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Home > News > Kirkland Lake Gold delivers...

Kirkland Lake Gold delivers record net earnings in Q2 2021

Jul 30, 2021


“We had an excellent quarter in Q2 2021 highlighted by record earnings, record quarterly production, strong revenue growth and significant increases in both operating and free cash flow," Tony Makuch, President and Chief Executive Officer of Kirkland Lake Gold said.  "All three of our cornerstone assets increased production during Q2 2021, with Fosterville having a particularly successful quarter based largely on continued grade outperformance."

Kirkland Lake Gold Ltd. announced the company’s financial and operating results for the second quarter (“Q2 2021”) and first six months (“YTD 2021”) of 2021. The results included record quarterly net earnings and earnings per share driven by strong operating results and revenue growth, largely reflecting continued outperformance at Fosterville. All three of the Company’s cornerstone assets increased production compared to both the second quarter of 2020 (“Q2 2020”) and the previous quarter (“Q1 2021”).  The Company also reported solid earnings growth in YTD 2021 compared to the first six months of 2020 (“YTD 2020”), resulting largely from increased revenue. The Company’s full financial statements and management discussion & analysis are available on SEDAR at www.sedar.com and on the Company’s website at www.kl.gold. All dollar amounts are in U.S. dollars, unless otherwise noted.  

"In addition, we benefited from solid unit costs performances at all three operations, resulting in operating cash costs and AISC for the quarter that were better than full-year guidance. Also, during Q2 2021, we continued to generate very encouraging drill results and advanced our many growth and business improvement projects at Detour Lake, all of which are being completed as part of our work to transform Detour Lake into one of the world’s largest and most profitable gold mines. We also continued to achieve excellent progress at Macassa, with the #4 Shaft project remaining ahead of schedule and new drill results continuing to intersect wide, high-grade mineralization outside of existing Mineral Reserves. Our financial strength continued to improve during Q2 2021, with cash increasing to $858.4 million, and we remain committed to returning capital to shareholders, renewing our normal course issuer bid and introducing an automatic share purchase plan. We returned $158.6 million to shareholders during the first half of 2021 and have returned an additional $37.7 million in July through our Q2 2021 dividend payment and by repurchasing 945,000 shares through the NCIB.”  

  • RECORD NET EARNINGS AND EPS IN Q2 2021 
    Net earnings of $224.2M ($0.91/share), 67% increase from Q2 2020, 51% higher than Q1 2021; Adjusted EPS(1)of $246.9M ($0.92/share) in 02 2021
     
  • STRONG PRODUCTION GROWTH IN Q2 2021 
    379,195 oz in Q2 2021, up 15% from Q2 2020 and 25% the previous quarter; 682,042 oz in YTD 2021, 3% increase from YTD 2020
     
  • Q2 2021 UNIT COSTS BEAT FY 2021 GUIDANCE 
    Q2 2021 op. cash costs(1) of $431/oz sold, AISC(1) of $780/oz vs FY 2021 guidance of  450 – $475/oz and $790 – $810/oz, respectively
     
  • ON TRACK TO ACHIEVE FY 2021 GUIDANCE 
    Company now targeting top half of FY production guidance (1,300,000 – 1,400,000 oz), maintains unit cost and capital expenditure guidance
     
  • STRONG CASH FLOW GENERATION IN Q2 2021 
    Op. cash flow of $330.6M, up 49% and 59% from Q2 2020 and Q1 2021; Free cash flow(1) of $131.2M, up 39% from Q2 2020, triple Q1 2021 level
     
  • RETURNED $158.6M TO SHAREHOLDERS 
    Paid $100.3M in dividends in YTD 2021, used $58.3M to repurchase 1,374,100 shares
     
  • CONTINUED EXPLORATION SUCCESS 
    Continued drilling success in Saddle Zone at Detour Lake; New results at Macassa expand mineralization in multiple areas
     
  • EXCELLENT PROGRESS WITH GROWTH PROJECTS 
    Macassa #4 Shaft remains ahead of schedule; growth projects at Detour Lake advancing on plan
     
  • PROGRESS WITH ESG INITIATIVES
    Significant financial commitments made in support of local communities, further progress achieved towards goal of net-zero emissions by 2050 or earlier  

SUMMARY OF PERFORMANCE 

Q2 2021

  • Net earnings of $244.2 million ($0.91 per share), 63% increase from $150.2 million ($0.54 per share) in Q2 2020 and 51% higher than $161.2 million ($0.60 per share) the previous quarter; Adjusted net earnings(1) of $246.9 million ($0.92 per share), 13% increase from $219.3 million ($0.70 per share) in Q2 2020 and $167.8 million ($0.63 per share) in Q1 2021.
  • Cash flows including net cash provided by operating activities of $330.6 million and free cash flow(1) of $131.2 million.
  • Revenue of $662.7 million, 14% increase from Q2 2020 and 20% higher than the previous quarter; Revenue of $662.7 million reflected gold sales of 364,575 ounces and an average realized gold price(1) of $1,814 per ounce.


Tags: Northern Ontario / Deals & Financial / Gold / All Articles