On the coattails of a gold rally in June, I reached a 5x return on my largest holding: Kirkland Lake Gold (KL.TO). As with other investors in the space, this company has been a home run. I’d be lying if I said that it was all skill and no luck on this investment call. I was lucky and took a risk that paid off handsomely.
The following annotation shows all my purchases and one sale in KL.
As mentioned, I was lucky enough to come across this company early and followed Eric Sprott into this investment by first purchasing Newmarket Mining in October 2016. It was announced that Newmarket would merge with Kirkland Lake Gold to form a new mid-tier gold producer. Of course, at the time there were plenty of risks and uncertainties.
Further details of the transactions including all the ‘Recent Buy’ posts are linked below:
- Buy Oct 2016 (Initial investment in Newmarket Mining)
- Buy Feb 2017
- Buy Jul 2017
- Buy Oct 2017 #1 & #2
- Buy Sep 2018
- Sale Jan 2019
With all the purchases listed, my average share price was $10.97. I was able to achieve a CAGR of 84.3%!
Kirkland Lake continues to be a great performer and perhaps the best run company in the mining space. It continues to execute flawlessly de-risking projects and allocating capital appropriately (buybacks, dividends etc). My conviction in KL still remains high and the only reason for selling earlier this year was to reduce the weightage & concentration of one stock in my portfolio. I intend to let this holding free-ride and look forward to continued gains over the coming years.
Hopefully someday this will be a 10-bagger for me 🙂