Kirkland Lake Gold Inc.: Fourth Quarter Net Income of $905,772 and Year End Results, Fiscal 2008
Tue Jul 22, 4:21 AMKIRKLAND LAKE, ONTARIO--(Marketwire - July 22, 2008) - Kirkland Lake Gold Inc. ('Kirkland Lake' or the 'Company') (TSX: KGI.TO)(AIM: KGI), an operating and exploration gold mining company located in Ontario, Canada, has announced its results for the financial year ended April 30th, 2008.
Highlights for Fiscal 2008 - The Company generated a positive production margin of $1.8 million and positive operating cash flows of $2.2 million in the year to April 30, 2008. - The number of ounces sold increased 2% to 52,019 however the number of ounces produced fell 8% to 48,833 compared to fiscal 2007. Production levels were lower due to a higher level of definition and delineation drilling taking place to develop reserves in the South Mine Complex ('SMC') and difficulties with waste passes which have now been resolved. - Gold head grade for the year improved 10% to 0.4 ounces per tonne ('opt') (2007: 0.365 opt) due to a larger proportion of production coming from the higher-grade deposits in the SMC. - Investment in plant and equipment rose 88% to $3.4 million to accommodate the anticipated increase in development and mining activity in the SMC. - Due to the SMC being in an intensive definition and delineation phase, investment in mineral properties decreased 22% to $4.2 million. - Cash resources as at April 30, 2008 were $31 million. Outlook - Gold production for the coming fiscal year is expected to be in the range of 58,000 to 62,000 ounces. - Exploration spending, including access development, will be $6.3 million. - A major development program has also been launched to provide access to the new high grade ore stopes between the 5000 - 5600 foot level elevations of the SMC. This $10 million programme will have a material effect on the results and financial position of the Company in future periods. Harry Dobson, Kirkland Lake's Chairman, commented; "We are very pleased with the progress which has been made during fiscal 2008. We are gaining a far better understanding of the SMC and strongly believe in the exploration potential of this new and important area. Aside from reporting the highest recorded drill hole intersection in the history of the Kirkland Lake camp during the final quarter, our financial performance continues to improve with revenues now 25% higher at $13.2 million over the prior quarter generating nearly $1 million of net income. Our goal of financing our exploration programme from ongoing production should be achievable during fiscal 2009."-------------------------------------------------------------------------- Financial Highlights Year ended April 30, (All amounts in 000s of Canadian Dollars, ------------------------------ except shares and per share figures) 2008 2007 2006 -------------------------------------------------------------------------- Gold Sales (ounces) 52,019 50,890 59,630 Average Price (per ounce) $797 $720 $589 -------------------------------------------------------------------------- Revenue 41,436 36,656 35,123 Operating Expenses 39,609 38,459 36,145 Exploration Expenditure 3,877 4,860 5,025 Net Income (loss) (3,346) (8,383) (6,457) Per share (basic and diluted) (0.06) (0.16) (0.13) Cash Flow from (used) operating activities 2,158 (7,051) (4,804) Cash Flow from financing activities 12,341 31,329 20,169 Cash Flow (used) for investing activities (25,171) (7,415) (14,586) Net increase (decrease) in cash (10,672) 16,863 779 Cash at end of period 15,603 26,275 9,412 -------------------------------------------------------------------------- Total Assets 91,521 80,769 60,767 Total Liabilities 10,053 9,143 11,784 Working Capital 30,056 26,216 6,702 -------------------------------------------------------------------------- Weighted average number of shares outstanding 55,470,107 52,947,013 48,118,378 Dividends per share NIL NIL NIL --------------------------------------------------------------------------About Kirkland Lake Gold Inc. Kirkland Lake Gold Inc. is an operating and exploration gold mining company located in Ontario, Canada. Kirkland Lake Gold Inc. purchased the Macassa Mine and the 1,500 ton per day mill along with four former producing gold properties - Kirkland Lake, Teck-Hughes, Lake Shore and Wright Hargreaves - in December 2001. These properties, which have historically produced some 22 million ounces of gold, extend over seven kilometres between the Macassa Mine on the west and Wright Hargreaves on the east and, for the first time, are being developed and explored under one owner. This camp is located in the Southern Abitibi Greenstone Belt of Kirkland Lake, Ontario, Canada. The Company's corporate goal is to expand its gold reserves and reduce its operating costs to become a profitable gold producer. The Company's common shares trade on the TSX (Toronto Stock Exchange) and on the AIM (Alternative Investment Market) of the London Stock Exchange. The Company's senior management and Board of Directors have extensive experience in the natural resource and mining sectors that include exploration, mining and marketing, as well as experience in the legal and corporate finance areas. Cautionary Note Regarding Forward Looking Statements This Press Release may contain statements which constitute 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995 of the United States of America, including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers 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, or its management, are intended to identify such forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities or performance and involve risks and uncertainties, and that the Company's future business activities may differ materially from those in the forward-looking statements as a result of various factors. Such risks, uncertainties and factors are described in the Company's periodic filings with the Securities and Exchange Commission, including the Company's annual report on Form 20-F and current report on Form 6-K, which may be viewed on EDGAR at www.sec.gov, and its periodic filings with the Canadian securities regulatory authorities, including the Company's Annual Information Form and quarterly and annual Management's Discussion & Analysis, which may be viewed on SEDAR 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. 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.ContactsBrian Hinchcliffe
Kirkland Lake Gold Inc.
President
(705) 567-5208
(705) 568-6444 (FAX)
Email: bhinchcliffe@klgold.com
Scott Koyich
Kirkland Lake Gold Inc.
Investor Relations
(403) 215-5979
Email: info@klgold.com
Website: www.klgold.com
Chelsea Hayes/Klara Kaczmarek
Pelham Public Relations
+44 (0) 20 7743 6675
Email: chelsea.hayes@pelhampr.com
Katherine Roe/Ashton Clanfield
NOMAD: Panmure Gordon (UK) Ltd
+44 207 7743 6675
Email: katherine.roe@panmure.com
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