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Kirkland Lake Gold (KL) Earnings & Sales Beat Estimates in Q3

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Kirkland Lake Gold Ltd. (KL - Free Report) recorded net earnings (on a reported basis) of $176.6 million or 83 cents per share in third-quarter 2019, up from $55.9 million or 26 cents in the year-ago quarter.

Barring one-time items, adjusted earnings per share (EPS) were 84 cents, which beat the Zacks Consensus Estimate of 76 cents.

Kirkland Lake Gold recorded revenues of $381.4 million, up roughly 71.3% year over year. The figure also surpassed the Zacks Consensus Estimate of $371.2 million. The upside can be attributed to higher grades and increased mill throughput at Fosterville as well as higher realized gold prices in the quarter.

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 248,400 ounces in the third quarter, up around 38% year over year. Average realized price of gold was $1,482 per ounce, up 23.1% from $1,204 per ounce in the year-ago quarter.

Operating cash costs per ounce declined nearly 18% year over year to $287. All-in sustaining costs (AISC) fell 13% year over year to $562 per ounce in the quarter.

Financial Position

At the end of the third quarter, Kirkland Lake Gold had cash and cash equivalents of $615.8 million, which surged around 139.4% year over year.  
Net cash provided by operating activities rose 145% year over year to $316.8 million in the quarter.

The company announced additional dividend increase of 50% sequentially to 6 cents per share, starting from fourth-quarter 2019. The dividend will be paid out in January 2020 to shareholders of record as of Dec 31, 2019.


For 2019, the company projects consolidated gold production in the range 950,000-1,000,000 ounces at AISC of $520-$560 per ounce. Operating cash cost per ounce is expected in the range of $285-$305.

Price Performance

Kirkland Lake Gold’s shares have surged 147.7% in the past year compared with the industry’s 55.9% rally.

Zacks Rank & Other Key Picks

Kirkland Lake Gold currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the basic materials space are Impala Platinum Holdings Ltd (IMPUY - Free Report) , Franco-Nevada Corporation (FNV - Free Report) and Agnico Eagle Mines Limited (AEM - Free Report) , each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Impala Platinum has an expected earnings growth rate of 248.3% for the current fiscal year. The company’s shares have surged 243% in the past year.

Franco-Nevada has projected earnings growth rate of 39.3% for 2019. The company’s shares have rallied 51.2% in a year.

Agnico Eagle has an estimated earnings growth rate of 168.6% for the current year. Its shares have moved up 72.2% in the past year.

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