Kirkland Lake Gold Ltd. T.KL

KL dividend increase

[prouditalian]

NEM: NEUTRAL, US$80 – 60% increase in the quarterly dividend to $0.60/share; supported by a framework to return 40-60% of incremental attributable free cash flow to shareholders that is generated above a $1,200/oz gold price, so the Newmont dividend framework shares incremental free cash flow at higher gold prices; in this instance, the dividend increase was based on a $1,500/oz gold price assumption and a 40% percent payout rate applied to the incremental $1.2Bln in incremental free cash flow for the given $300/oz change in the gold price.

 

Here is what would happen to dividends for our Senior Gold group if they all followed the Newmont framework under a 50% payout ratio; biggest dividend increases would come from Kirkland, Yamana, and Barrick; as well, Yamana, Kirkland and B2 Gold would have the highest dividend yield; and Kinross and Agnico the lowest.

IF KL would follow NEM, its dividend wold increase a whopping 85% for here.
With cashflow of KLm, they need to adjust at least 50% higher.

[Goldbug52]

Agree 100% but they need the money to buy somebody out, which I think is imminent. I don't think it's Wallbridge.

[prouditalian]

they dont need to buy anyone out...they just bought Detour. Increase dividends, buy shares.

[TheWolff]

With the elections , virus and so much going on, I don't see KL buying anything other that their own shares, Don't know about increase divi, and if they decide to go foward and do a TO , I hope they use some cash, and take some debt instead of  a 100% dilution operation, hoping not to get killed in this trade and wishing all a great weekend,  TW

[oldfx1]

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