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KLONDEX MINES LTD. T.KDX

"Klondex Mines Ltd is a gold and silver producer engaged in exploration, development, and production of its properties. The company has interests in three mineral properties: the Fire Creek Mine, and the Midas Mine and ore milling facility, both of which are located in the state of Nevada, USA, and the True North Gold Mine (formerly the Rice Lake Mine) and mill in Manitoba, Canada. The revenue of the company is generated from the sale of gold and silver."


TSX:KDX - Post by User

Comment by tjw4on Jun 20, 2017 3:37am
79 Views
Post# 26381063

RE:RE:RE:Looks like share were sold but balances hardly moved ??????

RE:RE:RE:Looks like share were sold but balances hardly moved ??????I agree KDX should be a buyout candidate, but you have to think at this point that management has its eyes set on a bigger picture and would rather grow and become a major. Have to think majors have kicked the tires on this one and there was little interest from the KDX board in being purchased.

Also just because the price is low today, doesn't make the KDX team desperate, there are still rules to be followed involving X moving day averages for share price offers in order to protect retail shareholders.

the 200 day moving average in this one is atleast 50% higher, and then there would have to be a premium on top of that, so it would be a tough sell to non informed shareholders from the purchasing team.Its much easier in terms of a public relations story to purchase a company that has held steady for a year at say 5 dollars and then offer 5.50-6 dollars than it is to buy a Klondex that is currently valued at 4.77 (CAD) for say $7.50, and then have to explain to shareholders that its a really undervalued company and should be trading for around 6.50 right now.

Bottom line I would be shocked if this thing is bought out, and quite frankly I don't want it to be. Management has been doing a great job, Note I said this as I have been lucky enough to sell and avoid both major downturns in the past 2 years. I have re-entered now a couple weeks ago, and looking for similar gains. I just wish I have been as lucky with the rest of my stocks.

GLTA



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