Kirkland Lake Gold Ltd (NYSE and TSX: KL) reviewed 11-10-2020
(All figures in USD)
Market Cap: $12.10 Billion Share Price: $44.17
Shares outstanding: 273,815,746
Cash and cash equivalents: $848.5 M (USD) as of 30 Sep 2020
Debt: Nil
Current operations: Yes
Insider holdings: 4% Institutional: 694 institutions own about 67-69%
Website: klgold.com
Investor Presentation: https://klgold.com/investors/default.aspx#presentation
CEO: Anthony Makuch HQs: Toronto, Ontario, Canada
Kirkland Lake Gold Ltd. is a major Canadian gold miner
The company’s principal properties include the Fosterville Mine located in the State of Victoria, Australia; and Macassa Mine situated near Kirkland Lake, Ontario, Canada
It has a strategic alliance agreement with Newmont Corp
Earnings (GAAP) per share $0.73 cents on revenue of $632.84 M in 3Q2020
Non-GAAP earnings were reported as $0.93 cents per share
Earnings from mining operations were $388.63 Million
Q3 production was 339,584 oz. of gold, representing a 37% Y/Y increase
Results included the production of 140,067 oz gold from the Detour Lake open-pit mine, purchased in Nov 2019
AISC stated at $886 in 3rd Quarter
Kirkland Lake owns positions in Novo Resources Corp, Wallbridge, and DeGrey Mining
Full-year production guidance is 1.35-1.40 M gold oz
Bottom line:
- Initially, investors were concerned about the high cost of the Detour Lake mine, but those concerns have abated
- Also, Eric Sprott had been an early investor and while that was a very good thing in KL’s favor, it also led some to believe the shares were over-priced as a result
- Trades at a reasonable 15 PE with substantial upside potential
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