Cara Community GSM: Kirkland Lake Gold 11-2020

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%


Investor 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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