Kirkland Lake Gold Reports Record Net Earnings in Q3 2021
Kirkland Lake Gold reported record quarterly net earnings of $254.9 million ($0.96/share) for Q3 2021, a 26% increase year-over-year, alongside a 5% rise in revenue to $667.0 million. Production grew 9% to 370,101 ounces, maintaining low unit costs with operating cash costs at $438/oz. Year-to-date earnings reached $660.3 million ($2.48/share), up 19% from 2020. The company is on track to meet its 2021 production guidance of 1.3-1.4 million ounces. Additionally, a merger with Agnico Eagle is expected to create a leading gold producer with significant growth opportunities.
- Record net earnings of $254.9 million in Q3 2021, a 26% increase from Q3 2020.
- Production of 370,101 ounces, up 9% from Q3 2020.
- Revenue increased to $667.0 million, a 5% rise from Q3 2020, driven by higher gold sales.
- Operating cash costs of $438/oz, below full-year guidance.
- Year-to-date earnings of $660.3 million, indicating strong financial performance.
- Average realized gold price dropped to $1,791/oz from $1,907/oz in Q3 2020.
- Increased production costs and higher depreciation expenses slightly offset earnings growth.
TORONTO, Nov. 03, 2021 (GLOBE NEWSWIRE) -- Kirkland Lake Gold Ltd. (“Kirkland Lake Gold” or the “Company”) (TSX:KL) (NYSE:KL) (ASX:KLA) today announced the Company’s financial and operating results for the third quarter (“Q3 2021”) and first nine months (“YTD 2021”) of 2021. The results included record quarterly earnings driven by strong operating results, including record quarterly production and all-in sustaining costs(1) at Detour Lake and continued grade outperformance at Fosterville. The Company also reported solid earnings growth in YTD 2021 compared to the first nine 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.
Tony Makuch, President and CEO of Kirkland Lake Gold, commented: “Q3 2021 was a quarter of substantial progress, highlighted by record quarterly earnings, solid year-over-year production growth as well as unit costs significantly better than full-year guidance. We also released encouraging exploration results at all three of our cornerstone assets and remained on track with our key growth projects, including the #4 Shaft project at Macassa. A clear demonstration of the success of our exploration programs came in early September when we announced an increase of 10.1 million ounces in open-pit Measured and Indicated (“M&I”) Mineral Resources at Detour Lake. Tripling the open-pit M&I Mineral Resources is a critical milestone for the operation and is expected to contribute to strong growth in Mineral Reserves as we make further progress towards transforming Detour Lake into one of the world’s largest and most profitable gold mines.
“On September 28, 2021, we announced an agreement to combine in a merger of equals with Agnico Eagle Mines Limited (“Agnico Eagle”). Through this transaction, we will create a new leader in the gold mining industry, with the lowest unit costs, best risk profile, leadership in key areas of ESG and an extensive project pipeline to drive future growth. The combined company, to continue under the name Agnico Eagle, will have the financial strength to fund its extensive list of internal growth projects and ESG initiatives, pursue additional external value-creation opportunities, while also continuing to return substantial amounts of capital to shareholders. The new Agnico Eagle will warrant a premium valuation, given its increased scale, low-cost and low-risk operations and superior financial performance and strength, and will be ideally positioned to generate superior long-term returns for shareholders going forward.”
- RECORD NET EARNINGS AND EPS IN Q3 2021
Net earnings of$254.9M ($0.96 /share),26% increase from Q3 2020,4% higher than Q2 2021; Adjusted EPS(1)of$241.3M ($0.91 /share) in Q3 2021 - SOLID PRODUCTION GROWTH FROM Q3 2020
370,101 oz in Q3 2021, up9% from Q3 2020, similar to record production of 379,195 oz in Q2 2021
- STRONG UNIT-COST PERFORMANCE IN Q3 2021
Op. cash costs(1) of 438/oz sold, AISC(1) of$740 /oz
- ON TRACK TO ACHIEVE FY 2021 GUIDANCE
Company targeting top half of production guidance (1.3 – 1.4M oz); On track to achieve op. cash costs/oz(1) guidance ($450 –$475 /oz) and AISC per/oz(1) guidance ($790 –$810 /oz) - STRONG CASH FLOW GENERATION IN Q3 2021
Op. cash flow of$323.0M ($861.7M YTD 2021) with free cash flow(1) of$141.8M ($315.7M YTD 2021) - RETURNED
$333.9M TO SHAREHOLDERS (YTD 2021)$183.6M used to repurchase 4,466,200 shares,$150.4M paid in dividends;$333.9M equates to$1.28 /share and$317 /oz produced
- SIGNIFICANT EXPLORATION SUCCESS ACHIEVED
Results at all three cornerstone assets highlight potential for continued growth in Mineral Reserves
- 10.1M OZ INCREASE IN OPEN-PIT M&I MINERAL RESOURCES AT DETOUR LAKE
Open-pit M&I Mineral Resources tripled to 14,718,000 oz (572.0M tonnes @ 0.80 g/t); increase in Mineral Resources expected to drive strong growth in Mineral Reserves
- PROGRESS WITH ESG INITIATIVES
Additional investments made in support of local communities; further progress achieved towards net-zero emissions by 2050 or earlier
STRONG TRACK RECORD FOR RETURNING CAPITAL TO SHAREHOLDERS
In YTD 2021, the Company continued its strong track record for returning capital to shareholders, returning a total of
With the addition of share repurchases and dividend payments in YTD 2021, the Company has now returned a total of
SUMMARY OF PERFORMANCE
Q3 2021
- Net earnings totalled a record
$254.9 million ($0.96 per share), a26% increase from$202.0 million ($0.73 per share) in Q3 2020 and4% higher than the previous quarterly record of$244.2 million ($0.91 per share) in Q2 2021; Adjusted net earnings(1) totalled$241.3 million ($0.91 per share) compared to$254.0 million ($0.92 per share) in Q3 2020 and$246.9 million ($0.92 per share) the previous quarter. - Cash flows included net cash provided by operating activities of
$323.0 million and free cash flow(1) of$141.8 million . - Revenue of
$667.0 million ,5% increase from Q3 2020 and1% higher than$662.7 million the previous quarter; Revenue of$667.0 million reflected gold sales of 372,100 ounces and an average realized gold price(1) of$1,791 per ounce. - EBITDA(1)(2) of
$451.6 million ,18% higher than$384.3 million in Q3 2020 and unchanged from$451.3 million in Q2 2021. - Capital expenditures totalled
$157.9 million (excluding capitalized exploration expenditures), with sustaining capital expenditures(1) accounting for$69.4 million and growth capital expenditures(1) totalling$88.5 million . - Exploration expenditures totalled
$39.4 million in Q3 2021, including$31.5 million of capitalized expenditures and$7.9 million of expensed exploration expenditures.
- Committed to returning capital to shareholders:
$175.3 million returned to shareholders during Q3 2021 through share repurchases and dividend payments; 3,092,100 shares repurchased for$125.3 million through the Automatic Share Purchase Plan (“ASPP”), with$50.0 million being paid for the Q2 2021 quarterly dividend, paid on July 14, 2021 to shareholders of record on June 30, 2021; ASPP suspended on September 29, 2021 following the announcement of the Company’s planned merger of equals with Agnico Eagle. - Solid operating results
- Production 370,101 ounces compared to 339,584 ounces in Q3 2020 and quarterly record production of 379,195 ounces the previous quarter
- Production costs of
$164.6 million - Operating cash costs per ounce sold(1) of
$438 compared to$406 in Q3 2020 and$431 in Q2 2021 - AISC per ounce sold(1) of
$740 ,16% improvement from$886 in Q3 2020 and5% better than$780 t he previous quarter.
(1) See “Non-IFRS Measures” in this press release and on pages 37 – 44 of the MD&A for the three and nine months ended September 30, 2021.
(2) Refers to Earnings before Interest, Taxes, Depreciation, and Amortization.
YTD 2021
- Net earnings totalled
$660.3 million ($2.48 per share), a19% increase from$555.1 million ($2.06 per share) in YTD 2020; Adjusted net earnings(1) of$656.0 million ($2.46 per share) versus$657.1 million ($2.43 per share) in YTD 2020. - Cash flows included net cash provided by operating activities of
$861.7 million and free cash flow(1) of$315.7 million . - Revenue of
$1,881.6 million , an increase of$113.0 million or6% from$1,768.6 million in YTD 2020; Revenue of$1,881.6 million reflected gold sales of 1,044,704 ounces and an average realized gold price(1) of$1,798 per ounce. - EBITDA(1)(2) of
$1,243.8 million ,15% higher than$1,085.5 million in YTD 2020. - Capital expenditures of
$428.6 million (excluding capitalized exploration expenditures), with sustaining capital expenditures(1) accounting for$211.2 million and growth capital expenditures(1) totalling$217.3 million . - Exploration expenditures totalled
$127.5 million , including$107.1 million of capitalized expenditures and$20.4 million of expensed exploration expenditures. - Solid YTD 2021 operating results versus full-year 2021 guidance
- Production 1,052,143 ounces, a
5% increase from YTD 2020 (Full-year 2021 guidance: 1,300,000 – 1,400,000 ounces). - Production costs of
$494.4 million - Operating cash costs per ounce sold(1) of
$466 compared to$407 in YTD 2020 (Full-year 2021 guidance:$450 –$475 per ounce sold) - AISC per ounce sold(1) of
$785 versus$804 in YTD 2020 (Full-year 2021 guidance:$790 –$810 per ounce sold).
- Production 1,052,143 ounces, a
(1) See “Non-IFRS Measures” in this press release and on pages 37 – 44 of the MD&A for the three and nine months ended September 30, 2021.
(2) Refers to Earnings before Interest, Taxes, Depreciation, and Amortization.
Q3 2021 – Other Key Highlights
Significant exploration success at all three of its cornerstone assets
|
- 10.1-million-ounce increase in Measured and Indicated (“M&I”) Mineral Resources at Detour Lake*: Open-pit, M&I Mineral Resources at Detour Lake increased 10,061,000 ounces or
216% to 14,718,000 ounces as at July 26, 2021 (572.0 million tonnes at average grade of 0.80 g/t) as part of a Mid-Year 2021 Mineral Resource update; New open-pit M&I Mineral Resource estimates include 12,214,000 ounces (386.5 million tonnes at an average grade of 0.98 g/t) at a cut-off grade of 0.50 g/t, with an additional 2,505,000 ounces (185.5 million tonnes at an average grade of 0.42 g/t) of low-grade Mineral Resources at a cut-off grade of 0.35 g/t/; The significant increase in Mineral Resources is expected to drive solid growth in Mineral Reserves as part of the December 31, 2021 Mineral Reserve and Mineral Resource statement to be released in the first quarter of 2022.
* Readers are referred to the Company’s Press Release dated September 2, 2021 and the Company’s NI 43-101 Technical Report entitled “Detour Lake Operation, Ontario, Canada, NI 43-101 Report” effective as of July 26, 2021 as filed with the applicable regulatory authorities and the detailed Mineral Reserve and Mineral Resource estimates and footnotes set out therein.
MERGER OF EQUALS AGREEMENT WITH AGNICO EAGLE MINES LIMITED
On September 28, 2021, Kirkland Lake Gold and Agnico Eagle announced that the two companies had entered into an agreement to combine in a merger of equals (the “Merger”), with the combined company to continue under the name Agnico Eagle Mines Limited. The Merger is expected to create an industry leader among senior gold producers with low unit costs, high margins, the most favourable risk profile and industry-leading best practices in key areas of environmental, social and governance (“ESG”). Upon closing of the Merger, the new Agnico Eagle is expected to have
The Merger will result in consolidation within one of the world’s leading gold regions, the Abitibi-Greenstone Belts of northeastern Ontario and northwestern Quebec, which will provide the new Agnico Eagle with significant value creation opportunities through synergies and other business improvement initiatives. Additionally, the Company will be uniquely established as the only gold producer in Nunavut and will also be well positioned internationally with profitable and prospective assets in Australia, Finland, and Mexico.
The combination of Agnico Eagle and Kirkland Lake Gold brings together two leading producers in growing per share value in key metrics such as production, mineral reserves, cash flow and net asset value. Both companies also share a strong commitment to returning capital to shareholders, with a total of
The Merger will be effected by way of a plan of arrangement (the “Arrangement”). At closing, all Kirkland Lake Gold common shares will be exchanged for the 0.7935 of an Agnico Eagle common share, for each Kirkland Lake Gold common share held, with existing Agnico Eagle and Kirkland Lake Gold shareholders expected to own approximately
Canadian Competition Act approval was received on October 4, 2021. Additionally, Agnico Eagle and Kirkland Lake Gold have received relief from the Australian Securities and Investments Commission from compliance with the prospectus and secondary sale requirements of Part 6D.2 and Part 6D.3 of the Australian Corporations Act. The Merger is also subject to other closing conditions customary in transactions of this nature, including receipt of Foreign Acquisitions and Takeovers Act 1975 (Cth) (Australia), Ontario court approval and applicable stock exchange approvals. Subject to shareholder approval and the satisfaction of all other conditions, the Merger is expected to close either in December 2021 or in the first quarter of 2022.
REVIEW OF FINANCIAL AND OPERATING PERFORMANCE
Table 1. Financial and Operating Performance
| (in 000's of dollars, except per share amounts) | Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, 2021 | September 30, 2020 | June 30, 2021 | September 30, 2021 | September 30, 2020 | ||||||||||||
| Revenue | $666,978 | $1,881,560 | ||||||||||||||
| Production costs | 164,620 | 136,023 | 159,726 | 494,427 | 439,030 | |||||||||||
| Earnings before income taxes | 341,485 | 295,316 | 339,126 | 916,594 | 815,123 | |||||||||||
| Net earnings | $254,946 | $660,306 | ||||||||||||||
| Basic earnings per share | $0.96 | $2.48 | ||||||||||||||
| Diluted earnings per share | $0.96 | $2.47 | ||||||||||||||
| Cash flow from operating activities | $322,993 | $861,737 | ||||||||||||||
| Cash investment on mine development and PPE | $181,203 | $546,022 | ||||||||||||||
| (in 000's of dollars, except per share amounts) | Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, 2021 | September 30, 2020 | June 30, 2021 | September 30, 2021 | September 30, 2020 | ||||||||||||
| Tonnes milled | 6,454,757 | 6,144,753 | 6,143,064 | 18,549,961 | 16,126,140 | |||||||||||
| Average Grade (g/t Au) | 1.9 | 1.8 | 2.0 | 1.9 | 2.0 | |||||||||||
| Recovery (%) | 94.9 | % | 95.3 | % | 95.3 | % | 94.7 | % | 95.6 | % | ||||||
| Gold produced (oz) | 370,101 | 339,584 | 379,195 | 1,052,144 | 1,000,218 | |||||||||||
| Gold Sold (oz) | 372,100 | 331,959 | 364,575 | 1,044,704 | 1,017,935 | |||||||||||
| Averaged realized price ($/oz sold)(1) | $1,791 | $1,798 | ||||||||||||||
| Operating cash costs per ounce sold ($/oz sold)(1) | $438 | $466 | ||||||||||||||
| AISC ($/oz sold)(1) | $740 | $785 | ||||||||||||||
| Adjusted net earnings(1) | $241,312 | $656,019 | ||||||||||||||
| Adjusted net earnings per share(1) | $0.91 | $2.46 | ||||||||||||||
| Free cash flow(1) | $141,790 | $315,715 | ||||||||||||||
(1) Non-IFRS - the definition and reconciliation of these Non-IFRS measures are included on pages 37 – 44 of the MD&A for the three and nine months ended September 30, 2021
Table 2. Review of Earnings Performance
| (in thousands of dollars, except per share amounts) | Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, 2021 | September 30, 2020 | June 30, 2021 | September 30, 2021 | September 30, 2020 | ||||||||||||
| Revenue | ||||||||||||||||
| Production costs | (164,620 | (136,023 | ) | (159,726 | ) | (494,427 | ) | (439,030 | ) | |||||||
| Royalty expense | (22,457 | (21,481 | ) | (22,369 | ) | (63,220 | ) | (61,988 | ) | |||||||
| Depletion and depreciation | (108,956 | (86,707 | ) | (111,348 | ) | (324,404 | ) | (262,132 | ) | |||||||
| Earnings from mine operations | 370,945 | 388,632 | 369,293 | 999,509 | 1,005,406 | |||||||||||
| Expenses | ||||||||||||||||
| General and administrative1 | (17,775 | ) | (20,409 | ) | (20,184 | ) | (50,302 | ) | (53,108 | ) | ||||||
| Transaction costs | (989 | ) | 707 | — | (989 | ) | (33,131 | ) | ||||||||
| Exploration | (7,902 | ) | (2,498 | ) | (7,079 | ) | (20,467 | ) | (10,813 | ) | ||||||
| Care and maintenance | (3,580 | ) | (14,256 | ) | (4,093 | ) | (11,869 | ) | (23,716 | ) | ||||||
| Rehabilitation costs | (864 | ) | (32,626 | ) | (286 | ) | (390 | ) | (35,074 | ) | ||||||
| Earnings from operations | 339,835 | 319,550 | 337,651 | 915,492 | 849,564 | |||||||||||
| Finance and other items | ||||||||||||||||
| Other income (loss), net | 2,526 | (23,453 | ) | 2,016 | 3,118 | (31,412 | ) | |||||||||
| Finance income | 266 | 1,524 | 297 | 810 | 5,239 | |||||||||||
| Finance costs | (1,142 | ) | (2,305 | ) | (838 | ) | (2,826 | ) | (8,268 | ) | ||||||
| Earnings before income taxes | 341,485 | 295,316 | 339,126 | 916,594 | 815,123 | |||||||||||
| Current income tax expense | (68,437 | ) | (66,097 | ) | (45,279 | ) | (156,687 | ) | (195,247 | ) | ||||||
| Deferred tax expense | (18,102 | ) | (27,197 | ) | (49,680 | ) | (99,601 | ) | (64,744 | ) | ||||||
| Net earnings | ||||||||||||||||
| Basic earnings per share | ||||||||||||||||
| Diluted earnings per share | ||||||||||||||||
| Weighted average number of common shares outstanding (in 000's) | ||||||||||||||||
| Basic | 265,268 | 275,280 | 267,074 | 266,477 | 269,941 | |||||||||||
| Diluted | 265,375 | 275,471 | 267,189 | 267,294 | 270,146 | |||||||||||
(1) General and administrative expense for Q3 2021 (Q3 2020 and Q2 2021) include general and administrative expenses of
FOREIGN EXCHANGE RATES
After weakening sharply against the US dollar in Q1 2020, concurrent with the emergence of the COVID-19 pandemic, the Canadian and Australian dollars began strengthening against the US dollar starting in Q2 2020 with this trend continuing through the remainder of 2020 and into Q2 2021. As a result, the average exchange rates for Q3 2021 included C$ to US$ of
(1) The Foreign Exchange Rates discussion includes references to Non-IFRS measures. The definition and reconciliation of these Non-IFRS measures are included on pages 36 – 43 of the MD&A for the three and nine months ended September 30, 2021.
Review of Financial Performance
Revenue
Revenue in Q3 2021 totalled
Q3 2021 revenue of
- Rate factors include the impact of changes in the average realized gold price(1) as well as any impact related to changes in foreign exchange rates. In Q3 2021, rate factors reduced revenue by approximately
$43 million versus Q3 2020, virtually all of which related to the impact from an reduction in the average realized gold price(1). Compared to Q2 2021, rate factors reduced revenue by approximately$10 million , approximately$9 million of which related to a lower average realized gold price(1) compared to the previous quarter, with approximately$1 million due to exchange rate changes. Non-IFRS - the definition and reconciliation of these Non-IFRS measures are included on pages 37-44 of this MD&A.
Revenue in YTD 2021 totalled
- Rate factors include the impact of changes in the average realized gold price(1) as well as any impact related to changes in foreign exchange rates. In YTD 2021, rate factors increased revenue by
$67 million versus YTD 2020, virtually all of which related to an increase in the average realized gold price(1). Non-IFRS - the definition and reconciliation of these Non-IFRS measures are included on pages 37-44 of this MD&A.
Net Earnings and Adjusted Net Earnings(1)
Net Earnings and Earnings Per Share
Net earnings in Q3 2021 totalled a record
Partially offsetting the favourable impact of these factors were higher production costs and depletion and depreciation expense, largely reflecting higher business volumes compared to Q3 2020. On an after-tax basis, higher production costs reduced net earnings by
Net earnings in Q3 2021 of
Net earnings in YTD totalled
Partially offsetting the favourable impact of these factors were higher production costs and depletion and depreciation expense, largely reflecting higher business volumes in YTD 2021 compared to YTD 2020. On an after-tax basis, higher production costs reduced net earnings by
Adjusted Net Earnings(1)
Adjusted net earnings(1) in Q3 2021 totalled
Adjusted net earnings(1) in YTD 2021 totalled
Cash and Cash Flows
The Company’s cash balance at September 30, 2021 totalled
Net cash used in investing activities in Q3 2021 totalled
Net cash used in financing activities in Q3 2021 totalled
The Company’s cash balance of
Free cash flow(1)
Free cash flow(1) totalled
(1) The Review of Financial Performance section includes references to Non-IFRS measures. The definition and reconciliation of these Non-IFRS measures are included on pages 37 – 44 of the MD&A for the three and nine months ended September 30, 2021.
Review of Operating Mines
Detour Lake
Detour Lake achieved record quarterly production in Q3 2021 of 189,233 ounces based on processing 6,197,915 tonnes (67,368 tonnes per day) at an average grade of 1.04 g/t and average recoveries of
Production costs at Detour Lake in Q3 2021 totalled
Production at Detour Lake for YTD 2021 totalled 501,844 ounces, which resulted from processing 17,781,572 tonnes at an average grade of 0.96 g/t and average recoveries of
Production costs at Detour Lake in YTD 2021 totalled
Growth projects: Growth capital expenditures(1) at Detour Lake in YTD 2021 totalled
Macassa
Production at Macassa in Q3 2021 totalled 46,097 ounces based on processing 76,587 tonnes at an average grade of 19.1 g/t and average recoveries of
Production costs in Q3 2021 totalled
Production at Macassa for YTD 2021 totalled 148,855 ounces, based on processing 243,614 tonnes at an average grade of 19.4 g/t and average recoveries of
Production costs for YTD 2021 totalled
Growth projects: Growth capital expenditures(1) at Macassa for YTD 2021 totalled
Fosterville
The Fosterville Mine produced 134,772 ounces in Q3 2021 based on processing 180,255 tonnes at an average grade of 23.6 g/t and average mill recoveries of
Production costs were
Production at Fosterville for YTD 2021 totalled 401,445 ounces, significantly higher than target levels for the first nine months of the year, largely reflecting grade outperformance in multiple Swan Zone stopes during YTD 2021. Production in YTD 2021 compared to production of 476,459 ounces for YTD 2020, with the reduction reflecting a lower average grade consistent with the Company’s previously stated plan to reduce production with the intention of creating a more sustainable operation over a longer period while the mine continues its extensive exploration program. Partially offsetting the impact of a planned reduction in the average grade was a
Production costs were
Growth projects: Growth capital expenditures(1) at Fosterville for YTD 2021, excluding capitalized exploration, totalled
(1) The Review of Operating Mines section includes a number of Non-IFRS measures. The definition and reconciliation of these Non-IFRS measures are included on pages 37 – 44 of the MD&A for the three and nine months ended September 30, 2021.
FULL-YEAR 2021 GUIDANCE
The Company’s full-year guidance for 2021 was announced in a press release dated December 10, 2020 and was maintained at both the Company’s Q1 2021 and Q2 2021 board meetings. Included in the Company’s consolidated guidance for the year is target production of 1,300,000 – 1,400,000 ounces (1,369,652 ounces produced in 2020), operating cash costs per ounce sold(1) of
Full-Year 2021 Guidance
| ($ millions unless otherwise stated)(1) | Macassa | Detour Lake | Fosterville | Consolidated |
| Gold production (kozs) | 220 – 255 | 680 – 720 | 400 – 425 | 1,300 - 1,400 |
| Operating cash costs/ounce sold ($/oz)(2) | ||||
| AISC/ounce sold ($/oz)(2) | ||||
| Operating cash costs ($M)(2) | ||||
| Royalty costs ($M) | ||||
| Sustaining capital ($M)(2)(3) | ||||
| Growth capital ($M)(2)(3) | ||||
| Exploration ($M)(4) | ||||
| Corporate G&A ($M)(5) |
(1) The Company’s 2021 guidance assumes an average gold price of
(2) See “Non-IFRS Measures” set out starting on page 37 of this MD&A for further details. The most comparable IFRS Measure for operating cash costs, operating cash costs per ounce sold and AISC per ounce sold is production costs, as presented in the Consolidated Statements of Operations and Comprehensive Income, and total additions and construction in progress for sustaining and growth capital.
(3) Capital expenditures exclude capitalized depreciation.
(4) Exploration expenditures include capital expenditures related to infill drilling for Mineral Resource conversion, capital expenditures for extension drilling outside of existing Mineral Resources and expensed exploration. Also includes capital expenditures for the development of exploration drifts.
(5) Excludes share-based payment expense (including expense related to share price changes).
YTD 2021 Results
| ($ millions unless otherwise stated)(1) | Macassa | Detour Lake | Fosterville | Consolidated |
| Gold production (kozs) | 148,855 | 501,844 | 401,445 | 1,052,144 |
| Operating cash costs/ounce sold ($/oz)(2) | ||||
| AISC/ounce sold ($/oz)(2) | ||||
| Operating cash costs ($M)(2) | ||||
| Royalty costs ($M) | ||||
| Sustaining capital ($M)(2)(3) | ||||
| Growth capital ($M)(2)(3) | ||||
| Exploration ($M)(4) | ||||
| Corporate G&A ($M)(5) |
(1) Average exchange rates in YTD 2021 included a US$ to C$ exchange rate of
(2) See “Non-IFRS Measures” set out starting on page 37 of this MD&A for further details. The most comparable IFRS Measure for operating cash costs, operating cash costs per ounce sold and AISC per ounce sold is production costs, as presented in the Consolidated Statements of Operations and Comprehensive Income, and total additions and construction in progress for sustaining and growth capital.
(3) Capital expenditures exclude capitalized depreciation.
(4) Exploration expenditures include capital expenditures related to infill drilling for Mineral Resource conversion, capital expenditures for extension drilling outside of existing Mineral Resources and expensed exploration. Also includes capital expenditures for the development of exploration drifts.
(5) Excludes share-based payment expense (including expense related to share price changes).
- Gold production in YTD 2021 totalled 1,052,144 ounces, with the Company ending the first nine months of 2021 on track to achieve of the top half of the full-year 2021 consolidated production guidance of 1,300,000 – 1,400,000 ounces. Production at Fosterville of 401,445 ounces, significantly higher than target levels for the first nine months of the year, largely driven by grade outperformance in the Swan Zone. At September 30, 2021, Fosterville had already achieved the low end of the full-year 2021 guidance of 400,000 – 425,000 ounces, with the mine now expected to end the year with production of approximately 500,000 ounces or higher. Production at Detour Lake in YTD 2021 totalled 501,844 ounces, in line with expected levels, with the mine now targeting the top half of the full-year 2021 production guidance range of 680,000 – 720,000 ounces. Production at Macassa in YTD 2021 totalled 148,855 ounces, below target levels for the first nine months of the year due largely to reduced equipment availability caused by increased maintenance requirements, poor battery performance and delays in receiving new batteries, with the result being lower tonnes produced, reduced operating development metres and a lower average grade resulting largely from changes to mine sequencing. While production is expected to increase from the Q3 2021 level in the final quarter of the year, the mine is not expected to reach the low end of the full-year 2021 guidance range of 220,000 - 255,000 ounces, with the mine now targeting 190,000 – 210,000 ounces of production for the year.
- Production costs for YTD 2021 totalled
$494.4 million , while operating cash costs(1) totalled$487.2 million , with operating cash costs(1) increased$35 million due to stronger Canadian and Australian dollars compared to the assumed exchange rates in the Company’s guidance. Based on the impact of exchange rates, the Company expects operating cash costs(1) to end the year somewhat higher than the full-year 2021 guidance range of$600 -$630 million , though the Company remains well positioned to achieve full-year 2021 guidance for operating cash costs per ounce sold(1) (see below). - Operating cash costs per ounce sold(1) for YTD 2021 averaged
$466 , better than planned levels for the nine months of the year and in line with full-year 2021 guidance of$450 –$475 despite a$33 per ounce unfavourable impact from stronger Canadian and Australian dollars versus levels assumed in the Company’s full-year 2021 guidance. Operating cash costs per ounce sold(1) at Fosterville averaged$184 in YTD 2021 compared to full-year 2021 guidance of$230 –$250 , with the significant outperformance largely related to the favourable impact of significant grade outperformance on production and sales volumes. Fosterville entered the final quarter of the year on track to beat its operating cash costs per ounce sold guidance for full-year 2021. Operating cash costs per ounce sold(1) at Detour Lake averaged$647 , higher than the guidance range of$580 –$600 , due largely to the impact of exchange rates as well as higher diesel and electricity costs and increased costs for mill maintenance. Operating cash costs per ounce sold at Detour Lake in Q4 2021 are expected to improve from the Q3 2021 level of$601 , with full-year 2021 operating cash costs per ounce sold(1) expected to end the year at or slightly above the top end of the guidance range for full-year 2021. Operating cash costs per ounce sold(1) at Macassa averaged$645 in YTD 2021 versus full-year 2021 guidance of$450 –$470. M acassa is not expected to achieve full-year 2021 guidance due largely to the impact of exchange rates as well as lower than planned production and sales. As outlined above, the Company remains on track to achieve full-year 2021 consolidated operating cash costs per ounce sold(1) guidance of$450 –$475. - AISC per ounce sold(1) for YTD 2021 averaged
$785 , better than the full-year 2021 guidance range of$790 –$810 despite a$49 per ounce sold unfavourable impact from exchange rate movements. The better than expected AISC per ounce sold(1) in YTD 2021 resulted from higher than planned sales volumes and lower than expected sustaining capital expenditures at Fosterville, where AISC per ounce sold(1) averaged$367 in YTD 2021. AISC per ounce sold(1) in YTD 2021 averaged$994 at Detour Lake and$884 at Macassa. Both operations are targeting improved levels of AISC per ounce sold during the final quarter of the year. At September 30, 2021, the Company remained on track to meet, and potentially beat, full-year 2021 consolidated AISC per ounce sold(1) of$790 –$810. - Royalty costs for YTD 2021 totalled
$63.2 million and continues to target full-year 2021 royalty costs of$82 –$88 million . - Total capital expenditures(1) in YTD 2021 totalled
$428.6 million , with sustaining capital expenditures(1) accounting for$211.2 million (versus guidance of$280 –$310 m ililon) and growth capital expenditures(1) totalling$217.3 million (versus full-year 2021 guidance of$250 –$275 million ). Sustaining capital expenditures were lower than planned despite a$16 million unfavourable impact from stronger Canadian and Australian dollars largely reflecting timing differences in completing capital development and equipment procurement at Fosterville and Macassa. Of the$217.3 million of growth capital expenditures(1), which included a$24 million unfavourable impact from exchange rates,$137.0 million were at Detour Lake, including$66.4 million related to deferred stripping with the remaining$70.6 million related to the procurement of mobile equipment and projects involving the tailing management area, process plant as well as construction of a new assay lab and airfield. Growth capital expenditures(1) at Macassa totalled$72.2 million , with$32.7 million related to the #4 Shaft project, which reached 6,100 feet of advance as at September 30, 2021, and$12.9 million for a ventilation expansion project involving development of two ventilation raises, with an additional$11.6 million related to lateral development from the mine towards the #4 shaft location. Growth capital expenditures(1) at Fosterville totalled$6.8 million largely related to construction of a surface refrigeration plant and land procurement. In aggregate, including both sustaining and growth capital expenditures(1), the Company’s guidance for total capital expenditures in full-year 2021 is$530 -$585 million , with the Company entering the final quarter of the year on track to achieve the top end of the guidance range, despite the impact of exchange rates. - Exploration expenditures for YTD 2021 totalled
$127.5 million and ended Q3 2021 on track to achieve the low end of full-year 2021 guidance of$170 -$190 million despite a$10 million unfavourable exchange rate impact during YTD 2021. Of the$127.5 million of exploration expenditures in YTD 2021,$63.2 million was at Fosterville where drilling and development continued in the Lower Phoenix System, as well as at Robbin’s Hill, Cygnet and Harrier. Exploration expenditures at Macassa in YTD 2021 totalled$30.1 million with drilling mainly targeting the continued expansion of the SMC and testing targets along the Amalgamated Break. Detour Lake accounted for$29.3 million of exploration expenditures in YTD 2021, with remaining exploration expenditures mainly related to drilling at Holt Complex and regional targets in Northern Ontario. - Corporate G&A expense for YTD 2021 totalled
$44.7 million , with the Company continuing to target full-year 2021 Corporate G&A costs of$50 –$55 million .
(1) The Full-Year 2021 Guidance section includes references to Non-IFRS measures. The definition and reconciliation of these Non-IFRS measures are included on pages 37 – 44 of the MD&A for the three and nine months ended September 30, 2021.
Q3 2021 Financial Results and Conference Call Details
A conference call to discuss the Q3 2021 results will be held by senior management on Thursday, November 4, 2021, at 8:00 am ET. Call-in information is provided below. The call will also be webcast and accessible on the Company’s website at www.kl.gold.
| DATE: | THURSDAY, NOVEMBER 4, 2021 | ||
| CONFERENCE ID: | 5247974 | ||
| TIME: | 8:00 am ET | ||
| TOLL-FREE NUMBER: | 1 (888) 510-2008 | ||
| INTERNATIONAL CALLERS: | 1 (646) 960-0306 | ||
| WEBCAST URL: | https://event.on24.com/wcc/r/3409441/D4EE6E4AC4888EFEC13099ED652C32DE | ||
About Kirkland Lake Gold Ltd.
Kirkland Lake Gold Ltd. is a low-cost senior gold producer operating in Canada and Australia that is targeting 1,300,000 - 1,400,000 ounces of production in 2021. The production profile of Kirkland Lake Gold is anchored by three high-quality operations, including the Macassa Mine and Detour Lake Mine, both located in Northern Ontario, and the Fosterville Mine located in the state of Victoria, Australia. Kirkland Lake Gold's solid base of quality assets is complemented by district scale exploration potential, supported by a strong financial position, extensive management expertise and an overriding commitment to safe, responsible mining.
For further information on Kirkland Lake Gold and to receive news releases by email, visit the website www.kl.gold.
Qualified Persons
The technical contents related to Kirkland Lake Gold Ltd. mines and properties in this press release, have been reviewed and approved by Natasha Vaz, P.Eng., Chief Operating Officer and Eric Kallio, P.Geo, Senior Vice President, Exploration. Ms. Vaz and Mr. Kallio and are “qualified persons” as defined in National Instrument 43-101 and have reviewed and approved disclosure of the technical information and data in this press release.
Non-IFRS Measures
The Company has included certain non-IFRS measures in this document, as discussed below. The Company believes that these measures, in addition to conventional measures prepared in accordance with IFRS, provide investors an improved ability to evaluate the underlying performance of the Company. The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers.
Free Cash Flow and Adjusted Free Cash Flow
In the gold mining industry, free cash flow is a common performance measure with no standardized meaning. The Company calculates free cash flow by deducting cash capital spending (capital expenditures for the period, net of expenditures paid through finance leases) from net cash provided by operating activities.
The Company discloses free cash flow as it believes the measure provides valuable assistance to investors and analysts in evaluating the Company’s ability to generate cash flow after capital investments and build the cash resources of the Company. The Company also discloses and calculates adjusted free cash flow by excluding items from free cash flow. The most directly comparable measure prepared in accordance with IFRS is net cash provided by operating activities less net cash used in investing activities.
Operating Cash Costs and Operating Cash Costs per Ounce Sold
Operating cash costs and operating cash cost per tonne and per ounce sold are non-IFRS measures. In the gold mining industry, these metrics are common performance measures but do not have any standardized meaning under IFRS. Operating cash costs include mine site operating costs such as mining, processing and administration, but exclude royalty expenses, depreciation and depletion and share based payment expenses and reclamation costs. Operating cash cost per ounce sold is based on ounces sold and is calculated by dividing operating cash costs by volume of gold ounces sold.
The Company discloses operating cash costs and operating cash cost per tonne and per ounce as it believes the measures provide valuable assistance to investors and analysts in evaluating the Company’s operational performance and ability to generate cash flow. The most directly comparable measure prepared in accordance with IFRS is total production expenses. Operating cash costs and operating cash cost per ounce of gold should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS.
Sustaining and Growth Capital
Sustaining capital and growth capital are Non-IFRS measures. Sustaining capital is defined as capital required to maintain current operations at existing levels. Growth capital is defined as capital expenditures for major growth projects or enhancement capital for significant infrastructure improvements at existing operations. Both measurements are used by management to assess the effectiveness of investment programs.
AISC and AISC per Ounce Sold
AISC and AISC per ounce are Non-IFRS measures. These measures are intended to assist readers in evaluating the total costs of producing gold from current operations. While there is no standardized meaning across the industry for this measure, the Company’s definition conforms to the definition of AISC as set out by the World Gold Council in its guidance note dated June 27, 2013.
The Company defines AISC as the sum of operating costs (as defined and calculated above), royalty expenses, sustaining capital, corporate expenses, lease payments relating to sustaining assets, and reclamation cost accretion and depreciation related to current operations. Corporate expenses include general and administrative expenses, net of transaction related costs, severance expenses for management changes and interest income. AISC excludes growth capital expenditures, growth exploration expenditures, reclamation cost accretion and depreciation not related to current operations, lease payments related to non-sustaining assets, interest expense, debt repayment and taxes.
Average Realized Price per Ounce Sold
In the gold mining industry, average realized price per ounce sold is a common performance measure that does not have any standardized meaning. The most directly comparable measure prepared in accordance with IFRS is revenue from gold sales. Average realized price per ounce sold should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS. The measure is intended to assist readers in evaluating the total revenues realized in a period from current operations.
Adjusted Net Earnings and Adjusted Net Earnings per Share
Adjusted net earnings and adjusted net earnings per share are used by management and investors to measure the underlying operating performance of the Company.
Adjusted net earnings is defined as net earnings adjusted to exclude the after-tax impact of specific items that are significant, but not reflective of the underlying operations of the Company, including foreign exchange gains and losses, transaction costs and executive severance payments, purchase price adjustments reflected in inventory and other non-recurring items. Adjusted net earnings per share is calculated using the weighted average number of shares outstanding for adjusted net earnings per share.
Earnings before Interest, Taxes, Depreciation, and Amortization (“EBITDA”)
EBITDA represents net earnings before interest, taxes, depreciation and amortization. EBITDA is an indicator of the Company’s ability to generate liquidity by producing operating cash flow to fund working capital needs, service debt obligations, and fund capital expenditures.
Working Capital
Working capital is a Non-IFRS measure. In the gold mining industry, working capital is a common measure of liquidity, but does not have any standardized meaning.
The most directly comparable measure prepared in accordance with IFRS is current assets and current liabilities. Working capital is calculated by deducting current liabilities from current assets. Working capital should not be considered in isolation or as a substitute from measures prepared in accordance with IFRS. The measure is intended to assist readers in evaluating the Company’s liquidity.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release constitute ‘forward looking statements’, including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to the future business activities and operating performance of the Company. The words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions, as they relate to the Company, are intended to identify such forward-looking statements. Investors are cautioned that forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include, among others, the development of the Company’s properties and the anticipated timing thereof, expected production from, and the further potential of, the Company’s properties, the anticipated timing and commencement of exploration programs on various targets within the Company’s land holdings and the implication of such exploration programs (including but not limited to any potential decisions to proceed to commercial production), the anticipated impact of foreign exchange fluctuations, the anticipated overall impact of the Company’s COVID-19 response plans, including measures taken by the Company to reduce the spread of COVID-19, including but not limited to the rapid testing implemented at various sites, and whether such measures taken by the Company or others, in an attempt to reduce the spread of COVID 19 may affect the Company, whether directly or results in effects on employee health, workforce productivity, contractor availability, supply chain or other aspects of the Company’s business, the anticipated closing date of the Merger with Agnico Eagle and anticipated benefits and potential synergies associated therewith, the expectations regarding the effects of the Merger, including the ability of the combined company to successfully achieve its business objectives, including integrating the companies and the anticipated timing regarding the realization of certain potential synergies, or the effects of unexpected costs, liabilities or delays, the potential impact of the Merger on relationships including with regulatory bodies, employees, suppliers and competitors, risks relating to the re-rating potential of the Combined Company following the Merger, the ability to lower costs and gradually increase production, the ability of the Company to successfully achieve business objectives, the ability of the Company to achieve its longer-term outlook and the anticipated timing and results thereof, the performance of the Company’s equity investments and the ability of the Company to realize on its strategic goals with respect to such investments, the effects of unexpected costs, liabilities or delays, the potential benefits and synergies and expectations of other economic, business and or competitive factors, the Company's expectations in connection with the projects and exploration programs being met, the timing of the new life of mine plan at Detour Lake Mine and the anticipated results thereon, the release of the updated technical report with respect to the Detour Lake Mine and anticipated impact thereof, the impact of general business and economic conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, fluctuating gold prices, currency exchange rates (such as the Canadian dollar versus the US dollar), mark-to-market derivative variances, possible variations in ore grade or recovery rates, changes in accounting policies, changes in the Company's corporate mineral resources, changes in project parameters as plans continue to be refined, changes in project development, construction, production and commissioning time frames, the possibility of project cost overruns or unanticipated costs and expenses, higher prices for fuel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, unexpected changes in mine life, seasonality and unanticipated weather changes, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, risks related to information technology and cybersecurity, timing and costs associated with the design, procurement and construction of the Company’s various capital projects, including but not limited to the #4 Shaft project at the Macassa Mine, the ventilation, paste plant, transformer and water treatment facility at the Fosterville Mine, the ability to obtain all necessary permits associated with the Detour Lake mine, the ability to obtain the necessary permits in connection with all of its various capital projects, including but not limited to the rehabilitation of the Macassa tailings facility and the development of a new tailings facility and the anticipated results associated therewith, mill improvements, increased tailings capacity, completion of an assay lab and other enhancements to site infrastructure at the Detour Lake mine and the anticipated results thereon, the ability to obtain renewals of certain exploration licences in Australia, native and aboriginal heritage issues, including but not limited to ongoing negotiations and consultations with the Company’s First Nations partners and the anticipated impacts and timing thereof, risks relating to infrastructure, permitting and licenses, exploration and mining licences, government regulation of the mining industry, risks relating to foreign operations, uncertainty in the estimation and realization of mineral resources and mineral reserves, quality and marketability of mineral product, environmental regulation and reclamation obligations, risks relating to the Northern Territory wet season, risks relating to litigation, risks relating to applicable tax and potential reassessments thereon, risks relating to changes to tax law and regulations and the Company's interpretation thereof, foreign mining tax regimes and the potential impact of any changes to such foreign tax regimes, competition, currency fluctuations, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, and limitations on insurance, as well as those risk factors discussed or referred to in the AIF of the Company for the year ended December 31, 2020 filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements except as otherwise required by applicable law.
Mineral resources are not mineral reserves, and do not have demonstrated economic viability, but do have reasonable prospects for eventual economic extraction. Measured and indicated resources are sufficiently well defined to allow geological and grade continuity to be reasonably assumed and permit the application of technical and economic parameters in assessing the economic viability of the resource. Inferred resources are estimated on limited information not sufficient to verify geological and grade continuity or to allow technical and economic parameters to be applied. Inferred resources are too speculative geologically to have economic considerations applied to them to enable them to be categorized as mineral reserves. There is no certainty that Measured or Indicated mineral resources can be upgraded to mineral reserves through continued exploration and positive economic assessment.
Information Concerning Estimates Of Mineral Reserves And Measured, Indicated And Inferred Resources
This press release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ in certain material respects from the disclosure requirements of United States securities laws. The terms “mineral reserve”, “proven mineral reserve” and “probable mineral reserve” are Canadian mining terms as defined in accordance with Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) – CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the “CIM Standards”). These definitions differ significantly from the definitions in the disclosure requirements promulgated by the Securities and Exchange Commission (the “SEC”) applicable to domestic reporting companies. Investors are cautioned that information contained in this MD&A may not be comparable to similar information made public by United States companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations of the SEC thereunder.
The SEC has adopted amendments to its disclosure rules to modernize the mineral property disclosure requirements for issuers whose securities are registered with the SEC under the Securities Exchange Act of 1934 (“Exchange Act”). These amendments became effective February 25, 2019 (the “SEC Modernization Rules”) and, following a two-year transition period, the SEC Modernization Rules replaced the historical property disclosure requirements for mining registrants that were included in SEC Industry Guide 7. Following the transition period, as a foreign private issuer that files its annual report on Form 40-F with the SEC pursuant to the multi-jurisdictional disclosure system, the Company is not required to provide disclosure on its mineral properties under the SEC Modernization Rules and will continue to provide disclosure under NI 43-101 and the CIM Definition Standards. If the Company ceases to be a foreign private issuer or loses its eligibility to file its annual report on Form 40-F pursuant to the multi-jurisdictional disclosure system, then the Company will be subject to the SEC Modernization Rules which differ from the requirements of NI 43-101 and the CIM Definition Standards. The SEC Modernization Rules include the adoption of terms describing mineral reserves and mineral resources that are “substantially similar” to the corresponding terms under the CIM Definition Standards. As a result of the adoption of the SEC Modernization Rules, the SEC now recognizes estimates of “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources”. In addition, the SEC has amended its definitions of “proven mineral reserves” and “probable mineral reserves” to be “substantially similar” to the corresponding CIM Definitions. U.S. investors are cautioned that while the above terms are “substantially similar” to CIM Definitions, there are differences in the definitions under the SEC Modernization Rules and the CIM Definition Standards. Accordingly, there is no assurance any mineral reserves or mineral resources that the Company may report as “proven mineral reserves”, “probable mineral reserves”, “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources” under NI 43-101 would be the same had the Company prepared the reserve or resource estimates under the standards adopted under the SEC Modernization Rules.
U.S. investors are also cautioned that while the SEC will now recognize “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources”, investors should not assume that any part or all of the mineralization in these categories will ever be converted into a higher category of mineral resources or into mineral reserves. Mineralization described using these terms has a greater amount of uncertainty as to its existence and feasibility than mineralization that has been characterized as reserves. Accordingly, investors are cautioned not to assume that any measured mineral resources, indicated mineral resources, or inferred mineral resources that the Company reports are or will be economically or legally mineable. Further, “inferred mineral resources” have a greater amount of uncertainty as to their existence and as to whether they can be mined legally or economically. Therefore, U.S. investors are also cautioned not to assume that all or any part of the “inferred mineral resources” exist. Under Canadian securities laws, estimates of “inferred mineral resources” may not form the basis of feasibility or pre-feasibility studies, except in rare cases.
FOR FURTHER INFORMATION PLEASE CONTACT
Anthony Makuch, President, Chief Executive Officer & Director
Phone: +1 416-840-7884
E-mail: tmakuch@kl.gold
Mark Utting, Senior Vice President, Investor Relations
Phone: +1 416-840-7884
E-mail: mutting@kl.gold
FAQ
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