LONDON (ShareCast) - Canada based mining company Kirkland Lake Gold swung to a first quarter loss but said it is confident that shortfalls in production will be recouped in the remainder of the year.

Operating losses came to $3.35m in the three month ended 31 July, which compares with an income of $905,772 the previous quarter and an income of $36,237 for the same quarter last year. Operating expenses were 2% higher at $10.1m.

Gold revenues were $8.0m, a 29% decrease compared to the same quarter last year. Gold production was 30% lower at 9,193 ounces due to lower than forecasted grades and tons being realized within the existing mine.

Scheduled work to electrical power lines supplying the company property and unscheduled repairs to the hoist together with difficulties associated with pastefill also disrupted production during the quarter, the group added.

As announced on 11 September, Mark Tessier had joined the group as vice president of operations.

“Mr. Tessier is a great addition to the team and he is now pulling together a phased development plan which we are confident will result in a significant and sustainable increase in gold production for the company,” said chairman Harry Dobson.

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