Kirkland Lake Gold Rebuffs Gold Field’s (NYSE:GFI) $1-4-B Offer

Kirkland Lake Gold Rebuffs Gold Field’s (NYSE:GFI) $1-4-B Offer

Kirkland Lake Gold Rebuffs Gold Field’s (NYSE:GFI) $1-4-B Offer

$GFI, $KGILF, $NMKTF, $SSRI

This week, South Africa’s Gold Fields (NYSE: GFI) the world’s 7th-largest bullion producer withdrew an joint offer with Silver Standard Resources (NASDAQ:SSRI) to buy Kirkland Lake Gold (OTCMKT:KGILF) after the Canadian miner rejected the bid.

Gold Fields (a Johannesburg-based company) said it is still interested in a transaction.

Kirkland (a Toronto-based company) on the other hand looks to to be moving ahead with plans to take over Australia’s Newmarket Gold (OTCMKT:NMKTF) in a transaction estimated at $764-M.

If Kirkland shareholders reject the proposed takeover of Newmarket, Gold Fields said Friday it is standing by to go back to the negotiations.

If approved, Kirkland is asking shareholders to do so, the deal will create what the firms said will be a low-cost producer with operations in Canada and Australia.

The company’s comments come after a some Kirkland shareholders said Wednesday that they wanted the company to resume talks with Gold Fields and Silver Standard, saying that the directors rejected their bid too quickly.

Those stakeholders have  asked Kirkland to disclose more details of the joint offer so that they can compare it to the benefits an acquisition of Australia’s Newmarket would bring.

Kirkland Lake owns 5 former mines north-eastern Ontario, which produced 22-M oz of bullion at an average grade of 15.1 grams per tonne. Its high-grade production and reserves are located in a safe, mining-friendly jurisdiction, so the firm’s appeal has been strengthened by a scarcity of growth opportunities in the Gold sector.

Kirkland has more than $200-M of cash and equivalents on hand and in banks.

Symbol Last Trade Date Change Open High Low Volume
OTCMKT:KGILF 5.79 18 November 2016 -0.05 5.72 5.89 5.53 71,600
HeffX-LTN Analysis for KGILF: Overall Short Intermediate Long
Bearish (-0.41) Bearish (-0.29) Bearish (-0.48) Bearish (-0.46)
Symbol Last Trade Date Change Open High Low Volume
NYSE:GFI 3.24 18 November 2016 -0.04 3.29 3.32 3.2 6,749,700
HeffX-LTN Analysis for GFI: Overall Short Intermediate Long
Bearish (-0.35) Bearish (-0.25) Very Bearish (-0.67) Neutral (-0.14)
Symbol Last Trade Date Change Open High Low Volume
OTCMKT:NMKTF 2.59 18 November 2016 0.05 2.54 2.6467 2.53 84,000
HeffX-LTN Analysis for NMKTF: Overall Short Intermediate Long
Bearish (-0.34) Bearish (-0.39) Neutral (-0.23) Bearish (-0.42)

Have a terrific weekend

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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