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Kirkland Lake Gold: Strong Canadian Dollar Increased Expenses in 2Q — Currency Comment

By Adriano Marchese

 

Kirkland Lake Gold Ltd.'s exposure to U.S. and Australian dollars as the Canadian dollar strengthened increased the company's expenses. Here's what the gold producer had to say:

On FX trends:

"After weakening sharply against the U.S. dollar in the first quarter of 2020, concurrent with the emergence of the Covid-19 pandemic, the Canadian and Australian dollars began strengthening against the U.S. dollar starting in the second quarter of 2020 with this trend continuing through the remainder of 2020 and into the second quarter of 2021."

On FX ratios:

"The average exchange rates for the second quarter of 2021 included Canadian dollar to U.S. dollar of 1.23 and Australian dollar to U.S. dollar of 1.30.

"These exchange rates compared to 1.39 and 1.52, respectively, in the second quarter of 2020 and 1.27 and 1.29, respectively, in the first quarter 2021."

FX impact on expenses in 2Q:

"Compared to the second quarter of 2020, changes in exchange rates in the second quarter of 2021 resulted in an increase in operating cash costs of approximately $15 million, operating cash costs per ounce sold of $45, and AISC per ounce sold of $70, sustaining capital expenditures of approximately $8 million and growth capital expenditures of approximately $8 million."

 

Write to Adriano Marchese at adriano.marchese@wsj.com

 

(END) Dow Jones Newswires

July 29, 2021 09:48 ET (13:48 GMT)

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