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Kirkland Lake


When I was on Wall Street I was involved in the French gold bond, the Giscard. Kirkland Lake, $41.45, in my mind is “Giscard 2!” It is a cash flow machine but not indexed to gold like the Giscard, but LEVERAGED, with far less downside than other miners or the metal itself. It is a remarkable instrument; a money engine with almost $1 billion in the bank, without debt operating in only Canada and Australia.

Now that the merger with Detour has been approved by shareholders, it is only the Government’s formal stamp on 1/31/20 before this deal is done and done.

In short order the market will learn to appreciate how extraordinary this deal is for both companies creating the third biggest gold miner in the world with long life reserves, great management, great potential to rationalize, and significant opportunity for new discoveries.

 


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