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CEO.CA members discuss high-risk penny stocks which can lose their entire value. Only risk what you can afford to lose.
@hihosilver@jpm I also think this change is very good news for Gold Miners in Nevada. The state produces 75% of all US gold. Incumbent operators will benefit from newly available mineral rights on federal land. Lower corporate tax and reduced regulation will also help lower ASIC and exploration costs. $NEM$KLDX$ABX$KGC
@drezinhoFrom the above article - 'Huet could not be reached for comment before this article was published but in a press release he said the company’s management team “believed our initial mineral resource estimate was just the beginning and this update confirms that belief,” adding that the deposit “continues to evolve into an important asset in our portfolio.” In a research note, Brian Quast of BMO Capital Markets notes that the possibility of a growing resource at True North is “still on the horizon.” “Klondex still has exploration potential at True North, notwithstanding the exploration results that were recently incorporated into the resource estimate,” he writes. “Exploration for 2017 will focus on adding ounces at depth with incrementally higher grades.”' $KDX$KLDX
@hihosilver$kdx$kldx one of my largest positions I have been following this one very carefully. Drop in sp does not reflect execution or outlook. Oz produced will increase sharply in 17 and 18. Balance sheet is solid. No debt. they have committed excess cash to drilling which may make asic look high but I have no problem with this as reserves are growing dramatically. As long as gold holds above 1200 Clear case of sit tight and be right. Do not worry Abt current low multiple. Watch latest presentation from euro gold conf. All is well.
@Tgetting killed today. really surprised on the pullback with this one $KDX$KLDX
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@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
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@FundamentalAnalysisThat's true you cannot compare to west africa, but to me if I were to narrow it all down to numbers, I can see multiples being applied and how it compares from a premium perspective. Personally I don't discount west africa like the markets do. If I had 800mn CAD I could buy one klondex or two teranga's. Personally I'd prefer two terangas. That's the way I look at it...although the market values it differently. Personally I believe market valuations are rubbish for the most part....but that's my opinion not the markets opinion. A market valuation in my opinion is how much will the shareholder get back and that is the most conservative way to look at it....and not arbitrary multiples which is what the consensus uses. I guess its no surprise why everyone across different industries overpay for acquisitions because they look at things incorrectly. #newbies#mbgtrends
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@Tagreed @hihosilver, shocked at the price but also thankful and happily buying down here
@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.
@ExcelsiorThanks @Jayfire - I'm actually a returning club member and did trade $KLX$KLDX in 2015 and the first part of 2016. It's good to be back, and I'm ready to add more if Klondex keeps bleeding. However if it falls in half from here then I may need a Kleenex :-)
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@T@Pete86, dont you think the drop has something to do with the $gdxj? $cnl looks to be making the same move as $kldx
@wannabeinvestor@mountains_of_glory, the reported AISC is high for Midas largely due to weather as far as I can see -- their mining at Fire Creek and Midas was at record level, but due to snowfall they could not put all of this through the Midas mill. so they have lots of mined ore to be put to production. In fact in April the Nevada operation produced 25k GEOs, compare that against the production on Q1. In fact the mill was shut down for over two weeks. So Q2 will likely come in much stronger. True North is in the ramp-up phase, they also had a large write off of production inventory which affects AISC. no way are these AISC levels to be considered sustainable going forward. The company expects consolidated AISC of US$ 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 $KLDX is 3.44. Considering the above and the fact that the GDXJ rebalancing effect should be baked in the cake already, I am pretty comfortable with this. Risk reward here is pretty compelling compared to many other mid-tiers.
@hihosilver$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.
@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