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Kirkland Lake Gold Ltd. T.KGI


Primary Symbol: T.KL

Kirkland Lake Gold Ltd is a Canada-based gold mining, development, and exploration company with a diversified portfolio of exploration projects. The production profile of the company includes the Macassa mine complex located in northeastern Ontario and the Fosterville gold mine located in the State of Victoria, Australia. Also, the company owns the Holt mine and the Detour mine. The company's mines and material mineral projects are located in Canada and Australia.


TSX:KL - Post by User

Comment by JRafflesUKon Jun 23, 2021 6:56am
204 Views
Post# 33432921

RE:RE:Kirkland Lake Gold: An Industry Leader At A Deep Discount

RE:RE:Kirkland Lake Gold: An Industry Leader At A Deep DiscountKL’s problem is it seems to be rudderless regarding future strategy, which seems to be only to bank cash and continue with long term development of its existing properties.
 
  • If, for example, NFG were to a medium term target ……. Being a  Fosterville ++++ project, the drawback is that the KL SP has been deeply discounted since it purchased Detour.
  • The share buy-back cap is 26m shares over a year. This equals circa C$1.3b @ C$50.
  • If the KL board was committed its entire treasury to an aggressive and accelerated buy-back program, this is bound to have a positive upside trajectory to its SP.
  • If, say the SP was then valued close to AEM’s PE metrics, the KL SP could reach the C$70/80 level, from its exiting ~ C$50.
  • Using back of envelope calculations, a C$20 increase in SP would be equivalent to C$5.2bn (current cap C$13.2bn x20/50).
  • NFG currently has a cap of ~ C$2bn. 
  • Therefore, by using its depreciating fiat currency, by increasing its valuation halfway to the AEM valuation metrics, KL could generate additional market cap equal or more than the NFG current cap.
 

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