Goldtent TA Paradise

A Tale of 2 Gold Miners

1. Alex33 says:

   February 20, 2020 - 11:45 am at 11:45 am

   Newmont reported reserves of 95.7Moz today, this means at 6.5Moz/year a reserve life of almost 15 years! That’s why investors prefer GOLD and NEM to KL because these companies are boring big cap companies without too much negative surprises.

2. Steins1 says:

   February 20, 2020 - 1:25 pm at 1:25 pm

   Why couldn’t we have just stopped here?…… But Noooooo!

   Kirkland Lake Gold Climbs Pre-Market As Q4 EPS Tops Forecasts
   BY MT Newswires
   — 7:07 AM ET 02/20/2020

   07:07 AM EST, 02/20/2020 (MT Newswires) — Kirkland Lake Gold (KL) was up more than 4% premarket Thursday after the miner reported record adjusted earnings of $0.88 per share in Q4, climbing from $0.50 a year ago and beating the $0.85 average estimate from analysts polled by Capital IQ.

   Revenue surged to $412.4 million from $280.3 million in Q4 2018 but still missed the $546.7 million analysts’ consensus. The company attributed the period’s revenue growth to increased gold sales volumes and higher average realized price.

   Kirkland Lake Gold (KL) also said it is doubling its quarterly dividend to about $0.13 per share, effective from Q2 this year, and pledged to buy back 20 million common shares over the next 12 months to 14 months.

   Price: 39.10, Change: +1.67, Percent Change: +4.46

   MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

   • Karl says:

     February 20, 2020 - 2:00 pm at 2:00 pm

     I gather that the problem may be that the reserves at Fosterville are now reported as being not so great. Therefore they may now actually have to depend heavily on Detour. (per Otto at IKN)

     I think the expression “free fall” is a bit of a hyperbole, though we do often see Zero Hedge applying “free fall” to mere 5 or 10% declines (here more like 5%), so I suppose it’s now getting to be customary.

     From the chart I’d say that it looks as if it would be a great thing to buy at $C42. In fact one service I subscribe to said as much last weekend (that he’d strongly consider buying at US$30). (I personally hold a lot of shares from when it was a little baby but sold weeks ago the stuff I bought last year.)