Canada’s Kirkland Lake Gold (TSX, NYSE:KL) (ASX:KLA) is happy with its acquisition of Detour Gold early this year, as it gained control of the Detour Lake mine in Ontario, which now accounts for more than 40% of the company’s 2020 free cash flow.
“We are extremely pleased with the contribution already being made by Detour Lake mine, which generated $231 million of free cash flow in the first eight months since the transaction,” chief executive Tony Makuch said in the statement.
The C$4.4 billion ($3.4 billion) acquisition of Detour added 14.8 million ounces to Kirkland’s reserves, easing concerns about the short mine-life of the company’s flagship underground Fosterville operations in Australia.
Kirkland Lake saw production jump by 37% in the three months to September 30 from the same quarter last year to 339,584 ounces, at an all-in sustaining cost (AISC) of $886 an ounce ($622 per ounce without Detour Lake).
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