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Kirkland Lake Gold (KL) Earnings and Sales Top Estimates in Q3

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Kirkland Lake Gold Ltd. reported net earnings of $254.9 million or 96 cents per share in third-quarter 2021 compared with $202 million or 73 cents in the year-ago quarter.

Barring one-time items, adjusted earnings per share were 91 cents that topped the Zacks Consensus Estimate of 81 cents.

The company recorded revenues of $667 million, up 5.4% year over year. The figure surpassed the Zacks Consensus Estimate of $619.2.

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 370,101 ounces in the quarter, up 9% year over year. Average realized price of gold was $1,791 per ounce, down 6.1% year over year.

Operating cash costs per ounce for gold rose 7.8% year over year to $438. All-in sustaining costs (AISC) for gold fell 16% year over year to $740 per ounce in the quarter.

Financial Position

At the end of the third quarter, Kirkland Lake Gold had cash and cash equivalents of $822.4 million compared with $858.4 million as of Jun 30, 2021. 

Net cash provided by operating activities declined 25% year over year to $323 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 for 2021. Operating cash costs per ounce sold is projected in the range of $450-$475.

Price Performance

Shares of Kirkland Lake Gold have declined 6.5% in the past year against a 20.3% fall of the industry.

Zacks Investment ResearchImage Source: Zacks Investment Research

Zacks Rank & Key Picks

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

Some better-ranked stocks in the basic materials space are Nucor Corporation (NUE - Free Report) , The Chemours Company (CC - Free Report) and Olin Corporation (OLN - Free Report) .

Nucor has a projected earnings growth rate of around 583.5% for the current year. The company’s shares have soared 121% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Chemours has an expected earnings growth rate of around 86.9% for the current year. The company’s shares have gained 47.1% in the past year. It currently carries a Zacks Rank #2 (Buy).

Olin has an expected earnings growth rate of around 740% for the current year. The stock has surged 204.8% in the past year. It currently flaunts a Zacks Rank #1.


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