Kirkland Lake Gold Ltd.
KL
reported net earnings of $202 million or 73 cents per share in third-quarter 2020 compared with $176.6 million or 83 cents in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 91 cents that missed the Zacks Consensus Estimate of 92 cents.
The company recorded revenues of $632.8 million, up 65.9% year over year.
Kirkland Lake Gold Ltd. Price, Consensus and EPS Surprise
Kirkland Lake Gold Ltd. price-consensus-eps-surprise-chart
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Kirkland Lake Gold Ltd. Quote
Operational Highlights
Total gold production was 339,584 ounces in the third quarter, up 37% year over year. Average realized price of gold was $1,907 per ounce, up 28.7% year over year.
Operating cash costs per ounce for gold rose 41.5% year over year to $406. All-in sustaining costs (AISC) for gold rose 57.7% year over year to $886 per ounce in the quarter.
Financial Position
At the end of the third quarter, Kirkland Lake Gold had cash and cash equivalents of $848.5 million, up 37.6% year over year.
Net cash provided by operating activities rose 36.1% year over year to $431.1 million in the quarter.
Guidance
For 2020, the company expects total gold production between 1,350,000 ounces and 1,400,000 ounces, unchanged from earlier view. AISC for gold is expected to be $790-$810 per ounce, also unchanged from the prior guidance. Operating cash costs per ounce for gold projection is retained at $410-$430.
Price Performance
The stock has gained 5.7% in the past year compared with the
industry
’s 45% rally.
Zacks Rank & Key Picks
Kirkland Lake Gold currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are
Agnico Eagle Mines Limited
AEM
,
Northern Dynasty Minerals, Ltd.
NAK
and
B2Gold Corp
BTG
. While Agnico Eagle sports a Zacks Rank #1 (Strong Buy), Northern Dynasty Minerals and B2Gold carry a Zacks Rank #2 (Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here
.
Agnico Eagle has an expected earnings growth rate of 100% for 2020. Its shares have returned 39.5% in the past year.
Northern Dynasty Minerals has an expected earnings growth rate of 42.9% for 2020. The company’s shares have surged 28.9% in the past year.
B2Gold has an expected earnings growth rate of 250% for 2020. The company’s shares have gained 93.1% in the past year.
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