Kirkland Lake Gold (TSX: KL) (NYSE: KL) this morning announced its production results for both the first quarter and first half of 2020. By all accounts, the ongoing pandemic has not slowed the company down, with Kirkland announcing a 54% increase in production on a year over year basis for the second quarter, producing 329,770 ounces. For the year to date period, the firm posted a 48% increase to that of 660,634 ounces.
Production was slightly down in the second quarter compared to the first for 2020, with the quarters coming in at 329,770 ounces and 330,684 ounces respectively. More significantly, Kirkland has realized a much higher average selling price per gram of gold sold during the quarter, with the quarter over quarter price rising from $1,586 per ounce to $1,716 per ounce. Year over year this increase is even more dramatic, with the figure increasing from $1,320 per ounce in Q2 2019. Total gold sold during the quarter came in at 341,390 ounces.
Kirkland’s individual mine sites did see some fluctuation however in total production figures on a year over year basis due to COVID-19. Numbers are up on a year over year basis largely due to the recent acquisition of Detour Lake in the first quarter.
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- Detour Lake Mine produced 131,992 ounces in the first full quarter of ownership by Kirkland.
- Fosterville produced 155,106 ounces, a 10% increase YoY.
- Macassa produced 41,865 ounces, a decline from 49,196 ounces YoY, largely due to lower average grade.
- Holt Complex saw only 807 ounces produced, with operations still on temporary suspension.
Kirkland Lake is currently guiding to consolidated production between 1,350,000 and 1,400,000 gold ounces for fiscal 2020. To date, the company has produced a combined 660,634 ounces of gold. Production at Detour lake and Macassa is expected to ramp up further in the second half of the year.
Kirkland Lake Gold last traded at $56.75 on the TSX.
