From this morning ''seeking Alpha..Execellent Analisis..BUT What I Ilike first : M&A — Another Potential Bullish Catalyst
With a cash position of likely around $1 billion (if not more) by the end of this quarter, the shares trading at a slight premium to fair value and well above the value of some of its peers, the company should consider more M&A deals. It doesn't have to be the size of the Detour purchase, as I don't feel Kirkland needs to make a big splash. But something small, and highly strategic (e.g., a Marathon Gold (OTCQX:MGDPF), which is trading at less than 0.6x NPV) would keep production steady should exploration drilling at Fosterville not produce the desired results and output at the mine drops considerably more.
Utilizing the cash on the balance sheet for acquisitions is likely a better use than for share buybacks, as it will create more shareholder value over the long-term.
Just to say :Fosterville has a big ''drilling program''and need addditional ''more ore grase''
Very interesting analysis.
KL: Kirkland Lake Gold: My Bearish Thesis Is Playing Out, But Getting Close To A Buy