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Kirkland Lake three-year guidance of 1.4-1.5Moz/y

Kirkland Lake Gold has provided guidance for 2021 including production of 1.3-1.4 million ounces of gold driven by strong growth at Detour Lake in Ontario, Canada, and three-year production guidance including growth to 1.4-1.5Moz in 2023.
Kirkland Lake three-year guidance of 1.4-1.5Moz/y Kirkland Lake three-year guidance of 1.4-1.5Moz/y Kirkland Lake three-year guidance of 1.4-1.5Moz/y Kirkland Lake three-year guidance of 1.4-1.5Moz/y Kirkland Lake three-year guidance of 1.4-1.5Moz/y

Kirkland Lake Gold's Detour Lake mine in Ontario, Canada

Staff reporter

"The plan also includes higher levels of investment, reflecting the significant growth potential and exploration upside at all three of our cornerstone assets, as well as the payment of over $200 million in dividends to shareholders," said Kirkland Lake Gold president and CEO Tony Makuch.

Production at Detour Lake is set to increase to 680,000-720,000oz/y, a benchmark level the company aims to sustain going forward en route to 800,000oz in 2025.

The company said transformational milestones include completing the current US$50 million drilling program at Detour Lake and releasing a new mine plan in 2022. Drilling to date provides increasing evidence that the Main, West and North pit locations involve one large, continuous deposit that can support the transition to a super pit and lead to substantially higher levels of production.

At Macassa in Ontario, the #4 shaft project is on track for completion in late 2022, when production is expected to increase to 400,000oz/y at improved unit costs in 2023.

In Australia, Kirkland Lake is planning its largest exploration programme at Fosterville since acquiring the mine in 2016, including $85-95 million of drilling and development to identify additional high-grades zones to provide future high-grade production.

The company said its all-in sustaining cost guidance for 2021 is $790-810. Sustaining capital expenditures are forecast in the $280-310 million range, growth capital expenditures are forecast to increase to $250-275 million and exploration expenditures is forecast to increase to $170-190 million.

Shares in Kirkland Lake Gold are trading at C$51.88, valuing the company at $14.3 billion.