In Case You Didnt Know or NoticeI know that quite a few of us have lost considerable amounts of money in Klondex with some investments stinining more than others. I want to address a few things:
Blackrock: One of the worlds largest provider of passive ETF's. The Blackrock increase in investment is most likely the reflection of ETF inflows in the junior space. When the price of gold futures breaks $1,400 I would expect this number to become much larger. I would also say the same with GDXJ and eventually GDX as the market cap increases.
Why the company takes so long to report: This report is their annual numbers. In Canada, you can wait up to 120 days before you report. In the US, I believe the old number was 90. If you have ever worked for a publicly traded company it takes time for auditors to visit your locations and verify inventory and go over the books. The supposed time for numbers to be released is really about the CFO collecting all of the data and having it ready for the auditors to sign off on. If someone is complaining that the filing is taking to long it shows they really dont understand how public companies are run.
Price of Gold: All these analyst reratings are post mortem. Analysts are usually the worst predictors of where the stock price is going. They are this way because:
1 Analysts might want to have investment banking business in the future with the company they are following. Never is heard a discouraging word.
2 Crowd Behavior. Analyst do not like to go out on a limb to risk their reputation. Their numbers cluster around each other.
3. Reactive not Proactive. These guys only rerate the stock after the carnage has happened and not before.
4. Gold Sector: Take a look at Kirkland Lake right now. They are well off their highs as well. They are supposed to be the best of the best. Klondex due to the mine closure is just down harder. Sometimes s#$t happens. The whole sector HUI has not moved with the gold price. Eventually it will. Our magic number is $1,400. When the move does happen it probably only will take 2 trading days to get there. Just like the markets became unwound quickly in the last 5 trading days. Gold should catch a major bid in the same timeframe. We just dont know what the catalyst to get us there is yet. I can assure with genreral market conditions as they are that this move is coming.
5 Price of Gold: I believe the price of gold is going to move higher in a signficant way. When it does you will see multiple expansion and improving margins. Valuations will move from price to NAV to P/E. You will foget every analyst and their BS. when that happens. Believe me they will be the first to re-rate stocks in this industry after the big move has already happened.