TORONTO (miningweekly.com) – TSX- and Aim-listed Kirkland Lake Gold on Monday reported net income before tax of C$4.4-million for the three months ended October 31, compared with a net loss of C$6.1-million in the same quarter last year. Net and comprehensive income for the quarter was $2.7-million, or $0.04 a share, as opposed to a net and comprehensive loss of C$4-million, or 0.06 a share, a year earlier.

Production expenses rose to $43.1-million, up from $39.7-million, while revenue from gold sales rose to $53.5-million, up from $41.3-million.

Gold sales rose to 38 335 oz, up 26% from 30 530 oz, and the average realised price rose slightly year-on-year from $1 353/oz to $ 1 395/oz.

“In the second half of this fiscal year we intend to increase our tons a day while maintaining our strategy of mining as close as possible to the reserve grade of the mine. To safeguard our revenue stream in the third quarter, we have forward sold a portion of the Q3 production, which is priced above our AICC [all-in cash cost] guidance for this fiscal year,” CEO George Ogilvie said.

He added that in conjunction with ramping up the mining rate, the company was embarking on more sustainable cost-cutting measures that it expected would continue to improve the company's unit cost metrics to allow it to remain profitable and free cash flowing in a challenging gold price environment.

"We will restructure our personnel remuneration and incentive approach to ensure that internal goals are aligned with the company’s overall objectives and that we are competitive with our peers. We are confident that with continued success and operational improvements yet to be realised, we will be able to meet our guidance parameters for this fiscal year,” Ogilvie commented.

Kirkland Lake, which was currently focused on its Macassa and South Mine complex, in the Southern Abitibi gold belt of Ontario, said it continued to make good progress towards achieving its guidance target for fiscal 2015 of between 140 000 oz and 155 000 oz.

The company revised its sustaining capital expenditures down by $5-million to $53-million for the 2015 fiscal year.

At the close of business on Monday, Kirkland Lake’s TSX-listed stock was up 2.85% at C$3.61 apiece. The stock had gained 24.47% in value since the start of the year.