Make Kitco Your Homepage

Kirkland Lake Gold reports record production in second quarter

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - Today, a senior gold producer Kirkland Lake Gold (TSX:KL) (NYSE:KL) announced record quarterly production for Q2 2021 of 379,195 ounces, a 15% increase from Q2 2020 and 25% higher than the previous quarter, with all three of the company’s operations achieving increased production from both prior periods.

According to the company's statement, the Fosterville mine in Australia produced 157,993 ounces in Q2 2021, which was slightly higher than the 155,106 ounces produced in Q2 2020 and an increase of 45% from 108,679 ounces produced in the previous quarter. Production for the quarter was significantly above planned levels driven largely by continued grade outperformance in the Swan Zone, as well as changes to mine sequencing with high-grade Swan Zone stopes initially planned for Q4 2021 being advanced into Q2 2021.

The Detour Lake mine in Canada achieved record quarterly production in Q2 2021 of 165,880 ounces, a 26% increase from 131,992 ounces in Q2 2020 and 13% higher than 146,731 ounces in Q1 2021. The increase in production quarter over quarter mainly reflected a significant improvement in the average grade, as the mine sequenced into higher grade areas as part of the Phase 2 mining plan during Q2 2021, as well as an increase in tonnes processed, with first quarter throughput typically the lowest of the year due to seasonal factors (record first quarter throughput achieved in Q1 2021).

Production at the Macassa mine in Canada in Q2 2021 totalled 55,322, which was 32% higher than 41,865 ounces in Q2 2020 and an increase of 17% from 47,437 ounces produced in the previous quarter. Higher tonnes processed in Q2 2021 compared to both prior periods mainly reflected increased tonnage due largely to better than anticipated widths and strike lengths from stopes in the South Mine Complex, as well as processing from surface stockpiles.

Kirkland Lake said that the company is well positioned to achieve its full-year 2021 production guidance of 1,300,000 – 1,400,000 ounces, with the company's expectation now being to finish the year in the top half of the guidance range.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of 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 make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.