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Kirkland Lake posts profitable third quarter

Northeast miner poised to finalize Newmarket acquisition
Macassa Mine, Kirkland Lake

Kirkland Lake Gold posted adjusted net earnings of $27.9 million during its third quarter.

Gold production results for the quarter were 77,274 ounces for a total 207,886 ounces for the year to date.

In a release, the company said operations performed well during the quarter with grades, recoveries, and throughput all in line with expectations.

The $175 cost per tonne achieved during the quarter was positively impacted by higher throughput, mainly driven by the contribution of the Holt Mine Complex, higher tonnes from Macassa, and more tonnes from low-grade stockpiles.

President-CEO Tony Makuch was all smiles with the results.

"I am extremely pleased to report a solid quarter with record earnings and free cash flow generation of approximately $10 million a month. Costs during the quarter were positively impacted by increased productivity and additional tonnes milled at both the Macassa and Holt mills. Our team remains committed to delivering solid results. With the cash flow generation this quarter, we believe we are well positioned to repay the convertible debentures that come due in June and December of next year, while funding our capital investments and development projects."

On its proposed $1.01-billion acquisition of Newmarket Gold, announced in late September, the transaction will take a 66 2/3 per cent of votes cast by shareholders at a special meeting to be held Nov. 25 at the offices of Cassels Brock & Blackwell LLP in Toronto.

Kirkland Lake Gold’s assets and operations are along the Porcupine-Destor Fault Zone in northeastern Ontario.

The company is currently targeting annual gold production of between 270,000 to 290,000 ounces from its cornerstone asset, the Macassa Mine Complex and the Holt Mine Complex that includes the Holt, Holloway and Taylor mines.