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Kirkland Lake Gold: Is This Miner The Real Deal Or What?


  • Kirkland Lake Gold has reported its Q2 production results.
  • The company reported record gold production of 160,156 ounces. This really blew me away.
  • A dividend is coming soon and will reward patient, long-term shareholders, as well as new investors.
  • I discuss the quarterly results, recent drill results and more.

This article was first available to subscribers of the Gold Bull Portfolio, a premium service offered by Gold Mining Bull.

This is an update of my previous top overall gold stock pick for 2017, Kirkland Lake Gold (OTCQB:KLGDF). I'm still quite surprised by the lack of coverage on this gold mining stock. Look at the performance of the stock price below.

(Credit: Yahoo Finance)

Kirkland Lake Gold's stock continues to outperform the market and with the company exceeding my production expectations for the second quarter, shares may continue to rise, even if gold prices remain rangebound between $1,200 - $1,250 an ounce. The stock has done well: year-to-date, the stock is up close to 70% compared to a measly 4.21% gain in the VanEck gold miners index (GDX) and a 3.51% gain in gold (GLD). Even with gold prices falling close to $1,200 an ounce lately, the stock keeps chugging along.

When I last covered the stock and the company back in May, it traded at $7.17 per share; I said investors should consider buying shares despite a large run-up in the stock price over the past year. The company has just reported strong first quarter earnings, with 130,425 ounces of gold produced at $873 AISC leading to free cash flow of $37.2 million, or $.18 per share; operating cash flow surged 118% to $68.6 million or $.34 per share.

The balance sheet looked really strong at the time and with a price/2017 cashflow ratio of 5.6X, management felt shares were undervalued, initiating a share buyback program. So, how's the company doing now?

Q2 Production and Balance Sheet Updates: Key Takeaways

  • Kirkland Lake produced 160,156 ounces of gold in Q2; that is up almost 30,000 ounces from Q1 and a new quarterly record.
  • Fosterville produced 77,069 ounces of gold at

This article was written by

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Access to my personal gold portfolio and build your own winning portfolio.

With over a decade of experience in the investment industry, I am a highly skilled private investor with a proven track record of success in the commodities and hard assets sector. My areas of expertise include investing in gold and silver miners, royalty and streaming companies, pure exploration companies, as well as oil and gas producers and MLPs. My comprehensive understanding of these markets and my ability to identify and capitalize on profitable opportunities have enabled me to consistently deliver strong returns for my subscribers.

Analyst’s Disclosure: I am/we are long KLGDF. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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