Higher supplies to the UK lift Swiss October gold exports
Supplies from Switzerland to Britain in October reached the highest level since June 2021.
Kirkland Lake Gold (TSX:KL) (NYSE:KL) (ASX:KLA) saw increased production from all three of its operations during the second quarter of 2021, resulting in a record quarterly production of 379,195 oz. This represents a 15% increase from Q2 2020 and a 25% improvement over the prior quarter.
According to CEO Tony Makuch, the record production in Q2 2021 was largely driven by strong results at Fosterville, where production was significantly above planned levels due to continued grade outperformance in the Swan Zone.
During the quarter, the Fosterville mine produced 157,993 oz of gold based on processing 170,315 tonnes at an average grade of 29.2 g/t and average mill recoveries of 98.7%.
This was slightly higher than the 155,106 oz produced in Q2 2020, but represents a 45% increase over the 108,679 oz produced in the previous quarter.
At Detour Lake, production reached a record 165,880 oz for the quarter, which was 26% higher than the 131,992 oz produced in Q2 2020 and 13% better than the previous quarter.
Detour Lake’s record output was driven by higher mill throughput and a “significant improvement” in grade, Makuch said, with the average grade of 0.96 g/t in line with the current mineral reserve grade for the operation.
Production at the Macassa mine totalled 55,322 oz, which was 32% higher than 41,865 oz in Q2 2020 and increased 17% from 47,437 oz the previous quarter. Again, higher tonnes processed was attributed to the improved production.
For the first half of 2021, production totalled 682,042 oz, a 3% increase from the first six months of last year, mostly reflecting higher production at both Detour Lake and Macassa.
Given these results, the company said it is “well-positioned” to achieve its full-year 2021 production guidance of 1.3-1.4 moz, with the expectation now being to finish the year in the top half of the guidance range.
Shares of Kirkland Lake Gold were up 2.3% by 11:45 a.m. in Toronto, giving the senior gold producer a market value of C$13.3 billion.
