TORONTO — Shares in Kirkland Lake Gold Ltd. jumped by 5.2 per cent to $59.71 on Tuesday after it reported higher-than-expected gold production in the second quarter ended June 30.
The Canadian company’s output of 329,800 ounces was 54 per cent higher than the same period in 2019, thanks mainly to its purchase of Detour Gold Corp. for $4.34 billion in stock early this year.
The Detour Lake open pit gold mine in northeastern Ontario contributed 132,000 ounces to Kirkland Lake’s quarterly total, while its Fosterville mine in Australia produced 155,000 ounces, a 10 per cent increase from the year-earlier quarter as more tonnes of ore were processed.
CEO Tony Makuch said operations at Detour Lake were reduced in March due to COVID-19 measures but they recovered quickly after being restarted in early May.
The pandemic affected processed volumes more greatly at the Macassa mine in northern Ontario, he said. When combined with lower ore grades, second-quarter production was about 41,900 ounces compared to 49,200 ounces in the same three months of 2019.
Analyst Mike Parkin of National Bank said Kirkland Lake beat his second quarter production estimate by about six per cent and the company is well positioned to beat its updated annual production guidance of 1.35 million to 1.4 million ounces.
This report by The Canadian Press was first published July 7, 2020.
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The Canadian Press