Kirkland Lake Gold an Industry LeaderI did some research on Orefinders' newest major investment partner, Kirkland Lake Gold.
I will share key takeaways from KL Gold's latest presentation (mid April 2021).
Current cash position: $792 million. It has Zero Debt. Current P/E is around 13.2, given a $45 stock price and $3.41 earnings per share. It bought back almost 19 million of its own shares in 2020 at a cost of $732 million. Current FreeCash Flow in 2020 was $733 million.
It is an industry leader in limited carbon emisions. The Macassa site has zero water consumption, both Detour and Fosterville have zero discharges.
It currently has 3 working mines in both Canada and Australia. Detour Gold, a large open pit mine in northern Ontario having a projected 24 year mine life, Macassa, close to Orefinders has a 12.6 year projected life, while Fosterville in australia has an 8.6 year projected life.
So you can say that time is running out for Kirkland Lake Gold for it's gold reserves.
It is an industry leader in low cost production, at $801 an oz, (AISC), which is about 18 to 25% less than the likes of Barrick, Newmont, Agnico Eagle, and Kinross.
I take the Kirkland Lake Gold interest in Orefinders as a compliment. It could easily purchase the orefinders current stock at $1 a share at $232 million (less actually by it's recent 10% stake), and still have close to $600 left in it's coffers.
I'm not speculating that it might happen, but Kirkland Lake gold doesn't have a lot of time before it needs to extend it's mine lives and increase it's reserves, and with Stephen at the helm, I believe that he will have our backs as shareholders.