RE:RE:RE:RE:Opportunities in NE OntarioAt the time, in 2016, LSG was not on the block for sale.It happen suddenly on Monday February 8 2016 even if Tony made a press release on Friday to say that LSG was not negotiating a deal.
Tony stayed with Tahoe for a short time to go with KL on Nov 2016 to take the lead.
I like your base question;«
what were KL's financials like...»
Kl in 2015 was looking for higher grade at Macassa and was not profitable..Decision was taken to ''mill''higher grade with a smaller throughput and I think Tony was not in charge at this time ,but the decision was very good .Higher grade and lower throughput was the key to the return to profitability and lower AISC
The big ''spark''was the merger of KL and Newmarket where Tony was president and the Fosterville Mine was part of Newmarket Mining .
So we know what happen at KL: profit with Macassa with higher grade and excellent merger , not forgetting the big discovery at Fosterville .
I know the Kirland storey very well because at the time I was already shareholder of KL as well as LSG and the cherry on the cake is that I sold my LSG and took the opportunity to add shares of KL .
Adding to that ,the ore grade at Macassa was increasing going deeper and having access to better ore grade,gold production and profit was growing .
A lot of high grade will be added in the coming years to the P+P reserves going deeper and the new shaft is another excellent decision to bring to surface up to 4000 t/d high grade ore to produce up to 425 000 oz per year in a couple of year,
Great storey and this is why I'm so bullish on KL .
WhatsBestNext wrote: Thanks for your thoughts, bossu and lemboy. Good to hear these perspectives to show just how bad LSG has been for PAAS.
But that being said, I wonder if the poor numbers coming out of LSG are due to poor management. Evidently PAAS doesn't have the time or interest to invest in explorations of LSG considering their other assets. Like the numbers also show, the issue could also be with the geography itself and not management. My suggestion for LSG as target for KL tended towards the former. Also, the Bell Creek Mill infrastructure might be appealing for KL to have, even if the value of the LSG mines themselves aren't superb, compared to what NGT properties offer, when we consider the likelihood of the amounts of gold KL will be mining in the area in the coming years.
Maybe one of you can speak to this: what were KL's financials like when LSG was on the block previously? Perhaps it just didn't make sense for KL at the time, but going forward it might be, especially with the impressive financials currently for KL.
Just a thought. Appreciate the dialogue, folks!