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Kirkland Lake Gold Ltd
Symbol KL
Shares Issued 286,635,908
Close 2020-03-18 C$ 33.60
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Kirkland doubles Q1 dividend to 12.5 U.S. cents

2020-03-18 17:31 ET - News Release

Mr. Anthony Makuch reports

KIRKLAND LAKE GOLD REPURCHASES 10.1 MILLION COMMON SHARES, DOUBLES QUARTERLY DIVIDEND

Kirkland Lake Gold Ltd. has made progress with share repurchases through the company's normal course issuer bid (NCIB) and has 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 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 (U.S.) ($470-million (Canadian)) has been used to repurchase the 10.1 million shares.

Quarterly dividend:

  • Dividend doubled to 12.5 U.S. cents per share: A quarterly dividend payment of 12.5 U.S. cents 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-per-cent increase from the previous quarterly dividend of six U.S. cents per share, which was paid on Jan. 13, 2020, to shareholders of record on Dec. 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 U.S.-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 is a growing gold producer operating in Canada and Australia that produced 974,615 ounces in 2019, with target production for 2020 of 1.47 million to 1.54 million 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's solid base of quality assets is complemented by district-scale exploration potential, supported by a strong financial position with extensive management expertise.

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