Kirkland Lake Gold Inc. to cut spending by $2.1 million

KIRKLAND LAKE, Ont. – Kirkland Lake Gold Inc. (TSX:KGI) says it will reduce spending in the current fiscal year ending April 30, 2014 by $2.1 million to bring total annualized savings to approximately $5 million.

The company says the latest spending reduction will mean a hiring freeze and the termination of some staff employment contracts, although no figures were included in a release issued early Thursday.

In addition, various consulting contracts are being reduced and one surface and one underground exploration drill will be shut down within one week. Exploration will continue with one surface drill and two underground exploration drills.

All outstanding capital requests are to be assessed on a case-by-case basis, with some being cancelled or deferred, and further cost saving moves still under review will be announced once implemented.

Recently appointed CEO George Ogilvie says he will spend time “on the ground in Kirkland Lake” over the next few months to seeks ways to revise mine plans and improve productivity.

“The company is focused on executing a mine plan to deliver profits and free cash flow for investors,” he said.

Kirkland Lake Gold shares gained 13 cents Wednesday to close at $2.77.