Gold sector M&AWith all the talk in the gold space about "that deal", I got to thinking. Kirkland lake CEO Tony Makuch is revered in the PM space for running a top quality producer. How much credit should you get for mining 30 g/tonne ore? I don't know, but KL is undoubtedly blessed with great geological fortune. Tony's great achievment was leveraging the sucess of fosterville to buy Detour lake for a BARGAIN. Detour is a true tier one asset with decades of mine life at 500K+ oz pa. The one weaknes of fosterville was always its mine life, or at least its mine life at 30 g/t.
How does this relate to K92? The market cap of K92 is higher than any 100k oz pa junior has any right to be. As we all know this is because of what it could become. At this point in time, there are producers at seriously depressed prices. I would like to see K92 actively shopping for aquisitions, and leveraging the elevated MC to buy another significant producer. I'm not talking another 100k oz producer, at these prices, why not look at 200k oz producers?
When K92 finally releases it's first ever feasibility study, they will have "ore" for the first time. This could be a trigger for a takeover. Personally, to avoid an opportunistic take over, make the bait bigger.