Gold Prices Could Hit $5,000 Says Billionaire Thomas Kaplan - Bloomberg Interview Neils Christensen Neils Christensen Wednesday May 29, 2019 12:54 Kitco NewsShare this article:
Kitco News) - You can add another billionaire to the bullish gold camp as Thomas Kaplan, chairman and chief investment officer of Electrum Group said in a recent interview with Bloomberg that gold is on the cusp of a new decade long bull market.
The investor and philanthropist made the comments in an interview with David Rubenstein on Peer-to-Peer Conversations, to be aired on Bloomberg TV Wednesday evening.
In a preview clip of the interview Kaplan, who is also chairman of Novagold Resources (NYSE: NG, TSX: NG) said that because of economic fundamentals gold prices could rally as high as $3,000 to $5,000 within a decade.
Although Kaplan is bullish on gold, he also said that he could see lower prices in the near-term.
“You could easily see gold prices $100 lower before it catches a wave and rallies a few thousand dollars,” he said.
His comments come as gold prices have been stuck in a tight range between support at $1,270 an ounce and resistance at $1,300 an ounce. Currently, gold prices are struggling to catch a bid even as U.S. bond yields have dropped to their lowest level since mid-September 2017. June gold futures last traded at $1,282.60 an ounce, up 0.44% on the day.
Kaplan is just the latest fund manager to jump on the gold bandwagon. Earlier this month, SEC filings showed that Ray Dalio’s hedge fund Bridgewater Associates increased its holdings in both SPDR Gold Shares (NYSE: GLD) and iShares Gold Trust (NYSE: IAU) in the first quarter of 2019.
David Einhorn, founder of Greenlight Capital also reiterated his positive sentiment for gold in a conversation with Kitco News during the Sohn Investment Conference.
“I hold gold, and I am never going to get rid of it. I hope that I never have to use it,” he said.
Jeffrey Gundlach, founder of DoubleLine Capital. He also expressed a long-term affinity for the yellow metal during the conference. “I love gold. I have owned gold since it was trading at $300,” he said.
Kirkland Lake Gold Renews Normal Course Issuer Bid May 27 2019 Download this Press Release PDF Format (opens in new window) TORONTO, May 27, 2019 (GLOBE NEWSWIRE) --
Kirkland Lake Gold Ltd. (“Kirkland Lake Gold” or the “Company”) (TSX:KL) (NYSE:KL) (ASX:KLA) is pleased to announce that it has received acceptance from the Toronto Stock Exchange (the “TSX”) to renew its normal course issuer bid (“NCIB”). The NCIB allows Kirkland Lake Gold to purchase up to 20,989,692 common shares of the Company (the “Shares”), representing 10% of the current issued and outstanding Shares in the public float as of May 22, 2019. As at May 22, 2019, the Company had 210,011,669 Shares issued and outstanding.
Tony Makuch, President and CEO, commented: “Kirkland Lake Gold has established a solid track record for creating shareholder value, with our share price increasing over 500% since the beginning of 2017. The keys to achieving superior returns have been strong operating results, industry-leading earnings and cash flow generation and growth, ongoing exploration success, and a commitment to directly rewarding shareholders for their commitment to our company. We introduced a quarterly dividend in March 2017 and have since increased it four times. In May 2017, we launched an NCIB program and, since that time, have repurchased over seven million shares. The NCIB is an important component of our value creation strategy as the repurchase of shares provides a permanent favourable impact to earnings and cash flow per share metrics. Given the significant potential upside we see in our current share price, based on our expectation for continued strong operating and financial results, as well as the substantial exploration potential we have at Fosterville, Macassa and other targets, we plan to use the NCIB over the next year to support continued value creation.”
The average daily trading volume for the six months’ period ended April 30, 2019, less prior NCIB purchases made on the TSX, was 826,974. Under the renewed NCIB, the maximum number of securities that the Company may purchase on a daily basis, other than block purchase exemptions, are 206,743 Common Shares. The actual number of Common Shares purchased for cancellation and the timing of such purchase will be determined by the Company. There cannot be any assurance as to how many Common Shares will ultimately be purchased for cancellation under the NCIB.
The Board of Directors of Kirkland Lake Gold has determined that the repurchase of Common Shares pursuant to the proposed NCIB presently constitutes an appropriate use of financial resources and would be in the best interest of Kirkland Lake Gold shareholders.
Under the previous NCIB, the Company sought and received approval from the TSX to purchase up to 16,456,561 Shares for the period of May 22, 2017 to May 21, 2019. The Company purchased 1,970,400 Shares pursuant to the previous NCIB in the last twelve months at an average price of C$28.43 per Share on the TSX and alternates.
About Kirkland Lake Gold Ltd.
Kirkland Lake Gold Ltd. is a growing gold producer operating in Canada and Australia that produced 723,701 ounces in 2018 and is on track to achieve significant production growth over the next three years, including target production of 950,000 – 1,000,000 ounces in 2019, 930,000 – 1,010,000 ounces in 2020 and 995,000 – 1,055,000 ounces in 2021. The production profile of the Company is anchored by two high-grade, low-cost operations, including the Macassa Mine located in Northern Ontario and the Fosterville Mine located in the state of Victoria, Australia. Kirkland Lake Gold's solid base of quality assets is complemented by district scale exploration potential, supported by a strong financial position with extensive management and operational expertise.
Cautionary Note Regarding Forward-Looking Information
News 
Market Data 
Discover 
