Often wrong, never in doubt. – Bill Fleckenstein

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Fleck's Thoughts

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Q: Assuming you were on the board of KL (as you were at PAAS). What would you have advocated? You obviously wouldn’t have supported this acquisition (I’m more sanguine than you). Is there a type of deposit you would have preferred? No acquisition at all? Use cash instead of stock and/or buy a smaller asset with more development potential? Just curious.

Detour had lots of posterior issues, but from what I understand from John Hathaway and others, they printed their best quarter ever last quarter and are on track to do much better prospectively, old (inept) management had been removed, the pro forma company generates about $1.5bln in annualized cash flow (based on last quarter), and Tony thinks he can bring down AISC to about $800 on the new asset, lower than most miners - and he has proven to be a capable executive.

By the way, I didn’t love this deal, but the action of the stock has now brought it to a lower valuation than AEM, NEM, and GOLD with a far superior margin and growth profile (other than maybe AEM, which I like better). Thanks!

Q: Hi Fleck,

Can you elaborate on why the KL story is now totally changed since the acquisition?

Q: For your info. The history of the China trade deal.
A history of the "close" China trade deal

Q: Hi Fleck: do you think KL buying Detour is at all comparable to AEM along with AUY, buying Canadian Malartic, a large low grade mine, from Osisko? Thank you.

Q: If gold prices stay where they are should KL earn less per share or more? And is that a good benchmark.

Q: Is it possible the Detour deal will be nixed by the Detour shareholders since they thought they were getting a 24% premium on their stock price and now that KL has dropped by 22%, the Detour shareholders are getting very little premium?