Klondex Mines (KLDX)

[ValueFact]

Q3 was dismal. MGMT Focus: Output-Earnings Stability. It's time to slow this 110% reinvestment mindset; stop drilling/drilling/drilling. KLDX creates a perception of HAPHAZARD MGMT. CO must stabilize and maintain manageable and predictable production levels: SPENDING TOO. It smells like drill overkill. The $2.38 stock price is what KLDX DESERVES: performance is too erratic to instill investor confidence. It would also be helpful:

1. The Midas CIL circuit for Hollister ore adds how much in daily Midas mill tonnage?

2. When is KLDX increasing Midas Capacity? Can they expand slowly, like a 250 ton annual mill output growth? A leach pad alternative strategy for marginal ore?

Midas Mill needs expand to at least a 2000 ton capacity. If modular approaches could add 250 ton segments, not interrupting operations, that would be ideal. WHY isn't KLDX developing a mine/mill plan that makes everyone comfortable.

Making decisions on the fly needs to transition into a disciplined and controlled structure. $2.38 might then be $3.50-$3.95: not $2.38.