- Kirkland Lake Gold (TSX:KL) has reported strong first quarter financials despite COVID-related operational disruptions
- Due to the onset of the COVID-19 pandemic, the company was forced to reduce operations at the Detour Lake and Macassa mines, and suspended operations at the Holt Complex
- However, first quarter revenue was up around 82 per cent to approximately C$782.36 million, when compared to 2019’s same quarter
- The company stated that the acquisition of the Detour Gold Mine, strong production figures from its Fosterville Mine and an improved gold price all contributed to the increased revenue
- Kirkland Lake Gold (KL) is down 1.12 per cent, with shares trading for $59.86 and a market cap of $16.6 billion.
Kirkland Lake Gold (TSX:KL) has reported strong first quarter financials despite COVID-related operational disruptions.
Due to the onset of the COVID-19 pandemic, the company was forced to reduce operations at the Detour Lake and Macassa mines, and suspended operations at the Holt Complex.
More recently, the two former mines have begun ramping up staff but Holt remains suspended until further notice.
Even with these disruptions late in the quarter, the company’s overall financial figures showed large improvements compared to last year’s corresponding period.
The company’s quarterly net profit leapt 84 per cent, to approximately C$286.17 million, when compared to 2019’s same quarter.
First quarter revenue was up around 82 per cent year-on-year, to around $782.36 million.
Kirkland’s quarterly figures were bolstered by its acquisition of Detour Gold earlier in the year. Through the deal, Kirkland acquired the Detour Lake Mine, which contributed approximately $253.03 million to the company’s quarterly revenue.
The company also cited high production at its Fosterville and Macassa mines, as well as an improved gold price, as reasons for the strong performance this quarter.
However, the company has withdrawn its previously released full-year guidance and has chosen not to issue an updated outlook.
Kirkland plans to release an updated guidance once operations at Detour Lake and Macassa return to normal.
Tony Makuch, President and Chief Executive Officer of Kirkland Lake Gold, appears pleased with the company’s performance.
“Faced with the challenges of the COVID- 19 pandemic, our team did extremely well protecting themselves and each other, while also turning in a very solid performance for the quarter.
“Turning to our Q1 2020 performance, we achieved strong earnings growth year over year and generated significant free cash flow. Our production increased from Q1 2019, even excluding Detour Lake, with Fosterville continuing to be a key driver of our performance,” he said.
Kirkland Lake Gold (KL) is down 1.12 per cent, with shares trading for $59.86 at 9:49am EDT.