TSX:KL

Stock Analysis Report

Kirkland Lake Gold

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with outstanding track record.


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


Market Performance


7 Day Return

-2.1%

KL

0.5%

CA Metals and Mining

0.2%

CA Market


1 Year Return

123.0%

KL

15.0%

CA Metals and Mining

3.5%

CA Market

Return vs Industry: KL exceeded the Canadian Metals and Mining industry which returned 15% over the past year.

Return vs Market: KL exceeded the Canadian Market which returned 3.5% over the past year.


Shareholder returns

KLIndustryMarket
7 Day-2.1%0.5%0.2%
30 Day-12.2%-8.9%-3.3%
90 Day-1.9%-8.0%-1.9%
1 Year123.8%123.0%15.9%15.0%7.3%3.5%
3 Yearn/a-11.6%-13.2%14.7%4.4%
5 Yearn/a15.4%11.6%26.2%7.7%

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?

24.52x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KL (CA$57.54) is trading above our estimate of fair value (CA$50.13)

Significantly Below Fair Value: KL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: KL is poor value based on its PE Ratio (24.5x) compared to the Metals and Mining industry average (13.4x).

PE vs Market: KL is poor value based on its PE Ratio (24.5x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

PEG Ratio: KL is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: KL is overvalued based on its PB Ratio (6.3x) compared to the CA Metals and Mining industry average (1.3x).


Next Steps

Future Growth

How is Kirkland Lake Gold forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

7.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KL's forecast earnings growth (7.8% per year) is above the savings rate (1.9%).

Earnings vs Market: KL's earnings (7.8% per year) are forecast to grow slower than the Canadian market (13% per year).

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

Revenue vs Market: KL's revenue (6.7% per year) is forecast to grow faster than the Canadian market (5.5% per year).

High Growth Revenue: KL's revenue (6.7% 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 high in 3 years time (21.9%)


Next Steps

Past Performance

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

59.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: KL has become profitable over the past 5 years, growing earnings by 59.2% per year.

Accelerating Growth: KL's earnings growth over the past year (75.1%) exceeds its 5-year average (59.2% per year).

Earnings vs Industry: KL earnings growth over the past year (75.1%) exceeded the Metals and Mining industry -11.9%.


Return on Equity

High ROE: KL's Return on Equity (25.6%) is considered high.


Return on Assets

ROA vs Industry: KL has a higher Return on Assets than the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: KL has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Kirkland Lake Gold's financial position?


Financial Position Analysis

Short Term Liabilities: KL's short term assets ($539.7M) exceeds its short term liabilities ($265.8M)

Long Term Liabilities: KL's short term assets (539.7M) exceeds its long term liabilities (280.1M)


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 46.3%.

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

Inventory Level: KL has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if KL's debt is covered by short term assets.


Next Steps

Dividend

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

0.36%

Current Dividend Yield


Dividend Yield vs Market

company0.4%marketbottom25%2.0%markettop25%5.9%industryaverage1.3%forecastin3Years0.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: KL's dividend (0.36%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.98%).

High Dividend: KL's dividend (0.36%) is low compared to the top 25% of dividend payers in the Canadian market (5.92%).

Stable Dividend: KL is not paying a notable dividend for the Canadian market, therefore no need to check if payments are stable.

Growing Dividend: KL is not paying a notable dividend for the Canadian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: KL is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of KL's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

What is the CEO of Kirkland Lake Gold's salary, the management and board of directors tenure and is there insider trading?

2.4yrs

Average management tenure


CEO

Tony Makuch (61yo)

2.9yrs

Tenure

US$4,352,873

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: Insufficient data to establish whether Tony's total compensation is reasonable compared to companies of similar size in the Canadian market.

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


Management Age and Tenure

2.4yrs

Average Tenure

Experienced Management: KL's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

2.9yrs

Average Tenure

67yo

Average Age

Experienced Board: KL's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: KL insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$141,729,03303 Sep 19
Eric Sprott
EntityIndividual
Shares2,262,728
Max PriceUS$66.40
BuyUS$876,01202 Jul 19
Eric Sprott
EntityIndividual
Shares150,002
Max PriceUS$5.84
SellUS$165,312,75102 Jul 19
Eric Sprott
EntityIndividual
Shares3,330,500
Max PriceUS$57.68
SellUS$2,054,80021 Jun 19
Jennifer Wagner
EntityIndividual
Role
Chief Legal Officer
VP of Legal & Corporate Secretary
Shares40,000
Max PriceUS$51.37
SellUS$787,19619 Jun 19
Pamela Klessig
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares15,000
Max PriceUS$52.48
SellUS$255,80006 Jun 19
Arnold Klassen
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$51.16
BuyUS$147,05530 Mar 19
Jeffrey Parr
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares3,550
Max PriceUS$41.42
SellUS$4,745,08015 Mar 19
Eric Sprott
EntityIndividual
Shares100,000
Max PriceUS$47.45
SellUS$15,854,41913 Mar 19
Eric Sprott
EntityIndividual
Shares334,600
Max PriceUS$47.38
SellUS$1,574,00412 Mar 19
Eric Sprott
EntityIndividual
Shares33,300
Max PriceUS$47.27
SellUS$1,040,05411 Mar 19
Raymond Threlkeld
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares22,250
Max PriceUS$46.74
SellUS$1,682,84106 Mar 19
Eric Sprott
EntityIndividual
Shares34,800
Max PriceUS$48.36
SellUS$1,354,65005 Mar 19
Eric Sprott
EntityIndividual
Shares28,100
Max PriceUS$48.21
SellUS$822,51004 Mar 19
Eric Sprott
EntityIndividual
Shares17,100
Max PriceUS$48.10
SellUS$16,982,98801 Mar 19
Eric Sprott
EntityIndividual
Shares360,000
Max PriceUS$47.95
SellUS$9,207,52522 Jan 19
Eric Sprott
EntityIndividual
Shares257,500
Max PriceUS$36.00
SellUS$1,435,00018 Jan 19
Eric Sprott
EntityIndividual
Shares40,000
Max PriceUS$35.88
SellUS$1,782,50016 Jan 19
Eric Sprott
EntityIndividual
Shares50,000
Max PriceUS$35.65
SellUS$355,00015 Jan 19
Eric Sprott
EntityIndividual
Shares10,000
Max PriceUS$35.50
SellUS$3,522,50014 Jan 19
Eric Sprott
EntityIndividual
Shares100,000
Max PriceUS$35.23
SellUS$2,838,77404 Jan 19
Eric Sprott
EntityIndividual
Shares80,300
Max PriceUS$35.35
SellUS$654,08818 Dec 18
Jeffrey Parr
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares20,000
Max PriceUS$32.70
BuyUS$99,00018 Dec 18
Jeffrey Parr
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares20,000
Max PriceUS$4.95

Ownership Breakdown


Management Team

  • Eric Kallio

    Senior Vice President of Exploration

    • Tenure: 0.9yrs
  • Mark E. Utting

    Vice President of Investor Relations

    • Tenure: 2.9yrs
  • Tony Makuch (61yo)

    President

    • Tenure: 2.9yrs
    • Compensation: US$4.35m
  • Alasdair Federico

    Executive Vice President of Corporate Affairs & Corporate Social Responsibility

    • Tenure: 2.9yrs
  • Jenn Wagner (42yo)

    VP of Legal & Corporate Secretary

    • Tenure: 2.9yrs
    • Compensation: US$395.97k
  • Ian Holland

    Vice President of Australian Operations

    • Tenure: 2.3yrs
    • Compensation: US$1.09m
  • Natasha Nella Vaz

    Vice President of Technical Services

    • Tenure: 0.8yrs
  • John Landmark

    Vice President of Human Resources

    • Tenure: 0.8yrs
  • Darin Smith

    Vice President of Corporate Development

    • Tenure: 2.4yrs
  • David Soares

    Chief Financial Officer

    • Tenure: 0.9yrs
    • Compensation: US$962.31k

Board Members

  • Elizabeth Lewis-Gray

    Director

    • Tenure: 0.08yrs
  • Arnold Klassen (67yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$221.50k
  • Ray Threlkeld (72yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$207.50k
  • Barry Olson (67yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$207.50k
  • Tony Makuch (61yo)

    President

    • Tenure: 2.9yrs
    • Compensation: US$4.35m
  • Pam Klessig (64yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$192.50k
  • Jeff Parr (62yo)

    Independent Chairman

    • Tenure: 0.4yrs
    • Compensation: US$215.50k
  • Jon Gill (74yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$213.00k

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: 1983
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$12.094b
  • Shares outstanding: 210.19m
  • Website: https://www.klgold.com

Number of Employees


Location

  • Kirkland Lake Gold Ltd.
  • South Tower
  • Suite 3120
  • 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. It owns and operates four underground gold mines, including the Macassa, Holt, and Taylor min ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/24 00:45
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.