Kirkland Lake closes in on 1moz a year after record production
Kirkland Lake Gold (TSX, NYSE: KL) has announced record gold production for the fourth quarter and full year 2019. Production in Q4 2019 reached 279,742 ounces, an increase of 21% from the 231,217 ounces for the same period in 2018, driven mainly by record quarterly production at the Fosterville mine in Australia.
For FY 2019, the company’s consolidated gold production totalled 974,615 ounces, up 35% from the 723,701 ounces produced in 2018. Full-year production at Fosterville of 619,366 ounces beat the mine’s FY 2019 guidance of 570,000-610,000 ounces. Production at the Macassa mine in Ontario was 241,297 ounces, in line with its FY 2019 guidance of 240,000-250,000 ounces.
“Kirkland Lake Gold had its best year ever in 2019. We increased production 35%, more than doubled our cash position and continued to achieve significant exploration success,” president and CEO Tony Makuch said in a media brief.
The company added that recent drill results at Fosterville and Macassa were very encouraging, and both mines represent two of the “most exciting exploration projects” in the gold industry today. Advanced exploration work is also progressing at its operations in Australia’s Northern Territory, with a goal of resuming commercial operations as early as next month.
Kirkland Lake believes its recent agreement to acquire Detour Gold could provide additional upside potential by adding the 600,000 oz/y Detour Lake mine in Ontario to its portfolio.
Meanwhile, the company on Friday also announced a A$1 million donation to provide support and relief for communities affected by the recent bushfires in Victoria and New South Wales.