Kirkland cuts output forecast on project delay; shares slump

Thu Dec 13, 2012 12:54pm EST
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Dec 13 (Reuters) - Kirkland Lake Gold Inc slashed its production forecast for the year ending April 30 due to delays in completing a mine expansion project in Ontario, sending its shares to their lowest level in almost four years.

The gold miner's stock, which fell as much as 34 percent to C$5.11, was one of the biggest percentage losers on the Toronto Stock Exchange on Thursday.

The company reduced its guidance for the year to between 90,000 and 110,000 ounces of gold from its previous forecast of between 180,000 and 200,000 ounces.

Kirkland said its Service Cage Project will not be fully complete before the end of the third quarter ending Jan. 31 and that ore tonnage will not begin to ramp up until mid-fourth quarter. (Reporting by Sandhya Vijayan in Bangalore; Editing by Maju Samuel)