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.