A report by ROTH Capital Companions highlighted the important thing factors of the latest administration presentation to buyers.
Analyst Jake Sekelsky reported in a January 17 analysis word on the findings of Kirkland Lake Gold Inc.'s Investor Day (KL: TSX; KL: NYSE) held on the identical day.
First, Sekelsky stated, the corporate had a possible inventory catalyst for the announcement of the replace of its reserves and sources in direction of the top of the month of February. The brand new figures ought to mirror "a major improve within the variety of ounces and qualities," he wrote.
Secondly, Kirkland Lake intends to proceed to deal with exploration in Australia in 2019, spending between $ 85 million and $ 100 million to increase its 2018 program. There’s a risk Sekelsky famous that the corporate is discovering "one other Fosterville in Fosterville".
Thirdly, "the strengths of the Northern Territory might be a darkish horse," commented Sekelsky. They embrace the Union Reefs plant, the Cosmo mine and the Maud Creek venture. "We consider that buyers place little worth on the property of the Northern Territory and that these property are typically underneath appreciated by the market." Nevertheless, further exploration efforts within the area are anticipated this yr.
Lastly, Mr. Sekelsky stated, the No. four nicely underneath development at Macassa may "improve manufacturing to about 400,000 ounces a yr whereas considerably lowering prices by 30 to 40 p.c". It also needs to point out the venture for which there’s at present just one nicely. The second section of Effectively Challenge # four is predicted to be accomplished in 2023.
Sekelsky concluded that "the corporate is on monitor to satisfy natural manufacturing development targets whereas establishing an elevated reserve base to increase the lifetime of the mines, notably in Fosterville" .
ROTH has a purchase order suggestion and a goal value at $ 31 per share on Kirkland Lake, whose inventory value now stands at round $ 28.20.[NLINSERT]
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ROTH Capital Companions Statements, Kirkland Lake, Society Be aware, January 17, 2019
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