The Globe and Mail reports in its Tuesday edition that Kirkland Lake Gold investors suffered some indigestion last November when the mid-tier producer announced plans to diversify from its best asset, a low-cost mine in Australia with relatively small reserves, by making a $4.9-billion, all-stock bid for Detour Gold, which owns a high-cost property in Northeastern Ontario that has far larger reserves. The Globe's Andrew Willis write that the deal seemed to check all the boxes. Yet Kirkland Lake's share price dropped a staggering 17 per cent on news of the takeover. Kirkland Lake chief executive officer Tony Makuch said he was "shocked and disappointed" by the negative reaction. Shareholders in Kirkland Lake and Detour vote Tuesday on the planned takeover. If they approve the deal, as shareholder advisory firms recommend, Mr. Makuch needs to demonstrate its merits by lowering production costs at the Ontario mine and winning back a premium stock market valuation. Or Mr. Makuch, who made $4.4-million last year, could join a long list of chief executive officers who paid for a failed deal with their job. The Globe reported on Dec. 7, 2019, that Canaccord Genuity kept Kirkland at "hold," when it was worth $53.61.
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