| | | Kirkland Lake Gold EPS beats by $0.03, beats on revenue
Feb. 20, 2020 4:38 AM ET|
Kirkland Lake Gold (NYSE: KL): Q4 Non-GAAP EPS of $0.88 beats by $0.03; GAAP EPS of $0.80 beats by $0.04.
Revenue of $412.38M (+47.1% Y/Y) beats by $1.4M.
Press Release
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Kirkland Lake aims for over $1.5B of free cash flow, plans to double dividends
Feb. 20, 2020 6:52 AM ET|About: Kirkland Lake Gold Ltd. (KL)|By: Vandana Singh, SA News Editor
Kirkland Lake (NYSE: KL) rises ~4.5% in pre-market as the company says that it's positioned to generate “well over half-a-billion dollars” of free cash flow in 2020; raised its guidance to between $1.47B - $1.54B to reflect the Detour Lake mine acquisition.
Forecasts production of ~1.40M ounces in 2020; Detour Lake mine will add between 520,000 oz and 540,000 oz to the group’s production, with the balance coming from Macassa & Holt Complex, and Fosterville.
Kirkland produced a record 974,615 oz in 2019, which was a 35% increase from 2018, at an operating cash cost of $284/oz and an all-in sustaining cash cost of $564/oz.
2019 net earnings doubled to $560.1M, with adjusted net earnings of $576.4M.
Free cash flow reached $463M, +81% Y/Y.
The company plans to substantially double its quarterly dividend, to $0.125 per share, effective the Q2 2020, and commit to buying back 20M shares over the next 12 to 24 months.
Additionally, KL decides to designate Holt Complex in Northern Ontario and assets in the Northern Territory of Australia as non-core and will be considering strategic options for these assets.
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Do not own this one but report reflects the huge FCF they generate now as gold price achieves new highs (especially in other currencies). Watch those companies on your list and track the growth of their FCF when they reflect the new gold price on ore mined.
The next question is where does this growth in FCF go? KL will raise their dividend similar what to GOLD announce. |
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