IKN

a plague o both your houses

Agnico (AEM) made a really good acquisition

When this desk found out about the late-stage talks to buy Kirkland Lake (KL) a couple of weekends ago, which included Australia’s Newcrest (NCM) but with Agnico (AEM) clearly in the mix, there was a second line of thought to consider: When IKN receives quality intel such as this, you have to wonder just why the person on the other end has chosen their time and place to reveal non-public material information:

However, we publish all the same (and be damned). It’d be foolish not to, this site has a rep for breaking sector news and gets eyeballs accordingly. But with two weeks now washed through, one glance at a comparative price chart is enough to know that the leak two weekends ago was a big help to AEM and got Tony Makuch to make up his mind. The three month chart above could not be more illustrative; AEM continues to trade with peers, but also gets to pick up the biggest precious metals growth story of the last decade. That price chart also tells us Bristow read it wrong and was a fool for walking away on price.

5 Comments

    You absolutely did the right thing. As a long term KL shareholder I am very disappointed in the poor valuation given to KL. That said I am not selling because I think the combined entity will truly be in a class of one in assets and jurisdictions.

    Reply
    Nikko Montreal Ouest 06/10/21 7:52 am

    To judge if Bristow was right or wrong for walking away is still not certain by a long shot. He tried to buy Freeport but they were not sellers.
    Personally I sold all my KL and bought Barrick as IMO nobody is better than Bristow.

    Reply

      Normally i’d agree, this time i don’t. We will never know the details, but the sequence is clear: Barrick was exclusive, Bristow refused to up his price, Makuch found his price with AEM, and AEM hasnt been penalized in the way GOLD feared its shares would.

      Bristow got this one wrong. And yeah, Im judging. It’s what we do.

      Reply
    Nikko Montreal Ouest 06/10/21 8:07 am

    just saying its way too early. I made 10X on KL but held on way too long…looking back it was clear that Fosterville was a big problem. I think KL helped AEM massively. Bristow only wanted Detour IMOmand wasny paying up. I respect that.

    Reply

    You had previously pointed out KL and PVG’s outperformance relative to GDX (before AEM deal). Do you think that PVG may also be bought? Do you think that ABX could be the suitor after being spurned by KL?

    Reply

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