OUTLOOK
The Company's ability to achieve production goals and targets is being impacted by the complex multi-year Exploration and Expansion Project that the Company is currently implementing. The Company's current and future production targets will therefore include additional contingencies to reflect the potential for greater variances arising from unanticipated or unknown problems, for unexpected challenges or delays that may arise, and for the higher priority status of project work over production. Work on next fiscal year's budget will begin shortly. At this time, the Company intends to budget based on gold sales of 150,000 to 180,000 ounces for fiscal year 2014, again using the methodology outlined above. The Company intends to increase gold sales further from these levels in future years. Please refer to the Company's Management Discussion and Analysis available on SEDAR and the Company's website for further information.
SELECTED FINANCIAL INFORMATION & REVIEW OF OVERALL PERFORMANCE----------------------------------------------------------------------------Financial Highlights Three months ended,(All amounts in 000's of Canadian Dollars, except shares and per share figures) --------------------------------------- Oct 31, 2012 Jul 31, 2012 Oct 31, 2011----------------------------------------------------------------------------Gold Sales (ounces) 22,345 19,964 24,762Average Price (per ounce) 1,660 1,635 1,628----------------------------------------------------------------------------Revenue 37,101 32,648 40,307Production Expenses 30,042 26,616 23,527Exploration Expenses 4,710 4,332 3,419Net Income (Loss) before Income Taxes (826) (295) 11,785Net and Comprehensive Income (Loss) (783) 413 9,264Per share (basic and diluted) (0.01) 0.01 0.13Cash Flow from operating activities 10,454 2,403 13,421Cash Flow from financing activities 3,945 54,085 1,031Cash Flow used in investing activities (47,781) (38,319) (15,941)Net increase (decrease) in cash (33,382) 18,169 (1,449)----------------------------------------------------------------------------Total cash resources 39,954 73,288 38,386Other Current Assets 22,976 25,767 18,888Current Liabilities 63,058 26,844 20,003Working Capital (128) 72,211 37,721Total Assets 364,493 327,085 245,400Total Liabilities 123,884 86,185 24,442----------------------------------------------------------------------------Weighted average number of shares outstanding 70,150,912 70,150,912 69,867,941Dividends per share NIL NIL NIL----------------------------------------------------------------------------
About the Company
Kirkland Lake Gold's corporate goal is to create a self sustaining and long lived intermediate Gold Mining Company based in the historic Kirkland Lake Gold Camp. The Company plans to do this by increasing production capacity to 2,200 tons of ore per day in several stages, and by decreasing production costs by realizing the economies of scale associated with that higher production capacity. At the same time, the company is committed to maintaining a significant exploration program aimed at developing and maintaining a property wide reserve and resource base sufficient to sustain a mine life of more than ten years for as long as practicable.
