Kirkland Lake Announces Revenues Of $581.0 Million, Net Earnings of $150.2 Million In Second Quarter 2020

Kirkland Lake Gold (TSX: KL) this morning released its second quarter financial results, demonstrating why M&A activity is about to heat up in the resources space. The company announced total revenues of $581.0 million, more than doubling its Q2 2019 results thanks in part to its acquisition of Detour Lake earlier this year, whom generated $233 million in revenues during the quarter alone. The company generated net earnings of $150.2 million during the second quarter.

Gold sales during the quarter totaled 341,390 ounces, a slight decline from the 344,586 ounces sold in the first quarter. However, the rising spot price of gold enabled the firm to report revenues 5% despite this. The average price obtained for its gold came in at $1,716 per ounce, as compared to $1,586 in the first quarter, and $1,320 received per ounce in the year ago period.

Production totaled 329,770 ounces, a decline from 330,864 ounces in the first quarter. However, production costs were down comparatively, at $141.4 million during the period ended June 30, as compared to $161.6 million in the previous quarter. All in sustaining costs per ounce sold were also down, falling from $776 to $751 on a quarter over quarter basis.

The company also posted strong cash flow during the quarter, with net cash provided by operating activities totaling out at $222.2 million, while free cash flow came in at $94.1 million, due to a $132.6 million tax payment made during the quarter for the 2019 tax year. The result is the company reported a total cash position of $537.4 million at the end of the second quarter, with no debt on the books.

Kirkland Lake Gold last traded at $50.49 on the NYSE.


Information for this briefing was found via Sedar and Kirkland Lake Gold Ltd. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

When 4% of Global Copper Disappears Overnight | David Gower – Emerita Resources

Mining M&A: Gold X2 Acquires Kesselrun Resources

They Said Oil Was Dead. They Were Wrong. | Michael Judson – Record Resources

Recommended

Steadright Secures Two Additional Exploration Licenses For Flagship Project

First Majestic Posts Record Quarterly Silver Production In Q3

Related News

Ascot Sees Yamana Gold Take 6.4% Stake In Company

Ascot Resources (TSX: AOT) has seen Yamana Gold (TSX: YRI) take a notable stake in...

Monday, April 12, 2021, 08:03:13 AM

Gran Colombia Gold Reports May Production of 18,129 Ounces

It appears operations are finally beginning to return to normal for gold miners. Gran Colombia...

Tuesday, June 16, 2020, 08:57:37 AM

Chinese Mining Giant Opens Gold, Copper Fund to Hong Kong Investors

Chinese mining conglomerate Zijin Mining Group opened its gold and copper investment fund to professional...

Friday, May 23, 2025, 07:37:40 AM

Gold Mountain: Star Royalties Purchase Highlights Value Of Flagship Asset

The trouble with investing in small cap equities is that sometimes, it takes a while...

Wednesday, September 29, 2021, 10:08:00 AM

K92 Mining To Move To Toronto Stock Exchange

K92 Mining (TSXV: KNT) has been conditionally approved to up list to the Toronto Stock...

Thursday, October 15, 2020, 08:14:31 AM