Kirkland Lake Gold (TSX, NYSE: KL) (ASX: KLA) on Thursday reported strong financial and operating results for the second quarter of 2020 despite disruptions caused by covid-19.

Adjusted net earnings came to $219.3 million ($0.79 per share), double the Q2 2019 level of $109.8 million ($0.52 per share) and 22% higher than the $179.2 million ($0.70 per share) recorded for the previous quarter.

Earnings of $0.79 per share surpassed Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was $0.74 per share.

Revenue for the three-month period also doubled to $581.0 million from $281.3 million in Q2 2019 and was 5% higher than the previous quarter.

Gold production across Kirkland Lake’s operations reached 329,770 ounces, a 54% improvement from Q2 2019

During the quarter, the company generated net cash of $222.2 million and free cash flow of $94.1 million from operations, resulting in total cash balance of $537.4 million with no debt at quarter-end.

Gold production across Kirkland Lake’s operations reached 329,770 ounces, a 54% improvement from 214,593 ounces in Q2 2019 and comparable to 330,864 ounces for the previous quarter.

Cash cost and all-in sustaining cost (AISC) averaged $374 and $751 per ounce, respectively. Operating cash cost was $312 in Q2 2019 and $440 in Q1 2020, while AISC was $638 in Q2 2019 and $776 in Q1 2020.

At quarter-end, the company re-issued guidance for 2020 recognizing the progress achieved in ramping up business activities that had been impacted by covid-19. Included among the re-issued guidance was production of 1.35 to 1.4 million ounces, approximately 90% of the withdrawn 2020 production guidance.

Meanwhile, Kirkland Lake has also released new drilling results from the Fosterville mine in Australia, with higher than anticipated grades and visible-gold encountered near the intersection of the Swan Fault and the Swan Splay structure.

“The infill results confirm that the area where the Swan Fault and Swan Footwall Splay intersect contains more gold than currently modelled,” president and CEO Tony Makuch stated.

Shares Kirkland Lake Gold climbed more than 2% to a new 52-week high on Thursday. The stock has jumped 13% since the beginning of the year.

The Toronto-based gold major has a market capitalization of nearly C$18.9 billion.

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