Today's "Downgrade"The downgrade by analysts, based upon Rahul Paul statement, is quite shallow and undeserved. However, it underlines a focus problem by the management.
Klondex heavily depends upon good exploration results to keep going (unlike an Open Pit operation), and so far they have been able to deliver new zones to mine in a consistent manner (which is where their expertise has been praised). While Fire Creek P&P has been going down for 2018, it does not incorporate potential M&I that has so far remained at a good level these last years.
Yet, the whole True North adventure has taken their gaze away from Nevada, and what was thought as an easy expansion just became a disastrous venture. This is the real issue; True North was dirt cheap and probably didn't cost them too much money, but they lost time, energy and manpower (and reputation) trying to revive a pile of dirt that will probably never reopen.
Now, I'm uncertain if the market will allow them to prove themselves, or if someone is not already discussing with the BOD to buy them up (my guess is that Huet is gone already, and the new owners will only keep the people on the grounds). Richmont was bought for 770M$ US in September (shares deal), so I would expect an offer around that price or more.
PS: I couldn't help myself, but I noticed that a blind monkey would have better stock picks than Rahul Paul, just fyi.
https://www.tipranks.com/analysts/rahul-paul