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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 Sep 07, 2017 3:16pm
206 Views
Post# 26668226

My only real concern...

My only real concern......is how much of the remaining production this year is forward sold.  More than anything else it pisses me off when gold miners hedge.  I own gold miners because I want maximum exposure to gold prices.  Gold miners should normally never hedge.  The only exception is when large near-term development expenditures must be funded from cash flow and the company is does not have sufficient cash on hand to cover these costs.  That has been the case for Klondex in the recent past.  That is not the case currently so I hope that they have ended the forward sales.  I'm going to be pretty mad at management if they are still selling forward into this clearly rising gold price environment. 

I think the short interests are shorting again today in anticipation of a big pullback in POG which will result in a selloff of shares in Klondex.  The only other reason is that I can think of is a large hedge book at much lower gold prices.
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