Kirkland Lake Gold has unearthed record output levels for the 2019 calendar year due to Fosterville’s revival of Victoria’s gold mines.
Making the most of the state’s gold mining boom, Kirkland Lake raked in just shy of one million ounces according to their 2019 operating results (974,615 ounces).
This marked a 35 per cent increase in gold production from 2018, allowing the company to meet their annual production targets.
Fosterville remains one of Victoria’s strongest performing gold mines with the site producing 619 thousand ounces of gold for the company last year.
An advanced exploration program in the Northern Territory could help drive Kirkland Lake’s production targets to new heights.
The company has spent $109.9 million on the program, with expenditure including underground development and drilling.
“2019 was a year of record operating and financial performance for Kirkland Lake Gold driven largely by strong production growth at Fosterville at very low unit costs,” said Kirkland Lake chief executive Tony Makuch.
“With the completion of the acquisition on January 31, 2020, we now move forward with three highly competitive, free cash flow generating assets, Macassa and Detour Lake in Northern Ontario and Fosterville in Victoria, Australia,
“We also continued to demonstrate an ability to generate substantial amounts of operating and free cash flow, which resulted in a rapid build-up in our cash position.
“We more than doubled our cash during the year at the same time that we incurred higher growth capital expenditures, reflecting significant progress at a number of key projects.”
With Kirkland reaching their 2019 production targets, production numbers are expected to soar to 1.54 million ounces by the end of 2020.