Investment Thesis
With thorough analysis, comparing the company to competitors I believe that Kirkland Lake Gold Ltd. (KL) is undervalued according to my discounted cash flow model. I recommend accumulating shares using the dollar-cost averaging
Kirkland Lake Gold: Strong Value Candidate For A Hedge Against Inflation
Summary
- If gold and silver miners were a sector, they would be the only ones generating positive real free cash flow yield.
- All of its mines are in Tier-1 jurisdictions with three located in Canada and one in Australia.
- Lower AISC and expected growing production through FY 2025.
- As real yields remain negative, gold miners with low costs compared to their competitors such as Kirkland Lake Gold should increase their profits as production grows and the price of gold stays around $1800.
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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in KL over the next 72 hours. 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.
Elijah Morgan is not a Registered Investment Advisor. This writing is for informational purposes only. It does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction. The information contained in this writing should not be construed as financial or investment advice on any subject matter.
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