- Kirkland Lake has had a strong start to 2020 after completing the acquisition of Detour Gold, generating $418 million of free cash flow year to date.
- Despite its industry-leading performance, the share price has lagged the sector since announcing the Detour deal and is due to catch up to peers.
- The company could also be a defensive bet if gold prices go lower, as they enjoy some of the highest margins in the industry and have zero debt.
- Kirkland is focusing heavily on internal growth options at existing operations, but the market may be looking for a bigger splash to move the needle.
- Further M&A is an option as the company looks to offset a potential decline in production at Fosterville, and majors may be looking to acquire Kirkland themselves.
For further details see:
Kirkland Lake Gold: The New Gold Heavyweight Should Regain Ground After Detour Deal Drop