Kirkland Lake Gold Ltd. (NYSE:KL) Q1 2020 Earnings Conference Call - Final Transcript

Apr 09, 2020 • 10:00 am ET

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Kirkland Lake Gold Ltd. (NYSE:KL) Q1 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Thank you. [Operator Instructions] Your first question comes from the line of Cosmos Chiu with CIBC. Cosmos, your line is open.

Analyst
Cosmos Chiu

Thanks. Thanks, Tony and team for hosting the call. It's really helpful here. My first question, you talked about, you're running at about 35% of the normal sort of workforce at Detour; about 65% at Macassa. Does that mean you're running at about 65% of throughput at Macassa and about 30% of normal sort of throughput a Detour? I don't think it's -- the relationship likely isn't that simple. So if it's not linear could you help us in terms of how we should model those two mines at this time in terms of throughput?

Executive
Anthony Makuch

Well, I'll let David answer part of the question and Evan Pelletier as well, but for the most part where -- when you talk about throughput, one is mine through, one is mill throughput. At Detour we are processing low grade stockpiles combined with mining with a shovel, and he'll give you a sense on the performance we're seeing with the reduced workforce at site. Now, you also have to recognize that there are some capital programs that are on hold or suspended at this point in time. Similarly at Macassa, in terms of milling rates, et cetera, and mining rates, I mean, there's a lot of milling and mining happening, but some of the development is on hold as we say, some other capital projects and diamond drilling is on hold but maybe I'll let David Londono give us some color about what's happening Detour in that perspective and Evan for Macassa.

Executive
David Londono

So we're running about 35% of the people here at Detour. We're running one shovel, one rope shovel and one shovel in the stockpiles. So we're feeding about, I would say 75% to 80% of what we normally process through the mill. So that's -- we're doing about 65,000 tonnes every day.

Executive
Evan Pelletier

Hi Cosmos, it's Evan. Like Tony mentioned, we are reducing some of the capital and taking some of the manpower and pushing them over to the ore headings to try and keep that going as much as we can with what we got.

Analyst
Cosmos Chiu

Good. And then in terms of my second question here, you kind of touched on it in terms of Australia. Right now Fosterville production throughput hasn't been impacted. Sounds like the situation in Australia in terms of COVID-19 is a bit different. I'm not as close to it. So could you give us an update in terms of sort of what's happening and in the end what is the risk that restrictions could be placed on Australian operations? Thanks.

Executive
Anthony Makuch

Well, I mean, as mining is determined is an essential service in Australia and maybe it even include diamond drilling in that, although we are focused on making sure we don't -- we balance what we do without creating any risk to the community and our people and the operation going forward. But Duncan can give a lot