Opinions
Irwin Michael, B.Com, MBA
Kirkland Lake Gold
KL-T
PAST TOP PICK
Dec 03, 2013
Stock price when the opinion was issued
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A core intermediate gold producer. They own the largest Canadian gold mine and have a reputation for running high-grade mines like Fosterville in Australia. Their Detour acquisition was meant to stabilize their production base. He believes in management. It's about generating strong free cash flow to fund their new shaft, the Macassa Mine, which is on schedule and offsetting production loss from Fosterville through 2023. KL produces 1.4 million ounces per year. It has a solid balance sheet, but is getting over near-term issues from owning the largest Canadian mine. His go-to company in gold.
(A Top Pick Sep 11/20, Down 25%) Has extremely high amounts of gold in Australia. They bought Detour Gold in Canada which added lots of inventory. Price target of $80. Gold has come off its highs.
(Top Pick Nov 16/12, Down 74.10%) Management stumbled several times and stock is in the penalty box. By end of November, they had a large royalty deal, but they had under delivered. There has been a management change. New Management is very capable. He thinks it is officially cheap. He is sticking with it. Nothing wrong with the company.