LONDON (ShareCast) - Canada based gold mining company Kirkland Lake Gold saw second quarter losses widen as mining revenue declined, despite the rise in gold prices.

In the three months to end-October the company achieved an average price per ounce of gold of C$726, up from C$688, but saw income from gold sales slide to C$10.1m compared to C$13.7m in the second quarter of 2006. Mining revenue fell to C$7.4m from C$9.4m.

The net loss for the second quarter after operating expenses and exploration expenditure widened to C$2.4m from $1.4m. However, for the 6 months to end-October the company posted a net income of C$2.4m, compared to a loss of C$4.7m in the corresponding period of 2006.

High staff turnover adversely affected production at the company’s old mine. “Mitigating against the tough market conditions for miners, the company accelerated its training program for miner trainees and internal promotion efforts and is planning to end this quarter in the strongest labour position we have been in since start up three years ago,” said company president, Brian Hinchcliffe.

The company’s cash position is strong following a share placement and flow-through financing initiatives. Cash at the end of the period stood at C$34.8m, compared with $16.7m at the end of October 2006.

• News Channel