good post. I think the deal now has leveled out, with AEM going up a few percent after the announcement, and KL going down 10-11%.....so the market has had 5 full weeks to exact an almost 15% damage to KL shares.
No premium now attached to either.
Is the market missing anything? It suffers from recency principle, namely that gold has been in a rut for a year now, having gone from 1550 to 2050 and now back to 1800.........retracing.
For all that, AEM produces a lot more product than KL. A lot more.
If the next leg of the gold market kicks off, the deal won't look nearly as bad. When gold is at 2600 in a year from now, today's prices will seem for KL buyers that they got the best end of the stick.
I bought KL friday and today.