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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

Post by own_qualityon Aug 06, 2017 2:17pm
198 Views
Post# 26552372

Spending on reserves

Spending on reserves
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.
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