DRGDF - KL + DGC = Short-Term Pain For Long-Term Gain

Introduction

Based on Kirkland Lake Gold’s (KL) share price change since the merger announcement, it appears the market thinks its equal to 1.5!

This analysis attempts to answer this question with an analysis of key operating and financial data one-year forward. It focuses on three potential future scenarios. They are as follows:

Note that these three scenarios are calculated at ANNUALIZED running rates as at Q1-2021 (i.e. one year after the proposed merger closes). As such, the figures in this analysis do NOT represent 2020 CALENDAR year results.

Furthermore, for the sake of

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