Agnico Eagle and Kirkland Lake Gold Announce Merger of Equals To Create Highest-Quality Senior Gold Producer

[ZZZZZ]

As a holder of Kirkland for more than 15 years, I'm disappointed that there is really no premium to the share price, but I'd say Agnico will be a good spouse and they will live happily ever after.

Long news release here.

Agnico Eagle and Kirkland Lake Gold Announce Merger of Equals To Create Highest-Quality Senior Gold Producer​

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[ZZZZZ]

Well said, Fred.


fred hickey
@htsfhickey

While there's no doubt some Kirkland Lake investors will be disappointed there was no buyer paying a large premium, this "merger of equals" between it and Agnico Eagle does create a powerhouse senior gold miner and will make it a "must own" stock among investors in the secto


fred hickey
@htsfhickey
KL investors disappointed in the deal price should recognize they're getting nearly 1/2 of AEM at a deeply discounted price. AEM's P/E ratio (even with strong top & bottom line growth) is just 12x 2022 estimates ($4.12). Historically, AEM never trades at such a low level


fred hickey
@htsfhickey
Like Agnico, Kirkland is valued at just 12x 2022 earnings estimates. After merger, there will be synergy opportunities(lowered costs) adding to the earnings of the combined company. Both were generating tremendous cash flows &increasing dividends - now those will only be enhanced

 

[Voodoo]

I was just going to post this, I don't own either but AEM has been one of the better miners. It's not often a stock is down 10% when getting bought out.

 

[ZZZZZ]

I was just going to post this, I don't own either but AEM has been one of the better miners. It's not often a stock is down 10% when getting bought out.

Yeah, KL was up 8% yesterday on rumors of the deal, so it's not that big of a net change.

The merger price is based on a standard 10-day VWAP, which sucks because it doesn't reflect the latest price.

"Mergers of equals" are often done without premiums whereas buyouts or hostile takeovers usually have big premiums.
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[Voodoo]

I might look to add some here on the pullback. AEM has always been one of the better large miners IMO, but I've never owned it.

 

[southfork]

Metals are being pummeled these days, only question is how long do we go sky pilot

 

[nickndfl]

Quality never goes out of style.

 

[ZZZZZ]

Metals are being pummeled these days, only question is how long do we go sky pilot

Decent rebound today. Gold up $36, silver .72. as I type.
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[JayDubya]

So, who's next to be acquired?

 

[ZZZZZ]

So, who's next to be acquired?

Three days ago the guy who runs Seabridge Gold said The New Agnico is now big enough with enough resources to make a bid on their monster KSM property, one of the world's largest undeveloped gold deposits.

Amvest Capital - Natural Resources

One of the World's Largest Resources of Gold, Copper and Silver

www.amvestcapital.com

Seabridge is a great long-term option on the price of gold.
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[Goldbrix]

Metals are being pummeled these days, only question is how long do we go sky pilot

When there is Blood in the Streets - Bring a Mop.

 

[Goldhedge]

Looks to me that KL did AEM a favor....

 

[ZZZZZ]

KL has an ace in the hole, large holdings in New Found Gold and a couple of others in Newfoundland/Labrador that are drilling monster high-grade holes. This out today for NFG:

New Found Intercepts 64.94 g/t Au over 2.10m in Step-Out Drilling at the Golden Joint HW Zone and Extends the Golden Joint Main Vein to 235m Vertical Depth​