Company News

Canadian miner Kirkland raises FY gold production forecast

Feb 20 (Reuters) - Toronto-listed miner Kirkland Lake Gold Ltd increased its full-year gold production guidance late on Wednesday, after it completed an all-stock deal to buy rival Detour Gold Corp in January.

The company forecast gold production for 2020 between 1.4 million ounces and 1.5 million ounces, up from previous range of 950,00 ounces to 1 million ounces.

Kirkland said it is considering strategic options for its mines at Holt Complex in Canada and in the Northern Territory, Australia, adding that it is designating the assets as non-core as they do not generate adequate returns.

The miner, which has operations in Canada and Australia, said it had added 14.8 million ounces of mineral reserves through the acquisition of Detour Lake Mine.

The company completed the acquisition of Detour in a C$4.4 billion deal in January after Kirkland’s shareholders approved the deal.

Gold producers have been trying to boost their reserves on the back of rising prices fueled by investor interest in safe-haven assets in times of global uncertainty.

The Canadian miner also said it would repurchase 20 million of its common shares over two years.

Reporting by Aakriti Bhalla in Bengaluru; Editing by Amy Caren Daniel