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Kirkland Lake Gold (KL) Announces Record Production in Q2

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Kirkland Lake Gold Ltd. KL announced record quarterly production of 379,195 ounces in second-quarter 2021. The figure is up 15% from the year-ago quarter’s levels and 25% from the previous quarter’s tally. The company witnessed increased production in all three operations.

In the first half of 2021, total production was 682,042 ounces, up 3% from first-half 2020 levels. This reflects on higher production at Detour Lake and Macassa.

Gold sales amounted to 364,575 ounces in the second quarter at an average realized price of $1,814 per ounce with gold poured of 371,265 ounces. At Fosterville, production was recorded at 157,993 ounces up from 155,106 ounces in the year-ago quarter and 108,679 ounces in first-quarter 2021.

The company witnessed record quarterly production in Detour Lake of 165,880 ounces, a 26% rise from 131,992 ounces in the previous year quarter and 13% higher than 146,731 ounces in the previous quarter.

At Macassa, total production was 55,322 ounces, 32% higher from 41,865 ounces in second-quarter 2020 and 17% from 47,437 ounces in the previous quarter.

The company stated that the record production in second quarter was mainly driven by strong results at Fosterville, as well as higher levels of production at both Detour Lake and Macassa. Higher-than-planned production at Fosterville was primarily related to continued grade outperformance and changes in mine sequencing, which led to an improved grade profile in the quarter.

At Detour Lake, the company achieved record production driven by higher mill throughput and significant improvement in grade. Improved results at Macassa depicted increased processing rates as well as higher-than-expected grades. Both Detour Lake and Macassa are forecasting further improvement in average grades over the rest of the year, the company noted.

The company’s shares have declined 11.7% in the past year compared with 17.9% fall of the industry.

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Zacks Rank & Key Picks

Kirkland Lake Gold currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Nucor Corporation NUE, Olin Corporation OLN and Cabot Corporation CBT.

Nucor has a projected earnings growth rate of around 386.2% for the current year. The company’s shares have surged 138.1% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Olin has an expected earnings growth rate of around 506.7% for the current year. The company’s shares have skyrocketed 291.3% in the past year. It currently sports a Zacks Rank #1.

Cabot has an expected earnings growth rate of around 137.5% for the current fiscal. The company’s shares have surged 55.4% in the past year. It currently flaunts a Zacks Rank #1.


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