Press release from Marketwire
Kirkland Lake Gold Inc.: Fiscal 2012 Second Quarter Financial and Operational Results
Thursday, December 08, 2011
Kirkland Lake Gold Inc.: Fiscal 2012 Second Quarter Financial and Operational Results02:00 EST Thursday, December 08, 2011KIRKLAND LAKE, ONTARIO--(Marketwire - Dec. 8, 2011) -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. Financial Highlights(All amounts in 000's of Canadian Dollars, except shares and per share figures)Three months ended,Oct 31, 2011Jul 31, 2011Oct 31, 2010Gold Sales (ounces)24,76224,17823,392Average Price (per ounce)1,6281,4761,300Revenue40,30735,69830,418Production Expenses23,52724,32020,484Exploration Expenses3,4192,9121,792Net Income before Income Taxes11,7857,9347,674Net and Comprehensive Income9,26422,1808,575Cash Flow from operating activities13,4216,22316,046Cash Flow from (used in) financing activities1,0313442,379Cash Flow used in investing activities(15,941)(17,499)(5,635)Net increase (decrease) in cash(1,449)(10,932)12,790Total cash resources38,38640,29251,509Other Current Assets18,88814,98310,684Current Liabilities20,00319,13117,046Working Capital37,72136,14345,147Total Assets245,400230,712179,809Total Liabilities24,44223,38420,367Weighted average number of shares outstanding69,867,94169,805,61167,763,116Dividends per shareNILNILNILAbout the CompanyThe 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 StatementsThis 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.FOR FURTHER INFORMATION PLEASE CONTACT: Brian HinchcliffeKirkland Lake Gold Inc.President1 705 567 52081 705 568 6444 (FAX)firstname.lastname@example.orgORLindsay CarpenterKirkland Lake Gold Inc.Director of Investor Relations1 416 840 7884416 850 1617 (FAX)email@example.comORLorna Spears / Philippe PolmanPelham Bell Pottinger+44 (0) 20 7861 firstname.lastname@example.orgORGuy WilkesOcean Equities Ltd.+44 207 786 email@example.comORKatherine Roe / Callum StewartNOMAD: Panmure Gordon (UK) Limited+44 20 7459 firstname.lastname@example.orgNeither 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.