Stockchase Opinions

Bruce Campbell (1) Kirkland Lake Gold KL-T HOLD Aug 13, 2020

Views the golds as a trade, not a 10-year hold. This one is doing well. Their margins are expanding. So still some upside movement, but we're running out of momentum. If you hold it, hang on.
$64.470

Stock price when the opinion was issued

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BUY

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.

DON'T BUY
Hesitant to hold any commodities. The price of gold has moved up but there is a lot of volatility. It is difficult to set prices. It is at the market's whim. It could be a boom time but we never know when the bust will occur. Would prefer Franco-Nevada for the royalty model.
PAST TOP PICK

(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.

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Feb 24/21, Up 29.1%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with KL is progressing well and has achieved its $56 objective. To remain disciplined, we recommend covering half the position and trailing up the stop (from $32) to $44 -- just above the initial recommended entry level.
SELL
Asset light, price makers is what he's interested in right now. Best-run gold company on the planet. Better options out there. Excellent company. He sold out about a year ago around these same levels.
BUY
He bought it late. He thinks it is a good play right now. There might even be a higher bid coming in. It sticks out as a good play right here.
HOLD
Taken over at 2x book value, same as AEM. Virtually a merger of equals made in heaven. AEM has lots of deposits to develop, and KL has lots of money. Gold prices will move higher, so this should move higher. Likes KL and the merger.
PAST TOP PICK
(A Top Pick Apr 26/21, Up 4%) Belief in gold as protection against inflation not a good strategy. Has since sold company and does not own it anymore. Not a good investment.
TOP PICK
Merging with AEM. A clean story. His play to be in the gold space but with a very specific choice. Detour Mine is a big asset they can grow around. EMs care more about gold than the developed world. When the world starts growing again, money will come back to the sector and this will be good for gold stocks. Good hedge to geopolitical risk. Yield is 1.93%. (Analysts’ price target is $63.24)
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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Feb 25/21, Up 15.3%)Stockchase Research Editor: Michael O’Reilly With the recent completed acquisition by AEM now official, we now consider this position closed. When combined with the previous recommendation to cover half the position, this results in a net investment gain of 22%.