Post by
Highwave on Feb 20, 2018 6:23pm
All Miners Were Slammed Today With Drop In Gold Price
I would not say shorts picked up on this issue specifically today. KL was down on a % basis just as much.
I did some quick math on what KLDX could do for 2018 and I came up with the following:
(Based on $300 gross profit per ounce for 2018 with All in Costs at $1,050)
(Based on 190,000 Aueqoz of sold production)
(Based on $1,350 avg Gold Price for 2018)
Cash Flow Valuation Estimate
190,000 x $300 = $57,000,000 in gross profits
$57,000,000 gross profit/180,000,000 shares outstanding =.31666
.3166 x 5 x cash flow for valuation is = $1.58 per share value
PE Valuation Estimate
$57,000,000 gross profit - New US Tax Rate (.21) = $45,030,000 profit after tax.
$45,030,000/180,000,000 shares outstanding = $.25 a share in earnings
Assigning a 20x multiple when attitudes on miners improve would give KLDX a valuation at $5.00
Either way our current valuations seems cheap if you believe that Gold will hold its current price in the mid $1,300's or go higher in 2018. I dont think the 190,000 oz is to far out of range since Midas mill already processed the last batch of ore at 80% recovery rates. I also think KLDX might have low balled production estimates as to not miss again going forward. Read the numbers again below and I would like ot see what others think this is valued at. One valuation I do not know how to really assess is what each Nevada mine and True North would fetch if they were sold off piece by piece.
KLDX valued at 5X Cash Flow = $1.58 valuation
KLDX earnings could be .25 for the year. At a 20x multiple the stock would trade at $5.00