Desjardins Securities has downgraded Kirkland Lake Gold Inc.
, Stock Forum
) to ‘sell’ from ‘hold,’ citing liquidity worries and operational uncertaintly.
“With a current working capital balance of $30 million, liquidity risk is high as Macassa is currently operating at breakeven levels, which could be further strained by production shortfalls, a stronger Canadian dollar or a weaker gold price,’’ analyst Adam Melnyk wrote in a research report.
The stock reacted Friday by falling 3.2% to $4.50, leaving a market cap of $317.1 million, based on 70.2 million shares outstanding. The 52-week range is $6.09 and $2.21.
Kirkland Lake Gold is an operating and exploration gold company, located in Kirkland Lake, Ont. Its flagship asset is the Macassa gold mine.