Record year for Kirkland Lake

KIRKLAND Lake Gold has reported record earnings and cashflow for 2020.
Record year for Kirkland Lake Record year for Kirkland Lake Record year for Kirkland Lake Record year for Kirkland Lake Record year for Kirkland Lake

Kirkland Lake's Detour Lake mine

Staff reporter

Net earnings for 2020 were up 9% to a record US$787.7 million, while adjusted net earnings rose 24% to $922.9 million.

Cashflow from operations was up 43% to $1.31 billion, while free cashflow jumped 58% to $733.1 million.

Its Detour Lake asset in Canada, acquired in early 2020, accounted for about 40% of free cashflow.

Revenue was up 78% to $2.46 billion due to a 42% rise in gold sales to 1.38 million ounces and a 26% rise in the average received price to $1722 an ounce.

Kirkland Lake closed 2020 with cash of $847.6 million and no debt.

The company returned $848.3 million to shareholders in 2020, including $732.4 million via its buyback program.

"2020 will go down as a year that no one will ever forget. Faced with the challenges of a global pandemic, our team rose to the occasion and effectively responded to the COVID-19 virus with there being no transmission of the virus at any of our sites during the year," Kirkland Lake president and CEO Tony Makuch said.

"At the same time that we were focusing on protecting our people, we also turned in our best year ever, achieving record levels of production, earnings and cashflows and meeting all of our consolidated FY 2020 guidance.

"When we look at the quality of our assets, the progress being achieved and the tremendous upside that remains to be realised, we believe that the value creation potential for our company remains industry leading."

The company reported December 31 group reserves of 20.11Moz, up 3%.

Guidance for 2011 is 1.3-1.4Moz, weighted to the second half.

Kirkland Lake's Australian CDIs were down 7.7% this morning to A$44.01, an 11-month low.