Kirkland Lake lifts free cash flow on higher production, prices
VANCOUVER (miningweekly.com) – Midtier gold miner Kirkland Lake Gold has lifted free cash flow for the second quarter ended June 30 to C$31.9-million, compared with C$3.1-million during the comparable period a year earlier.
The company’s performance was boosted by higher realised gold prices, lower all-in sustaining costs (AISC) and increased output and sales as a result of the additional production from the Holt-Holloway and Taylor mines the company acquired through the acquisition of St Andrew Goldfields in January.
Including the free cash flow generation during the quarter, Kirkland Lake reported C$157.5-million in cash and cash equivalents at quarter end, compared with C$81.14-million at July 31, 2015.
The company on Thursday reported strong performance for the period, hitting consolidated production of 68 338 oz of gold. Sales totalled 72 144 oz in the quarter, recording an average realised price of $1 271/oz.
AISC per ounce of gold rose slightly to $990/oz in the period.
Quarterly revenue nearly doubled to C$118.1-million, compared with C$61.7-million a year earlier.
For the second quarter, Kirkland Lake reported net income of about C$13.8-million, or C$0.12 a share, compared with C$4.2-million, or $0.05 a share, for the quarter ended July 31, 2015. Comprehensive income was C$14-million, or C$0.12 a share. This was short of analyst forecasts of earning C$0.14 a share.
Kirkland Lake advised that it remained on track to meet its increased full-year guidance of 270 000 oz to 290 000 oz.
The company’s TSX-listed stock traded lower on Friday at C$10.95 apiece, in step with lower spot gold prices.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation