Kirkland Lake reports net earnings decrease, production beats target in first quarter
(Kitco News) - Kirkland Lake Gold (TSX:KL) (NYSE:KL) (ASX:KLA) today announced that the company’s gold production in Q1 2021 totalled 302,847 ounces, which exceeded the guidance range of 270,000 – 290,000 ounces issued on February 25, 2021.
According to the company’s statement, the outperformance versus guidance largely resulted from higher than expected production at both Fosterville and Detour Lake in March, with Fosterville benefiting from significant grade outperformance and Detour Lake achieving higher than planned grades and tonnes processed.
Kirkland Lake said that at the end of Q1 2021, the company was on track to achieve the full-year 2021 production guidance of 1,300,000 – 1,400,000 ounces.
All-in sustaining costs (AISC) per ounce sold for Q1 2021 averaged $846, significantly better than guidance for the quarter of approximately $1,000. The better than expected AISC in Q1 2021 resulted from higher than planned sales volumes and lower than expected sustaining capital expenditures during March.
The company added it remains on track to achieve the full-year 2021 guidance for AISC per ounce sold of $790 – $810, with AISC per ounce sold in the second half of 2021 targeted at approximately $700.
Revenue in Q1 2021 totalled $551.8 million, similar to revenue of $554.7 million in Q1 2020.
The company’s net earnings in Q1 2021 totalled $161.2 million ($0.60 per share) compared to $202.9 million ($0.79 per share) in Q1 2020 and $232.6 million ($0.86 per share) the previous quarter.
Free cash flow in Q1 2021 totalled $42.7 million, which compared to free cash flow of $130.9 million in Q1 2020 and $232.4 million the previous quarter.
Kirkland Lake Gold is a senior gold producer operating in Canada and Australia that is targeting 1,300,000 – 1,400,000 ounces of production in 2021. The production profile of the company is anchored by three high-quality operations, including the Macassa mine and Detour Lake mine, both located in Northern Ontario, and the Fosterville mine located in the state of Victoria, Australia.