12:16 PM EDT, 05/27/2019 (MT Newswires) -- (Adds detail on royalty; updates shares.)

Kirkland Lake Gold (KL.TO) was down 4% on Monday after the government of the Australian state of Victoria imposed a 2.75% royalty, up from zero, on gold production in the region.

The move will add costs to the company's flagship Fosterville mine in the state, which produces more than 350,000 ounces per year. The expansion of Kirkland in 2015 is credited for reviving gold mining in Victoria.

Reports from Australia said the royalty hike came as a surprise and the industry was not consulted prior to the announcement of the levy.

Also on Monday, Kirkland Lake the Toronto Stock Exchange approved its plan to repurchase up to 20.99 million shares over the next year.

The company said its normal course issuer bid allows it to buy back and cancel up to 10% of its outstanding shares over the next 12 months.

The company repurchased 1.97 million shares out of an allowed 16.46 million in its previous buyback program that expired on May 21.

Kirkland Lake shares were last seen down $1.79 to $42.93 on the Toronto Stock Exchange.

Price: 42.64, Change: -2.08, Percent Change: -4.65