Kirkland Lake Gold Ltd. T.KL

I repeat

[grasspriet11]

The merger between KL and AEM is 100% logical.  A merger with Barrick or NEM for a 10% higher premium?   No thank you.  

AEM wants to increase their production year per year with 5%. 

2021 : 3.400.000 oknces
2022 : 3.570.000 ounces
2023 : 3.748.500 ounces
2024 : 3.935.925 ounces
2025 : 4.132.721 ounces

And this with the lowest  AISC of the sector.  

They also want to increase the dividend every year by 20% and also pays special  dividends.  
What I find very interesting is their large pipeline.   

Tony will also start with a buy-backprograme if needed and will pay back the debt.  

Fund manangers want also the gold mines in their portfolio with a good beta and not to much risk.  They will find AEM.  The total quality of AEM after the merger is the highest in the sector. 

The price of gold will do the rest.

[raglo]

  My argument is not that the merger do not makes sense and is logical. On that I agree! However it is the terms that I have a serious problem with, it is the respective market caps of both companies on the day before the merger was announced and other things like PE ratio and AISC/oz . the cash in both ompanies , the debt of AEM vs KL no debt. You mentioned that since AEM have less shares

[Antonyius]

This, people omitting the fact that Kirkland itself is solid and didn't need this deal. At least definitely not at this valuation

[grasspriet11]

Hello Raglo.   The 1% premium is based on the 10 day average price with Friday September 24 seeing as the last day of these 10 days.  But premiums are always calculated that way.  (See also acquisition by Newcrest). During these last 10 days KL was rising and AEM was declining   You take the price of September 27?  You have to take the average of the 10 days  

[Antonyius]

Grass I think you make solid points. Tony benefits because he can work his magic on aem and be a big major ceo, and AEM benefits because they will run at higher efficiency but what do the Kirkland shareholders get for letting AEM get tony and Kirkland's 3 highly valued mines? That's the sticking point some of us have. A "potentially" better future is way too vague. It also isn

[grasspriet11]

Hello Antonyius, I'm 1000 % convinced about gold.   I'm a big believer of KL.   But the merger gives also a lot of advantages.  The new merger gives me a more certain leverage to the gold price.  And a premium valuation is also important.   AEM is for me the best company to merger with.   All the other options are of less quality.    Now we

[Antonyius]

We shall see I guess. Thanks for the mature responses