Published on: 12/13/2013 2:54:29 PM Print | Font Sizes:  Normal Text Large Text

K-L Gold reports second quarter loss

By: Northern Ontario Business staff

Kirkland Lake Gold posted a net loss of $3.9 million in its second quarter, compared to a loss of $1.8 million recorded during the same period last year.

The mid-tier miner blamed it on interest and finance expenses in addition to increased depreciation and depletion costs.

During the quarter, the mine produced 31,387 ounces of gold from 105,670 tons of ore.

Gold production for the current fiscal year is expected to drop off from the previously announced 150,000 to 180,000 ounce projection.

The company is on a cost-cutting spree with plans to cut $2.1 million to bring total annualized savings to $5 million.With the workforce standing at 1,215 employees, a hiring freeze is in place, some employment contracts will be terminated, drilling activity will be reduced and mine plans for the next two years are under review.

The company went through a management shakeup in November with Mark Tessier resigning as CEO with George Ogilvie replacing him. Brian Hinchcliffe was named deputy chairman.

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