I repeat First I'm verry very bullish on gold. That's the main reason why I want to invest in gold mine companies.
I also want to invest in a stable gold mine.
When I can choose between a company with 12 active mines or only three my choise is made very easily. The excellent jurisdiction (the best in the sector) is also a very positive thing.
I'm sure that in the future not only the gold funds + also the general funds will buy more gold stocks for their portfolio. The bigger the portfolio and market cap of the gold mine company, the more the funds will invest in it.
I give an example. Flossbach Von Storch their Multiple opportunities fund is one of the biggest funds in Europe. This fund has 96 positions. In the top 15 they have 2 gold mines. The ninth position is Barrick Gold with an invested amount the fund invested in it of 1,14 billion dollars. Newmont is the twelfthe position with an invested capital of 988,9 million dollar. The thirty-seventh position is KL with an invested capital of 159 million dollar. AEM has the 42 th position with an invested capital of 131 million dollar. Do you see the difference. For me the new AEM will be a much better mine then Barrick and Newmont. In the future AEM will be a certitude for the big funds. This wil create a premium in the valuation in the stock.
Concerning the stock price. Last year AEM : +14%, KL : -8%. This year AEM : -23%,
KL +- 0 %. So there is not much difference. It is unwise to compare companies over a few months only.
The dividend of AEM is 1% higher then KL's dividend. And there will be increase in the dividend of 20% / year in the coming years. AEM also wants to pay special dividends in the future. For me as a long term investor these dividends are extremely important.
Tony will lead the new AEM like he did with KL. I'm 100% sure that Tony will start the share buyback plan system for AEM next year and will also pay off the debt in the coming years
I find the 0,7935 ratio misleading. This ratio is for a part created because KL has more outstanding shares compared with AEM. KL has 263,8 million outstandig shares - AEM 243,7 million. I just look to the fact that KL shareholders become 46% of the total company. Based on the higher gold production of AEM (2,1 million ounces per year and also increasing) compared with 1,35 million for KL and also the fact that AEM has a pipeline with new projects which can offer an extra production of 800.000 ounces in the future - KL has only Holt with max production of 200.000 ounces a year - I find the 46% correct If AEM paid a higher premium KL would have more then 50% of the company That would not be correct
The new AEM wants to increase their production steadily every year. With KL there would be a nice increase in the next two years. But after the two years the growth in production would stop. With the new AEM the production will keep rising. This in combination with an AISC of below 800 usd/ounce will make AEM the best gold company in the world - based on profits per share. No doubt about that.
Tony let KL grow from a junior company to a company which has 46% of the 3th biggest gold company in the world. Please give him the respect he really deserves. Some people found him yesterday a hero and today a zero For me this are unbelievable simple people with no respect
I am a KL shareholder!!!!!! Till now I have no AEM shares. My vote is 100% yes. Would you be happier with a 10% higher premium from Barrick and being part of a much less company. I'm a person who is looking forward with a vision of a glass which is half full. A lot of people who are complaining all the time are running to stand still.
Grasspriet