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Be the first with the news that moves the market- Kirkland Lake Gold (KL) is extending the COVID-19 imposed suspension of its Holt Complex in Ontario
- The company originally suspended operations at the complex in April, following the onset of the pandemic
- However, Kirkland recently designated the complex as a non-core asset and have been using to suspension to perform a strategic review
- Consequently, the site will remain suspended until further notice, while Kirkland continues to focus on its Macassa, Detour Lake, and Fosterville Mines
- Kirkland Lake Gold (KL) is down 2.51 per cent and is trading at C$59.38 per share
Kirkland Lake Gold (KL) is extending the COVID-19 imposed suspension of its Holt Complex in Ontario.
The company originally suspended operations at the complex in April, following an employee at its nearby Detour Lake Mine testing positive for COVID-19.
The Holt Complex, which includes the Holt Mill and the Holt, Taylor, and Holloway mines, was designated as a non-core asset back in Febuary. As a result, the company has been using the suspension to evaluate the site’s recent declining financials.
High cost structures, low grades, diminishing reserves and significant negative cash flows, were all cited as reasons for the strategic review and contributed to the company’s decision to extend the suspension.
In place of the Holt Complex, the company is focusing its attention on its three major operations, the Macassa Mine and Detour Lake Mine in Northern Ontario, and the Fosterville Mine located in Australia.
Thus far, around 220 of the 475 workers employed at the Holt Complex have been re-allocated to different sectors of the company. For the remaining staff, who cannot be reassigned, Kirkland Lake is offering severance packages.
Tony Makuch, President and CEO of Kirkland Lake Gold said extending the suspension of operations at Holt Complex was a difficult decision.
“I want to personally thank everyone at the Complex for their efforts and contribution to our company. Going forward, we will continue to review strategic options for the Holt Complex properties, including the potential for additional exploration activities in the area,” he said.
Kirkland Lake Gold (KL) is down 2.51 per cent and is trading at C$59.38 per share at 1:11pm EDT.
