Kirkland Lake Gold Posted Notable Surge in Gold Output

SEATTLE (Scrap Monster): Kirkland Lake Gold posted significant jump in gold production during the quarter ended September 30^th, 2020. The boost in results was mainly due to contribution from the recently acquired Detour Gold assets. Incidentally, the Detour Lake mine accounted for over 40% of the company’s cash flow this year.

The company reported 37% surge in gold output during the recent quarter. The quarterly production totalled 339,584 ounces, at an all-in sustaining cost (AISC) of $886 per ounce. Without Detour Lake, the AISC stood at $622 per ounce. The revenues, at $632.8 million, were higher by 66% from the same quarter a year before. Consequently, the headline earnings surged higher by 49% to $249.3 million.

Kirkland’s Macassa mine in Ontario produced 38,028 ounces at $1,081 per ounce in the quarter. The lower grades, heating issues and the Covid-19 protocol impacts resulted in huge drop in output over the prior quarter. The number four shaft project at the mine is on track for late-2022 commissioning. Meantime, the high-grade Fosterville mine in Victoria, Australia, produced 161,489 ounces at an AISC of $349 per ounce.

Tony Makuch, Chief Executive noted that the company is extremely pleased with the contribution made by Detour Lake mine. It generated approximately $231 million of free cash flow during the first eight months since the acquisition of the mine earlier this year. The year-to-date cash flow is up by 52% to $500.6 million, he added.

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