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To: loantech who wrote (198706)	4/6/2011 11:54:42 PM
From: Veteran98	Read Replies (1) of 228289

Scotia seems impressed... Kirkland Lake Gold Inc. (KGI - $14.25) Rating: 1-Sector Outperform Target: $22.00 ?? Reserve Increase to feed Production Growth Kirkland Lake increase Macassa reserves by 5% to 1.46 Moz. The 5% increase in reserves to 1.46 Moz is on the back of only seven months drilling due to Kirkland Lake's conversion to a calendar year end for their reserve statement. Global resource increased 5% to 3.84 Moz at a 1% higher grade of 0.54 opt, which is positive given the higher gold price assumption had no obvious negative impact. Some ounces at the Macassa main break were found near to shaft #3, which allows for possible near-term extraction. We believe that ongoing exploration is capable of growing the SMC zone explosively, which bodes well for future production and cash costs. The increase in reserves has bumped our valuation marginally but we have fine tuned our model, which also added some value. We would buy KGI shares at current prices - for the exploration upside, the operational turn around, and the likelihood of it being able to deliver through continued success in execution. Our NAVPS increased 14% to $14.62 from $12.87 and our one-year target is now $22 per share. –– Christie David