Kirkland Lake Sees First Quarter Production Increase 43% Year Over Year

It appears that despite current operational shutdowns, Kirkland Lake Gold (TSX: KL) (NYSE: KL) is still getting it done. Last night, the gold producer announced strong production numbers, with the firm seeing production increase 43%, or 98,985 ounces on a year over year basis to 330,864 ounces.

Production was provided a strong boost by the recent acquisition in January 2020 of Detour Gold, which provided a bump up in production numbers of 91,555 ounces. Excluding Detour, the company still posted a gain on a year over year basis of 7,430 ounces, or 3% overall thanks to strong results from the Fosterville site. The company also poured 326,933 ounces of gold in the period, while selling a total of 344,586 ounces. The difference was attributable to inventories held at the Detour Mine.

Aside from the Detour mine, Kirkland posted sold gains at its Fosterville mine in terms of production on a year over year basis, with the mine producing 159,864 ounces compared to 128,445 ounces. However, production was down on a quarter over quarter basis from that of 191,894 ounces in the fourth quarter.

The Macassa mine saw a slight decline in production, largely a result of the impacts of the coronavirus, with production hitting 50,861 ounces, compared to 72,776 ounces in the first quarter of 2019. The decline was also impacted by a lower grade of ore. Production was indicated to be down from 56,379 in the prior quarter solely as a result of the ongoing pandemic.

FInally, production was also down at the Holt Complex for Kirkland, with the total figure hitting 28,584 ounces, as compared to 30,658 ounces and 31,469 ounces in the year ago and quarter ago periods respectively. One of the mines associated with the complex, Holloway was put into care and maintenance mode in March, with no current plans for production resumption.

Kirkland Lake Gold last traded at $33.61 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.