Kirkland Lake Gold Inc
Kirkland Lake Gold Inc
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The merger of equals with Kirkland Lake Gold that will establish fellow-Canadian Agnico Eagle as a $US24B high-margin global producer is heading for completion in less than a week after gaining Australian Foreign Investment Board approval, the last of its key regulatory clearances.
The plan of arrangement deal will see Agnico Eagle emerge with $US2.3B of available liquidity, a gold reserve base of 48Moz (969Mt @ 1.53g/t) and forecast 2021 gold production of about 3.4Moz at the lowest AISC among senior producers.
The records continue to flow for Canadian-based international gold miner Kirkland Lake, with its best-ever Q4 results contributing to FY2021 production of 1.43Mt compared to its previous best of 1.37Mt in the prior year.
The result was driven by its major Canadian mines, with Detour Lake delivering 712,824oz (FY2020: 516,767oz) and Macassa making a significant leap to 210,192oz (183,038oz).
International miner Kirkland Lake has been threatened with restrictions on machinery use at its Fosterville gold mine in Victoria, Australia after complaints from nearby residents about noise.
State environmental officials have issued formal notices over low-frequency (16-20Hz) noise, indicating they could order night-time restrictions on surface ventilation fans and surface drill rigs on part of the mining lease while remediation work is carried out.
Senior Canadian gold miner Agnico Eagle is predicting an effective date in the March 2022 qtr after shareholders of both companies overwhelmingly backed the “merger of equals” with Kirkland Lake Gold, a move expected to establish a leading low-risk global gold company with growing production, low costs and strong leadership.
The deal is now awaiting regulatory approvals from Australia’s Foreign Investment Review Board and Ontario’s Superior Court of Justice.
Kirkland Lake Gold has posted record Sept qtr (Q3FY2021) earnings ahead of its planned merger of equals with fellow Canadian international miner Agnico Eagle, built on its best-ever results at Detour Lake in NE Ontario and continued grade outperformance at Fosterville in Victoria, Australia.
Q3 net earnings of $US254.9M, 4% above the previous record $244.2M set in Q2, were based on gold production of 370,101oz (Q2: 379,195oz) at AISC of $740/oz ($780/oz). Gold sales were 372,100oz (364,575oz) at $1,791/oz ($1,814/oz) .
Agnico Eagle Mines and Kirkland Lake Gold have entered into a merger of equals they claim will establish a new Agnico Eagle as the gold industry's highest-quality senior producer, with the lowest unit costs and highest margins, with an implied combined market cap of about $US24B.
Canada’s producing mine with the largest gold reserves has grown even larger, with Kirkland Lake announcing its mid-year 2021 review has increased measured and indicated resources at the Detour Lake openpit project to 14.72Moz (572Mt @ 0.8g/t). The NE Ontario mine’s inferred resources have also grown to 1.16Moz (48.3Mt @ 0.81g/t).
Kirkland Lake says the 216% increase in Detour Lake’s M&I resources from the previous Dec 2020 estimate is based on 185,000m surface diamond drilling since it acquired the project in Jan 2020.
Strong performance by its three major assets, and particularly its Fosterville project in Australia, have enabled Canadian-based miner Kirkland Lake Gold deliver record earnings and production in the June qtr (Q2FY2021).
Net earnings rose to $US224.2M, from $161.2M in the previous period, on revenue of $662.7M (Q1: $551.8M) from sales of 364,575oz (308,029oz) at $1,814/oz ($1,788/oz). Gold production was 379,195oz (302,847oz) at AISC of $780/oz ($846/oz).
Kirkland Lake Gold has posted record June 2021 qtr (Q2 21) gold production up to 379,195oz from Q1 21’s 302,847oz, with all 3 of its operations lifting output.
Gold sales jumped to 364,575oz from 308,029oz, with the production increase largely driven by Fosterville’s, Australia, increase to 157,993oz from 108,679oz, mainly related to continued grade out performance and changes in mine sequencing. Detour Lake, Canada, produced a record 165,880, up 13%, and Macassa, Canada, was 17% better to 55,322oz.
Despite a poor Mar 2021 qtr (Q1 21) performance, Kirkland Lake Gold is hanging on to 2021 year gold expectations of 1.3Moz-1.4Moz from its 3 operations in Canada and Australia from FY/CY20’s 1.36Moz.