KDX.TO  Klondex Mines Ltd

Exchange

TSX

Sector

Mining

Industry

Market Cap.

780.17M

Vuru Grade

7.50/100

Current Price

$4.40
-0.10 (-2.22%)

Growth Price

$1.17
Overvalued by 73.45%

Company Metrics

  • P/E 106.19
  • P/S 3.32
  • P/B 2.84
  • EPS -0.01
  • Cash ROIC -16.00%
  • Cash Ratio 1.14
  • Dividend 0 / 0%
  • Avg. Vol. 502,775.00
  • Shares 146.30M
  • Market Cap. 780.17M

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 Ltd (KDX) Receives C$5.83 Consensus Price Target from Analysts
Week Herald - Sep 16, 2017
Klondex Mines logo Shares of Klondex Mines Ltd (TSE:KDX) have earned a consensus rating of “Buy” from the ten ratings firms that are presently covering the stock, Marketbeat Ratings reports.
Klondex Mines well-placed to deliver on 2017 production guidance
Proactive Investors UK - 4 hours ago
Klondex Mines Ltd (TSE:KDX) mined a total of 54,166 gold equivalent ounces in the third quarter, in-line with company expectations.
Technical Roundup On Two Stocks – Klondex Mines Ltd. (KLDX), Conduent ... - Post Analyst
Stock Lower in Session: Klondex Mines Ltd. (NYSE:KLDX) - Aiken Advocate
Klondex Mines says Bison Gold now has court approval for acquisition
Proactive Investors UK - Oct 17, 2017
The latter has now obtained the final order from the Ontario Superior Court of Justice approving the proposed acquisition, it said.
Klondex Mines Makes Share Election in Connection with Plan of Arrangement with ... - Stockhouse
Klondex Mines Produces 54166 Gold Equivalent Ounces in Q3 2017
Junior Mining Network - 21 hours ago
VANCOUVER, BC--(Marketwired - October 19, 2017) - Klondex Mines Ltd. (TSX: KDX) (NYSE American: KLDX) ("Klondex" or the "Company") is pleased to report its preliminary operating results for the third quarter of 2017 for its Nevada and Canada ...
Klondex Mines: Stop Shorting These Shares Now
Seeking Alpha - Aug 11, 2017
In May 2017, in my Marketplace section, I discussed the latest developments at Klondex Mines (KLDX), a mid-tier gold producer specializing in narrow vein mining. Although I was still quite skeptical about Klondex (refer to my initial article on this ...
Have You Considered Klondex Mines Ltd.? - The Motley Fool Canada
Commit To Buy Klondex Mines At $2.50, Earn 11.6% Annualized Using Options
TheStreet.com - Oct 13, 2017
Investors eyeing a purchase of Klondex Mines Ltd (KLDX - Get Report) shares, but cautious about paying the going market price of $3.77/share, might benefit from considering selling puts among the alternative strategies at their disposal.
Klondex Mines gets shareholder approval to buy Bison Gold
Proactive Investors UK - Oct 12, 2017
Gold producer Klondex Mines Ltd (TSE:KDX, NYSE:KLDX) announced that shareholders of Bison Gold Resources (CVE:BGE) had approved the previously announced transaction, which will see it acquire Bison via a scheme of arrangement.
Technical Review of Klondex Mines Ltd. (NYSE:KLDX) - The Oracle Examiner
Klondex Mines Ltd. (KLDX) stock returned 16.01% positive in past quarter - Street Observer (press release)
Taking Aim at Klondex Mines Ltd. (TSX:KDX) Shares
Financial Newsweek - 17 hours ago
Klondex Mines Ltd. (TSX:KDX) presently has a current ratio of 1.63. The current ratio, also known as the working capital ratio, is a liquidity ratio that displays the proportion of current assets of a business relative to the current liabilities.
Indicator Check on Shares of Klondex Mines Ltd (KLDX)
Stock Daily Review - Oct 19, 2017
Taking a look at some indicators for Klondex Mines Ltd (KLDX), we have noted that the current 20-day moving average vs price signal is Sell.
Klondex Mines Ltd (KLDX) Needle Moving on Volume
Melville Review - 1 hour ago
Shares of Klondex Mines Ltd (KLDX) is moving on volatility today -8.52% or -0.30 from the open. The NYSE listed company saw a recent bid of 3.22 on 1410000 volume.
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.

$4.40 Current Price

$1.17 Growth Price (DCF)

Overvalued by 73.45%


Growth Rate Assumed by Market: 500.00%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


KDX.TO's most recent year of (normalized) free cash flow is negative. This is the base number for forward projections. This means that if you increase the growth rate, the amount of negative FCF grows, thereby decreasing the price.

Show Free Cash Flow numbers

$3.58 Book Price

Overvalued by 18.60%


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 $16.00 of cash for every $100 invested.
Figures in CAD. Fiscal year ends in December
20122013201420152016
Free Cash Flow -23.50M -28.04M -128,000.00 1.81M -16.45M
divided by
Invested Capital 56.81M 82.88M 213.02M 201.46M 290.65M
Cash ROIC -41.36% -33.83% -0.06% 0.90% -5.66%

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 $0.28 loss for every $100 of Shareholders' Equity.
Figures in CAD. Fiscal year ends in December
20122013201420152016
Net Income -3.83M -14.12M 18.30M 22.53M -1.70M
divided by
Stockholders' Equity 74.27M 86.44M 192.56M 201.20M 278.05M
Return on Equity -5.16% -16.34% 9.50% 11.20% -0.61%

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
2007200820092010201120122013201420152016
Free Cash Flow -774,523.00 -6.37M -3.53M -6.44M -3.46M -23.50M -28.04M -128,000.00 1.81M -16.45M

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
2007200820092010201120122013201420152016
Cash 4.24M 1.85M 3.55M 7.73M 24.62M 18.05M 13.51M 52.77M 59.10M 47.64M
Current Assets 4.33M 1.88M 3.63M 7.97M 25.03M 18.32M 13.83M 86.43M 85.70M 74.87M
Total Assets 20.37M 23.43M 27.31M 37.42M 70.91M 90.38M 109.85M 296.21M 283.85M 379.98M
Current Liabilities 748,752.00 2.46M 599,161.00 2.86M 2.06M 15.51M 13.46M 30.42M 23.29M 41.69M
Total Liabilities 756,140.00 2.46M 785,561.00 3.36M 15.69M 16.10M 23.41M 103.65M 82.65M 101.92M
Stockholder' Equity 19.61M 20.97M 26.52M 34.06M 55.22M 74.27M 86.44M 192.56M 201.20M 278.05M
Current Ratio 5.79 0.77 6.06 2.78 12.13 1.18 1.03 2.84 3.68 1.80
TL-to-TA 0.04 0.11 0.03 0.09 0.22 0.18 0.21 0.35 0.29 0.27

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
2007200820092010201120122013201420152016
Retained Earnings -9.63M -10.79M -13.20M -18.19M -26.00M -29.83M -43.95M -25.65M -3.60M -58.28M
Retained Earnings Growth - -11.98% -22.37% -37.79% -42.95% -14.74% -47.34% 41.64% 85.96% -1,518.44%

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 $2.87 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in CAD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income -1.25M -1.15M -2.41M -4.99M -6.08M -3.83M -14.12M 18.30M 22.53M -1.70M
divided by
Revenue - - - - - - - 121.69M 155.16M 198.18M
Net Profit Margin - - - - - - - 15.04% 14.52% -0.86%

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 $8.74 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
2007200820092010201120122013201420152016
Gross Profit - - - - - - - 36.04M 42.22M 60.68M
divided by
Revenue - - - - - - - 121.69M 155.16M 198.18M
Gross Margin - - - - - - - 29.62% 27.21% 30.62%

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
2007200820092010201120122013201420152016
Capital Expenditure 10,454.00 5.52M 2.18M 4.14M 501,776.00 21.25M 24.91M 33.21M 45.62M 61.72M
divided by
Net Income -1.25M -1.15M -2.41M -4.99M -6.08M -3.83M -14.12M 18.30M 22.53M -1.70M
Capital Expenditure Ratio -0.83% -477.92% -90.52% -82.97% -8.25% -554.47% -176.44% 181.49% 202.50% -3,630.35%

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
2007200820092010201120122013201420152016
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 22.77M 23.32M 28.36M 32.72M 37.62M 49.02M 66.24M 117.91M 139.00M 146.30M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 2.17 0.74 1.29 2.53 2.26 1.18 1.59 1.93 2.82 6.25
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
2007200820092010201120122013201420152016
Shares Outstanding 22.77M 23.32M 28.36M 32.72M 37.62M 49.02M 66.24M 117.91M 139.00M 146.30M
Stock Bought Back - -2.37% -17.77% -13.33% -13.02% -23.26% -26.00% -43.82% -15.17% -4.99%
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