RE:RE:Makuch estimated 2023 end of year treasury at $3B... Pulp Cutter wrote:
RE:Makuch estimated 2023 end of year treasury at $3B...
Sports analogy might be that KL is "peaking at the right time". Like a hockey team that gels just before the playoffs start, KL is throwing off massive amounts of free cash right when great projects are hard up for money. The western central banks are trying hard to kill gold (paraphrasing Mario Draghi "we will inflate every asset...but gold"). If they suceed, a quarter of my portfolio is going to have crappy returns (!), but I am guessing the western CBs will fail, based on how heavy the BRICs and other upcoming economies are buying gold. I'm guessing the game plays out, right about the time KL has optimally-allocated that $3B...
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Your analysis seems very plausible to me. Cash should be rolling in for the next few years and sooner or later we will get higher gold prices. I can't see the Comex dictating lower metal prices forever based only on derivitaves that are named after gold silver etc. but actually have nothing to do with actual metal trading. Might as well spin a roullette wheel to establish the daily price.
The central bank propped up ponzi scheme will fail its just a matter of time then real assets will revert to prices based on real supply and demand and buyers will ignore the Comex and their imaginary supplies. They will insist on real gold and silver delivered or verified and won't accept worthless paper promises or currencies that have no real value. Already countries wanting their stored gold bullion returned are being told they have to wait years for delivery, obviously because there are multiple owners of the same gold bars if there are any stored at all.
From the recent results at Macassa and hopefully further good exploration results at Fosterville and/or their other Aussie interests. I think Kirkland Lake Gold will have lots of places to put cash to work in exploration and development.
If Wallbridge someday is added or maybe even some deal with Pretium I would say Kirkland Lake should have plenty of opportunities with no need to branch out to other less politically safe jurisdictions.
I think what KL needs to do is stick to their knitting, get their properties humming and possibly expand in Canada and Australia as good deals become available but I wouldn't want far flung mining operations in areas that could cost them a lot of unnecessary grief just to get bigger or because they look otherwise cheap. It might be important though to make sure their spending plans whatever they are are well publicized so that a potential big gold interloper company doesn't see their cash hoard as a way to subsidize a takeover bid at a bargain basement price.