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DEG

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$1.39 de grey mining limited

Kirkland Lake Angle, page-2

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10/11/17

11:23

Post #: 28677750
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Originally posted by AlbertaRounder ↑

For those that are a little more risk adverse but would still like exposure to Conglomerates, maybe look at Kirkland (KL on NYSE, TSX). It's not cheap but if you look at their chart you'll see why.

Many Canadians have chosen this because they are backstopped with 4 producing, high grade mines ( 8 2 g/the avg). I own both KL and a bunch of juniors to hedge my bets. They just released the 3Q results and the report gives a good high level overview. Take a read and decide for yourself. Some of the reasons I bought I've listed below:

A) Adding 30 Million to the bank account each quarter - even after spending a healthy amount constantly drilling up new reserves.
B) 200 MM in the bank.
C) Own directly 25.8 M Novo + 14 M warrants at 6$.
D) Own 10% of DEG plus warrants on another 10%.
E) To fully own 20% of both would take 90 Mil. Wts
F) Dividend of 2 cent/qtr
G) If the Conglomerates don't work out they don't need to spend the 90 mil. Although, I see taking them exercising DEG warrants for 6.6 mil.
H) If Conglomerates workout KL quick becomes a cash rich target for the big majors.

Form your own opinions but there are no real produces in the play outside of small timers. At worst KL would setback a few quarters.

Hope my ramblings help someone.
GL

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With drilling results which include 9115 g/t Au over 0.95 m [ETW 0.9 m ] maybe F should stand for FOSTERVILLE.

DEG Price at posting: 36.5¢ Sentiment: Buy Disclosure: Held
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