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.

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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