Welcome!

Microsoft Cloud Authors: Pat Romanski, Elizabeth White, Liz McMillan, Mihai Corbuleac, David Bermingham

News Feed Item

Kirkland Lake Gold Inc.: Fiscal 2013 Q2 Operational and Financial Results

KIRKLAND LAKE, ONTARIO -- (Marketwire) -- 12/13/12 -- Kirkland Lake Gold Inc. (the "Company"), (TSX:KGI)(AIM:KGI) an operating and exploration gold mining company, today announces financial and operational results for the second quarter of its fiscal year 2013 (August, September, and October 2012).

Mr. Harry Dobson, Chairman commented, "The focus of the Company remains the execution of the Mine Expansion Project to a production capacity of 2,200 tons of ore per day. Reaching this milestone will be a key step towards achieving the Company's goal of becoming a sustainable and consistently profitable intermediate gold mining company. The current critical path activity for this Expansion Project is the Service Cage Project. Regrettably, delays in completing this critical path activity have resulted in a delay in the overall Project, and are preventing the Company from meeting its production goals for the current fiscal year. Accordingly, the Company is reducing its guidance for the year ending April 30 to between 90,000 to 110,000 ounces of gold sold. This setback notwithstanding, the Company does remain committed to reaching the above referenced production capacity of 2,200 tons per day as close to the original plan target date of January 2014 as practicable."

Mr. Mark Tessier, Chief Operating Officer, added, "The current critical path item in this expansion project is the Service Cage Project, which will allow hoisting of ore and waste to begin to exceed the current 1,000 ton per day limit. Unfortunately, the completion of this Project continues to be delayed by technical issues with the hoist, primarily software and electronic issues; and also by additional shaft work that had to be moved up in the overall project schedule, and into the scope of the Service Cage Project. The delay in this Project has delayed the ramp up in ore tonnage produced that should have begun in Q2, has delayed the hiring and training of necessary underground workers, and has delayed development work required to access higher grade ore that was required to allow the Company to produce at the planned ore grades this year."

"The Service Cage Project is close to completion, but due to past delays in this Project, the Company is currently allowing in its projections that the Project will not be fully complete before the end of Q3, and that ore tonnage will not begin to ramp up until mid Q4, as a precaution. The Company is also slowing the expected rate of that ore tonnage ramp up to reflect the additional time that will be required to hire and train needed underground workers, and to reflect the time that will be required to complete the development work in the Mine that has been delayed."

KEY HIGHLIGHTS OF THE QUARTER


--  Net loss before income taxes for the quarter ended October 31, 2012 of
    $0.8 million ($0.01 per share). This compares to net loss before taxes
    of $0.3 million ($0.00 per share) for the previous quarter and a net
    income before taxes of $11.8 million ($0.16 per share) for Q2 of fiscal
    2012. Ore production for the quarter continued to be skewed towards
    lower grade areas, as access to higher grade ore was restricted due to
    delays in the Service Cage Project. Costs were also high as the Company
    had completed some hiring and training and committed to other work and
    activities in Q1 and Q2 in preparation for the planned production
    increases. 
    
--  Cash flows generated from operating activities were $10.5 million for
    the quarter compared to $2.4 million in the previous quarter and $13.4
    million in Q2 of fiscal 2012. Year to date cash flows from operating
    activities were $12.9 million compared to $19.7 million in the previous
    fiscal year. 
    
--  Operating costs for the quarter were $360 per ton of ore ($1,253 per
    ounce of gold), compared with $316 per ton ($1,276 per ounce) in the
    prior quarter, and $277 per ton ($793 per ounce) in Q2 of fiscal 2012.
    The Company expects to lower operating costs to less than $250 per ton
    upon completion of the Mine Expansion Project. 
    
--  In the quarter, 70,800 tons of ore were produced at a head grade of 0.30
    ounces of gold per ton (opt) and a gold recovery rate of 95.74% to
    produce 20,358 ounces of gold. Year to date, 141,001 tons of ore have
    been produced at a head grade of 0.28 opt and a gold recovery rate of
    95.52% to produce 37,754 ounces. Ounces sold in the quarter were 22,345
    ounces, bringing the year to date total to 42,309 ounces sold. The head
    grade of the ore coming from the South Mine Complex (SMC) in the quarter
    was 0.34 opt, which was above the 0.27 opt grade realized in the
    previous quarter, but well below the normal grade of ore coming from
    that area. The head grade of ore coming from the Main Break in the
    quarter was 0.25 opt. 
    
--  As at December 12, 2012, the Company's cash resources were $101.1
    million. Net of the liability to Queenston and restricted cash, the
    Company's cash resources were $71.1 million. 
    
--  Work remaining on the Service Cage Project as of December 12 included
    some ongoing trials and upgrades planned for operation of the hoist in
    Cage mode, completion of shaft work between 53 Level and 54 Level, and
    completion of 50% to 60% of the required station work. Commissioning
    work on the hoist and cage took up most of the month of November due to
    some problems with software and electronics for the control systems and
    held back the work in other areas. The work platform remains in the
    shaft and is being used in combination with the cage as required for the
    shaft work. At present the hoist is operating in cage/work platform mode
    for shaft work with no issues, and is also being operated in cage only
    mode on a spare/trial basis with no issues. 
    
--  The Company is planning to replace the ten ton skips in the existing
    conveyance arrangement with newly designed 12.5 ton skips after
    completion of the Service Cage Project. Slight modifications to the
    shaft loading chairs will be required at the same time. This will
    increase the capacity of the mine hoisting plant to 2,275 tons per day
    of ore and waste. Completion of additional shaft work prior to January
    2014 will bring the capacity of the mine hoisting plant to 3,200 tons
    per day. The shaft work brought ahead into the Service Cage Project was
    originally part of this later stage of the overall Project. 
    
--  The testing of the prototype battery scoop underground has been
    completed successfully. The scoop is currently commissioned and in
    production and performing very well, and this program is currently
    meeting all Project schedule requirements at this time. 
    
--  The new ball mill is currently on site; work is ongoing to expand the
    mill to 2,200 tons per day capacity. 
    
--  The Company workforce totalled 957 employees at quarter-end, up from 907
    at the beginning of Q1. The Company is not experiencing difficulty
    meeting its workforce requirements in terms of numbers at this time.
    However, more hiring of inexperienced underground employees than
    expected has been required, with a resultant increase in training
    activities, and with lower than planned initial productivities. This has
    slightly impacted mining costs this fiscal year. 
    
--  The Expansion Project budget remains on track at $95.0 million, of which
    $72.7 million had been spent by the end of October, 2012. The Processing
    Plant Upgrade, the Hoisting Capacity Upgrade Project, and the remaining
    underground mobile equipment purchases represent the largest segments of
    unspent Project capital. Project spending in some non critical path
    Project areas has been delayed as necessary and where practicable to
    match progress on the critical path. 
    
--  Subsequent to quarter-end on November 7, the Company completed a $68.5
    million (net of transaction costs) private placement of convertible
    debentures. The funds will be used in part to fund portions of the
    Expansion Project that had been expected to be funded from production. 

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       24,762 
Average Price (per ounce)                   1,660        1,635        1,628 
----------------------------------------------------------------------------
Revenue                                    37,101       32,648       40,307 
Production Expenses                        30,042       26,616       23,527 
Exploration Expenses                        4,710        4,332        3,419 
Net Income (Loss) before Income Taxes        (826)        (295)      11,785 
Net and Comprehensive Income (Loss)          (783)         413        9,264 
Per share (basic and diluted)               (0.01)        0.01         0.13 
Cash Flow from operating activities        10,454        2,403       13,421 
Cash Flow from financing activities         3,945       54,085        1,031 
Cash 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       38,386 
Other Current Assets                       22,976       25,767       18,888 
Current Liabilities                        63,058       26,844       20,003 
Working Capital                              (128)      72,211       37,721 
Total Assets                              364,493      327,085      245,400 
Total Liabilities                         123,884       86,185       24,442 
----------------------------------------------------------------------------
Weighted average number of shares                                           
 outstanding                           70,150,912   70,150,912   69,867,941 
Dividends 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.

Cautionary Note Regarding Forward-Looking Statements

This Press Release contains statements which constitute "forward-looking statements", including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to the future business activities and operating performance of the Company. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate to the Company, are intended to identify such forward-looking statements. Investors are cautioned that forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the Company's expectations in connection with the projects and exploration programs being met, the impact of general business and economic conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, fluctuating gold prices, currency exchange rates (such as the Canadian dollar versus the United States Dollar), possible variations in ore grade or recovery rates, changes in accounting policies, changes in the Company's corporate mineral resources, changes in project parameters as plans continue to be refined, changes in project development, construction, production and commissioning time frames, risks related to joint venture operations, the possibility of project cost overruns or unanticipated costs and expenses, higher prices for fuel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, unexpected changes in mine life, seasonality and unanticipated weather changes, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, and limitations on insurance, as well as those risk factors discussed or referred to in the Company's annual Management's Discussion and Analysis and Annual Information Form for the year ended April 30, 2012 filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements except as otherwise required by applicable law.

Neither the Toronto Stock Exchange nor the AIM Market of the London Stock Exchange has reviewed and neither accepts responsibility for the adequacy or accuracy of this news release.

Contacts:
Kirkland Lake Gold Inc.
Brian Hinchcliffe
President
+1 705 567 5208
+1 705 568 6444 (FAX)
[email protected]

Kirkland Lake Gold Inc.
Lindsay Carpenter
Director of Investor Relations
+1 416-840-7884
+1 705 568 6444 (FAX)
[email protected]
www.klgold.com

NOMAD: Panmure Gordon (UK) Limited
Katherine Roe
+44 (0) 20 7 8862500
[email protected]

NOMAD: Panmure Gordon (UK) Limited
Callum Stewart
+44 (0) 20 7 8862500
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
"We work in the area of Big Data analytics and Big Data analytics is a very crowded space - you have Hadoop, ETL, warehousing, visualization and there's a lot of effort trying to get these tools to talk to each other," explained Mukund Deshpande, head of the Analytics practice at Accelerite, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Cloud Expo, Inc. has announced today that Andi Mann returns to 'DevOps at Cloud Expo 2016' as Conference Chair The @DevOpsSummit at Cloud Expo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "DevOps is set to be one of the most profound disruptions to hit IT in decades," said Andi Mann. "It is a natural extension of cloud computing, and I have seen both firsthand and in independent research the fantastic results DevOps delivers. So I am excited t...
Basho Technologies has announced the latest release of Basho Riak TS, version 1.3. Riak TS is an enterprise-grade NoSQL database optimized for Internet of Things (IoT). The open source version enables developers to download the software for free and use it in production as well as make contributions to the code and develop applications around Riak TS. Enhancements to Riak TS make it quick, easy and cost-effective to spin up an instance to test new ideas and build IoT applications. In addition to...
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effi...
Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2016 Silicon Valley. The 6thInternet of @ThingsExpo will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Presidio has received the 2015 EMC Partner Services Quality Award from EMC Corporation for achieving outstanding service excellence and customer satisfaction as measured by the EMC Partner Services Quality (PSQ) program. Presidio was also honored as the 2015 EMC Americas Marketing Excellence Partner of the Year and 2015 Mid-Market East Partner of the Year. The EMC PSQ program is a project-specific survey program designed for partners with Service Partner designations to solicit customer feedbac...
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, provided an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profession...
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
Ask someone to architect an Internet of Things (IoT) solution and you are guaranteed to see a reference to the cloud. This would lead you to believe that IoT requires the cloud to exist. However, there are many IoT use cases where the cloud is not feasible or desirable. In his session at @ThingsExpo, Dave McCarthy, Director of Products at Bsquare Corporation, will discuss the strategies that exist to extend intelligence directly to IoT devices and sensors, freeing them from the constraints of ...
Connected devices and the industrial internet are growing exponentially every year with Cisco expecting 50 billion devices to be in operation by 2020. In this period of growth, location-based insights are becoming invaluable to many businesses as they adopt new connected technologies. Knowing when and where these devices connect from is critical for a number of scenarios in supply chain management, disaster management, emergency response, M2M, location marketing and more. In his session at @Th...
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm ...
Apixio Inc. has raised $19.3 million in Series D venture capital funding led by SSM Partners with participation from First Analysis, Bain Capital Ventures and Apixio’s largest angel investor. Apixio will dedicate the proceeds toward advancing and scaling products powered by its cognitive computing platform, further enabling insights for optimal patient care. The Series D funding comes as Apixio experiences strong momentum and increasing demand for its HCC Profiler solution, which mines unstruc...
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2016 Silicon Valley. The 19th Cloud Expo and 6th @ThingsExpo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Interne...
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...