Desjardins puts sell rating on Kirkland Lake Gold (T.KGI), stock down 3%

Stockhouse Editorial
0 Comments| March 14, 2014


Desjardins Securities has downgraded Kirkland Lake Gold Inc. (TSX: T.KGI, 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.

Tags: GOLD

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