Image: Detour Lake Source: Resource World Magazine
Investment Thesis
The Toronto-based Kirkland Lake Gold (KL) released its second quarter of 2020 on July 30, 2020. The company’s second quarter results indicate another healthy production and impressive free cash flow despite disruptions caused by the coronavirus pandemic. Gold has reached another multi-year record high with $1,716 per ounce for the second quarter and is now trading above $2,000/ ounce.
However, the stock underperformed the VanEck Vectors (NYSEARCA:GDX) and two of my leading long-term gold miners. Probably due to the acquisition of Detour