RE:RE:KDX bought the Canadian property cheap Maybe rack in $ 70-80M in profit right to the bottom line (no tax due with massive loss carryforward !). That is 50 cents per share to Klondex. https://www.winnipegfreepress.com/business/San-Gold-shares-delisted-as-miner-faces-cash-woes-290064321.html The above link highlights that:- San Gold booked close to $200 million in losses in the last two years. When a proposed merger with Kerr Mines Inc. — another small Canadian mining company — fell apart in mid-December, San Gold was out of cash and needed emergency funding from its secured creditor. Assuming that all these tax losses qualify against future mine profits, then the tax loss value of the deal almost certainly exceeds the cash purchase price!
It seems that KDX is targeting production at 50k ounces, as this was where the last operators knew they could be cash generating. However, San Gold were mining with gold prices 100’s of C$ lower than today.
In order to mine plan and recommence production above 50k ounces, this could have resulted in delays in the KDX production start. Hopefully, production will be incrementally increased to 100k ASAP.