Kirkland Lake delivers record first-half gold production, Fosterville up 21% for quarter

The Fosterville gold mine

Kirkland Lake Gold has reported record first-half production and strong results from its flagship Fosterville mine in Victoria in its latest quarterly update.

The mine, Victoria’s largest gold operation, posted 77,462oz for the quarter, a 21 per cent increase over first quarter results (63,843oz). The year-over year (YoY) increase was, however, nominal at around half a per cent.

In  the second quarter of 2018 the company poured 162,748oz of gold and sold 164,305oz. Kirkland Lake’s production was up YoY by 14,872oz to 60,571oz, an increase of 33 per cent, and was up 12 per cent on the previous quarter.

The company also achieved record quarterly production at its Macassa mine in Ontario, Canada, which produces some of the highest grades of gold in the world.

Its first-half production (H1) for the year reached a record 312,329oz, a YoY increase of 7 per cent, while operations at Macassa achieved a quarterly record in the second quarter of 60,571oz, a 33 per cent YoY increase and 12 per cent increase over the previous quarterly record of 54,038oz achieved in first quarter 2018.

According to Tony Makuch, Kirkland Lake president and chief executive officer, mining in zones with larger widths and higher grades than expected contributed to Fosterville’s strong results.

Makuch called it a strong quarter, with average grades at both Macassa also above expected levels.

“Based on our solid first-half results, and expectations for H2 2018, we are very much on track to achieve our consolidated production guidance for 2018 of more than 620,000oz,” he said.

Kirkland Lake also reported strong cash flow increase of 16 per cent in Q2 2018, increasing by $43 million to around $318 million by June 30.