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Kirkland Lake Gold (KL) Announces Q1 Production, Beats Guidance

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Kirkland Lake Gold Ltd. (KL - Free Report) recently released gold production figures for the first quarter of 2021.

Consolidated gold production fell 8.5% year over year to 302,847 ounces in the first quarter, but surpassed the company’s guidance of 270,000-290,000 ounces. Consolidated gold sales declined 10.6% year over year to 308,029 ounces. The company’s average realized price of gold was $1,788 per ounce in the first quarter compared with $1,586 in the prior-year quarter.

The company witnessed quarterly production at Fosterville to decline 32% year over year to 108,679 ounces in the first quarter. However, production levels were higher than target due to grade outperformance in the Swan zone in March.

Production from the Detour Lake Mine totaled 146,731 ounces in the first quarter, marking a 6.3% increase year over year. Production, however, fell sequentially that reflects reduced mill throughput with first-quarter processing rates typically the lowest of the year due to seasonal factors. The company also witnessed record level for first-quarter processing in the first quarter and achieved a new daily throughput record of 80,339 tonnes on Mar 24, 2021.

At Macassa, gold production totaled 47,437 ounces in the first quarter, down 6.7% year over year. The year-over-year decline is attributable to lower tons processed.

As of Mar 31, 2021, the company’s cash position was $792 million with no debt.

The company’s shares have inched up 0.9% in the past year compared with 3% rise of the industry.

Zacks Rank & Key Picks

Kirkland Lake Gold currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the basic materials space are Fortescue Metals Group Limited (FSUGY - Free Report) , Nucor Corporation (NUE - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .

Fortescue has a projected earnings growth rate of 106.5% for the current fiscal. The company’s shares have surged 124.5% 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.

Nucor has an expected earnings growth rate of 135.3% for the current fiscal. The company’s shares have gained 120.3% in the past year. It currently sports a Zacks Rank #1.

Impala has an expected earnings growth rate of 197.6% for the current fiscal. The company’s shares have rallied 203.4% in the past year. It currently flaunts a Zacks Rank #1.

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