PERSPECTIVEYes, I do understand QH not being exactly ecstatic about KL selling, as it puts downward pressure on Novo's share price, and there's more to come.
But, KL still owns (according to the latest corporate presentation) about 12.46% of Novo.
Per the news release link below, KL not only sold some Novo but also 100% of their interest in Osisko; and the stated purpose was for investing in their own (KL's) properties and doing shareholder buy-backs. KL has already bought back about 12 million of its own shares, and so has about 8 million left to reach its stated goal of 20 million shares bought back over the next 12-24 months (from August, 2020). Specifically, in the August 13, 2020 news release, the CEO of KL stated: “The sale of Osisko and Novo shares further enhances our already industry-leading financial strength, which will support our efforts as we pursue our key strategic priorities, including investing in our three cornerstone assets and returning capital to shareholders. Macassa, Detour Lake and Fosterville are three highly-profitable, cash-flow generating operations, each of which has outstanding exploration upside. There remains significant value creation potential at all three of these assets and unlocking that value is our overriding priority. Also important to us is rewarding shareholders which, in addition to share price performance, also involves buying back stock and paying dividends. So far in 2020, we have repurchased 11.9 million shares for US$388.4 million, which represents approximately $1.40 per share based on our current shares outstanding, and also doubled our quarterly dividend to US$0.125 per share. If we combine the amount of cash used for share repurchases and dividend payments in the first half of 2020, it represents approximately $645 per ounce of gold produced during the period. We announced earlier in the year a goal of repurchasing 20 million shares over a 12 to 24-month period and we are making excellent progress towards achieving that target.”
So, this seems to be no big deal to me. To the extent the price of Novo decreases it should be a BUYING OPPORTUNITY and has absolutely NO effect on novo's story. If KL was selling because it believed the Steinert sorter was going to be a disaster or becasue of the lack of a NI 43-101 compliant report, I might have a different opinion. Good for me, as I want more Novo and will be buying soon - and believe in the story. Keep in mind that QH himelf said basically that ince we pay off our debt that everything is on the table, which would include shareholder buy-backs and dividends in gold to shareholders, amongst other things. Maybe QH would sell some of NOVO's shares in other companies to achieve these goals? Everybody should calm down. Just my opinion, but maybe there is a back-story I am not aware of. https://www.globenewswire.com/news-release/2020/08/13/2077813/0/en/Kirkland-Lake-Gold-Announces-Sale-of-Osisko-and-Novo-Shares-Company-Repurchases-Additional-Shares-Through-Normal-Course-Issuer-Bid.html