Kirkland Lake Gold Ltd., CEO and President, Tony Makuch
Source: National Post
  • Gold mining giant, Kirkland Lake Gold (TSX:KL) has announced a value enhancement scheme for its investors
  • The scheme will involve a share buy-back valued at C$ 750 million
  • The company will also double its quarterly dividend to C$0.125
  • As a result of the scheme, Kirkland has designated the Holt Complex in Ontario as non-core and under strategic review
  • CEO and President Tony Makuch hopes this scheme and the company’s strong core assets will recover Kirkland’s recently underperforming share price.
  • Kirkland Lake Gold (KL) was down 4.34 per cent, with shares currently trading for C$47.49.

Kirkland Lake Gold (TSX:KL) has revealed a value enhancement program aimed at its investors, outlining four initiatives it hopes to achieve in 2020.

Firstly, the company is planning to repurchase 20 million shares over the next year. The buy-back will cost the company C$750 million.

Secondly, Kirkland is doubling the quarterly dividend to $C0.125, a significant bump for investors.

Thirdly, the company is actively increasing its mineral reserves. Kirkland’s reserves jumped 600,000 ounces last year, when the company purchased the Detour Lake mine.

Further exploration is planned and Kirkland hopes to further increase the known deposits at Detour Lake.

Finally, the company is seriously considering its non-core assets, such as The Holt Complex, a gold mine in Ontario.

The Holt Complex reported a middling performance last year, coming in under its forecast production.

As a result, the company is actively looking to “maximise value” at Holt, which could mean suspending or selling the mine. Operations at Holt will remain unchanged while a strategic review process is underway.

Similarly, the company has deemed its exploration activities in the Northern Territory of Australia as non-core and under strategic review.

Instead, CEO and president, Tony Makuch stated that in 2020 the company is regaining focus on its higher-producing mines.

“We now move forward with three highly-competitive, free cash flow generating assets, Macassa and Detour Lake in Norther Ontario and Fosterville in Victoria, Australia.”

“Collectively, these three operations are expected to produce around 1.4 million ounces this year,” he said.

Mr Makuch went on to say that he is focused on reversing the recent decline in shares a regain Kirkland’s position as a high-performing stock.

Kirkland Lake’s share price has fallen over 25 per cent since November 2019.

Today, Kirkland Lake Gold (KL) was down another 4.34 per cent, with shares currently trading for 47.49.

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