Kirkland Lake Gold Ltd. T.KL

Size Matters

[robnati88]

Miners are entering a time of consolidation in which a primary tool of acquisition will be shares of stock. As a combined entity, AEM and KL would have more equity for acquisitions.

The price of gold faces major headwinds. Its biggest consumers, individuals in India and China, are in dire straits and not likely to fuel any big rallies any time soon. Meantime, copper producers are producing gold in quantity as a byproduct of copper production. Demand destruction and supply overhang could cap the price of gold quite some time.

Gold juniors are not there yet, but they are moving toward a capitulation trade. It won't happen overnight. As a combined entity, AEM and KL could take advantage of that macro trend, better than either could alone.

I would add that KL's share price has been supported by its now-discontinued buying program, which has kept its technical numbers better than they would have been without it.

The real problem with the merger is it pushes value development out past many investors' time horizon. But in the long haul, size does matter. The optimist's viewpoint.

[Bucconeer]

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[robnati88]

Good luck with your dead money, Bucc. Maybe Merck's new drug will get gold consumers buying (it could happen). Meantime, it's a waiting game, with KL and AEM headed lower along with the rest of the sector. Ride it out or capitulate? Tough choice. I'm a buyer but I don't have enough information to choose what to buy so I'm looking at the AEM/KL management team to do the

[Bucconeer]

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[Currower]

That's it Bucky when everything else fails spam another stock. Keep working  the suckers 24 /7 . I hope you're getting paid well.

[Bucconeer]

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[Bucconeer]

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