Kirkland Lake is dedicated to increasing production at its Fosterville gold mine in Victoria and Macassa gold mine in Ontario, targeting 400,000 ounces (oz) of gold per annum for the former by 2020 and the latter over a period of five-to-seven years.
In the company’s quarterly report released today, Kirkland reported production of 147,644oz, up from 130,425oz in the first quarter of 2017, so the announced targets represent an ambitious push.
The company announced its plans in a management discussion and analysis paper posted on the ASX in relation to its Q1 report.
Kirkland hopes to buoy production at its Fosterville mine once full output is achieved at the project’s high-grade Swan Zone and additional mining fronts come to fruition.
For Macassa year-over-year growth is expected to be stable, with a 400,000oz target foreseeable within the next five to seven years following completion of a new mine shaft, first announced in January.
The company has performed well this quarter, setting a record quarterly EBITDA (earnings before interest, tax, depreciation and amortisation) of $105.9 million, considerably higher than the $66.9 million recorded in Q1 2017 and slightly higher than the previous quarterly record of $103.4 million from Q4 2017.
The company also recorded strong year-over-year growth to $50.2 million, compared to $38.5 million and $64.5 million for Q1 and Q4 2017.
Tony Makuch, Kirkland Lake president and chief executive officer, called it a strong quarter.
“Our Q1 2018 results surpassed target levels for the quarter in most key areas and, as a result, we entered the second quarter tracking very well against our consolidated 2018 guidance,” he said.
“Our capital expenditures will increase from Q1 2018 levels over the balance of the year as we ramp up the Macassa shaft project and key growth projects at Fosterville.”