Kirkland Lake Gold.

• Position: Mining Companies to Watch

The year 2016 was a transformational one for Kirkland Lake Gold.

From a junior gold company in Northeastern Ontario, Kirkland Lake Gold has grown into a mid-tier gold producer with two flagship district-scale operations on two separate continents with four operating mines.

Kirkland Lake Gold finished the year with a strong cash balance of US $235 million, the majority of it generated from its operations.

After finalizing the acquisition of St. Andrew Goldfields in January and striking a business combination with Newmarket Gold for its Australian gold properties in November, the Toronto-headquartered mid-tier miner attained record gold production of 314,495 ounces in its year-end results.

This year, the guidance for its global assets is in the 530,000 to 570,000-ounce range.

The company is significantly investing in operations to the tune of $180 million in growth and sustaining capital, with an additional $45 million to $55 million earmarked for exploration across all of its global properties.

Kirkland Lake Gold has operating mines and exploration properties in the historic Kirkland Lake gold camp, including its cornerstone Macassa Mine--one of the highest-grade gold mines in the world--and the Holt Mine Complex which includes the Holt and Taylor Mines.

The business combination with Newmarket Gold, a Canadian-listed gold producer, brought to the table three underground mines in Australia, led by its flagship Fosterville Mine, along with a stable of exploration opportunities in that country.

Macassa and Fosterville, the latter located in the Australian state of Victoria, account for more than 70 per cent of the company's total gold production in 2017.

The Newmarket acquisition afforded an opportunity to build ounces in the world's second largest gold production region.

Though located in a well-known mining jurisdiction in the state of Victoria, the Kirkland Lake Gold team felt Fosterville was an undervalued property with great upside.

The mine sits on a massive 500-squarekilometre land package and is located near some past high-grade multi-million-ounce producers from decades ago.

The previous operators had been successful in building resources and reserves there, but it wasn't until late 2015 when the mine reached a major inflection point upon discovery of the Eagle Zone, containing high-grade visible gold. The discovery resulted in significant positive impacts on reserve grade, production and costs, as well as the potential for a mill...