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Kirkland Lake Gold (KL) Down 18.1% Since Last Earnings Report: Can It Rebound?

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It has been about a month since the last earnings report for Kirkland Lake Gold (KL). Shares have lost about 18.1% 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 its most recent earnings report in order to get a better handle on the important catalysts.

Kirkland Lake Gold's Q3 Earnings Lag Estimates, Sales Up

Kirkland Lake Gold 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. 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.
 

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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