TORONTO (miningweekly.com) – Ontario-focused gold miner Kirkland Lake Gold on Thursday reported that its mine optimisation plan, which it had implemented at the end of last year, had come into full effect towards the end of its third quarter, resulting in significant operating and financial improvements in January.

The company, which operates its flagship Macassa gold mine in the historic Kirkland Lake gold camp, reported that for the three months ended January 31, revenue had totalled $46.2-million, up 12% quarter-on-quarter and 57% more than in the previous year.

For the third quarter, the TSX- and Aim-listed miner reported a net loss before income taxes of $6.1-million, which compared with a net loss before income taxes of $5.7-million for the same quarter a year earlier, and a net loss before income taxes of $6.1-million for the previous quarter. The net loss during the third quarter was mainly owing to a $5.4-million gold inventory valuation adjustment resulting from lower unit operating costs.

Operating margins rose 5% to 15% by the end of the quarter.

“The company expects to operate at cash-flow break-even during the fourth quarter, and return to cash flow positive and profitable operations during the first quarter of fiscal year 2015 (beginning May 2014),” president and CEO George Ogilvie said.

Kirkland Lake had completed the $95-million expansion project during the quarter, which had led to a significant rise in output and processing capacity. Ongoing capital requirements going forward were expected to total about $45-million to $50-million a year.

In January, the company produced 13 483 oz of gold and the total gold output for the third quarter was 31 022 oz.

On January 29, the company poured 4 706.65 troy ounces of gold at 85% fineness totalling 4 000 fine ounces of gold, which was Kirkland Lake’s largest gold pour in one week. On January 19, the company hoisted a record 3 118 t in a 24-hour period.

As a result of the new six-month mine-plan, Kirkland Lake had lowered its expected gold output for the full year ended April 30, to between 120 000 oz and 125 000 oz, from the original estimate of 150 000 oz to 180 000 oz, which nevertheless represented a 30% to 36% increase from the company's 2013 financial year output.

Kirkland Lake’s TSX-listed stock closed 6.9% higher on the TSX on Thursday at C$4.65 apiece.