Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

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 Highwaveon Jan 15, 2018 5:44pm
109 Views
Post# 27363087

USD is toast and KLDX will benefit

USD is toast and KLDX will benefitJin,

Your short term financial pain is clouding your judgement.  Say no to a buyout.  Dollar is on its way to getting smashed.  Take a look at chart:

https://twitter.com/search?q=%24dxy&src=typd

There is an inverse relationship between dollar and gold price.  This big move in gold futures is due to the faliing dollar.  We are breaking a major support level.  I expect another $100 plus dollars higher per ounce on this move over the next couple of months.   There are so many reasons why the dollar is going down and I am not going to expound here.  Once we break $1,400 we will sail past it but another $30 or $50 bucks in days. 

Lets just put this in KLDX terms:

I believe "All In" Costs for KLDX with remaining 3 mines will be between $1,000 and $1,100. lt could be lower than this figure too.  Lets say its $1,100 (Q2 2017 was $1,030).  I believe the price of gold will average over $1,400 for the duration of the year.  That would leave $300 per ounce in EBITDA.  

KLDX guidance could be anywhere from 225,000 to 275,000 oz's.  Lets go low at 225,000 for 2018.  I still can be off on this number but a number close to this is very probable.  

$300 x 225,000 = $67,500,000 in EBITDA

Keep in miind I have another job and I am being extremly lazy in my calculations.  Anyway you slice it:  Price to Sales, EV/EBITDA, DCF, P/E Ratio.  This stock is crazy cheap.  Why would you ever want to sell at $3 or $4?  If gold averaged $1,450 and KLDX pumped out 275,000 oz's

$350 x 275,000 =  $96,250,000 in EBITDA

To Paraphrase Larry Livingston "Be Right and Sit Tight"  


<< Previous
Bullboard Posts
Next >>