Kirkland Lake Gold reports loss of $3.9 million in second quarter

KIRKLAND LAKE, Ont. – Kirkland Lake Gold Inc. (TSX:KGI) says it logged a net loss of $3.9 million, or six cents per share, in the second quarter, compared to a loss of $1.8 million, or three cents a share, in the same period last year.

Among other things, the company blames interest and finance expenses in addition to increased depreciation and depletion costs.

During the quarter, the mine produced 31,387 ounces of gold from 105,670 tons of ore.

The results come a week after Kirkland Lake Gold said it planned to reduce spending in the current fiscal year ending April 30, 2014 by $2.1 million to bring total annualized savings to about $5 million.

The company said this would mean hiring freeze and the termination of some staff employment contracts along with a reduction in some drilling activity.

The company says its mine plans for the balance of fiscal 2014 and 2015 are being re-worked and will be reviewed early next year.

Production for the current year is likely to be at the lower end of the previously announced 150,000-180,000 ounce guidance number and any revisions will be available next March.

Kirkland Lake Gold shares fell 12 cents Wednesday to close at $2.44.