RE:RE:Scotia bank The point is they will become extremely profitable once again due to the 3 other mines as long as Hollister delivers. TN is now out of the equation...fortunately this was done in cash deal back in late 2015.
KDX used to be given a very high multiple by the Street because it was profitable every quarter in great jurisdictions. KDX has completely lost its multiple vs. peers because of the chaos in 2017. They need to prove themselves to the market once again.
Better to be leaner with realistic guidance...and actually generate $$$ for shareholders.
They decided to place TN on C&M still early in the game. It's not like they waited 2-3 years to see if this can turn around. That is why I said it's the best move they've done in 12 months. Market in time will come to agree. Cut losses early and focus on core assets that have been and will be profitable.
Plus it's really nice to see the gold price up so much in less than 4 weeks = making KDX a VERY attractive target now. More so than ever. Removing TN from the picture, their AISC and "all in" costs will drop DRAMATICALLY.
JIN
Beenthereagain wrote: Been following this stock for a while. When the recent turmoil began most ratings from any source suddenly underwent a dramatic adjustment DOWN. There is no record readily available from any of them now as to how they looked the other way when it was obvious that drastic measures were required to resolve the TN situation. Covering their collectively eggy chins is not surprising but I still believe they recognized the viability of KDX's other assets and it's minimal debt plus the potential (now a recent reality) resurgence of Gold's popularity. I haven't given up or sold as yet and am inclined to Wolffs opinion that it could rebound within the next 2 quarters.