Kirkland Lake Gold Ltd. (“Kirkland Lake Gold” or
the “
Company”) (TSX:KL) (NYSE:KL) (ASX:KLA) is
pleased to announce that it has received acceptance from the
Toronto Stock Exchange (the “TSX”) to renew its normal course
issuer bid (“NCIB”). The NCIB allows Kirkland Lake Gold to purchase
up to 20,989,692 common shares of the Company (the “Shares”),
representing 10% of the current issued and outstanding Shares in
the public float as of May 22, 2019. As at May 22, 2019, the
Company had 210,011,669 Shares issued and outstanding.
Tony Makuch, President and CEO, commented:
“Kirkland Lake Gold has established a solid track record for
creating shareholder value, with our share price increasing over
500% since the beginning of 2017. The keys to achieving superior
returns have been strong operating results, industry-leading
earnings and cash flow generation and growth, ongoing exploration
success, and a commitment to directly rewarding shareholders for
their commitment to our company. We introduced a quarterly dividend
in March 2017 and have since increased it four times. In May 2017,
we launched an NCIB program and, since that time, have repurchased
over seven million shares. The NCIB is an important component of
our value creation strategy as the repurchase of shares provides a
permanent favourable impact to earnings and cash flow per share
metrics. Given the significant potential upside we see in our
current share price, based on our expectation for continued strong
operating and financial results, as well as the substantial
exploration potential we have at Fosterville, Macassa and other
targets, we plan to use the NCIB over the next year to support
continued value creation.”
The average daily trading volume for the six
months’ period ended April 30, 2019, less prior NCIB purchases made
on the TSX, was 826,974. Under the renewed NCIB, the maximum number
of securities that the Company may purchase on a daily basis, other
than block purchase exemptions, are 206,743 Common Shares. The
actual number of Common Shares purchased for cancellation and the
timing of such purchase will be determined by the Company. There
cannot be any assurance as to how many Common Shares will
ultimately be purchased for cancellation under the NCIB.
The Board of Directors of Kirkland Lake Gold has
determined that the repurchase of Common Shares pursuant to the
proposed NCIB presently constitutes an appropriate use of financial
resources and would be in the best interest of Kirkland Lake Gold
shareholders.
Under the previous NCIB, the Company sought and
received approval from the TSX to purchase up to 16,456,561 Shares
for the period of May 22, 2017 to May 21, 2019. The Company
purchased 1,970,400 Shares pursuant to the previous NCIB in the
last twelve months at an average price of C$28.43 per Share on the
TSX and alternates.
About Kirkland Lake Gold Ltd.
Kirkland Lake Gold Ltd. is a growing gold
producer operating in Canada and Australia that produced 723,701
ounces in 2018 and is on track to achieve significant production
growth over the next three years, including target production of
950,000 – 1,000,000 ounces in 2019, 930,000 – 1,010,000 ounces in
2020 and 995,000 – 1,055,000 ounces in 2021. The production profile
of the Company is anchored by two high-grade, low-cost operations,
including the Macassa Mine located in Northern Ontario and the
Fosterville Mine located in the state of Victoria, Australia.
Kirkland Lake Gold's solid base of quality assets is complemented
by district scale exploration potential, supported by a strong
financial position with extensive management and operational
expertise.
Cautionary Note Regarding Forward-Looking
Information
This press release contains statements which
constitute "forward-looking information" within the meaning of
applicable securities laws, including statements regarding the
plans, intentions, beliefs and current expectations of Kirkland
Lake Gold with respect to future business activities and operating
performance. Forward-looking information is often identified by the
words "may", "would", "could", "should", "will", "intend", "plan",
"anticipate", "believe", "estimate", "expect" or similar
expressions and include information regarding the proposed timing
associated with the NCIB and the anticipated effects thereof.
Investors are cautioned that forward-looking
information is not based on historical facts but instead reflect
Kirkland Lake Gold's management's expectations, estimates or
projections concerning future results or events based on the
opinions, assumptions and estimates of management considered
reasonable at the date the statements are made. Although Kirkland
Lake Gold believes that the expectations reflected in such
forward-looking information are reasonable, such information
involves risks and uncertainties, and undue reliance should not be
placed on such information, as unknown or unpredictable factors
could have material adverse effects on future results, performance
or achievements of the combined company. Among the key factors that
could cause actual results to differ materially from those
projected in the forward-looking information are the following: the
future development and growth potential of the Company’s projects;
future exploration activities planned at the Canadian and
Australian properties; risks relating to equity investments; risks
relating to first nations and Aboriginal heritage; the availability
of infrastructure, energy and other commodities; nature and
climactic conditions; currency exchange rates (such as the Canadian
dollar and the Australian dollar versus the United States dollar);
risks associated with dilution; labour and employment matters;
risks in the event of a potential conflict of interest; changes in
general economic, business and political conditions, including
changes in the financial markets; changes in applicable laws; and
compliance with extensive government regulation. This
forward-looking information may be affected by risks and
uncertainties in the business of Kirkland Lake Gold and market
conditions. This information is qualified in its entirety by
cautionary statements and risk factor disclosure contained in
filings made by Kirkland Lake Gold, including its annual
information form and financial statements and related MD&A for
the financial year ended December 31, 2018 and 2017 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 information prove incorrect, actual results may
vary materially from those described herein as intended, planned,
anticipated, believed, estimated or expected. Although Kirkland
Lake Gold 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. Kirkland Lake Gold does not intend, and do
not assume any obligation, to update this forward-looking
information except as otherwise required by applicable law.
FOR FURTHER INFORMATION PLEASE CONTACT
Anthony Makuch, President, Chief Executive
Officer & DirectorPhone: +1 416-840-7884, E-mail:
tmakuch@klgold.com
Mark Utting, Vice-President, Investor Relations Phone: +1
416-840-7884, E-mail: mutting@klgold.com
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