- Kirkland Lake Gold (KL) has posted its financial and operational results from its June quarter, with the gold giant doubling revenue
- The company posted a 67 per cent increase in EBITDA, with that figure climbing to approximately C$415.98 million for the quarter
- Gold production also rose 54 per cent to 329,770 gold ounces, as the company’s recently acquired Detour Lake mine came into full production
- As a result, the quarterly dividend doubled to approximately $0.167 per share, and the company repurchased a further 1.3 million shares as part of its share buyback program
- Kirkland Lake Gold (KL) is down 1.9 per cent and is trading at $65.84 per share
Kirkland Lake Gold (KL) has posted its financial and operational results from its June quarter, with the gold giant doubling revenue.
While most other industries have struggled during the corona-quarter, gold companies have been making money hand over fist as investors rush to the safe haven commodity.
Kirkland Lake is certainly no exception, with the company revealing large profit growth for the quarter.
As stated, the company doubled its revenue to approximately C$780.38 million, a 107 per cent increase on the second quarter of 2019. Quarterly EBITDA went up 67 per cent and totalled approximately $415.98 million.
As a result, the quarterly dividend doubled to approximately $0.167 per share, and the company repurchased a further 1.3 million shares as part of its share buyback program.
Operationally, the company produced 54 per cent more gold ounces than it did in the comparative quarter last year, going to 329,770 ounces for the quarter.
Due to the strong performance, the company’s production guidance for the year was reissued at its original estimate on June 30.
Tony Makuch, the President and CEO of Kirkland Lake said the company had achieved solid results despite significant disruptions related to COVID-19. He went on to comment on the company’s strong performing Fosterville Mine.
“Once again, Fosterville was a key driver of our results, increasing producing by 10 per cent year over year and generating all-in sustaining costs of approximately $366 per ounce.
“With year-to-date production of 314,970 ounces, Fosterville entered the second half of the year well positioned to achieve its full-year 2020 guidance of 590,000-610,000 ounces,” he said.
The company’s newly acquired Detour Lake mine is also chipping in, contributing approximately $119.55 millions of free cash flow for the quarter, with Kirkland expecting even better results in the coming months.
Kirkland Lake Gold (KL) is down 1.9 per cent and is trading at $65.84 per share at 11:45 am EDT.