Post by
Highwave on Jan 10, 2018 10:35am
What an A** Kicking
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?