Kirkland Lake Q2 Production a Bit Softer Than I Expected

Kirkland Lake reported Q2 production numbers today Q2 Production Numbers. While Fosterville had another exceptional record quarter with 140,701 ounces produced, Macassa did temper the quarter a bit with production of 49,196.

The grade came down from strong Q1 levels and excessive water in the mine during the spring run-off contributed to the weakness when compared to Q1 levels. Tony did reiterate that Macassa remains “well positioned” to achieve full year guidance of 240,000-250,000.

The second half for Fosterville is expected to be significantly better than the 1H of the year and thus Kirkland reiterated guidance by stating they are on track to achieve guidance of 950,000-1,000,000.

The quarter report was a bit softer than I expected, as posted here: Q2 Production Preview. While there was a slightly negative bias to the stock with early weakness, the dip was bought thanks in part to Gold having a strong day. Story remains vibrant. I still think they can beat their annual guidance but will have to wait another quarter to confirm for sure. The next catalyst will be Fosterville exploration results.

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