Kirkland Lake rides high grades towards banner year
VANCOUVER — Kirkland Lake Gold (TSX: KL; NYSE: KL) has been on a tear in 2017 thanks to high gold grades and strong operating performances at its two flagship assets: the Macassa operation in Ontario and the Fosterville mine in Australia’s Victoria State.
The company has gained in excess of 120% over the past seven months, en route to a 52-week high of $16.27 per share at press time.
Kirkland produced nearly 291,000 oz. of gold over the first half of 2017 at all-in sustaining costs (AISC) of US$803 per oz. The performance was largely underpinned by rising grades at Fosterville, which cranked out 77,000 oz. during the second quarter at AISC of US$388 per oz. sold.
The company generated US$45 million in free cash flow and net earnings of 17¢ per share during the three-month period.
Kirkland subsequently boosted its annual guidance to between 570,000 oz. and 590,000 oz., with Fosterville now scheduled to produce roughly 50,000 oz. more gold than expected. The company dropped its overall AISC estimates for the year by around US$50 to between US$800 to US$850 per oz.