Shares of Kirkland Lake Gold Ltd. (KL, Financial) are expected to take a leap on the heels of the quarterly dividend announcement. The company has informed its shareholders of a cash dividend of 2.3 cents per ordinary share.
Investors must be on Kirkland Lake Gold’s record not later than June 29, 2018. The ex-dividend date is scheduled for June 28.
The payment is about 7 cents higher than the previous payment of 1.6 cents per common share. If held constant, the quarterly distribution yields a forward annual dividend of approximately 10 cents per share, granting 0.47%.
Kirkland Lake Gold is a good option in the gold mining stock industry. Thanks to high performing activities run by the miner at Macassa in Ontario and Fosterville in Australia, the stock has climbed 146% in one year's time. Operations were driven by a positive ore grade encountered during mining.
Now, as you can see in the chart powered by Guru Focus, the stock is not trading cheaply at $20.09 per share, because the market valuation is beyond the 200, 100 and 50-SMA lines.
Also, the current share price is less than 40 cents from the 52-week high of $20.43. The 52-weeks low is $7.95 per share.
Therefore, I would wait before acquiring shares in this gold mining company. Kirkland Lake Gold's operations over the trailing 12 months is defined by an earnings before interest taxes depreciation and amortization (EBITDA) margin of 51%. That is one of the highest in the industry. The industry's standing does not even reach 25%.
The company’s other mines are Holt Mine and Taylor Mine in Canada.
In the next five to seven years, Kirkland Lake Gold aims to become a gold mining company that is drawing gold at an annual pace of 1 million ounces from its portfolio of mineral assets. For the entire year of 2018, the company expects a gold production of 620,000 ounces.
GuruFocus has assigned Kirkland Lake Gold a profitability and growth rating of 8 out of 10.
Kirkland Lake Gold is also a worldwide top-performer in terms of cash flows. The company generated a cash flow of almost $320 million from its trailing 12-months of operations. A total of 43% of that was used by the miner to pay dividends and to upgrade the portfolio. The balance sheet is solid with $275.34 million in cash on hand and securities, or $1.3 per share, and with a most recent quarter total debt-to-equity ratio of only 3.28%. The industry median is 35%. The interest coverage ratio of 35.37% indicates that Kirkland Lake Gold can easily deal with a financial burden of $39 million. A currency ratio of 2.71 also indicates that the miner doesn’t have liquidity problems.
The company has paid dividends of about $9.95 million over the last 12 months of trading.
GuruFocus has assigned Kirkland Lake God a financial strength rating of 8 out of 10.
The stock has a market capitalization of $4.25 billion and is currently reporting a volume of 211.20 million shares outstanding. The portion of institutional ownership in the stock of the gold producer is 41.73%. There is no insider ownership of Kirkland Lake Gold.
(Disclosure: I have no positions in any security mentioned in this article.)
Also check out: (Free Trial)
