Kirkland Lake Gold Reports Positive Earnings And Free Cash Flow Generation For Its First Quarter Of Stub Year 2015

TORONTO, ONTARIO -- (Marketwired) -- 09/14/15 -- Kirkland Lake Gold Inc. ("Kirkland Lake Gold" or the "Company") (TSX:KGI) (AIM:KGI), an operating and exploration gold company with operations in Ontario, Canada, today announces financial results for the first quarter of its Stub Year 2015 ("SY15_Q1"), which includes the three months ended July 31, 2015. All figures in this release are in Canadian dollars unless stated otherwise.

 

Highlights

 

• Achieved a head grade of 0.45 ounces per ton ("opt"), or 15.1 grams per tonne ("g/t") in SY15_Q1.

• Sold 41,204 ounces of gold at an average realized price per ounce of $1,498 (US$1,200) in SY15_Q1.

• Cash Operating Costs per Ounce of Gold Produced1 of $792 (US$635).

• All-In Cash Cost per Ounce of Gold Produced1 ("AICC") of $1,234 (US$989) and an All-in Sustaining Cost per Ounce of Gold Sold1 ("AISC") of $1,193 (US$956).

• Income before income taxes of $7.4 million.

• Net and comprehensive income of $4.2 million or $0.05 per share.

• Generated cash flow from operations during the quarter of $14.9 million.

• Generated free cash flow1 of $4.1 million during the quarter.

• Cash as at July 31, 2015 of $81.1 million.

Mr. George Ogilvie, Chief Executive Officer of the Company commented, "We are pleased to be able to report a fifth consecutive quarter of positive earnings and free cash flow generation for the first quarter of the Stub Year for 2015. We strive to continue this trend and will continuously assess our operations in order to increase productivity and reduce costs while ensuring a safe work environment for all of our employees. As such, we have recently implemented a new performance based bonus system which we firmly believe will better reward our employees for safety and production.

 

"Along with our change in year end, we have started to report all-in sustaining costs alongside of our all-in cash costs this quarter. We believe this is another step in the right direction for the Company to remain consistent with the industry and comparable to our peers."

 

1. The Company has included non-GAAP performance measures: average sales price per ounce sold, cash cost per ton produced, cash cost per ounce produced, AICC per gold ounce produced, AISC per ounce of gold sold and free cash flow throughout this announcement. This is a common performance measure in the mining industry but does not have any standardized meaning under IFRS. Refer to Appendix B of the MD&A for a reconciliation of these measures to reported production expenses.

2. All US dollar equivalents are converted at the average CAD to USD exchange rate during the reporting period.

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