Kirkland Lake Gold's (KL) Q4 Earnings and Sales Lag Estimates

Zacks Equity Research
·3 min read

Kirkland Lake Gold Ltd. KL 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.

Kirkland Lake Gold Ltd. Price, Consensus and EPS Surprise

Kirkland Lake Gold Ltd. Price, Consensus and EPS Surprise
Kirkland Lake Gold Ltd. Price, Consensus and EPS Surprise

Kirkland Lake Gold Ltd. price-consensus-eps-surprise-chart | Kirkland Lake Gold Ltd. Quote

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. All-in sustaining costs (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.

Price Performance

The stock has gained 2.3% in the past year compared with 11.2% rise of the industry.

Zacks Rank & Key Picks

Kirkland Lake Gold currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Fortescue Metals Group Limited FSUGY, BHP Group BHP and Impala Platinum Holdings Limited IMPUY.

Fortescue has a projected earnings growth rate of 95.4% for the current fiscal. The company’s shares have surged around 181.7% 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.

BHP has an expected earnings growth rate of 68.7% for the current fiscal. The company’s shares have gained around 73.8% in the past year. It currently sports a Zacks Rank #1.

Impala has an expected earnings growth rate of 195.9% for the current fiscal. The company’s shares have rallied around 84.2% in the past year. It currently sports a Zacks Rank #1.

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