From Kitco Kirkland Lake 1Q Adjusted Profit Rises; Dividend Payment Increasing
Kirkland Lake Gold Ltd. (TSX, NYSE: KL; ASX: KLA) reported Tuesday that its first-quarter adjusted profit rose sharply on record output and that the company’s dividend is increasing as it switches the payment from Canadian to U.S. cents.
Adjusted net earnings were put at $112.1 million, or 53 cents per share, more than double the $52.3 million, or 25 cents, in the first quarter of last year. Net earnings were $110.1 million, or 52 cents pare share, well up from $50 million, or 24 cents, in the same quarter of 2018.
The company said its quarterly dividend is rising by 34% based on current exchange rates. The second-quarter payment will be 4 cents per share in U.S. funds, compared to 4 Canadian cents previously. The dividend will be paid on July 12 to shareholders of record on June 28.
Production in the January-March quarter rose to 231,879 ounces from 147,644 in the first quarter of 2018. The output was also slightly higher the previous quarterly record of 231,217 ounces in the fourth quarter. All-in sustaining costs averaged $560 an ounce, which officials said was a year-over-year improvement of 33%.
“We are off to a strong start in 2019, with record gold production and sales and very low unit costs…,” said Tony Makuch, president and chief executive officer. “Macassa had an outstanding quarter, achieving record production, operating cash costs per ounce and AISC per ounce. The mine’s strong results were mainly related to continued grade outperformance from stopes around the 5700 Level of the South Mine Complex. Given that we will be mining in this general area for the balance of the year, we are optimistic that we will continue to see very strong results from Macassa.”
Meanwhile, for the Fosterville mine, he reported increased production from the Swan Zone. The company is targeting higher levels of production from Swan in the second half of the year, Makuch added.
Back in February, Kirkland Lake put full-year production guidance at 920,000 to 1 million gold ounces.
“Based on the strong results at Macassa and Fosterville in Q1 2019 and the outlook for the remainder of the year, we have raised the lower end of our consolidated production guidance for the year, and now expect to produce at least 950,000 ounces, and improved our operating cash cost per ounce sold guidance, which we are now targeting at $285-$305,” Makuch said.
By Allen Sykora For Kitco News