The information on this Website is not reliable and not intended to provide tax, legal, or investment advice. Nothing contained on the Website shall be considered a recommendation, solicitation, or offer to buy or sell a security to any person in any jurisdiction.
CEO.CA members discuss high-risk penny stocks which can lose their entire value. Only risk what you can afford to lose.
@IhostlongKlondex has an issieu (together with a bunch of other miners), which i stressed a few days back: That is its etf weighing and troubles in the etf mining section atm, which is also causing the current divergence between spot and index miners. If spot declines added on those etf mining issieus we get way lower prices. Just common sense.
@FundamentalAnalysisThanks @hihosilver, despite thinking the company was a little pricey, especially when I compared to west Africa. I am very interested after watching the 2nd link and around the 9:05 where he mentions (he has sold no shares and that if he takes out his real estate 70% of Pauls net worth is in Klondex) that's proper alignment........ #mbgtrends#newbies
click to invite
@Tgetting killed today. really surprised on the pullback with this one $KDX$KLDX
@hihosilverI would examine the multiple with other high grade underground mines in NV and Canada, as West Africa is really not a fair comparison. I am not saying the SP can not drop further but if gold stays above 1200 and Klondex continues to execute according to plan, we will be laughing about this 12 mo from now. $KDX$KLDX
@Wannabeinvestor@ihostlong, what you do not know is how much of the selling in these juniors has already been done by $GDXJ and I would think that any sensible investors will want to start accumulating when one sees good value offered at a big discount. At some point between now and June 18 the momentum will reverse and the stock will rally and then you have to chase. Not saying use up all your gunpowder right here and now, but I would think a lot is already priced in. I actually bought both warrants and stock in $CNL y'day and prepared to add more. also stink bidding in $TGZ$KDX, and I am starting to think that I should be doing the same in $AKG and $RIC. I'm short $JNUG, $GDXJ and $USLV at the same time. Moriarty called this correction, again. The man is a genius.
@Excelsior@hihosilver@Wannabeinvestor@FundamentalAnalysis@T@Jayfire - OK - you guys inspired me lately, and after watching the 2 $KLDX$KDX#VIDEO presentations from Resource Captial AG and the European Gold Forum, their strategy for 2017 moving into 2018 is much more clear. Also, on a technical basis this sell-off is getting long in the tooth and we should have reasonable support at current levels, so I'm anticipating a relief rally once the GDXJ mess and and weakness in the miners works itself out. It may take a month or two, but this stock is not pricey at these current levels. I started my first tranche yesterday afternoon and will add on any more weakness.
Klondex Mines: “I See It As A Great Buying Opportunity Right Now”
ResourceCapitalAG – Apr 11, 2017
Interview with President & CEO Paul Huet
https://www.youtube.com/watch?v=oXTju4BvIM4+ Klondex Mines – Corporate Presenation – VIDEO
April 5, 2017 – Zurich, Switzerland – European Gold Forum
Paul Huet – President & CEO
KLONDEX REPORTS SOLID FIRST QUARTER OPERATING RESULTS WITH 57,633 GEOS MINED; REITERATES FULL YEAR PRODUCTION GUIDANCE OF 210,000 – 225,000 GEOS
April 19, 2017
* First Quarter 2017 Operating Highlights and Annual Outlook:
> Mined a total 57,633 #gold equivalent ounces(1), in line with Company expectations
> Produced and sold a total of 34,454 and 33,737 gold equivalent ounces, respectively
> In Nevada, ore from Fire Creek was stockpiled due to heavy snowfall limiting our ability to transport ore to the Midas mill
> Built a significant stockpile in Nevada of 30,890 tons at an average grade of 0.94 gold equivalent ounces per ton containing 29,142 gold equivalent ounces(2). This is an increase of approximately 18,000 tons from the end of 2016. These tons will be processed at the Midas mill in the second quarter
> Forward sold 20,000 of the stockpiled gold ounces in the first quarter at an average realized price of $1,250 per ounce
> As planned, the Company continued to ramp up True North in Canada towards full production, which is expected to occur in the second half of the year
> The Company’s initial mineral resource estimate at Hollister is expected to be completed in the second quarter. #Development work continued with ore silling in the Gloria zone; stockpiled ore is expected to be processed at the Midas mill in the third quarter
> The Company remains on track to meet its annual #production guidance of 210,000 to 225,000 #gold equivalent ounces, up 36% from 2016
> The Company will report its financial results for the first quarter of 2017 after market close on Thursday, May 4, 2017.
@FundamentalAnalysis@brendan great thoughts on $RSG.AX. I haven't looked at the company in great detail. But I thought I saw a 300k producer. About 7moz with 3moz or so in reserves....multiple mines and about 850m AUD market cap...and producing FCF based on 2016 results. First glance it looked interesting, but perhaps if you delve in as you have its probably a lot more expensive then it appears. $KDX has a similar market cap to $rsg.ax but $rsg.ax to me has far stronger financial power and more ounces. Obviously $KDX has the whole nevada,north america benefit
@ExcelsiorWith all the discussion recently around $GDXJ it seemed like a good idea to check out what $SGDJ had under the hood at present. #Gold#Silver#Miners#Juniors
Security Symbol Weight
OCEANAGOLD CORP. $OGC 8.62%
ALAMOS GOLD INC. CLASS A $AGI 7.57%
IAMGOLD CORP. $IAG 7.50%
ENDEAVOUR MINING CORP. $EDV 6.71%
OSISKO GOLD ROYALTIES LTD. $OR 4.90%
COEUR MINING INC. $CDE 4.76%
CENTERRA GOLD INC. $CG 4.67%
NEW GOLD INC. $NGD 4.46%
TOREX GOLD RESOURCES INC. $TXG 3.86%
ELDORADO GOLD CORP. $EGO 3.85%
FIRST MAJESTIC SILVER CORP. $AG 3.71%
GUYANA GOLDFIELDS INC. $GUY 3.52%
SILVER STANDARD RESOURCES INC. $SSRI 3.41%
FORTUNA SILVER MINES INC. $FSM 2.65%
CHINA GOLD INTERNATIONAL RESOURCES CORP. $CGG 2.64%
KLONDEX MINES LTD. $KDX 2.58%
PRETIUM RESOURCES INC. $PVG 2.43%
SEMAFO INC. $SMF 2.15%
SILVERCORP METALS INC. $SVM 2.10%
ASANKO GOLD INC. $AKG 2.00%
NOVAGOLD RESOURCES INC. $NG 1.99%
HARMONY GOLD MINING CO. LTD. $HMY 1.46%
MAG SILVER CORP. $MAG 1.43%
RICHMONT MINES INC. $RIC 1.39%
ALACER GOLD CORP. $ASR 1.34%
TMAC RESOURCES INC. $TMR 1.30%
ENDEAVOUR SILVER CORP. $EXK 1.13%
TERANGA GOLD CORP. $TGZ 1.00%
SEABRIDGE GOLD INC. $SA 0.90%
LUNDIN GOLD INC. $LUG 0.81%
SANDSTORM GOLD LTD. $SAND 0.80%
ARGONAUT GOLD INC. $AR 0.71%
PREMIER GOLD MINES LTD. $PG 0.67%
GOLD STANDARD VENTURES CORP. $GSV 0.58%
CONTINENTAL GOLD INC. $CNL 0.41%
STATE STREET INSTITUTIONAL TREASURY PLUS MONEY MARKET FUND $TPIXX 0.02%
CASH AND EQUIVALENTS -0.03%
@enviro111Look at the chart of $kdx since Mar 1. Relentless selling by someone. Look at the volume. Consistent high volume everyday. It must be van yuck selling who else could it be? June 17 is the last day for van yuck to re balance. I'm waiting till at least June to buy. Klondex, endeavor silver or sandstorm I'll pass on a Sanyo.
@enviro111The Vn eck exposure to $TGZ 12mill/107 mill shares in total float, $SMF 32mill/324mill, $GSV 20mill/222mill, and $KDX 16mill/177mill There has been no reduction in shares since May 3rd, 2017. Except for $TGZ, all the holdings are below 10%. They may be where they want to be. The carnage might be over for now. However, these share counts will leave no room for future buying.
@wannabeinvestor@mountains_of_glory, the reported AISC is high for Midas largely due to weather as far as I can see -- their mining at Fire Creek and Midas was at record level, but due to snowfall they could not put all of this through the Midas mill. so they have lots of mined ore to be put to production. In fact in April the Nevada operation produced 25k GEOs, compare that against the production on Q1. In fact the mill was shut down for over two weeks. So Q2 will likely come in much stronger. True North is in the ramp-up phase, they also had a large write off of production inventory which affects AISC. no way are these AISC levels to be considered sustainable going forward. The company expects consolidated AISC of US$ 1100/ oz this year (vs cash costs of ca $700/ oz) and this includes some extraordinary capital spend of Fire Creek. Note that Nevada production cash cost in Q1 actually beat the guidance. Yes on high-level the Q1 report did not impress and that has only contributed to the sell-off. But dig deeper and it looks better than it appears at first blush. My average cost of $KLDX is 3.44. Considering the above and the fact that the GDXJ rebalancing effect should be baked in the cake already, I am pretty comfortable with this. Risk reward here is pretty compelling compared to many other mid-tiers.
click to invite
@FundamentalAnalysis@wannabeinvestor I am partly with @mountains_of_glory Not sure about his figures though for True North..... $KDX needs about $$1300 gold for now based on the current reserves and to make any margin on its deposits overall, currently there is no free cash flow If they can bring down costs, and continue to prove up their reserves they will be ok, my concern was the lack of reserves to support valuation. Some have said the company have had the ability to keeping proving up more ounces, hence the concern for many isn't there. My understanding was Klondex was overvalued before and is now moving towards a more sensible valuation. What I'm observing at the moment is real shift in share prices based on fundamentals, and not where the gold prices could be in the future. So a company that struggles to make money now, will get slashed down heavily.....a lot of companies I'm looking at seem to be moving on that basis. If you are long term gold price bullish, you are now closer to getting that upside for free (market is no longer requiring much of a premium for it). West African plays especially $TGZ is pricing in no gold price growth, no exploration upside, no banfora and just cash + the after tax value we can extract from Sabadola at current gold prices. $1250+
@wannabeinvestorHis figures for True North are from the presentation. Not much details in the presentation, one should read the earning news release. $KDX is effectively ramping up two mines and spending more than usual at its flagship mine this year to increase reserves. That plus the weather impact in Q1 make it appear as if it's an optionality play. It is not. Having said that, it may well be that near-term upside is limited, but I also see somewhat limited downside from here given that the stock has corrected a lot. This is a Nevada asset, in theory it should trade at a premium.
click to invite
@FundamentalAnalysis@wannabeinvestor$KDX in my opinion is an optionality producer for now, like most other producers including $TGZ and also now $SMF with its mana mine. (Joe Mazumdar's understanding I found out recently is in line with mine, he looked through a few junior/mid tier gold producers and the average FCF return he mentioned was zero many at sub zero and many just above zero lol). The reality is most of the mid tier gold miners and even silver in many cases just cannot make money in the current environment. AISC by the way is a crap metric if you look closely, doesn't include interest/taxes and in some cases royalties or streams etc... I've mentioned that if the precious metal prices don't move materially to a new higher base level $1300+ $20+ silver within next 5years, we are going to witness some serious problems unless costs of production i.e oil prices, mine equipment etc come down. Either that or capital will keep providing equity financing to keep the companies afloat diluting existing shareholders. Hate to be bearer of potential bad news....but I just don't believe things are 100% rosy as everyone wants them to be. This isn't a time to be reckless and putting capital in anything which has drifted down UNLESS you know the company well enough to see how value can be created (a producer should only be defined by how much money will the business make in future years..thats it). Even a 500k oz producer generating 0 Free cash flow YOY until gold goes past $1300 is effectively quite worthless.......I've chosen $tgz as my optionality producer hence not investing in other optionality producers unless the prices become ridiculous in the near term. This is still a swing traders market @excelsior style. $KDX will get the nevada premium, but longer term these gold prices won't help much.....you can get quarter of positive free cash flow like $tgz did in march 2016....but I don't think its sustainable. These are still difficult times..........I'm waiting and will become more comfortable over at a $1300+ sustainable new levels of gold none of this $1000-1300 area which is dangerous.
@FundamentalAnalysisI dont believe gold is going below $1000 and if it does its not for long, $tgz like $kdx has enough cash....so concerns aren't that great in the short term. Breaking even is ok.....what we don't want is very low gold prices like $1100 and that persisting because we will drain our resources.......eventually.
@hihosilver$KDX$KLDX Don't stress guys we will all be laughing about the current sp weakness once fall approaches. management has exceeded guidance each year and in all likelihood 2017 will be no exception. when q2 financials are released in August price will start to rise again. If you are in for the long haul sit tight. be right.
click to invite
@mountains_of_glory$KDX These are their latest figures for all their operations: All-in costs per gold ounce sold (3) $ 839 $ 1,536 NA $ 1,082 $ 2,923 $ 1,719 || Management was selling freely and confidently above $7. I think there are better places to put your capital.
click to invite
@hihosilver@mountains_of_glory ASIC and All in Cost are meaningless for projects just entering into production. Using that logic you could argue the first ounce of Gold has an all in cost of 10's of millions of dollars. Please list other North American mid tier producers that are a better value and I will be happy to investigate. $KDX$KLDX
click to invite
@wannabeinvestor@mountains_of_glory, yes management were sellers at $7, but the stock has almost halved ever since while the operation is ramping up and POG's pretty much flat. agree with @hihosilver, show me better risk/ reward in North American gold mining. $KL?
click to invite
@FundamentalAnalysisTo cut out all the confusion.....the best way to assess a producer is just look into the future, so looking at individual AISC for a quarter is meaningless due to ramp ups etc...., you have to look at the past to see what they've done and their cost structures and use that along with changes they are making to assess what will happen in the not to distant future. Whatever conclusions you come up with as long as you can see as many facts is the best answer you have. But just to point out....in general most companies and that goes for gold majors, if you look at the reserves section of the balance sheet, there is negative reserves, that means cumulatively over time the company has been a net destroyer of capital (impairments have also written off assets to adjust to lower price levels)....how many times would they have said cutting costs blah blah.....most of what they say doesn't deliver the results otherwise we wouldn't have negative reserves for most of these companies. I own $TGZ but I am fully aware....the biggest driver is the gold price, they can't do much else unfortunately....and I see the same with $KDX and probably most other companies out there. The only exceptions in the producer/developer space are the high margin companies that ramp up production which is also high margin....only they can buck the trend in a low/decreasing gold price environment. The reason to hold these companies is the MASSIVE upside once gold hits just $1400. $KDX will probably double. $tgz maybe even triple.....big gains are ahead....and in the meantime at least the companies have cash.