TSX:KL

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Kirkland Lake Gold

Executive Summary

Kirkland Lake Gold Ltd. engages in the acquisition, exploration, development, and operation of gold properties. More Details


Snowflake Analysis

Undervalued with excellent balance sheet.


Similar Companies

Share Price & News

How has Kirkland Lake Gold's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KL is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: KL's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-1.2%

KL

-0.6%

CA Metals and Mining

2.8%

CA Market


1 Year Return

-4.7%

KL

37.9%

CA Metals and Mining

-0.3%

CA Market

Return vs Industry: KL underperformed the Canadian Metals and Mining industry which returned 37% over the past year.

Return vs Market: KL underperformed the Canadian Market which returned -0.5% over the past year.


Shareholder returns

KLIndustryMarket
7 Day-1.2%-0.6%2.8%
30 Day-14.9%-7.3%10.0%
90 Day-25.5%-11.6%5.7%
1 Year-3.7%-4.7%39.1%37.9%3.3%-0.3%
3 Year186.2%180.8%41.7%38.7%12.2%1.3%
5 Yearn/a140.9%133.6%49.1%26.2%

Long-Term Price Volatility Vs. Market

How volatile is Kirkland Lake Gold's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Kirkland Lake Gold undervalued compared to its fair value and its price relative to the market?

47.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KL (CA$52.2) is trading below our estimate of fair value (CA$98.64)

Significantly Below Fair Value: KL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KL is good value based on its PE Ratio (14.1x) compared to the CA Metals and Mining industry average (21.1x).

PE vs Market: KL is good value based on its PE Ratio (14.1x) compared to the Canadian market (15.3x).


Price to Earnings Growth Ratio

PEG Ratio: KL is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: KL is good value based on its PB Ratio (2.2x) compared to the CA Metals and Mining industry average (2.6x).


Next Steps

Future Growth

How is Kirkland Lake Gold forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

7.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KL's forecast earnings growth (7.2% per year) is above the savings rate (1.7%).

Earnings vs Market: KL's earnings (7.2% per year) are forecast to grow slower than the Canadian market (27.2% per year).

High Growth Earnings: KL's earnings are forecast to grow, but not significantly.

Revenue vs Market: KL's revenue (5.5% per year) is forecast to grow slower than the Canadian market (6.1% per year).

High Growth Revenue: KL's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KL's Return on Equity is forecast to be low in 3 years time (13.6%).


Next Steps

Past Performance

How has Kirkland Lake Gold performed over the past 5 years?

53.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KL has high quality earnings.

Growing Profit Margin: KL's current net profit margins (33.2%) are lower than last year (39.9%).


Past Earnings Growth Analysis

Earnings Trend: KL's earnings have grown significantly by 53.7% per year over the past 5 years.

Accelerating Growth: KL's earnings growth over the past year (45.4%) is below its 5-year average (53.7% per year).

Earnings vs Industry: KL earnings growth over the past year (45.4%) underperformed the Metals and Mining industry 93.2%.


Return on Equity

High ROE: KL's Return on Equity (14.6%) is considered low.


Next Steps

Financial Health

How is Kirkland Lake Gold's financial position?


Financial Position Analysis

Short Term Liabilities: KL's short term assets ($1.1B) exceed its short term liabilities ($487.7M).

Long Term Liabilities: KL's short term assets ($1.1B) do not cover its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: KL is debt free.

Reducing Debt: KL has no debt compared to 5 years ago when its debt to equity ratio was 35.3%.

Debt Coverage: KL has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: KL has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Kirkland Lake Gold current dividend yield, its reliability and sustainability?

1.87%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KL's dividend (1.87%) is higher than the bottom 25% of dividend payers in the Canadian market (1.61%).

High Dividend: KL's dividend (1.87%) is low compared to the top 25% of dividend payers in the Canadian market (5.26%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, KL has been paying a dividend for less than 10 years.

Growing Dividend: KL's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15.3%), KL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KL's dividends in 3 years are forecast to be well covered by earnings (16.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure


CEO

Tony Makuch (62 yo)

4yrs

Tenure

US$4,705,318

Compensation

Mr. Anthony Paul Makuch, also known as Tony, B.Sc., M.Sc., M.B.A., P.Eng., has been the Chief Executive Officer, President and Director of Kirkland Lake Gold Ltd. (formerly, Kirkland Lake Gold Inc.) since ...


CEO Compensation Analysis

Compensation vs Market: Tony's total compensation ($USD2.79M) is below average for companies of similar size in the Canadian market ($USD7.03M).

Compensation vs Earnings: Tony's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Anthony Makuch
President4yrsUS$4.71m0.024%
$ 3.3m
David Soares
Chief Financial Officer2yrsUS$1.33mno data
Natasha Nella Vaz
Senior Vice President of Technical Services & Innovation1.58yrsUS$1.48mno data
Eric Kallio
Senior Vice President of Exploration2.33yrsUS$990.49kno data
Ian Holland
Vice President of Australian Operations3.42yrsUS$1.03mno data
Mark E. Utting
Senior Vice President of Investor Relations3.42yrsno datano data
Jennifer Wagner
Senior Vice President of Corporate Affairs5.33yrsUS$395.97kno data
Darin Smith
Vice President of Corporate Development3.5yrsno data0.00018%
$ 25.3k
Greg Rooney
Vice President of Human Resources0.33yrno datano data
Merushe Verli
Senior Vice President of Business Operation Management Systems0.17yrno datano data
Alasdair Federico
Executive Vice President of Corporate Affairs & Corporate Social Responsibility4yrsno datano data
Stewart Carmichael
Regional Manager of Explorationno datano datano data

3.4yrs

Average Tenure

57yo

Average Age

Experienced Management: KL's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anthony Makuch
President4yrsUS$4.71m0.024%
$ 3.3m
Elizabeth Lewis-Gray
Independent Director1.17yrsno datano data
Ingrid Hibbard
Independent Director0.75yrno data0.0063%
$ 883.9k
Arnold Klassen
Independent Director4yrsUS$226.33k0.0055%
$ 771.5k
Barry Olson
Independent Director4yrsUS$222.00k0.0021%
$ 290.9k
Peter Grosskopf
Independent Director0.75yrno datano data
Jeffrey Parr
Non-Executive Independent Chairman1.5yrsUS$246.33k0.0073%
$ 1.0m
Jonathan Gill
Independent Director4yrsUS$287.92kno data

2.8yrs

Average Tenure

62.5yo

Average Age

Experienced Board: KL's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 29.9%.


Top Shareholders

Company Information

Kirkland Lake Gold Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kirkland Lake Gold Ltd.
  • Ticker: KL
  • Exchange: TSX
  • Founded:
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$14.053b
  • Shares outstanding: 272.98m
  • Website: https://www.klgold.com

Number of Employees


Location

  • Kirkland Lake Gold Ltd.
  • Royal Bank Plaza
  • Suite 2800
  • Toronto
  • Ontario
  • M5J 2J1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KLTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 2016
KLNYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 2016
NGDADB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2016
KL NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNDec 2016
0V38LSE (London Stock Exchange)YesCommon SharesGBCADDec 2016
KLACHIA (Chi-X Australia)NPV CDI (1:1)AUAUDNov 2017
KLAASX (Australian Securities Exchange)NPV CDI (1:1)AUAUDNov 2017

Biography

Kirkland Lake Gold Ltd. engages in the acquisition, exploration, development, and operation of gold properties. The company’s principal properties include the Fosterville Mine located in the State of Victo...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 00:25
End of Day Share Price2020/11/26 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.