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  5. KL: Good morning, KL continues to do everything right, no debt, close to 1 billion in cash, buying back shares, its cheap, excellent management. [Kirkland Lake Gold Ltd.]
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Investment Q&A

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Q: Good morning,

KL continues to do everything right, no debt, close to 1 billion in cash, buying back shares, its cheap, excellent management...but the stock is down 37% the last year and has been on a downward trend all year. Is it heavily shorted or something else is wrong ?
Thanks, George

Asked by George on July 29, 2021
5i Research Answer:

The sector has not done that well, but KL has suffered more. Short interest in Canada is less than 1%, in the US the same. Its record of 'beating' estimates is not that great, and investors seem still concerned about the DGC takeover. But it showed good EPS growth in the 2Q and met estimates. But production costs rose 13%. But per-ounce costs were ahead of guidance, and the company re-iterated full-year guidance. Insiders have been small net buyers in 2021. At 12X earnings, we would still consider it very attractive for the sector.