Topic: How To Invest

Q: Pat, is Kirkland Lake Gold a stock to purchase? Thanks.

Article Excerpt

A: Kirkland Lake Gold Ltd., $50.72, symbol KL on Toronto (Shares outstanding: 268.1 million; Market cap: $13.6 billion;, is a gold producer headquartered in Toronto. It owns and operates three underground gold mines: the Macassa mine and Detour Lake mine, both located in Northern Ontario, and the Fosterville mine located in the state of Victoria, Australia. Kirkland Lake Gold also owns exploration properties and non-operating mines in both Canada and Australia. The high-grade Macassa mine, located in Kirkland Lake, Ontario, was the company’s original mine, prior to its acquisition of Newmarket Gold in September 2016. Newmarket was operating the Fosterville mine in Australia with moderate success. But shortly after the acquisition closed, Kirkland Lake Gold discovered the very-high-grade Swan Zone on the property. That fortunate discovery launched Kirkland into the ranks of large-scale gold producers capable of producing almost one million ounces annually. Kirkland Lake Gold’s next big move was the acquisition of the open-pit Detour Lake gold mine…