Dual-listed Kirkland Lake had a record third quarter and is rewarding shareholders with a 50% increase to its quarterly dividend to be paid in January next year.

The high-grade gold miner reported record net earnings of $176.6-million, or $0.84 a share, which was more than triple the net earnings of $55.9-million, or $0.27 a share, in the third quarter of 2019, and 69% higher than the $104.2-million, or $0.50 a share, of the previous quarter.

Adjusted net earnings were the same as net earnings and increased by 188% from $61.4-million in the September 2018 quarter, and by 67% from $105.5-million in the June 2019 quarter.

Kirkland boosted its revenue by 71% year-on-year to $381.4-million, while operating cash flow surged 145% and free cash flow tripled to $181.3-million.

With strong financial results and a growing cash position, Kirkland continued to increase the amount of capital it returned to shareholders. The mining firm announced a 50% increase in the common share dividend to $0.06 a share, effective in the fourth quarter.

“This will be the fifth increase in the dividends since it was introduced in March 2017. Higher dividend payments support our efforts to generate strong returns for shareholders. We continue to have considerable success with our share price also up about over 70% year-to-date in 2019,” said Kirkland president and CEO Tony Makuch.

The miner increased its production by 38% year-on-year to 248 400 oz in the quarter, at an all-in sustaining cost of $562/oz, which is a 13% improvement on that of a year earlier.

“The third quarter of 2019 was our best quarter to date driven by exceptional results at Fosterville and a solid quarter of performance at Macassa,” said Makuch.

At Fosterville, in Australia, production increased by almost 70 000 oz from the third quarter of 2018, largely reflecting a 75% improvement in the average grade, to 41.8 g/t.

“Grades of this level are rarely seen in our industry and resulted from the ramp up in production of the high-grade Swan Zone. We mined our first Swan stope during last year’s third quarter, which contributed about 7 500 oz of production. We have ramped up production since then and, in the third quarter, mined 11 Swan Zone stopes, which contributed about 94% of the 158 327 oz produced for the quarter.

At Macassa, in Canada, Kirkland had a strong quarter, with tonnes processed increasing 18% and the average grade improving to 23.3 g/t from 21.5 g/t in second quarter.

“We expect Fosterville and Macassa to finish 2019 with strong fourth quarters, which will position both mines to easily achieve their full-year 2019 production guidance of 570 000 oz to 610 000 oz and 240 000 oz to 250 000 oz, respectively.”

At the Holt Complex, also in Canada, Kirkland lowered the production guidance for full-year 2019 based on results to date and Makuch said that the company was assessing a future strategy for this operation.

During the quarter, Kirkland continued to progress its growth projects, with capital expenditures totalling $50.2-million in the three months, including $33.8-million at Macassa and $11.3-million at Fosterville.

Full-face sinking at Macassa #4 shaft project started in August and was advanced more than 600 ft by November 6.