Subscribe
Be the first with the news that moves the market- Kirkland Lake Gold Ltd (TSX:KL) is reducing operations at the its Holt and Macassa mines until April 30, due to the ongoing COVID-19 pandemic
- The company has also withdrawn its 2020 guidance until normal operations recommence
- Moving forward, a reduced staff at Macassa will continue to focus on production and environmental management
- However, operations will be fully suspended at the Holt Complex, which will impact the site’s 529 staff
- Kirkland Lake Gold Ltd (KL) is up 8.65 per cent, with shares trading at C$45.01 and a market cap of $12.5 billion.
Kirkland Lake Gold Ltd (TSX:KL) is further reducing its mining operations and withdrawing its 2020 guidance as the COVID-19 pandemic worsens.
The company is temporarily suspending mining operations at the Holt Complex in Northern Ontario. This decision will impact the mine’s 529 staff, but the company has committed to providing wage support to those affected.
Kirkland is also reducing operations at the Macassa mine, also in Ontario, However, a reduced staff at Macassa will continue to focus on production and environmental management.
These measures have forced the company to readdress its previous production and spending forecasts. Therefore, Kirkland has withdrawn its 2020 guidance until normal operations resume.
Kirkland announced that these reductions are expected to last until April 30. However, if cases number throughout the Canada continue to rise, the company may be forced to readdress the suspension period.
Due to the spread of novel coronavirus across Canada, movement between provinces is becoming restricted. As a result, Kirklands employees have been unable to travel from their homes in Quebec into the Holt and Maccassa mine’s in Ontario.
Kirkland’s CEO and President, Tony Makuch, believes these steps are necessary, given the circumstances.
“We do not make decisions to suspend or reduce operations lightly, recognizing the impact such decisions can have on employment as well as community investment and support.
“Having said that, the recent developments related to COVID-19, such as new limits on inter- provincial travel, has made it increasingly difficult to maintain normal business activities at Macassa and Holt Complex,” he said.
Last week, the company announced its first operational reduction, at The Detour Lake Mine. With these latest measures in place, Kirkland’s Forsterville Mine in Australia is the company’s only fully operational mine left.
Kirkland Lake Gold Ltd (KL) is up 8.65 per cent, with shares trading for C$45.01 at 12:40pm EST.
