KIRKLAND LAKE GOLD REPURCHASES 10.1 MILLION COMMON SHARES, DOUBLES QUARTERLY DIVIDEND
March 18 2020 - 5:15PM
Kirkland Lake Gold Ltd. (“Kirkland Lake Gold” or
the “
Company”) (TSX:KL) (NYSE:KL) (ASX:KLA) today
reported on progress with share repurchases through the Company’s
normal course issuer bid (“NCIB”) and declared the quarterly
dividend for the first quarter of 2020.
Share Repurchase Plan
- 10.1 million common shares
repurchased: A total of 10.1 million common shares have
been repurchased through the Company’s current NCIB program. The
repurchases have been made through the recently announced automatic
purchase program (“ASPP”) and through discretionary purchases
directed by the Company under the NCIB. Based on progress to
date, the Company’s is well positioned to achieve its goal of
repurchasing 20 million common shares over a 12 to 24-month period.
A total of approximately $350 million (C$470 million) has been used
to repurchase the 10.1 million shares.
Quarterly Dividend
- Dividend doubled to US$0.125 per share: A
quarterly dividend payment of US$0.125 per common share will be
paid on April 13, 2020 to shareholders of record as of the close of
business on March 31, 2020. The dividend represents a 100%
increase from the previous quarterly dividend of US$0.06 per share,
which was paid on January 13, 2020 to shareholders of record on
December 31, 2019. The payment represents the 12th quarterly
dividend payment made to shareholders following the Company’s
adoption of a dividend policy in March 2017. The Company’s
quarterly dividend qualifies as an “eligible dividend” for Canadian
income tax purposes. For Canadian shareholders the US dollar
dividend payment will be converted to Canadian dollars using the
spot price exchange rate on April 10, 2020, the date prior to the
payment date.
Tony Makuch, President and Chief Executive
Officer of Kirkland Lake Gold, commented: “We are very committed to
using our substantial financial strength to return capital to
shareholders through share repurchases and dividend payments.
Although it is a difficult market environment based on current
global concerns, we have maintained, and in fact increased, our
focus on repurchasing shares through the ASPP and NCIB. When you
consider our high-quality assets and industry-leading operating and
financial performance, as well as the outlook for a very strong
2020, our current share price represents an excellent buying
opportunity. Looking at our dividend, we have now increased the
quarterly dividend six times since it was introduced in 2017. Our
decision to double the dividend at this time reflects both the
strength of our balance sheet and the ability of our three
cornerstone assets, Fosterville, Macassa and Detour Lake, to
generate significant amounts of free cash flow, particularly in the
current strong gold price environment. We will continue our efforts
to return capital to shareholders at the same time that we invest
aggressively in the substantial growth potential and exploration
upside at all three of our cornerstone assets.”
About Kirkland Lake Gold Ltd.
Kirkland Lake Gold Ltd. is a growing gold
producer operating in Canada and Australia that produced 974,615
ounces in 2019, with target production for 2020 of 1,470,000 –
1,540,000 ounces. The production profile of the Company is anchored
by three high-quality operations, including the Macassa Mine and
Detour Lake Mine, both 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 expertise.
For further information on Kirkland Lake Gold and to receive
news releases by email, visit the website www.klgold.com.
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, in this press release, include information
regarding the proposed timing associated with future share
purchases made under the NCIB as well as planned dividend payments
and the management of the Company’s dividend policy. The
declaration and payment of dividends remains at the discretion of
the Board of Directors and will depend on the Company's financial
results, cash requirements, future prospects and other factors
deemed relevant by the Board.
Investors are cautioned that forward-looking
information is not based on historical facts but instead reflect
the Company'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 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 of the Canadian and Australian operations; the
potential anticipated annual increase in production; future
exploration activities; 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 Kirkland
Lake Gold's annual information form dated December 31, 2018 and the
annual consolidated financial statements and related MD&A for
the period ended December 31, 2019, which are 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: +1 416-840-7884E-mail:
tmakuch@klgold.com
Mark Utting, Vice-President, Investor Relations Phone: +1
416-840-7884 E-mail: mutting@klgold.com
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