Kirkland Lake Gold Inc.: Fiscal 2012 Second Quarter Financial and Operational Results
KIRKLAND LAKE, ONTARIO -- (Marketwire) -- 12/08/11 -- Kirkland Lake Gold Inc. (TSX: KGI)(AIM: KGI) ('Kirkland Lake' or the 'Company'), an operating and exploration gold mining company located in Ontario, Canada, announces an operations update and its second quarter financial results for its fiscal 2012 year ended October 31, 2011.
Mr. Harry Dobson, Chairman commented, 'Second quarter production and financial results through end October have seen operations on budget and plan for the first half of fiscal 2012. The mine plan for the year is designed to increase production in the third and fourth fiscal quarters and the annual production target remains between 110,000 to 130,000 of gold. As at end of November, we were slightly ahead of plan in regards of ounces poured and sold.'
Quarterly results continue to indicate progress due to planned increases in production. The target of the Expansion Project remains to reach an average milling rate of 1,600 tons per day by November 2012, and to be substantially complete by the end of April, 2012. Required work to meet these goals was on schedule at the end of the quarter, and the $75 million budget remains on target, with $57.3 million spent as at October 31, 2011.
KEY HIGHLIGHTS OF THE QUARTER:
-- Net income before taxes was $11.8 million ($0.17 per share), compared to
$7.9 million ($0.11 per share) for the previous quarter (Q1 of fiscal
2012), an increase of 49%.
-- Cash flows generated from operating activities were $13.4 million for
the quarter and $19.7 million year to date (YTD). Cash flows from
operations have been positive for seven consecutive quarters.
-- A total of 70,054 tons of ore were milled (an increase of 22% from the
first quarter) at a head grade of 0.36 ounces of gold per ton (opt) and
a recovery of 96.1% to produce 24,478 ounces of gold. YTD 127,554 tons
of ore were milled at a head grade of 0.40 opt and a recovery of 96.2%
to produce 49,538 ounces of gold.
-- The 4% net smelter royalty payable to Kinross Gold Corporation, part of
the original purchase price of the Mine, terminated during the quarter
as announced on November 9, 2011.
-- The Company's workforce grew by an additional 76 people in the quarter
to a total of 832 employees. A total of 275 employees will be added in
Fiscal Year 2012, of which 147 employees have now been hired.
-- Fifteen drills are now active on the property. Underground exploration
is targeted on increasing the South Mine Complex (SMC) reserves and
resources, while maintaining the Main Mine reserves and resources.
-- Surface Exploration in the second quarter included drilling on the main
mine properties, as well as more grassroots exploration drilling on
other Company properties.
Production following completion of the Expansion Project remains estimated at 180,000 to 200,000 ounces in fiscal 2013 due to an allowance for a ramp-up in production between May 2012 and November 2012. Production guidance for Fiscal Years 2014 to 2016 is estimated at 210,000 to 250,000 ounces per year.
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Financial Highlights Three months ended,
(All amounts in 000's of Canadian
Dollars, except shares and per
share figures)
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Oct 31, 2011 Jul 31, 2011 Oct 31, 2010
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Gold Sales (ounces) 24,762 24,178 23,392
Average Price (per ounce) 1,628 1,476 1,300
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Revenue 40,307 35,698 30,418
Production Expenses 23,527 24,320 20,484
Exploration Expenses 3,419 2,912 1,792
Net Income before Income Taxes 11,785 7,934 7,674
Net and Comprehensive Income 9,264 22,180 8,575
Cash Flow from operating activities 13,421 6,223 16,046
Cash Flow from (used in) financing
activities 1,031 344 2,379
Cash Flow used in investing
activities (15,941) (17,499) (5,635)
Net increase (decrease) in cash (1,449) (10,932) 12,790
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Total cash resources 38,386 40,292 51,509
Other Current Assets 18,888 14,983 10,684
Current Liabilities 20,003 19,131 17,046
Working Capital 37,721 36,143 45,147
Total Assets 245,400 230,712 179,809
Total Liabilities 24,442 23,384 20,367
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Weighted average number of shares
outstanding 69,867,941 69,805,611 67,763,116
Dividends per share NIL NIL NIL
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About the Company
The Company purchased the Macassa Mine and the 1,450 ton per day mill along with four former producing gold properties - Kirkland Lake, Teck-Hughes, Lake Shore and Wright Hargreaves - in December 2001. These properties, which have historically produced approximately 22 million ounces of gold, extend over seven kilometres between the Macassa Mine to the west and Wright Hargreaves to the east and, for the first time, are being developed and explored under one owner. This camp is located in the Southern Abitibi Greenstone Belt of Kirkland Lake, Ontario, Canada.
Cautionary Note Regarding Forward Looking Statements
This Press Release may contain statements which constitute 'forward-looking, including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities and operating performance of the Company. The words 'may', 'would', 'could', 'will', 'intend', 'plan', 'anticipate', 'believe', 'estimate', 'expect' and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities or performance and involve risks and uncertainties, and that the Company's future business activities may differ materially from those in the forward-looking statements as a result of various factors. Such risks, uncertainties and factors are described in the periodic filings with the Canadian securities regulatory authorities, including the Company's Annual Information Form and quarterly and annual Management's Discussion & Analysis, which may be viewed on SEDAR 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 be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements.
Neither the Toronto Stock Exchange nor the AIM Market of the London Stock Exchange has reviewed and neither accepts responsibility for the adequacy or accuracy of this news release.
Contacts:
Kirkland Lake Gold Inc.
Brian Hinchcliffe
President
1 705 567 5208
1 705 568 6444 (FAX)
bhinchcliffe@klgold.com
Kirkland Lake Gold Inc.
Lindsay Carpenter
Director of Investor Relations
1 416 840 7884
416 850 1617 (FAX)
lcarpenter@klgold.com
www.klgold.com
Pelham Bell Pottinger
Lorna Spears / Philippe Polman
44 (0) 20 7861 3232
pr@pelhambellpottinger.co.uk
Ocean Equities Ltd.
Guy Wilkes
44 207 786 4370
guy.wilkes@oceanequities.co.uk
NOMAD: Panmure Gordon (UK) Limited
Katherine Roe / Callum Stewart
44 20 7459 3600
katherine.roe@panmure.com
