My investment strategy
For my portfolio not much will change . Only KL will now be part of a bigger company. The biggest Canadian gold mine with the lowest AISC in the best jurisdiction. My prediction for 2023. A total production of 3.600.000 ounces with an AISC of 775 usd. For me 2022 will be a turning point for the price of gold. I really expect a gold price of 2600 usd next year. AEM will become a real cash flow machine.
Tony will keep doing the same like he did in the past with KL :
-payback of the debt
-buy back own shares when the share price is too low
-lower the AISC
-rising the dividend every year
-the new AEM will do one or more acquisitions every year.
Also having a valuation with a premium or a reduction will make a lot of difference.
Having 3 mines or 13 mines. I choose for the safe bet. And there will come new mimes from the own pipeline and via acquistions. AEM will be much less dependent to one mine, lake KL had with Fostervillle. Thx to Fosterville KL stands now where it stands but it would be good not to be too dependent on it and to lower the risk profile. The gold price will do now what it has to do.
New is also that AEM will pay special dividends.
Concerning the takeover ratio of 0,7935. Some people here on this forum want a 1-1 ratio. But based on the higher number of KL shares compared with AEM, KL would then has the biggest part of the company. That would not be correct The 800.000 ounces higher production of AEM compared with KL and the pipeline of AEM justify this ratio for me. With such an acquisition a lot of auditors are involved. Their calculations must be right to be protected against lawsuites. I have a lot of problems with the people complaining about Tony Makuch. Without Tony you would probably not be invested in KL. The most easy way for Tony would be to sell the company and retire. He don't need to do the job anymore for his mony. For me can be very proud about his career. He will end his career as the CEO of the 3 rd biggest gold mine in the world A lot of responsability. To stop was much more easier.
As investor you need a plan. I know a lot young investors buying and selling all the time their shares. Dreaming about becoming risk in a very short time. When you ask what their return was since they began? Most of the time their return is not that good. I'm also not investing in the juniors. Too risky for me.
I'm an KL investor (I have no AEM shares)
I received yesterday the confirmation from my Belgian broker that my YES VOTE is registered.