Kirkland Lake Gold (KL) Reports Q4 EPS of $0.34

Note: EPS may not be comparable

Kirkland Lake Gold (NYSE: KL) reported Q4 EPS of $0.34. Revenue for the quarter came in at $212.36 million, versus $0 reported last year.

Key highlights of Q4 2017 results include:

• Record quarterly production: Q4 2017 production totaled 166,579 ounces, 56% increase from Q4 2016 and 20% higher than Q3 2017.
• Low unit costs: Operating cash costs per ounces sold in Q4 2017 averaged $412, 23% improvement from $533 in Q4 2016 and 15% better than $482 the previous quarter; AISC per ounce sold averaged $816, 9% better than $900 in Q4 2016 and an 3% improvement from $845 in Q3 2017 (total production costs of $68.3 million compared to production costs of $60.5 million in Q4 2016 and $66.5 million in Q3 2017).
• Solid cash flow generation: Cash flow from operating activities of continuing operations totaled $103.4 million compared to $68.5 million in Q4 2016 and $66.8 million in Q3 2017; free cash flow in Q4 2017 totaled $64.5 million, 42% and 105% higher than $45.3 million in Q4 2016 and $31.5 million in Q3 2017, respectively.
• Solid earnings growth: Net earnings in Q4 2017 totaled $41.0 million ($0.20 per basic share), which compared to net earnings of $3.1 million ($0.02 per basic share) in Q4 2016 and $43.8 million ($0.21 per basic share) the previous quarter. Included in net earnings for Q4 2017 were earnings from continuing operations totaling $65.9 million ($0.32 per basic share) and a loss from discontinued operations of $24.9 million ($0.12 per basic share) related to the 2017 care and maintenance and sale of the Company’s Stawell Mine on December 21, 2017.
• Adjusted net earnings from continuing operations in Q4 2017 totaled $71.2 million ($0.34 per share) versus $22.8 million ($0.16 per share) in Q4 2016 and $27.4 million ($0.14 per share) in Q3 2017. Adjusted net earnings from continuing operations in Q4 2017 excludes the $24.9 million loss on discontinued operations ($0.12 per share), a $17.6 million pre-tax mark-to-market loss on fair valuing the Company’s 14.0 million common share purchase warrants in Novo Resources Corp. (“Novo”) ($0.08 per share) and the $10.0 million ($0.05 per share) net deferred tax recovery.
• Continued exploration success: Exploration and evaluation expenditures in Q4 2017 totaled $10.7 million compared to $6.0 million in Q4 2016 and $16.9 million the previous quarter. Key drill results released during the quarter included a 120 metre down-plunge extension of the Swan Zone at the Fosterville mine, a significant expansion of the Lantern Deposit at the Cosmo mine in the Northern Territory of Australia and the intersection of a new gold zone 350 metres below the West Porphyry Deposit at the Taylor mine.
• Share repurchases: A total of 1,553,500 common shares were repurchased for $20.7 million (C$26.3) million through the NCIB.
• Dividend payment: The Company’s second quarterly dividend of $1.7 million or C$0.01 per share was made on October 16, 2017.

For earnings history and earnings-related data on Kirkland Lake Gold (KL) click here.

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