Advertisement

Kirkland Lake Gold posts Q1 profit of $4M; reverses year-earlier loss of $1.7M

KIRKLAND LAKE, Ont. – Kirkland Lake Gold Inc. (TSX:KGI) reversed a year-earlier loss and announced a fourth-quarter profit Wednesday as the company reported record gold production for the quarter.

Net profit for the three months ended April 30 was $4 million, which amounted to four cents per share, compared with a net loss of $1.7 million in the comparable 2010 quarter. Per share figures were not given for the prior-year period in a company release.

Revenue for the quarter rose 91 per cent to $29.9 million as the company’s gold production totalled 23,466 ounces, including April production of 10,175 ounces, both record figures.

Get expert insights, Q&A on markets, housing, inflation, and personal finance information delivered to you every Saturday.

Get weekly money news

Get expert insights, Q&A on markets, housing, inflation, and personal finance information delivered to you every Saturday.
By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy.

For the full fiscal year, the company reported a net profit of $20.1 million or 29 cents per share, compared with a net loss of $12.3 million or 20 cents per share for all of fiscal 2010.

Story continues below advertisement

Revenue for the 12-month period was $105.2 million, more than double the 2010 figure of $51.2 million as gold sales soared to 78,809 ounces from 46,962 ounces at an average realized price of $1,333 per ounce, up from $1,091 per ounce.

“This year, we successfully increased yearly gold production to 81,860 ounces,” said company chairman Harry Dobson.

“After meeting all operating costs, spending $59.8 million on sustaining and expansion capital improvements and $9.0 million on exploration, we turned a record net profit of $20.1 million,” Dobson said.

“Cash flows have been positive for five consecutive quarters, demonstrating achievements in production and operational cash flow growth that the expansion project was designed to accomplish.”

Sponsored content

AdChoices