Kirkland Lake posts record quarterly and annual gold production ahead of Agnico merger

Kirkland Lake Gold churned out a record 380,470 ounces of gold from three operations in the last quarter of 2021, placing it on solid ground for its imminent merger with senior Canadian producer Agnico Eagle Mines.

The high-grade gold miner also posted record production for the year, with a guidance beating total of 1.43 million ounces largely driven by a strong performances at the Fosterville mine in Australia and the Detour Lake gold mine in Ontario, Canada.

Despite being down on 2020 production, Fosterville produced 108,160 ounces of gold in the quarter and outperformed expectations to generate 509,600 ounces for the year. The mine processed 677,899 tonnes in 2021 at a huge average grade of 23.7 g/t.

Meanwhile, Detour Lake amassed 211,000 ounces of gold in the quarter – up 38% on the corresponding period in 2020 – as mining hit some of the highest-grade areas in the mine plan and production benefited from mill enhancements completed during the year.

The TSX company’s other asset – the Macassa mine in Ontario – delivered 61,340 ounces in the quarter and 210,190 ounces for the year, after production guidance was revised down from 220,000 to 255,000 ounces.

President and CEO Tony Makuch, who will undertake the same role in the combined Kirkland Lake-Agnico entity, said that the companies are currently awaiting Foreign Investment Review Board approval in Australia.

“Based on expected timelines, we are targeting closing of the merger between late January and mid-February, after which we plan to finalise the consolidated 2022 budget for the new Agnico Eagle and to release consolidated guidance to the market in the second half of February,” he said.