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Be the first with the news that moves the market- COVID-19 has forced Kirkland Lake Gold (TSX:KL) to suspend all exploration projects and reduce operations at Detour Lake Mine
- Furthermore, operations at Detour Gold mine will reduce until April 30 to decrease the chance of a COVID-19 outbreak
- Kirkland is providing two weeks’ paid leave for employees affected by personnel reductions, while 300 staff stay on at the Detour Mine
- In order to remain financially flexible, the company is terminating its Automatic Share Purchase Plan
- Kirkland Lake Gold (KL) is up 10.29 per cent, with shares trading for $40.60 and a market cap of $11.63 billion
COVID-19 concerns have forced Kirkland Lake Gold (TSX:KL) to suspend all exploration projects and reduce operations at Detour Lake Mine.
As of yet, no employee at Kirkland’s operations has tested positive for the coronavirus.
To maintain this, the company has implemented medical screening for essential personnel. All non-essential staff have been stood down or are working from home.
Operations at the company’s Detour Gold Mine in Ontario will heavily reduce from March 23 to April 30. Kirkland has also advised workers from remote First Nation communities to remain offsite until the five weeks have elapsed.
Kirkland is providing two weeks’ of paid leave for the employees affected by the personnel reductions.
However, 300 staff will remain onsite, maintain operations, and live on a mine’s camp. Kirkland adapted the camp to better suit isolation and quarantine needs, if they arise.
Kirkland’s President and CEO, Tony Makuch, doesn’t yet know how much this will affect the company moving forward.
“COVID-19 represents an unprecedented challenge for people, governments, and businesses worldwide.
“It’s not possible at this time to estimate the impact of reduced operations on Detour Lake’s 2020 production,” he said.
Tony went on to say that, in order to remain financially flexible, the company is terminating its Automatic Share Purchase Plan.
To date, the company had repurchased 10.4 million shares through the program. By terminating the automatic share repurchases, the company hopes to retain cash to help manage the coming months.
Tony closed out his statement by saying that the company is well-positioned, with $500 million in cash and zero debt.
Kirkland Lake Gold (KL) is up 10.29 per cent, with shares trading for $40.60 at 11:53am EST.
