RE:What an A** Kicking I was criticized for my posts lately.
Go to my history I have said many times TN should be shut. They were moronic to mine at $ 1500 + cash costs. Completely F*Upped their AISC this year big time. Q3 was massively affected by TN and caused the cash burn. G&A uptick in Q3 did hurt as well, but nowhere near the effect TN had on profitability.
This was a no brainer. I am HAPPY.
Mining is all about profitability not having a bigger and bigger production guidance. KLDX was WORTH MORE when they just had Fire Creek and Midas...why....because extremely low debt, lower share float, and PROFITABILITY. I can still understand Hollister acquisition since done in shares.
The market will come to realize this was the BEST move Huet and co. made in the past twelve months. Stop the bleeding early and cut your loss. As goldminer01 said, the tailings cover the C&M costs going forward. Not sure they will sell though this mine any time soon but at least C&M is covered going forward.
JIN
Highwave wrote: I would have plunged big today if I had not already gone full Stanly Druckenmiller pig style in this issue already. I looked up True North production in the Scotia slide deck. I subtracted q1 thru q3 vs guidance provided by True North. The guidance indicated True North produced at best 7,000 Auozeq last quarter. That includes the 11,000 tons of ore they had stockpiled. Very dissapointing.
There is a brighter side to this. With TN being closed for additional underground mining, Klondex is now one of the lowest cost miners in the world again. If they can mine the new underground area at Fire Creek and if it has similar production to the current mine we will have forgotten about True North quickly. Waiting for Q4 production to come out. I still think that Klondex will hit the lower end of their guidance. We shall see. FY 2018 should be strong from a cassh flow standpoint. Only real cap ex I see is some more drilling at better potential sites than True North and adding more capacity at the Midas mill.
The only way I see Klondex bringing True North back to life is if the Gold price is above $1,800 an ounce. I avent looked it up but does anyone know what the All in Cost is for Nevada operations only?