Visible gold in core from the Fosterville mine in Australia. (Image: Kirkland Lake Gold)
TORONTO – According to Q1 results, Kirkland Lake Gold is headed for a profitable 2019. The company said its cash position was up 25% to reach $83.9 million (figures in U.S. dollars). Operating cash flow grew 95% to $174.4 million, and that resulted in record free cash flow of $93.1 million, an 85% jump from Q1 2018 and up 8% over Q4 2018.
During the first quarter of this year, KLGold’s revenue grew 54% to a record $304.9 million, compared to the same quarter a year earlier. Record net earnings of $110.1 million – up 120% from Q1 2018 – and adjusted net earnings were $112.1 million, 114% higher than a year earlier.
Kirkland Lake also recording production of 231,879 oz. of gold at an all-in sustaining cost of $560/oz. Reserves at both the Macassa mine in Ontario and the Fosterville mine in Australia grew by 11% and 60%, respectively. At the end of 2018, reserves at all properties were 5.75 million oz. at 15.8 g/t gold, compared to 4.64 million oz. at 11.1 g/t gold at the end of 2017.
So much good news allowed the company to raise its quarterly dividend by 34% to $0.4 per share. The increase is due to Kirkland Lake’s decision to start denominating its dividends in U.S. dollars and reflects the exchange rate between U.S. and Canadian dollars.
More information about individual operations and projects is posted at www.KLGold.com.