RE:Spending on reservesown_quality wrote:
Klondex has never been interested in spending money to boost reserves. Now they must and they are dragging their feet. They've always concentrated on profits and making cash flow. They could get away with that as a junior producer, but not as a mid-tier. Now they must devote some spending to reserve drilling.
I think we'll be seeing guidance in the 300k range for 2018, but without drilling to confirm production levels out into the future the share price will not ever reflect the true LOM value. Hopefully, management will properly address concerns in the upcoming CC and get the share price back up to a reasonable level. They certainly have been piss poor at exciting investor interest lately. I don't think there is any problem with the Hollister or True North acquisitions, other than perception. The Company needs to aggressively address this problem.
You're right. The market is rewarding big reserve boosts but Klondex doesnt have 50$ million to drill Fire Creek like Kirkland does Fosterville... especially as they are bringing 2 more mines into production. Remember they had to pay to rehab Hollister and True North. Also to be fair they have been pretty agressively drilling True North. They have updated the reserve at least twice. If I were in Paul's shoes a few years ago I would have put all of the money into agressivle drilling Fire Creek to turn it into a million ounce deposit which I believe it is. Obviously he preferred to prioritize linking 3 Nevada mines into one mill with some mystical dream of whats in the ground at Hollister's Hatter Graben area. Let's hope he's a better visionary than I am.