Kirkland Lake Gold’s (KL) Q1 Earnings and Sales Lag Estimates


Kirkland Lake Gold Ltd.


KL

reported net earnings of $161.2 million or 59 cents per share in first-quarter 2021 compared with $202.9 million or 77 cents in the year-ago quarter.

Barring one-time items, adjusted earnings per share were 63 cents that missed the Zacks Consensus Estimate of 67 cents.

The company recorded revenues of $551.8 million, down 0.5% year over year. The top line lagged the Zacks Consensus Estimate of $553.5 million.

Operational Highlights

Total gold production was 302,847 ounces in the quarter, down 8.5% year over year. Average realized price of gold was $1,788 per ounce, up 13% year over year.

Operating cash costs per ounce for gold rose 23.2% year over year to $542. All-in sustaining costs (AISC) for gold increased 9% year over year to $846 per ounce in the quarter.

Financial Position

At the end of the first quarter 2021, Kirkland Lake Gold had cash and cash equivalents of $792.2 million, up 249.2% year over year.

Net cash provided by operating activities declined 13.8% year over year to $208.2 million in the quarter.

Guidance

For 2021, the company expects total gold production between 1,300,000 ounces and 1,400,000 ounces.  AISC for gold is expected between $790 and 810 per ounce in 2021. Operating cash costs per ounce sold is projected in the range of $450-$475.

Price Performance

The stock has declined 0.4% in the past year against 1.2% rise of the

industry

.

Zacks Rank & Key Picks

Kirkland Lake Gold currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the basic materials space are

Dow Inc.


DOW

,

Nucor Corporation


NUE

and

Impala Platinum Holdings Limited


IMPUY

.

Dow has a projected earnings growth rate of roughly 261.5% for the current year. The company’s shares have surged 103.7% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see


the complete list of today’s Zacks #1 Rank stocks here.

Nucor has an expected earnings growth rate of around 228.4% for the current year. The company’s shares have gained 143.1% in the past year. It currently sports a Zacks Rank #1.

Impala has an expected earnings growth rate of 197.6% for the current fiscal. The company’s shares have skyrocketed 253.1% in the past year. It currently flaunts a Zacks Rank #1.

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