Kirkland Lake Gold Kirkland Lake Gold Reports Fiscal 2015 Third Quarter Results With YTD Free Cash Flow Generation of $22 Mil...

 
TIDMKGI 
 
Kirkland Lake Gold Reports Fiscal 2015 Third Quarter Results With YTD Free Cash Flow Generation of $22 Million 
FOR:  KIRKLAND LAKE GOLD INC. 
 
TSX, AIM SYMBOL:  KGI 
 
March 11, 2015 
 
Kirkland Lake Gold Reports Fiscal 2015 Third Quarter Results With YTD Free Cash Flow Generation of $22 Million 
 
TORONTO, ONTARIO--(Marketwired - March 11, 2015) - Kirkland Lake Gold Inc. ("Kirkland Lake Gold" or the 
"Company") (TSX:KGI)(AIM:KGI), an operating and exploration gold company with operations in Ontario, Canada, 
today announces financial results for the third quarter of fiscal 2015 ("Q3/15"), which include the three and 
nine months ended January 31, 2015. All figures in this release are in Canadian dollars unless stated 
otherwise. 
 
Highlights(2) 
 
=-  Achieved a head grade of 0.44 ounces per ton ("opt"), or 15.1 grams per 
    tonne ("g/t") in Q3/15; 0.43 opt or 14.7 g/t for the nine months of 
    fiscal 2015 ("YTD"). 
=-  Sold 39,722 ounces of gold at an average realized price per ounce of 
    $1,371 (US$1,175) in Q3/15; YTD sold 116,600 ounces at an average 
    realized price per ounce of $1,389 (US$1,243). 
=-  Cash Operating Costs per Ounce of Gold Produced(1) of $766 (US$656); and 
    $813 (US$728) YTD. 
=-  All-In Cash Cost per Ounce of Gold Produced(1) ("AICC") of $1,249 
    (US$1,070); YTD AICC of $1,289 (US$1,153). 
=-  Income before income taxes of $7.3 million in Q3/15; $17.2 million YTD. 
=-  Net and comprehensive income of $4.2 million or $0.06 per share during 
    the quarter; $11.9 million or $0.17 per share ($0.16 per diluted share) 
    YTD. 
=-  Generated cash flow from operations during the quarter of $23.7 million; 
    $57.3 million YTD. 
=-  Generated free cash flow(1) of $11.6 million during the quarter; $22.8 
    million YTD. 
=-  Cash as at January 31, 2015 was $44.0 million. After closing the bought 
    deal equity financing ("Financing"), on February 18, 2015, the cash 
    balance was $76.6 million. 
 
Mr. George Ogilvie, Chief Executive Officer of the Company commented, "We are very pleased to see three 
consecutive quarters of positive results from the operations, generating positive free cash flow and ensuring 
we will achieve our stated guidance. 
 
"We have made tremendous progress following the turnaround a year and a half ago and we are committed to strive 
for continuous improvements to strengthen the Company and create a return on investment for our shareholders. 
During the quarter, we announced the appointment of Eric Sprott as Chairman of the Board of Directors, and 
entered into a $35 million financing. I believe the success of the financing and Mr. Sprott's joining of the 
board are key signs that there is renewed faith in our abilities to execute and succeed." 
 
Click on the link for a video interview with George Ogilvie, discussing the Q3 results. 
 
http://webcasting.brrmedia.co.uk/broadcast/136240?popup=true 
 
(1)  The Company has included non-GAAP performance measures: average sales 
     price per ounce sold, cash cost per ton produced, cash cost per ounce 
     produced, AICC per gold ounce produced and free cash flow throughout 
     this announcement. This is a common performance measure in the mining 
     industry but does not have any standardized meaning under IFRS. Refer 
     to Appendix B of the MD&A for a reconciliation of these measures to 
     reported production expenses. 
(2)  All US dollar equivalents are converted at the average CAD to USD 
     exchange rate during the reporting period. 
 
Financial and Operational Metrics 
 
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                     Q3/15  Q3/15 
                        vs     vs                      FY2015  FY2014 
Q3/15   Q2/15  Q3/14 Q2/15  Q3/14  Production             YTD     YTD Y o Y 
=--------------------------------------------------------------------------- 
994(i)  1,002  1,064    -1%    -7% Tons per day         1,005   1,092    -8% 
                                   ("tpd") 
91,418 92,146 97,917    -1%    -7% Tons Produced      277,444 301,375    -8% 
0.44     0.41   0.33     7%    33% Head Grade            0.43    0.33    34% 
39,158 36,292 31,022     8%    26% Ounces Produced    115,978  92,588    25% 
1,014   1,022  1,215    -1%   -17% Headcount            1,014   1,215   -17% 
                                   (manpower) 
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In CAD$ 
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                     Q3/15  Q3/15 
                        vs     vs                      FY2015  FY2014 
Q3/15   Q2/15  Q3/14 Q2/15  Q3/14  Financial              YTD     YTD Y o Y 
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39,722 38,335 33,719     4%    18% Gold Sales         116,600  94,502    23% 
                                   (ounces) 
1,371   1,395  1,369    -2%     0% Average Price(1)     1,389   1,385     0% 
                                   ($) (per ounce) 
54,471 53,479 46,165     2%    18% Revenue (000's)    161,953 130,902    24% 
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328       350    347    -6%    -5% Cash Operating         340     340     -% 
                                   Cost per Ton 
                                   Produced(1) 
766       889  1,094   -14%   -30% Cash Operating         813   1,106   -26% 
                                   Cost per Ounce 
                                   Produced(1) 
1,249   1,374  1,923    -9%   -35% AICC(1)              1,289   2,054   -38% 
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In US$ Equivalent 
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1,175   1,262  1,280    -7%    -8% Average Price(1)     1,243   1,324    -6% 
                                   ($) (per ounce) 
281       317    324   -11%   -13% Cash Operating         304     324    -7% 
                                   Cost per Ton 
                                   Produced(1) 
656       804  1,023   -18%   -36% Cash Operating         728   1,056   -32% 
                                   Cost per Ounce 
                                   Produced(1) 
1,070   1,243  1,797   -14%   -40% AICC(1)              1,153   1,964   -42% 
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(i) The production rate (tpd) achieved during the quarter does not take into account closures during the annual 
December holidays. The 1,030 tpd figure is the average production rate achieved for each day of operation 
during the quarter. 
 
Operations 
 
Development work during Q3/15 progressed as planned with one jumbo advancing the main ramp development towards 
the 5600 level and the other jumbo focused on stope development. In addition, a third stope on the 5400 level 
within the South Mine Complex ("SMC") entered into production in early December. The Company is anticipating it 
will have a total of five stopes in production on the 5400 level by the end of this fiscal year (April 30, 
2015), which will ensure more consistent ore production from the 5400 level as we move into fiscal 2016, where 
the average reserve grade is 0.57 opt (19.5 g/t). 
 
The average production rate achieved for Q3/15 was 1,030 tpd, a 3% increase over the previous quarter. However, 
during the month of January there was a significant increase to 1,220 tpd with 37,800 ore tons delivered to the 
mill. This increase resulted from better than anticipated worker productivity and higher stope availability 
throughout the mine due to improved transitioning in the mining cycle from ore production to paste filling back 
to ore production cycles. 
 
The head grade achieved during the quarter of 0.44 opt (15.1 g/t), is an increase of 9% over the previous 
quarter, with a milling recovery of 96.6%. 
 
Exploration 
 
During the quarter, the Company provided an update for underground drilling which extended the New South Zone 
(associated with the SMC) by 180 feet (54.9 metres) down dip from previous intersections and intersected a new 
high grade parallel footwall zone (see news release dated January 20, 2015, accessible at www.klgold.com). The 
Company expects to update its company-wide resource and reserve estimates before fiscal year end. 
 
(1)  The Company has included non-GAAP performance measures: average sales 
     price per ounce sold, cash cost per ton produced, cash cost per ounce 
     produced, AICC per gold ounce produced and free cash flow throughout 
     this announcement. This is a common performance measure in the mining 
     industry but does not have any standardized meaning under IFRS. Refer 
     to Appendix B of the MD&A for a reconciliation of these measures to 
     reported production expenses. 
 
Fiscal 2015 Outlook 
 
The Company continues to make good progress and as such is revising its production guidance from 140,000 - 
155,000 ounces to 153,000 - 157,000 ounces of gold. The Company is also revising some of its financial guidance 
metrics for the current fiscal year as outlined below. 
 
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F2015 Guidance                                YTD F2015              Revised 
CAD$                             Metric          Actual             Guidance 
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$800 - 850          Cash operating cost         $813/oz            No Change 
                              per ounce 
$1,250 - 1,350           AICC per ounce       $1,289/oz            No Change 
                               produced 
$58.0 million        Sustaining capital   $34.5 million          $50 million 
                        expense (CAPEX) 
$200.0 million                  Revenue  $162.0 million  $218 - $222 million 
$50.0 - 60.0 million     Cash flow from   $57.0 million    $70 - $75 million 
                             operations 
$15.0 - 20.0 million     Free cash flow   $22.4 million    $30 - $35 million 
                             generation 
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Conference Call Details 
 
The Company will hold a conference call to discuss the third quarter results on March 11, 2015, at 11:00am EDT 
(3:00pm BST). You are invited to participate via teleconference using the details below. A replay of the call 
will be posted on the Company's website (www.klgold.com). 
 
Participant Dial-In Numbers 
 
Toll-Free North America: [phone]; Local and International: [phone] 
 
Local from Switzerland: (0-800) 835-354; Local from the United Kingdom: (0-800) 051-7107 
 
Conference ID: 1445227 
 
Replay Dial-In Numbers 
 
Local and International: [phone] 
 
Toll Free North America: [phone] 
 
Conference ID: 1445227 
 
Replay Available Until: March 25, 2015 at 11:59PM ET 
 
The following abbreviations are used to describe the periods under review throughout this release. 
 
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Abbreviation  Period                   Abbreviation  Period 
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F2015         May 1, 2014 - April 30,  F2014         May 1, 2013 - April 30, 
              2015                                   2014 
YTD F2015     May 1, 2014 - January    YTD F2014     May 1, 2013 - January 
              31, 2015                               31, 2014 
Q3/15         November 1, 2015 -       Q3/14         November 1, 2014 - 
              January 31, 2015                       January 31, 2014 
Q2/15         July 1, 2014 - October   Q2/14         July 1, 2013 - October 
              31, 2014                               31, 2013 
Q1/15         May 1, 2014 - June 30,   Q1/14         May 1, 2013 - June 30, 
              2014                                   2013 
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For a description of additional risk factors affecting the Company and 'Forward Looking Information', see the 
Company's Annual Information Form filed with certain securities regulatory authorities in Canada and available 
on SEDAR at www.sedar.com in Appendix 4 in the AIF. For 'Forward Looking Information', as presented in the 
Management Discussion and Analysis ("MD&A") for the period ended January 31, 2015, see Appendix D in the MD&A 
for a description of other factors that may cause actual results to differ from those anticipated. 
 
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Financial Highlights             Reporting Period (Fiscal 2015) 
(All amounts in 000's 
 of Canadian Dollars, 
 except gold price 
 per ounce, shares 
 and per share                                               YTD        YTD 
 figures)                 Q3/15      Q2/15      Q3/14      F2015      F2014 
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Gold Sales (ounces)      39,722     38,335     33,719    116,600     94,502 
Average Gold Price 
 (per ounce)              1,371      1,395      1,369      1,389      1,385 
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Revenue                  54,471     53,479     46,164    161,953    130,902 
Production Expenses      41,747     43,254     46,987    126,237    123,900 
Exploration 
 Expenditure              1,492      1,617      1,521      4,315      6,478 
Other Expenses            3,933      4,225      3,810     14,157     12,570 
Income (Loss) before 
 Income Taxes             7,299      4,383     (6,153)    17,244    (13,094) 
Net and Comprehensive 
 Income (Loss)            4,248      2,684     (4,221)    11,912     (5,675) 
Per share (basic and                                      0.17 / 
 diluted)                  0.06       0.04      (0.06)      0.16      (0.14) 
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Cash Flow from 
 operations              23,711     16,552      3,553     57,337     23,768 
Cash Flow (used in) 
 from financing 
 activities              (8,428)    (4,663)    (8,369)   (16,805)    (3,642) 
Cash Flow (used in) 
 investing activities   (12,092)   (10,684)   (19,152)   (34,531)   (44,279) 
Net increase 
 (decrease) in cash       2,627      1,205    (24,629)     5,125    (24,814) 
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Total cash resources     44,019     41,392     51,670     44,019     51,670 
Other Current Assets     24,145     24,057     21,036     24,145     21,036 
Current Liabilities      31,878     34,047     43,415     31,878     43,415 
Working Capital          36,286     31,402     29,291     36,286     29,291 
Total Assets            423,537    417,483    410,914    423,537    410,914 
Total Liabilities       164,572    161,626    172,267    164,572    172,267 
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Basic weighted 
 average number of 
 shares outstanding  72,080,581 72,046,482 70,150,912 71,639,992 70,150,912 
Dividends per share         NIL        NIL        NIL        NIL        NIL 
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Qualified Persons 
 
Production and processing at KL Gold's milling facility are under the supervision of Mr. Chris Stewart, P.Eng., 
Vice President of Operations and the exploration program is under the supervision of Mr. Stewart Carmichael, 
P.Geo., Manager of Exploration. Messrs. Stewart and Carmichael are 'qualified persons' for the purpose of 
National Instrument 43-101, Standards of Disclosure for Mineral Projects, of the Canadian Securities 
Administrators, and have reviewed and approved this news release. 
 
About the Company 
 
Kirkland Lake Gold Inc.'s corporate goal is to create a self-sustaining and long-lived intermediate gold mining 
company based in the historic Kirkland Lake gold camp, as well as to explore opportunities for growth in other 
safe mining jurisdictions. The Company plans to do this by mining to the reserve grade, generating profits and 
free cash flow with a view to maximising value for the shareholders. The Company will also look to take 
advantage of its increased infrastructure capacity in the appropriate gold price environment. At the same time, 
the Company is committed to maintaining a significant exploration program aimed at developing and maintaining a 
property wide reserve and resource base sufficient to sustain a mine life of more than ten years. 
 
Over the last several years the Company has invested significant capital to improve the infrastructure of the 
business including upgrading the production hoist, skips, mill, underground mobile equipment and capital 
development. From initial discovery to present day there have been over 24 million ounces of gold mined from 
the Kirkland Lake gold camp while the current reserve and resource provides for potentially 14 years of mining 
with exploration upside. 
 
Neither the Toronto Stock Exchange nor the AIM Market of the London Stock Exchange has reviewed or accepts 
responsibility for the adequacy or accuracy of this news release. 
 
Cautionary Note Regarding Forward Looking Statements 
 
This news release contains statements which constitute "forward-looking statements", including statements 
regarding the plans, intentions, beliefs and current expectations of the Company with respect to the future 
business activities and operating performance of the Company. The words "may", "would", "could", "should", 
"will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions, as they relate 
to the Company, are intended to identify such forward-looking statements. Forward-looking statements used in 
this news release include, but may not be limited to: statements regarding the Company's guidance for fiscal 
2015 which includes production estimates in respect of ounces produced, operating cost per ounce and all-in 
cash costs; anticipated revenue, cash flow from operations and free cash flow generation. Investors are 
cautioned that forward-looking statements are based on the opinions, assumptions and estimates of management 
which management considers reasonable at the date the statements are made such as, without limitation, 
opinions, assumptions and estimates of management regarding the Company's business, its ability to increase its 
production capacity and decrease its production costs. Such opinions, assumptions and estimates, are inherently 
subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual 
events or results to differ materially from those projected in the forward-looking statements. 
These factors include the Company's expectations in connection with the projects and exploration programs being 
met, the impact of general business and economic conditions, global liquidity and credit availability on the 
timing of cash flows and the values of assets and liabilities based on projected future conditions, fluctuating 
gold prices, currency exchange rates (such as the Canadian dollar versus the United States Dollar), variations 
in ore grade or recovery rates, changes in accounting policies, changes in the Company's mineral reserves and 
resources, changes in project parameters as plans continue to be refined, changes in project development, 
construction, production and commissioning time frames, the possibility of project cost overruns or 
unanticipated costs and expenses, higher prices for fuel, power, labour and other consumables contributing to 
higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as 
anticipated, unexpected changes in mine life, seasonality and weather, costs and timing of the development of 
new deposits, success of exploration activities, permitting time lines, government regulation of mining 
operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, and limitations 
on insurance, as well as those risk factors discussed or referred to in the Company's Management's Discussion 
and Analysis and Annual Information Form for the year ended April 30, 2014 and the Company's Management's 
Discussion and Analysis for the interim period ended January 31, 2015 filed with the securities regulatory 
authorities in certain provinces of Canada and available 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 to be 
as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to 
update these forward-looking statements except as otherwise required by applicable law. 
 
 
-30- 
 
FOR FURTHER INFORMATION PLEASE CONTACT: 
 
Kirkland Lake Gold Inc. 
George Ogilvie, P.Eng 
Chief Executive Officer 
[phone] 
[phone] (FAX) 
[e-mail] 
 
OR 
 
Kirkland Lake Gold Inc. 
Suzette N. Ramcharan, CPIR 
Director of Investor Relations 
[phone] 
[phone] (FAX) 
[e-mail] 
www.klgold.com 
 
OR 
 
NOMAD: Panmure Gordon (UK) Limited 
Dominic Morley / Adam James 
[phone] 
 
OR 
 
Blytheweigh 
Tim Blythe/Halimah Hussain/Camilla Horsfall 
[phone] 
 
 
 
 
Kirkland Lake Gold Inc.