN Operations 486,650 1.15 18,030 367 7,950 11.4 2,920
Fosterville 3,000 21.8 2,100 627 2,720 31.0 2,720
Robbins Hill 1,240 5.5 218 - - - -
Northern Territory(1) 988 4.0 128 10 666 5.0 107
Total AUS Operations 5,220 14.6 2,450 637 3,390 25.9 2,820
Total 491,900 1.29 20,470 1,004 11,340 15.7 5,740
(1) The Hislop mine is a former producer acquired as part of the St Andrew Goldfields acquisition in January 2016. Hislop has not been operated since the
acquisition. The Holloway mine was placed on care and maintenance effective December 31, 2016 and resumed operation in the first quarter 2019. The
Cosmo mine and Union Reefs mill were placed on care and maintenance effective June 30, 2017.
Note: See disclosures on Kirkland Lake Gold Mineral Reserves and Mineral Resources later in this presentation 42KIRKLAND LAKE GOLD MINERAL RESOURCE ESTIMATE
Measured & Indicated December 31, 2019 December 31, 2018
Tonnes Grade Gold Ozs Tonnes Grade Gold Ozs
(000's) (g/t) (000’s) (000's) (g/t) (000’s)
Canada Ops – Underground
Macassa 1,616 13.8 717 1,621 17.0 886
Macassa Near Surface 47 7.8 12 167 17.9 96
Holt Complex 7,752 4.2 1,047 9,664 4.1 1,279
Hislop 1,147 3.6 132 1,147 3.6 132
Detour Zone 58N 2,900 5.8 534 - - -
Ludgate - - - 522 4.1 68
Canamax 240 5.1 39 240 5.1 39
Total Canada Underground 13,702 5.7 2,482 13,360 5.8 2,500
Canada Ops – Open Pit
Detour Lake 81,400 1.15 3,003
West Detour 31,000 0.88 878
Aquarius 22,300 1.29 926 22,300 1.29 926
Total Canada Open Pit 134,700 1.1 4,807 22,300 1.3 926
Total CDN Operations 148,402 1.5 7,290 35,660 3.0 3,426
December 31, 2019 December 31, 2018
Fosterville 12,300 5.3 2,080 11,600 5.0 1,850
Robbin’s Hill 3,460 3.5 386 3,210 2.5 256
Northern Territory 17,200 2.5 1,410 22,200 2.5 1,750
Total AUS Operations 32,900 3.7 3,870 36,900 3.3 3,860
Note: See disclosures on Kirkland Lake Gold Mineral Reserves and Mineral Resources later in this presentation 43KIRKLAND LAKE GOLD MINERAL RESOURCE ESTIMATE
Inferred December 31, 2019 December 31, 2018
Tonnes Grade Gold Ozs Tonnes Grade Gold Ozs
(000's) (g/t) (000’s) (000's) (g/t) (000’s)
Canada Ops – Underground
Macassa 1,039 16.7 557 580 16.8 313
Macassa Near Surface 146 11.5 54 30 15.5 15
Holt Complex 9,097 4.4 1,294 15,820 4.6 2,329
Hislop 797 3.7 95 797 3.7 95
Detour Zone 58N 1,000 4.4 136 - - -
Ludgate - - - 1,396 3.6 162
Canamax 170 4.3 23 170 4.3 23
Total Canada Underground 12,248 5.5 2,160 18,792 4.9 2,937
Canada Ops – Open Pit
Detour Lake 33,600 0.79 855
West Detour 9,300 0.95 282
Total Canada Open Pit 42,900 0.82 1,137
Total CDN Operations 55,148 1.9 3,297 18,792 4.9 2,937
December 31, 2019 December 31, 2018
Fosterville 8,450 6.4 1,740 6,930 6.0 1,330
Robbin’s Hill 2,670 4.5 383 3,390 4.6 504
Northern Territory 15,200 2.6 1,270 18,100 2.6 1,490
Total AUS Operations 26,400 4.0 3,390 28,400 3.6 3,320
Note: See disclosures on Kirkland Lake Gold Mineral Reserves and Mineral Resources later in this presentation 44SWAN MINERAL RESERVE & RESOURCE ESTIMATE
December 31, 2019 December 31, 2018 % Change
Tonnes Grade Gold Ounces Tonnes Grade Gold Ounces Gold Gold
Swan(1)
(000's) (g/t) (000’s) (000's) (g/t) (000’s) Grade Ounces
Mineral
Reserves
Proven 493 40.5 641 62 27.6 55 47 1,065
Probable 764 37.4 919 1,410 50.6 2,290 -26 -60
Proven +
1,260 38.6 1,560 1,470 49.6 2,340 -22 -33
Probable
Mineral
Exclusive of Mineral Reserves Exclusive of Mineral Reserves
Resources
Measured 30 46.4 45 2 59.6 4 -22 1,051
Indicated 59 18.2 34 32 15.7 16 16 110
Measured +
89 27.7 79 34 18.3 20 51 293
Indicated
Inferred 93 19.3 57 249 13.4 107 44 -47
1. The Swan Zone Mineral Reserve and Mineral Resource estimates are components of the estimates for the Fosterville mine.
Note: See disclosures on Kirkland Lake Gold Mineral Reserves and Mineral Resources later in this presentation 45NOTES TO KIRKLAND LAKE GOLD MINERAL RESERVES
& MINERAL RESOURCES
Detailed footnotes related to Mineral Reserve Estimates (dated December 31, 2019) - with the exception of Detour:
(1) CIM definitions (2019) were followed in the estimation of Mineral Reserves.
(2) Mineral Reserves were estimated using a long-term gold price of US$1,300/oz (C$1,700/oz; A$1,765/oz).
(3) Cut-off grades for Canadian Assets were calculated for each stope and included the costs of: mining, milling, General and Administration, royalties and capital expenditures and other modifying factors
(e.g. dilution, mining extraction, mill recovery).
(4) Cut-off grades for Australian Assets were calculated for each mining block and included the costs of: mining, milling, General and Administration, royalties and capital expenditures and other modifying
factors (e.g. dilution, mining extraction, mill recovery).
(5) Dilution estimates vary by mining methods and ranges from 5% to 50%.
(6) Extraction estimates vary by mining methods and range from 50% to 100%.
(7) Mineral Reserves estimates for Canadian Operations were prepared under the supervision of N.Vaz, P. En
(8) Mineral Reserves estimates for Australian Operations were prepared under the supervision of I.Holland, FAusIM
(9) Mineral Reserves are stated at a mill feed reference point.
(10) Totals may not add up due to rounding.
Detailed footnotes related to Detour’s Mineral Reserve and Resource Estimates (dated December 31, 2019):
(1) The Company’s mineral reserve and mineral resource statement is classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) “CIM Definition Standards - For
Mineral Resources and Mineral Reserves" adopted by the CIM Council (as amended, the “CIM Definition Standards”) in accordance with the requirements of National Instrument 43-101 “Standards of
Disclosure for Mineral Projects" (“NI 43-101”). Mineral reserve and mineral resource estimates reflect the Company's reasonable expectation that all necessary permits and approvals will be obtained
and maintained.
(2) Mineral reserves were estimated using a gold price of US$1,000/oz and mineral resources were estimated using a gold price of US$1,200/oz at a $US/$CDN exchange rate of 1.10.
(3) Mineral reserves and resources were based on a cut-off grade of 0.50 g/t Au.
(4) LG fines (sourced from material grading 0.40 – 0.50 g/t Au) classified as Measured or Indicated were reported as Probable mineral reserves and included in the mine plan. Reported tonnage is defined
as material scheduled to be fed from 2021 to the end of the mine as per 2018 life of mine plan.
(5) Further information, including key assumptions, parameters, and methods used to estimate mineral resources and mineral reserves are described in the Technical Report on the Detour Lake operation,
dated Nov 26th, 2018.
(6) Mineral underground resources for 58N are reported at a cut-off grade of 2.2 g/t Au, using a gold price of US$1,300 per ounce and a $US/$CDN exchange rate of 1.25 with an assumed mining dilution
of 12%.
(7) Mineral resources are reported exclusive of mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resources are constrained within an
economic pit shell.
(8) Mineral Reserves and Mineral Resource estimates for the Detour Operation was prepared under the supervision of A. Leite, PEng , AUSIMM CP (MIN), MEng, P. Eng.
(9) Totals may not add due to rounding.
46NOTES TO KIRKLAND LAKE GOLD MINERAL RESERVES
& MINERAL RESOURCES
Detailed footnotes related to Mineral Resource Estimates for Canadian Assets (dated December 31, 2019) – with the exception of Detour
(1) CIM definitions (2019) were followed in the calculation of Mineral Resource.
(2) Mineral Resources are reported Exclusive of Mineral Reserves. Mineral Resources were calculated according to KL Gold’s Mineral Resource Estimation guidelines.
(3) Mineral Resource estimates were prepared under the supervision of Eric Kallio, P. Geo. Senior Vice President, Exploration.
(4) Mineral Resources are estimated using a long-term gold price of US $1,300/oz (C$1,700/oz).
(5) Mineral Resources were estimated using a range of 3.4g/t to 8.6 g/t cut-off grades for Macassa Mine, a 2.8 g/t cut-off grade for Holt Mine and Holloway Mine, a 2.5 g/t cut-off grade for Holt Near Surface, a
2.6 g/t cut-off grade for Taylor, a 2.5 g/t cut-off grade for Canamax, a 2.2 g/t cut-off grade for Hislop and a 0 g/t cut-off grade for Aquarius.
(6) Totals may not add up due to rounding.
Detailed footnotes related to Mineral Resource Estimates for Australian Assets (dated December 31, 2019)
(1) CIM definitions (2019) were followed in the estimation of Mineral Resource.
(2) Mineral Resources are estimated using a long-term gold price of US$1,300/oz (A$1,765/oz)
(3) Mineral Resources for the Australian assets are reported exclusive of Mineral Reserves.
(4) Mineral Resources at Fosterville were estimated using cut-off grades 0.7 g/t Au for oxide and 1.0 g/t Au for sulfide mineralization to potentially open-pitable depths of approximately
100m, below which a cut-off grade of 3.0 g/t Au was used.
(5) Mineral Resources in the Northern Territory were estimated using a cut-off grade of 0.5 – 0.7 g/t Au for potentially open pit mineralization and cut-offs of 1.5 to 2.0 g/t Au for
underground mineralization.
(6) Mineral Resource estimates for the Fosterville property were prepared under the supervision of Troy Fuller, MAIG.
(7) Mineral Resource estimates for the Northern Territory properties were prepared under the supervision of Owen Greenberger, MAIG.
(8) Totals may not add up due to rounding.
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 the scientific and technical
information, including information and data related to Mineral Reserves, that is 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 the scientific and technical information relating to
Mineral Resources and other exploration disclosures 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 disclosure of the Mineral
Reserves and Mineral Resources technical information and data for Detour Lake included in this presentation.
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