A month has gone by since the last earnings report for Kirkland Lake Gold (KL). Shares have lost about 3.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Kirkland Lake Gold due for a breakout? Before we dive into how investors and analysts have reacted as of late, let’s take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Kirkland Lake Gold’s Q4 Earnings and Sales Lag Estimates
Kirkland Lake Gold reported net earnings of $232.6 million or 85 cents per share in fourth-quarter 2020 compared with $169.1 million or 80 cents in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 98 cents that missed the Zacks Consensus Estimate of $1.02.
The company recorded revenues of $691.5 million, up 67.7% year over year. However, the top line lagged the Zacks Consensus Estimate of $696 million.
Operational Highlights
Total gold production was 369,434 ounces in the fourth quarter, up 32% year over year. Average realized price of gold was $1,875 per ounce, up 27% year over year.
Operating cash costs per ounce for gold rose 55.3% year over year to $396. AISC for gold increased 54.3% year over year to $790 per ounce in the quarter.
FY20 Results
Earnings (as reported) for full-year 2020 were $2.91 per share compared with $2.65 per share a year ago. Net sales surged 78.3% year over year to $2,460.1 million.
Financial Position
At the end of 2020, Kirkland Lake Gold had cash and cash equivalents of $847.6 million, up 20% year over year.
Net cash provided by operating activities surged 70.3% year over year to $420.9 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 for gold is projected in the range of $450-$475.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
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