Kirkland Lake Gold Inc....Kirkland Lake Gold Inc. 8 Amanda Kasner, CPA, CA Manager of Finance •...
Transcript of Kirkland Lake Gold Inc....Kirkland Lake Gold Inc. 8 Amanda Kasner, CPA, CA Manager of Finance •...
Annual General Meeting of Shareholders
TSX/AIM: KGI
KIRKLAND LAKE GOLD INC.
October 22, 2014 A Rich History With A Profitable Future
FORWARD LOOKING STATEMENTS
Kirkland Lake Gold Inc. www.klgold.com 2
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 Presentation include, but may not be limited to, statements
regarding the Company’s production forecast including ounces produced and grade assumptions; the
operating costs and all-in cash cost for fiscal 2015; and exploration programs and their results. 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 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 July 31, 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
COMPANY VISION
George Ogilvie, P.Eng., CEO
“We are building a sustainable mining company that is recognized as a safe and responsible intermediate
gold producer.
We will provide exceptional stakeholder value by delivering operational and exploration excellence through empowering our people to act as owners.”
Kirkland Lake Gold Inc. www.klgold.com 3
TSX/AIM: KGI
A NEW KIRKLAND LAKE GOLD
Kirkland Lake Gold Inc. www.klgold.com 4
Board of Directors Focusing on Improving Governance and
Strategic Planning
New Leadership Team Delivering Positive Operating Results
Focus on Profitable Mining will Ensure Positive Cash
Flow Generation
Improving Transparency and Communication of
Targets
Continuing Exploration to Ensure Future
Growth for KGI
Ensuring Health, Safety and Environmental
Standards are Met or Exceeded
TSX/AIM: KGI
OUR TEAM
EXPERIENCED AND DIVERSE BOARD OF DIRECTORS
Kirkland Lake Gold Inc. www.klgold.com 6
New Appointments
Barry Cooper, B.Sc., MBA (Non-executive Director)
• Former head analyst with CIBC
Jeff Parr, CA, BA, MBA (Non-executive Director)
• CFO of Centerra Gold
Barry Olson, P.Eng., M.Sc. (Non-executive Director)
• Former Sr. VP Projects of Goldcorp
Harry Dobson, Chairman of the Board (Non-executive Director)
Dawn Whittaker, LLB (Non-executive Director)
Pamela Klessig, P.Geo (Non-executive Director)
John Thomson, CA
George Ogilvie, P.Eng
TSX/AIM: KGI
SYNERGISTIC EXECUTIVE MANAGEMENT TEAM
GEORGE OGILVIE, P. Eng.
President & CEO, Director
• 25 years management, operating, and
technical expertise in the mining industry
with over 9 years of operating experience
in deep, narrow-vein gold mines (Anglo
Gold, South Africa)
• Former CEO of Rambler Metals and
Mining
JOHN THOMSON, CA
Executive VP and CFO,
Director
• More than 25 years experience in
various senior level finance positions
with companies such as PepsiCo
• Chartered Accountant who studied at
INSEAD
CHRIS STEWART, P. Eng.
VP Operations
• More than 20 years of operating
experience in Northern Ontario in various
senior-level positions. Prior to joining
KGI, was CEO of Liberty Mines Inc.
• Mining Engineering degree from Queen’s
University
Worked together
at Dynatec for
~3.5 years
Worked together at
Rambler for ~ 7 years
Kirkland Lake Gold Inc. www.klgold.com 7
TSX/AIM: KGI
SENIOR MANAGEMENT STRENGTH
Stew Carmichael, P.Geo
Manager of Exploration
Kirkland Lake Gold Inc. www.klgold.com 8
Amanda Kasner, CPA, CA
Manager of Finance
• Over 27 years of experience, primarily within the Abitibi. Extensive work in the Kirkland Lake
Area. Co-winner of the Ontario Prospectors Award for the South Mine Complex discovery.
• Over 17 years of environmental control experience in the timber and mining industries, with the
last 6 years also providing sustainability and health and safety management.
• Bachelor of Commerce Honors degree from McMaster University, graduating Summa Cum
Laude. Received her CA designation in 2010. Over 16 years of experience in the mining industry.
Suzette N Ramcharan, CPIR
Director of Investor Relations • Over 14 years within the mining industry with the last 8 years in Investor Relations. Experience
with exploration, development and producing companies.
Bryan Neeley
Manager of Health, Safety, Environment and Community
TSX/AIM: KGI
Heather Laxton
Corporate Secretary
• Professional law clerk with over 17 years of corporate governance, corporate secretarial and
securities regulation experience with a focus on the mining industry.
MANAGING THE OPERATIONS
NEW MINE PLAN
OLD
TONNAGE Focused on Quantity
Requirements
• High gold price environment >$1600
• More manpower
• 100’s of stopes in production cycle
• All mineralization into the ore pass
Results
• Grade continued to drop
• Cost increased
• Complex planning and logistics
• Unprofitable
• High cash burn
• Multiple urgent financings
NEW
GRADE Focused on Quality
Requirements
• Not dependent on high gold price
• Less manpower
• Fewer stopes
• Strict ore/ waste management and
dilution control
Results
• Grade has risen significantly
• Cost reduced
• Simplified planning and logistics
• Return to profitability
• Cash flow positive
• Finance at company’s discretion
Kirkland Lake Gold Inc. www.klgold.com 10
TSX/AIM: KGI
0.33
0.37
0.45
0.37
-
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.40
0.45
0.50
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Q3 14 Q4 14 Q1 15 Q2 15Estimate
Ave
rag
e H
ea
d G
rad
e
Go
ld O
un
ce
s
Oz Recovered MB Average Head Grade
OPERATIONAL SUCCESS
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
Q3 14 Q4 14 Q1 15 Q2 15Estimate
Go
ld O
un
ce
s
Oz Recovered MB Oz Recovered SMC
Changes to the mine plan have now started to take effect
Kirkland Lake Gold Inc. www.klgold.com 11
0.33
0.37
0.45
0.37
Average Head Grade
TSX/AIM: KGI
REVISED MINE PLAN DRIVING DOWN COSTS
$1,094 $1,000
$788 $800
$-
$150
$300
$450
$600
$750
$900
$1,050
$1,200
$1,350
$1,500
$1,650
$1,800
$1,950
Q3/14 Q4/14 Q1/15 Balance of Year Estimate
Royalties
Exploration
Corporate
PP&E
Capital Development
Production
Kirkland Lake Gold Inc. www.klgold.com 12
All-In Cash Costs (AICC)
$1,369
$1,376
$1,401
F2015E
(Balance of Year)
Average Realized Gold Sales Price
All figures in Canadian Dollars
TSX/AIM: KGI
0
0.1
0.2
0.3
0.4
-
50,000
100,000
150,000
200,000
250,000
F2014A F2015E F20156E F2017E
Gra
de
(O
un
ce
s p
er
To
n)
Oz Recovered
Guidance Range
Head Grade0.33
0.37 0.39 0.41
ACHIEVABLE GOALS
Ou
nc
es
Re
co
ve
red
122,3
09
Previous
Guidance Gap
14
0,0
00
– 1
55
,00
0
15
0,0
00
– 1
70
,00
0
16
0,0
00
– 1
80
,00
0
Head Grades are Expected
to Increase
Kirkland Lake Gold Inc. www.klgold.com 13
TSX/AIM: KGI
EXPLORATION SUCCESS
• Near surface mineralization
is within 2 km’s of mill
• Currently have 3 drills in
operation to expand
resource and perform infill
drilling
• Remains open along strike
and at depth
• Update Reserve and
Resource in early calendar
2015 will feed into a
Preliminary Economic
Assessment
Kirkland Lake Gold Inc. www.klgold.com 14
TSX/AIM: KGI
ENVIRONMENT AND SAFETY FOCUS
Environmental Record F2015
YTD
MOE Orders Issued (Re: environmental incident) 0
Spills (non threatening)* 2
Discharge Exceedance 0
Safety Record F2015
YTD Target
Total Recordable Injury Frequency Rates (TRIFR) 6.0 <3.5
* Spills were result of ruptures in the tailings pipe
“Home safe and healthy, after every shift.”
Kirkland Lake Gold Inc. www.klgold.com 15
TSX/AIM: KGI
GOALS AND OBJECTIVES FOR F2015
Guidance Metric Q1/15 Actual Status
$800 – 850/ Oz Cash Operating Cost Per Ounce $788 Favourable
$1,250 - 1,350/ Oz AICC Per Ounce Produced $1,250 On Track
$58.0 million Sustaining CAPEX $12.0 million On Track
$200.0 million Revenue $54.0 million On Track
$50.0 - 60.0 million Cash Flow from Operations $17.0 million Favourable
$15.0 - 20.0 million Free Cash Flow Generation $5.0 million On Track
Kirkland Lake Gold Inc. www.klgold.com 16
All figures in Canadian Dollars
TSX/AIM: KGI
SHARE PRICE PERFORMANCE RELATIVE TO THE GOLD
PRICE (C$)
Kirkland Lake Gold Inc. www.klgold.com 17
30%
40%
50%
60%
70%
80%
90%
100%
110%
120%
Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14
Kirkland Lake (TSX:KGI) Gold Price (C$ / oz)
(-13%)
(-16%)
TSX/AIM: KGI
WHY KIRKLAND LAKE GOLD?
Kirkland Lake Gold Inc. www.klgold.com 18
The Kirkland Lake gold camp has
been producing gold for over 100
years.
Almost 25 Moz’s has been
produced to date, from seven
mines.
Based on grade, it is one of the
richest gold camps in the world.
Located in Ontario, one of the safest and
lowest risk mining jurisdictions globally
Attractive NI43-101 high grade reserve
and resource profile with a long mine life
Growing annual production, declining cost
base and improving unit costs
Company returning to profitability and free
cash flow
Significant exploration potential with
organic growth
Potential upside with a higher gold price
and a weaker Canadian dollar
TSX/AIM: KGI
For more information:
Suzette N Ramcharan
Director of Investor Relations
Email : [email protected]
Head Of f i ce :
155 Un ivers i t y Ave
To ron to ON M5H 3B7
Te l : 416 -840-7884
Ema i l : i n fo@klgo ld . com
WWW.KLGOLD.COM