KL - Kirkland Lake Gold: Don't Miss The Detour For The Fosterville

• Kirkland Lake Gold released its Q4 and FY2020 results this week, reporting record annual earnings per share, and record free cash flow of more than $730 million.
• This allowed the company to finish FY2020 with ~$850 million in cash and no debt, and return significant capital to shareholders.
• While the stock has undergone a violent correction, the fundamentals remain very strong, despite the fact that the company will report lower production at its Fosterville Mine going forward.
• At a current price to earnings ratio of below 8x FY2021 estimates after subtracting out cash & cash equivalents, I see this pullback as a gift, and am adding to my position in long-term accounts.

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