RE:RE:KL and AEM trading in tandem today.Like many others here I have been disappointed this week with the merger proposal news. However, perhaps there is a legitimate alternative perspective, viewing the merger from an AEM perspective?
Why do I write this comment? I am not and have never been an AEM shareholder. I became a KL sharehioder about 5 years ago when I was upset by the take-over of Newmarket(NMI) which had Fosterville, Cosmo and Stawell mines, all in Australia, at that time. I felt then that I was reasonably well informed about Fosterville and wanted to continue independently. The T.O. by Kirkland Lake was, if memory serves me correctly at Kl(57) : Newmarket(43) in terms of ownership of the New KL which at that time was equivalent to $9 per received KL shares,
I respectfully draw attention to the following table of daily closing High and Low for each identified year for both AEM and KL
Year AEM KL
H L H L
2017 69 53 19 7
2018 63 43 36 17
2019 86 51 68 33
2020 112 50 73 31
2021(to Sept 29) 92 64 54 41
Over the past 3 years, if we ratio the High for KL with the High for AEM and do the same for the Low, even the High of $73 per share for KL, which we all fondly remember in 2020, was "matched" by $112 for AEM which provides a comparison ratio of 0.652 and makes the 0.7935 current merger offer look better than most of us perhaps thought at first glance. Of course dividends and various multiples, company size and stage of maturity, and many other issues are serious considerations, but these simple H/H and L/L ratios are one way to gauge how the marketplace has viewed these two companies shares over the past years.
Kirkland Lake fell to $7 after the take-over of Newmarket, but I have happily added (accumulating) a number of times since.... can AEM exchanged shares provide even half the Newmarket exchange benefit over the next 5 years?
I hope that these thoughts and numbers might be of some interest to colleague BB posters,
Peace,
Good decision-making to All,
ElJ