Kirkland Lake Gold Reports Solid Q1 2021 Results

Rhea-AI Summary

Kirkland Lake Gold reported strong Q1 2021 results, exceeding production guidance with 302,847 ounces, surpassing the target of 270-290 kozs. The operating cash costs were $542/oz sold, with an AISC of $846/oz. The company recorded net earnings of $161.2 million ($0.60/share) and an adjusted net earnings of $167.8 million ($0.63/share). With a revenue of $551.8 million and free cash flow of $42.7 million, Kirkland Lake also returned $96.6 million to shareholders via dividends and share repurchases. The company remains on track to meet 2021 guidance.

Positive

• Production of 302,847 ounces, exceeding guidance of 270-290 kozs.
• Operating cash costs of $542/oz sold; AISC of $846/oz.
• Strong net earnings of $161.2 million ($0.60/share) and adjusted net earnings of $167.8 million ($0.63/share).
• Revenue of $551.8 million from gold sales of 308,029 ounces.
• Free cash flow of $42.7 million.
• Returned $96.6 million to shareholders through dividends and share repurchases.

Negative

• None.

TORONTO, May 06, 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 first quarter of 2021 (“Q1 2021”). The results for the quarter exceeded target levels in a number of key areas, including production and all-in sustaining costs (“AISC”) per ounce sold⁽¹⁾, which reflected stronger than expected production and sales at Fosterville and Detour Lake, as well as lower than planned sustaining capital expenditures. 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.

• Q1 2021 PRODUCTION BEATS GUIDANCE
  Production of 302,847 exceeded guidance of 270 – 290 kozs reflecting higher than planned production at Fosterville and Detour Lake
  
  
• UNIT COSTS BETTER THAN PLANNED
  Operating cash costs⁽¹⁾ of $542/oz sold, AISC⁽¹⁾ of $846/oz ($667 in March 2021)
  
  
• ON TRACK TO ACHIEVE 2021 GUIDANCE
  Poised for three strong quarters over balance of 2021; on track to achieve all 2021 guidance
  
  
• SOLID EARNINGS & CASH FLOW IN Q1 2021
  Net earnings of $161.2M ($0.60/share), adjusted net earnings of $167.8M ($0.63/share), Op. cash flow of $208.2M; free cash flow⁽¹⁾ of $42.7M
  
  
• RETURNED $96.6M TO SHAREHOLDERS
  Paid $50.3M in dividends and used $46.3M to repurchase 1,074,100 shares during Q1 2021
  
  
• CONTINUED EXPLORATION SUCCESS
  Additional drilling success in Saddle Zone at Detour Lake between existing Main Pit and planned West pits
  
  
• EXCELLENT PROGRESS WITH GROWTH PROJECTS
  Including #4 Shaft at Macassa over a month  ahead of schedule and projects supporting expansion at Detour Lake advancing on plan
  
  
• NEW NI 43-101 REPORT AT DETOUR LAKE
  Production expansion, low unit costs and long production life; Significant exploration success to be included in new mine plan expected in 2022
  
  
• 2021 SUSTAINABILITY REPORT FILED
  Includes increased ESG disclosures, greater inclusion of Sustainable Accounting Standards Board (“SASB”) disclosures and metrics for Metals and Mining
  

Tony Makuch, President and Chief Executive Officer of Kirkland Lake Gold commented: “We benefited from strong results in March, which was the key driver for higher than expected production and materially better than planned AISC in Q1 2021. We have had a solid start to 2021 and are poised for three strong quarters of operating results over the remainder of the year. Assuming current gold prices, we are also well positioned for improved financial performance beginning in the second quarter and expect to finish 2021, once again, as among the most profitable companies in our sector.

Looking at key highlights of Q1 2021, we had solid grade outperformance at Fosterville, achieved record first-quarter throughput at Detour Lake, including record daily throughput of 80,339 tonnes on March 24, 2021, and reached 5,000 feet of advance at the #4 Shaft project at Macassa, with the project remaining over a month ahead of schedule. In addition, we continued to achieve exploration success, with new drilling results at Detour Lake confirming the continuity of a large mineralized corridor in the Saddle Zone connecting the Main and West pit locations and further extending the mineralization west of existing Mineral Reserves. We issued a new technical report for Detour Lake, outlining a very attractive operation that has potential to get even better once we factor the considerable drilling success we are achieving into a further updated mine plan, expected in 2022. Finally, we issued our 2021 Sustainability Report in March highlighting the significant progress we have made through our commitment to net-zero emissions by 2050 or earlier, demonstrating that, for Kirkland Lake Gold, responsible mining is integral to everything we do and is part of our culture.”

SUMMARY OF PERFORMANCE

Q1 2021

• Net earnings of $161.2 million or $0.60 per share; Adjusted net earnings⁽¹⁾ of $167.8 million or $0.63 per share.
• Cash flows including net cash provided by operating activities of $208.2 million and free cash flow⁽¹⁾ of $42.7 million.
• Revenue of $551.8 million, reflecting gold sales of 308,029 ounces and an average realized gold price⁽¹⁾ of $1,788 per ounce.
• EBITDA⁽¹⁾⁽²⁾ of $340.9 million.
• Capital expenditures totalled $106.8 million, with sustaining capital expenditures⁽¹⁾ accounting for $60.5 million and growth capital expenditures⁽¹⁾ for $46.3 million (excluding capitalized exploration expenditures).
• Exploration and evaluation expenditures totalled $42.4 million, including $36.9 million of capitalized expenditures and $5.5 million of expensed exploration expenditures.
• Cash at March 31, 2021 of $792.2 million versus $847.6 million at December 31, 2020 with no debt; Change in cash reflects distribution of production in 2021, timing of capital expenditures, including capitalized exploration expenditures, and impact of dividends and share repurchases.
• $96.6 million returned to shareholders including $50.3 million used for dividends, reflecting 50% increase to quarterly dividend, to $0.1875 per share, effective the Q4 2020 dividend (paid on January 14, 2021 to shareholders of record on December 31, 2020) as well as $46.3 million used to repurchase 1,074,100 shares in early January through normal course issuer bid (“NCIB”).
• Solid operating results – Consolidated guidance achieved:
  • { "@context": "https://schema.org", "@type": "FAQPage", "name": "Kirkland Lake Gold Reports Solid Q1 2021 Results FAQs", "mainEntity": [ { "@type": "Question", "name": "What were Kirkland Lake Gold's production results for Q1 2021?", "acceptedAnswer": { "@type": "Answer", "text": "Kirkland Lake Gold produced 302,847 ounces in Q1 2021, exceeding the guidance of 270-290 kozs." } }, { "@type": "Question", "name": "What were the financial highlights for Kirkland Lake Gold in Q1 2021?", "acceptedAnswer": { "@type": "Answer", "text": "Kirkland Lake Gold reported net earnings of $161.2 million and adjusted net earnings of $167.8 million for Q1 2021." } }, { "@type": "Question", "name": "How much cash flow did Kirkland Lake Gold generate in Q1 2021?", "acceptedAnswer": { "@type": "Answer", "text": "The company generated operating cash flow of $208.2 million and free cash flow of $42.7 million in Q1 2021." } }, { "@type": "Question", "name": "What is the all-in sustaining cost (AISC) per ounce for Kirkland Lake Gold in Q1 2021?", "acceptedAnswer": { "@type": "Answer", "text": "Kirkland Lake Gold's AISC in Q1 2021 was $846 per ounce." } }, { "@type": "Question", "name": "How much did Kirkland Lake Gold return to shareholders in Q1 2021?", "acceptedAnswer": { "@type": "Answer", "text": "Kirkland Lake Gold returned $96.6 million to shareholders via dividends and share repurchases during Q1 2021." } } ] }

    FAQ

    What were Kirkland Lake Gold's production results for Q1 2021?

    Kirkland Lake Gold produced 302,847 ounces in Q1 2021, exceeding the guidance of 270-290 kozs.

    What were the financial highlights for Kirkland Lake Gold in Q1 2021?

    Kirkland Lake Gold reported net earnings of $161.2 million and adjusted net earnings of $167.8 million for Q1 2021.

    How much cash flow did Kirkland Lake Gold generate in Q1 2021?

    The company generated operating cash flow of $208.2 million and free cash flow of $42.7 million in Q1 2021.

    What is the all-in sustaining cost (AISC) per ounce for Kirkland Lake Gold in Q1 2021?

    Kirkland Lake Gold's AISC in Q1 2021 was $846 per ounce.

    How much did Kirkland Lake Gold return to shareholders in Q1 2021?

    Kirkland Lake Gold returned $96.6 million to shareholders via dividends and share repurchases during Q1 2021.