ColinSutherland

$KL, $55 target in H1/21.

Long
NYSE:KL   None
Attractive entry point for 2021.

The Company is likely to produce 1.3 - 1.4m gold oz's in 2021. The high grade nature of their deposits provides ample margin at current prices for cash accumulation / a big exploration program / sustaining capex / share buybacks / dividends.

The Group ended Sept 30th with no debt, $850m in cash, and is generating $2.25-2.50/sh in FCF annually.

The current share price is trading at April levels when gold was ~in a $1,650 - 1,750/oz despite current gold prices of $1,898/oz.

I'm expecting Group will report in excess of $1B in cash, no debt with operations contributing another record year for the Company.

Gold has rallied since Nov 30th, however KL has lagged during the $100/oz run up.

Rally of gold in 2021 will move KL to $55 levels, provided no expensive acquisitions, it should provide a 30-45% return during the year.

Cdn buyers/Cdn exchange - deval of USD coming in 2021.


Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.