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Kirkland Lake Gold doubles dividend, repurchases 10.1 million shares

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(Kitco News) - Kirkland Lake Gold Ltd. (TSX, NYSE: KL) is doubling its quarterly dividend and has repurchased 10.1 million shares under its repurchase program, the company announced late Wednesday.

The company said it will pay a quarterly dividend of $0.125 per share on April 13 to shareholders of record as of the close of business on March 31. This is up from the previous quarterly dividend of $0.06 that was paid on Jan. 13.

The payment represents the 12th quarterly dividend since Kirkland Lake adopted a dividend policy in March 2017, with the company increasing the dividend six times.

Meanwhile, the company said 10.1 million common shares have been repurchased through the company’s normal course issuer bid, totaling $350 million (C$470 million). Based on progress so far, Kirkland Lake is well positioned to achieve its goal of repurchasing 20 million shares over a 12- to 24-month period, the company added.

“We are very committed to using our substantial financial strength to return capital to shareholders through share repurchases and dividend payments,” said Tony Makuch, president and chief executive officer.

Makuch later added, “Our decision to double the dividend at this time reflects both the strength of our balance sheet and the ability of our three cornerstone assets – Fosterville, Macassa and Detour Lake – to generate significant amounts of free cash flow, particularly in the current strong gold-price environment.”

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