- Mining company Kirkland Lake Gold (KLA) has reported strong first-quarter financials, despite COVID-related disruptions to its mining operations
- During the quarter, the company was forced to reduce operations at the Detour Lake and Macassa mines and suspended operations at the Holt Complex to comply with provincial quarantine measures
- However, first-quarter revenue was up 82 per cent to approximately A$866 million (US$554,738 million), when compared to 2019’s same quarter
- Additionally, the company’s quarterly net earnings leapt 84 per cent to approximately A$316.93 million (US$202.9 million) on the previous corresponding period (PCP)
- The company stated that the acquisition of the Detour Gold Mine, strong production figures from its Fosterville Mine and an improved gold price all contributed to the increased revenue
- Kirkland Lake Gold shares are 1.07 per cent down today, trading for $65.49 per share
Mining company Kirkland Lake Gold (KLA) has reported strong first-quarter financials despite COVID-related operational disruptions.
Due to provincial quarantine measures, the company was forced to reduce operations at the Detour Lake and Macassa mines, and suspended operations at the Holt Complex.
More recently, Detour Lake and Macassa have begun ramping up staff, but Holt remains suspended until further notice.
Even with these disruptions late in the quarter, the company’s overall financial figures showed large improvements compared to last year’s corresponding period.
The company’s quarterly net earnings leapt 84 per cent to approximately A$316.93 million (US$202.9 million) on the previous corresponding period (PCP).
First-quarter revenue was up 82 per cent to approximately A$866 million (US$554,738 million) when compared to 2019’s same quarter.
Further, Kirkland’s quarterly figures were bolstered by its acquisition of Detour Gold earlier in the year. Through the deal, Kirkland acquired the Detour Lake Mine, which contributed approximately A$280.22 million (US$179.4 million) to the company’s quarterly revenue.
The company also cited high production at its Fosterville and Macassa mines, as well as an improved gold price, as contributors to the strong performance this quarter.
Kirkland plans to release an updated guidance once operations at Detour Lake and Macassa return to normal.
Tony Makuch, President and Chief Executive Officer of Kirkland Lake Gold, appears pleased with the company’s performance.
“Faced with the challenges of the COVID- 19 pandemic, our team did extremely well protecting themselves and each other, while also turning in a very solid performance for the quarter,” Tony explained.
“Turning to our Q1 2020 performance, we achieved strong earnings growth year over year and generated significant free cash flow. Our production increased from the first quarter of 2019, even excluding Detour Lake, with Fosterville continuing to be a key driver of our performance,” he said.
Kirkland Lake Gold shares are 1.07 per cent down today, trading for $65.49 per share at 2:23 pm AEST.