Kirkland Lake: Canaccord Maintains $68 Price Target, Buy Rating

On Wednesday, July 1, during market hours Kirkland Lake Gold (TSX: KL) reissued it’s 2020 guidance. The company had originally withdrawn guidance on April 2 as a result of COVID-19 and the unknown implications it would have on operations. Kirkland’s revised guidance is for 1.35 – 1.40 million ounces of gold to be produced at an all-in sustaining cost of $790 – $810/oz, 9% below their initial 2020 estimate of 1.47 – 1.54 million ounces, while all-in sustaining costs are down ~4% from original estimates of $820 – $840/oz.

Canaccord Genuity sent out a note to its clients on Thursday, revising their estimates to reflect recent guidance changes but did not change their price target nor rating. The current price target is set at C$68.00, along with a Buy rating, which gives Kirkland gold a ~20% upside. Canaccord’s revised estimates are 1.38 million ounces with an all-in sustaining cost of $787/oz, down from previous estimates of 1.43 million ounces at an all-in sustaining cost of $843/oz.

Canaccord mentions that the majority of the production decrease alongside the variance to their forecast came from the Holt complex where Kirkland has suspended operations. Holt was also removed from Kirkland’s 2020 guidance, while the lower all-in sustaining cost is more economical for the same reason. The Holt Complex has a high cost of production, with an all-in sustaining cost of $955/oz, significantly higher than Kirkland’s other operations.

There are currently 12 analysts with price targets and ratings on Kirkland. The mean price target for Kirkland is C$67.00 and the weighted rating is a buy rating, which 7 out of the 12 analysts have given. The highest price estimate comes in at C$76.00, from TD Securities analyst Steven Green.


Information for this briefing was found via Sedar and Kirkland Lake Gold Ltd. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Goliath Resources Hits 10.60 g/t Gold Over 22.82 Metres, Highest Grade Results In Third Distinct Rock Package At Surebet Discovery

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

Recommended

ESGold Outlines $24.3 Million NPV For Tailings Reprocessing Project

First Majestic Encounters 711 g/t Silver Equivalent Over 8.0 Metres In Ongoing Exploration At Los Gatos

Related News

BMO: Mosaic Is “Delivering On The Promise”

Last week, Mosaic Co (NYSE: MOC) released their full-year 2020 financial results. The company announced...

Monday, February 22, 2021, 10:47:00 AM

BofA: Global Cannabis Market Currently Estimated At $186 Billion

In a note BofA Securities released last week, the firm discussed the global cannabis market....

Tuesday, December 8, 2020, 03:41:00 PM

Shopify: Canaccord Raises Price Target To $1,450 Off Back Of Strong Earnings

Shopify (NYSE: SHOP) reported second-quarter financials on July 28th. The company is keeping the US...

Friday, July 30, 2021, 04:32:00 PM

IAMGOLD: BMO Downgrades, Canaccord Reiterates Price Target Following Q3 Financials

Last week, IAMGOLD Corp (TSX: IMG) reported its third quarter financial results. They reported $105.1...

Monday, November 9, 2020, 12:03:00 PM

Falcon Gold Increases Financing Due To Excess Demand

Falcon Gold (TSXV: FG) has increased its outstanding offering that was announced earlier this week...

Thursday, May 14, 2020, 09:18:34 AM