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

ZZZZZ

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ZZZZZ

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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

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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

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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

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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

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

JayDubya

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So, who's next to be acquired?
 

ZZZZZ

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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.


Seabridge is a great long-term option on the price of gold.
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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.
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Goldhedge

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


Screen Shot 2021-09-30 at 4.16.54 PM.png



Screen Shot 2021-09-30 at 4.16.47 PM.png
 

ZZZZZ

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