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7/9/18

Kirkland Lake and Kinross: A birth story ( $KL $KGC $K.to )

Yesterday in the Weekly IKN476 I mentioned in passing (literally just a line or two) that the market cap of 2018 sector hotpot Kirkland Lake (KL), now at U$4.6Bn or so, is closing in fast on that of Kinross (KGC) (K.to) at U$4.8Bn. At the start of the year U$2Bn separated them, it's down to less than U$200m.

A couple of hours later, I got this in the mail from A. Reader:
“Lac Minerals was acquired by Barrick Gold Corporation in August 1994.  After a short period of operation by Barrick, the property was sold to Kinross in May 1995.  In Sept. 2001, Foxpoint purchased the properties from Kinross Gold Corporation.  Included in the purchase were the Macassa Mine, mill, paste plant etc., Lakeshore, Kirkland Minerals, Teck-Hughes and Wright-Hargreaves properties.  Foxpoint changed its name to Kirkland Lake Gold Inc. (KLGold) in October 2002.”

In other words, Kirkland Lake started as an asset that Kinross sold to the founders. And how much did they pay, you ask? The answer is $5m

So, Hey KL, you've come a long way, baby. Wish we could say the same for Special K...