Grossly Oversold on Technicals and Value
On Technicals... Stoch RSI AT 0.00 and today's candle is trading outside of its lower bollinger band. Huet made a mistake when asked by analyst about care and maintenance possibility in a bear case scenario for True North. Huet answered honestly what it would cost under such a program at about $500,000 a month. The mistake was made that he should have reiterated that mine would not close especially when they are looking at .3 Aueq oz stopes for mine in Q4. Nearly triple the production of .11 in Q3. Costs should come way down. Algo's probably picked up his word's and sent the stock into the abyss. Investors have basically written off the potential for Hollister and True North after the conference call. This stock is all about guidance and mineral reserve updates for the remainder of the year. Updates on Fire Creek and HG with the possibility of significantly increasing mine life should add value to the asset. I would expect the company to finish the year at the lower end of guidance to the midpoint. Somewhere in between. The upside is still with True North and Hollister. I think Hollister will be an okay mine in terms of cost like Midas and not a star like Fire Creek. Costs need to fall at True North in a huge way which I expect when production is running full tilt when the mine is declared for production. In the end, this stock is above $5 when we cross $1,400 gold or if KLDX can get their costs down materially in 2018 and ramp production closer to 300,000 oz for the year.