Kirkland Lake Gold (NYSE: KL; TSX: KL) | For those that have followed me in to the Kirkland Lake Gold story when I began publicly being vocal about it back in late 2016 after the merger with NewMarket Gold, the one common question I have kept asking myself is how much better can this story get?
I met Tony Makuch for the first time back in August of 2017 when KL hosted a luncheon after listing on the New York Stock exchange. Back then, he pontificated ever so casually to the room of maybe 15 people that he could see Fosterville having more than 4 million ounces.
Flash forward to today. KL presented at the 22nd annual CIBC Whistler Institutional Investor Conference which was held from January 23 – January 25, 2019. Tony in his Q&A session, 24 minutes in, said (and he cautioned as he did back then about forward looking statements) that it is not unrealistic to achieve potentially 10 million, 20 million, or even 50 million ounces at Fosterville when it is all said and done.
I don’t know about you, and take this all with a grain of salt, but my calculator breaks at 10 million let alone anything beyond that.
One thing is for sure, guidance for 2019-2021 is way too conservative as it doesn’t include Holt & Holloway nor does it include Northern Territory starting up. And, if you’ve followed the story, historically, they have been very conservative on guidance mainly because Fosterville has been transforming itself at a faster rate than even they could have ever imagined. So rest assured, these guidance levels will be beaten, much like they’ve done in the past two years – beating several times each year.
Playing dead on this one has been the best approach. That’s been very hard to do. Especially since I found it early at the $5-7 US levels. These assets don’t come around very often and as such there’s no playbook for how to play it. Just sit back and enjoy the ride.
Friday January 25 8am-8:30PST
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