KIRKLAND LAKE, ONTARIO -- (Marketwired) -- 07/11/13 -- Kirkland Lake Gold Inc. (the "Company") (TSX: KGI)(AIM: KGI), an operating and exploration gold mining company, announces operational and financial results for the fourth quarter (February, March, April 2013) and fiscal year 2013.
Mr. Harry Dobson, Chairman commented, "Fiscal 2013 was a very challenging year for the Company that ended; however, with strong gold production of 31,503 ounces in the fourth quarter, as the service cage project completed and nearly doubled daily hoisting capacity from 1,000 to 1,800 tons per day. During fiscal 2014, the Company will continue to implement its expansion plans to reach production of 2,200 tons ore per day, and with this throughput rate reduce its direct and all in costs of gold production. To this end, with expansion capital spending and activities 90% behind us, and exploration spending and activities also reducing to a more sustainable level, the management team is focused on delivering increasingly solid quarters of operational performance going forward."
KEY HIGHLIGHTS OF THE QUARTER
-- Net income before income taxes for the quarter ending April 30, 2013 was $4.0 million or $0.06 per share. This compares to $9.0 million or $0.13 per share in Q4 fiscal 2012. Revenue for the quarter was $54.5 million compared to $40 million in Q4 fiscal 2012.-- Operating cost per ton and cost per ounce were $375 per ton and $1,062 per ounce compared to $249 per ton and $735 per ounce in Q4 2012. Net of inventory adjustments, operating cost per ton and cost per ounce were $325 per ton and $923 per ounce compared to $281 per ton and $832 per ounce in Q4 2012. The increase in costs year over year net of inventory adjustments was largely attributable to additional labour being carried as necessitated by training and development requirements ahead of planned production increases. Cost adjustments attributable to inventory adjustments tend to net to zero over the longer term and are primarily caused by short term fluctuations in ore grade and process inventory levels.-- During the quarter, 89,384 tons of ore were produced at a head grade of 0.37 ounces of gold per ton (opt) and a gold recovery rate of 95.94% to produce 31,503 ounces of gold. Ounces sold in the quarter were 32,123 ounces. Quarterly ore tonnage produced was a record for the Company and the Macassa mine.-- The head grade of the ore coming from the South Mine Complex (SMC) in the quarter was 0.44 opt, which was above the 0.33 opt grade realized in the previous quarters of the year, but within the normal grade of ore coming from that area in past years.-- The increases in tonnage and the increasing grades realized in the SMC were attributable to the service cage being in operation during the quarter. With this cage available to move personnel and supplies, the main production hoist was freed to increase hoisting of both ore and waste and to sling mining equipment underground. The increase in capacity allowed the rate of development of higher grade ore mining workplaces under 53 Level in the SMC to increase. This brought additional high grade sources of ore into the mining cycle in late March and in April.