RE:RE:RE:RE:RE:RE:Kirkland Lakes Fosterville mine to make more $ than Barrick!I re-read the Seeking Alpha transcript from Aug 10th of the Q2 earnings call. They are going to be implementing a construction decision on a $ 15 M to $ 20 M USD mill facility something in that $ region for the excess ore. Or a tailings facility to help. I cannot remember exactly how it was called but it was Mike Doolin in the call who mentioned it and that it was going to happen soon. Go read the transcript on Seeking Alpha.
This should help mining rates, and can be covered with Cash on Hand since Bison Gold was bought with shares. Debt levels are minimal. But they need a huge Q4 still to reach guidance.
As KL and McEwen Mining commented on their October production,
Klondex should take a pointer from those guys and already comment on their October production to say if it is back on track. This would surely calm concerns.
KL had mentioned how Fosterville produced 30 K oz. in just October and look at stock reaction up 10 %. Let's say KL gets Fosterville to 3oz/ton for rest of 2017 compare this to Klondex's Q2, Fire Creek was at 1 oz/ton about. Sure it's not Fosterville (since very few mines in the world now are like Fosterville), but Fire Creek is a nice asset with such high grade estimated at around 41.5 g/ton. Midas is better now too.
This should make people wonder....
Should they just have NOT bought Hollister and thus avoided the dilutive impact to share float?? Was it worth it to dilute to get this level or production? Then just focus on Fire Creek, Midas & True North (Bison Gold purchase of course still OK to have done since peanuts). But then in the same Q2 call, Doolin talks about 3-4 Hatter Grabben drill results already done at very decent grade and the strike depth is double depth than Gloria Zone where the 425 K oz. were mined in the past. So it's all very odd how the SP is so low. There is definitely potential here. When you hear Doolin talk about the intercepts, then Hatter Graben seems interesting and Hollister an OK buy.
But when you think of "what if they did NOT buy Hollister", less shares outstanding, higher SP...
JIN
goldminer01 wrote: I think zero'ing out the pre-existing resource at both TN and Hollister does not help with securing strong investor engagement or excitement.
Further, no follow up on the FireCreek pit possibility. No specific talk of expanding Nevada mill capacity or plan for Aurora.
New owners will pick up on these threads and drop GAAP.
Interesting to learn from Sprott's talk that Darren Hall ex-Fosterville CEO was canned for low balling production numbers to KL headquarters. Huet should take note.
KLDX has been left in the dust. Yo-yo quarters, now hugely back end loaded... just to meet low end of sandbagged guidance.
Accounting change = EPS 2017 numbers are meaningless.
Fundamentals at $2.87 USD are strong. Unfortunately, I think it is too late for them to make
much headway from an operational standpoint. Not needed to nurse them back.
Probably the best path forward is a quick takeout by an opportunistic mid tier whose market cap has not been halved this year.