KDX.TO  Klondex Mines Ltd

Exchange

TSX

Sector

Mining

Industry

Market Cap.

1326.65B

Vuru Grade

7.50/100

Current Price

$7.57
-0.08 (-1.05%)

Growth Price

$1.52
Overvalued by 79.93%

Company Metrics

  • P/E 54.07
  • P/S 7720.82
  • P/B 3.46
  • EPS 0.13
  • Cash ROIC -16.43%
  • Cash Ratio 2.54
  • Dividend 0 / N/A %
  • Avg. Vol. 1.14M
  • Shares 139.00M
  • Market Cap. 1326.65B

Company Description

Klondex Mines Ltd., together with its subsidiary, Klondex Gold and Silver Mining Co., engages in owning, evaluating, acquiring, exploiting, exploring, and developing mineral properties in Nevada. The company focuses on gold and silver properties. It primarily holds a 100% interest in the Fire Creek gold property comprising 484 claims in 11, 207.7 acres located along the Northern Nevada Rift in Nor... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Klondex Mines: The Midas Mine Without The Midas Touch
Seeking Alpha - Feb 10, 2017
Klondex is a narrow vein mine operator. The main operation is a high-grade mine, called Fire Creek. Apart from Fire Creek, the company operates the Midas mine. In my opinion, this operation is lagging behind Fire Creek. I believe that Midas' poor ...
Klondex Mines Ltd (KDX) Director Sells C$182286.00 in Stock - BNB Daily (blog)
Klondex Mines Ltd.
MarketWatch - Oct 8, 2015
Check out the returns on our 8 Lazy Portfolios that are made up of low-cost buy-and-hold index funds. • How to create your own Lazy Portfolio.
Klondex Mines Ltd (KDX) Director William Matlack Sells 48200 Shares
The Cerbat Gem - Feb 16, 2017
Klondex Mines logo Klondex Mines Ltd (TSE:KDX) Director William Matlack sold 48,200 shares of the firm's stock in a transaction that occurred on Tuesday, February 14th.
Klondex Mines Ltd (KLNDF) Under Analyst Spotlight - UK Market News
Klondex Mines Limited (KLDX) Reports Q4 Production of 51833 GEOs; Offers FY17 ...
StreetInsider.com - Jan 18, 2017
Klondex Mines Ltd. (NYSE: KLDX) is pleased to report its fourth quarter and 2016 full year operating results as well as selected operating guidance for 2017.
This Canadian Mining Darling Finds Gold in Projects No One Wants - Bloomberg
Klondex Mines Ltd (KLDX) Director Blair Albert Schultz Sells 50000 Shares
BNB Daily (blog) - Feb 17, 2017
Klondex Mines logo Klondex Mines Ltd (NASDAQ:KLDX) Director Blair Albert Schultz sold 50,000 shares of the business's stock in a transaction dated Wednesday, February 15th.
Insider Selling: Klondex Mines Ltd (KDX) Director Sells 50000 Shares of Stock - The Cerbat Gem
Klondex Mines Ltd (KDX) Director Sells C$38500.00 in Stock - Sports Perspectives
KLONDEX MINES LTD. (TSE:KDX) Files An 8-K Regulation FD Disclosure
Market Exclusive - Feb 8, 2017
Klondex Mines Ltd is a Canada-based gold and silver mining company. The Company focuses on exploration, development and production of over two gold and silver projects in north central Nevada, being the Fire Creek mine located in Lander County, ...
Klondex Mines Ltd. (KDX:CA) Rises 7.79% for February 06 - Equities.com
Form 8-K KLONDEX MINES LTD For: Feb 08 - StreetInsider.com
News Klondex Mines Ltd.KLDX
Wall Street Journal - Oct 8, 2015
News Klondex Mines Ltd.KLDX. Significant News Only. 01/18/17; Press Release. (CNCN) Klondex Reports Record Quarterly Production of 51,833 GEOs; 2017 Production Guidance Increased 36% From Prior Year.
William Matlack Sells 48200 Shares of Klondex Mines Ltd (KDX) Stock
Sports Perspectives - Feb 15, 2017
Klondex Mines logo Klondex Mines Ltd (TSE:KDX) Director William Matlack sold 48,200 shares of the business's stock in a transaction dated Tuesday, February 14th.
Klondex Mines Ltd (KLDX) Director Sells $206424.00 in Stock - The Cerbat Gem
Podcast: Klondex Mines Ltd CEO Paul Huet on expanding gold production into Canada
Financial Post - Apr 22, 2016
Klondex Mines Ltd (TSE:KDX) (NYSE:MKT:KLDX) is a growing mid-tier gold and silver mining company producing from two projects in Nevada, including the former Ken Snyder Mine operated by Newmont Mining Corp (NYSE:NEM) (TSE:NMC) - now the ...
Klondex Mines Ltd (KDX) Director Sells C$238602.00 in Stock
Sports Perspectives - Feb 14, 2017
Klondex Mines logo Klondex Mines Ltd (TSE:KDX) Director William Matlack sold 32,200 shares of the stock in a transaction that occurred on Thursday, February 9th.
The Klondex Mines Ltd (KDX) Director Sells C$182286.00 in Stock - DailyQuint
Klondex Mines Ltd (KLDX) Given Average Recommendation of “Strong Buy” by ... - The Cerbat Gem
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for KDX.TO to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate KDX.TO's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$7.57 Current Price

$1.52 Growth Price (DCF)

Overvalued by 79.93%


Growth Rate Assumed by Market: 106.32%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$0.02 NCA Price

Overvalued by 99.71%

$2.79 Book Price

Overvalued by 63.21%


Very Poor Cash Return on Invested Capital over the past 5 years

KDX.TO has failed to generate positive returns on its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

KDX.TO has lost $16.43 of cash for every $100 invested.
Figures in CAD. Fiscal year ends in December
20112012201320142015
Free Cash Flow -3.46M -23.50M -28.04M -128,000.00 1.81M
divided by
Invested Capital 44.23M 56.81M 82.88M 213.02M 201.46M
Cash ROIC -7.82% -41.36% -33.83% -0.06% 0.90%

Very Poor Return on Equity over the past 5 years

KDX.TO has shown an inability to deliver results for shareholders. This could be due to poor management, KDX.TO operating in a highly competitive industry, or having a weak business in general.

KDX.TO has generated a $2.36 loss for every $100 of Shareholders' Equity.
Figures in CAD. Fiscal year ends in December
20112012201320142015
Net Income -6.08M -3.83M -14.12M 18.30M 22.53M
divided by
Stockholders' Equity 55.22M 74.27M 86.44M 192.56M 201.20M
Return on Equity -11.01% -5.16% -16.34% 9.50% 11.20%

Poor Business Performance over the past 10 years

KDX.TO's inability to produce positive free cash flow for the majority of the past 10 years is concerning. It should be a red flag, since this company does not have a track record of delivering results for shareholders. This could be due to poor management or the nature of its business.

KDX.TO has been losing money for the majority of the past 10 years.
Figures in CAD. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow -573,573.00 -774,523.00 -6.37M -3.53M -6.44M -3.46M -23.50M -28.04M -128,000.00 1.81M

Strong Balance Sheet

KDX.TO is financially strong with Current Assets covering Total Liabilities. It's in a fairly liquid position and dependent on the amount and saleability of any inventory; it may have the financial security to survive an economic downturn.
Figures in CAD. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash 9.38M 4.24M 1.85M 3.55M 7.73M 24.62M 18.05M 13.51M 52.77M 59.10M
Current Assets 9.45M 4.33M 1.88M 3.63M 7.97M 25.03M 18.32M 13.83M 86.43M 85.70M
Total Assets 19.99M 20.37M 23.43M 27.31M 37.42M 70.91M 90.38M 109.85M 296.21M 283.85M
Current Liabilities 467,782.00 748,752.00 2.46M 599,161.00 2.86M 2.06M 15.51M 13.46M 30.42M 23.29M
Total Liabilities 478,445.00 756,140.00 2.46M 785,561.00 3.36M 15.69M 16.10M 23.41M 103.65M 82.65M
Stockholder' Equity 19.51M 19.61M 20.97M 26.52M 34.06M 55.22M 74.27M 86.44M 192.56M 201.20M
Current Ratio 20.20 5.79 0.77 6.06 2.78 12.13 1.18 1.03 2.84 3.68
TL-to-TA 0.02 0.04 0.11 0.03 0.09 0.22 0.18 0.21 0.35 0.29

Low or No Reinvestment of Profits over the past 10 years

KDX.TO has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to KDX.TO operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in CAD. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings -8.42M -9.63M -10.79M -13.20M -18.19M -26.00M -29.83M -43.95M -25.65M -3.60M
Retained Earnings Growth - -14.38% -11.98% -22.37% -37.79% -42.95% -14.74% -47.34% 41.64% 85.96%

Highly Competitive Industry over the past 10 years

It's likely that KDX.TO is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely KDX.TO invests heavily in R&D and Sales, General & Administrative expenses.

Only $2.96 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in CAD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income -1.47M -1.25M -1.15M -2.41M -4.99M -6.08M -3.83M -14.12M 18.30M 22.53M
divided by
Revenue - - - - - - - - 121.69M 155.16M
Net Profit Margin - - - - - - - - 15.04% 14.52%

Weak Pricing Power over the past 10 years

KDX.TO is likely in a highly competitive industry, due to low barriers to entry. It's because of this, that KDX.TO has been unable to raise prices and increase their profitability. This puts them in a poor position if inflation becomes an issue, as they would struggle to pass higher costs onto consumers.

Only $5.68 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in CAD. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit - - - - - - - - 36.04M 42.22M
divided by
Revenue - - - - - - - - 121.69M 155.16M
Gross Margin - - - - - - - - 29.62% 27.21%

High Capital Intensity over the past 10 years

KDX.TO spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

192.00% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in CAD. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure 9,556.00 10,454.00 5.52M 2.18M 4.14M 501,776.00 21.25M 24.91M 33.21M 45.62M
divided by
Net Income -1.47M -1.25M -1.15M -2.41M -4.99M -6.08M -3.83M -14.12M 18.30M 22.53M
Capital Expenditure Ratio -0.65% -0.83% -477.92% -90.52% -82.97% -8.25% -554.47% -176.44% 181.49% 202.50%

No Dividend History over the past 10 years

KDX.TO has never distributed dividends or has recently suspended their dividend distribution.
Figures in CAD. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 20.95M 22.77M 23.32M 28.36M 32.72M 37.62M 49.02M 66.24M 117.91M 139.00M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 2.19 2.17 0.74 1.29 2.53 2.26 1.18 1.59 1.93 2.82
Dividend Yield - - - - - - - - - -

No History of Stock Buybacks over the past 10 years

We're neutral on this. It's not necessarily good or bad that KDX.TO hasn't initiated a stock buyback.
Figures in CAD. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 20.95M 22.77M 23.32M 28.36M 32.72M 37.62M 49.02M 66.24M 117.91M 139.00M
Stock Bought Back - -7.96% -2.37% -17.77% -13.33% -13.02% -23.26% -26.00% -43.82% -15.17%
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