Discovery Silver - Interim CEO, Tony Makuch.
Interim CEO, Tony Makuch.
Source: Melbourne Mining Club.
  • Kirkland Lake Gold (KL) has reported strong production results from its gold projects in Canada and Australia, despite the impact of COVID-19
  • Consolidated production for the second quarter of 2020 totalled 329,770 ounces, a 54 per cent increase from 214,593 ounces in the same period last year
  • Gold sales also increased to 341,390 ounces, at an average price of roughly $2,324 per ounce, from 212,091 in the second quarter of 2019
  • The increase in production was largely due to the company’s acquisition of the Detour Lake Mine on January 31, 2020, which contributed a total of 131,992 ounces during the quarter
  • Kirkland Lake Gold (KL) is up 4.67 per cent and is trading at $62.50 per share 

Kirkland Lake Gold (KL) has reported strong production results from its gold projects in Canada and Australia, despite the impact of COVID-19.

Consolidated production for the second quarter of 2020 totalled 329,770 ounces, representing a 54 per cent increase from 214,593 ounces reported in the same period last year.

Likewise, gold sales also increased to 341,390 ounces, at an average price of roughly C$2,324 per ounce, from 212,091 in the second quarter of 2019. 

However, sales for the second quarter of this year fell marginally in comparison to the first quarter of 2020, which totalled 344,586 ounces at an average price of around $2,148 per ounce.

Such strong results were largely driven by contributions from the Detour Lake Mine, which came as a result of the company’s acquisition of Detour Gold on January 31, 2020.

That said, this was partially offset by a decline in production at the Holt Complex due to a temporary COVID-related suspension that took effect on April 2.

Kirkland Lake’s Fosterville Mine in Victoria, Australia, is reported to be progressing in line with its 2020 production guidance of between 590,000 and 610,000 ounces. 

In addition, output from the Detour Lake and Macassa mines are expected to increase throughout the second half of the year as they recover from the previous shutdowns and ramp up to full production levels.

Tony Makuch, President and CEO of Kirkland Lake Gold, said the company had a very solid second quarter despite the impact of the COVID-19 pandemic.

“In Australia, Fosterville continued to perform well, with tonnes processed increasing in the quarter and grades continuing to average around 40 grams per tonne.

“With improving operating performance, strong free cash flow generation and very encouraging exploration results from early drilling, our acquisition of Detour Gold is already emerging as a very successful transaction, with substantial value creation potential,” he added.

With no outstanding debt as of June 30, the company currently has a cash position of $727.57 million.

Kirkland Lake Gold (KL) is up 4.67 per cent and is trading at $62.50 per share at 10:26am EDT.

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