Shares in Kirkland Lake Gold Ltd. posted their biggest daily jump in almost four months after the mid-tier miner beat analyst expectations in the second quarter, boosted its production forecast and delivered promising drilling results.
Toronto-based Kirkland Lake earned a US$61.5-million net profit for the three months ended June 30, a 78-per-cent year-over year increase.
Production at the company’s high-grade Macassa mine in northern Ontario hit a record 60,500 ounces of gold in the quarter, thanks to higher grades and lower costs. Cash flow per share came in at 54 US cents, five cents better than the Street predicted. Meantime, Kirkland Lake’s cash position swelled by US$43-million to US$318-million.
“Another good quarter for Kirkland as it continues to pad its balance sheet with more cash to fund various growth initiatives,” Phil Ker, analyst with PI Financial, wrote in a note to clients.
Kirkland Lake’s shares closed up 6.4 per cent to close at $30.25 on the Toronto Stock Exchange on Wednesday. The miner says it will likely produce 635,000 ounces of gold this year, about 15,000 ounces more than previously estimated.
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