Canadian Mining Journal


GOLD: Record earnings, free cash flow for KLGold in Q1

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.

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