Kirkland Lake Gold reports $10.5M net loss.(IN BRIEF)(Financial report)(Brief article)

Kirkland Lake Gold reported a net income of $2.3 million in a release detailing the results of its fiscal year that ended April 30.

For the 2008 fiscal year, the company suffered a net loss for the year of $10.5 million, which compares to a net loss of $3.3 million in fiscal 2008.

Ounces sold in the fourth quarter increased 80 per cent to 16,045, generating $18.2 million in revenue and $2.2 million in operating cash flow.

Gold revenues achieved during the fiscal year were $43.5 million, five per cent higher than the previous year.

The number of employees rose 83 per cent to 400 compared to fiscal 2008. This was due to a larger work force needed in order to expedite development and production from the South Mine Complex and to the replacement of contractors.

Operating expenses increased 18 per cent from $39.6 million to $47.5 million, primarily due to increases in mining costs, due to doubling of company mining personnel ($5 million), and materials ($2.4 million) required for the expanded mining plan. At the same time, mining contractor personnel were reduced from 50 to none.

Kirkland Lake Gold expects cash resources as at April 30 were $25.4 million to be sufficient to fund the company's planned exploration and development activities for the next 12 months. As at July 17, the company had cash resources of $30.4 million.

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