Kirkland Lake Gold is a great value play in the gold mining sector, with some absolutely wild looking ratios.
P/E 11.76 vs industry average of 26.54
Gross Profit Margin 72.81% vs industry average of 28.82%
EBITDA Margin 68.22% vs industry average of 16.41%
Net Income Margin 32.02% vs industry average of 4.97%
The numbers here are more than solid, and while we are covering the topic of value plays I think Kirkland Lake Gold falls perfectly into that category. I am still bullish on precious metals, despite the downward trend since August. The 10-Year US Treasury yield expanding is the first signs of real inflation coming to the market, which might be the catalyst to start the run in precious metals and all commodities.
Just off these financials alone I can't see Kirkland Lake Gold selling off much more than they already have, they seem to be at a deep discount. Definitely worth adding to the watchlist at the very least. I am thinking will see some convergence to the average in the coming months or years.
This company is 100% a set it and forget it type company that can anchor your portfolio for years.
As always these opinions are my own, and are not investment advice but for educational purposes. Please seek professional advice before making investment decisions.

