Kirkland Lake sells gold $ 400 oz more than a year ago

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Kirkland Lake Gold (NYSE: KL) said today that Q2 2020 consolidated production was 329,770 ounces, an increase of 54% from 214,593 ounces produced in Q2 2019.Kirkland appears to have escaped any significant drop in production due to the pandemic, which suspended operations in the first and second quarter among several miners. Kirkland said its production results were largely unchanged from the 330,864 ounces produced in the first quarter.

The Detour Lake mine produced 131,992 ounces despite disturbances, the company said. Production at Fosterville was 155,106 ounces, a 10% increase from 140,701 ounces in Q2 2019.

Macassa production appeared to suffer the most with production totaling 41,865 ounces compared to quarterly production of 49,196 ounces in Q2 2019.

Gold sales totaled 341,390 ounces at an average realized price of $ 1,716 per ounce, compared to 212,091 ounces ($ 1,320 per ounce) in Q2 2019 and 344,586 ounces ($ 1,586 per ounce) the previous quarter.

“We had a very solid second quarter despite the impact of COVID-19 and the many measures we have taken to protect our workers, their families and our communities. In Australia, Fosterville continued to perform well, with processed tonnes increasing during the quarter and grades continuing to average around 40 g / t, “said CEO Tony Makuch.

“At Detour Lake, the ramp-up of commercial activities after the reduced mine operations in March due to COVID-19 started in early May and went very well. Detour Lake produced more than 130,000 ounces in Q2 2020, even with lower average grades. during the period of reduced activity due in large part to the processing of stored materials. potential.

Detour hedging was a good thing, analyst Luis Reivera said in a note on Kirkland’s second quarter.

“The covers on Detour that they paid around $ 30 million to complete were very well synchronized, as usual with this team. These hedges were in the range of $ 1,300 to $ 1,490 and the average price realized was $ 1,714 in the second quarter. A rough calculation on this maneuver when everything is ready and it will probably bring more than 2x their money, “writes Rivera in his blog High Grade.

Warning: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has done everything possible to guarantee the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to exchange goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept guilt for loss and / or damage resulting from the use of this publication.

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