Kirkland Lake Gold (TSX:KL, NYSE:KL) announced on Wednesday results for the first quarter of 2020 with strong year-over-year growth in net earnings and record levels of gold sales.
The company reported production of 330,864 ounces, a 43% increase from 231,879 ounces in Q1 2029 and 18% higher than 279,742 ounces in Q4 2019, boosted by Detour acquisition on Jan. 31.
Adjusted net earnings totaled $179.2 million, or 70 cents per share, up 57% from $113.8 million, or 54 cents, in the first quarter of 2019. Net earnings were $202.9 million, or 79 cents, 84% higher than $110.1 million, or 52 cents, in the year-ago period.
First-quarter revenue of $554.7 million jumped 82% from $304.9 million in the year-ago period
First-quarter revenue of $554.7 million jumped 82% from $304.9 million in the year-ago period. Detour Lake contributed revenue of $179.4 million in the first quarter.
Gold sales rose 48% to 344,586 ounces, compared to 232,929 in the same period of 2019.
“Our production increased from Q1 2019, even excluding Detour Lake, with Fosterville continuing to be a key driver of our performance. Looking at Detour Lake, the mine contributed $78 million of free cash flow in its first two months since the acquisition, and that included a period of running at reduced operations,” said Tony Makuch, President and CEO of Kirkland Lake in a media release.
“In addition, we took steps to remove non-core assets from our portfolio, including placing the Holloway Mine on care and maintenance, and suspending test mining and processing, as well as all exploration activities, in the Northern Territory.”
The company temporarily suspended operations at the remainder of the Holt Complex as part of covid-19 protocols.
Based on the move to reduced operations due to the pandemic, the company withdrew its full-year 2020 guidance.
Midday Tuesday, Kirkland’s stock was down 2.9% on the NYSE. The company has an $11.5 billion market capitalization.