KDX.TO  Klondex Mines Ltd

Exchange

TSX

Sector

Mining

Industry

Market Cap.

826.31M

Vuru Grade

7.50/100

Current Price

$4.66
+0.03 (+0.65%)

Growth Price

$1.17
Overvalued by 74.93%

Company Metrics

  • P/E 43.38
  • P/S 4.04
  • P/B 3.00
  • EPS -0.03
  • Cash ROIC -16.00%
  • Cash Ratio 1.14
  • Dividend 0 / N/A %
  • Avg. Vol. 1.05M
  • Shares 146.30M
  • Market Cap. 826.31M

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 Mines (NYSEMKT:KLDX) is about high-grade gold ore. The company runs the world's highest grade gold mine called Fire Creek, located in Nevada, USA.
Maiden resource for Hollister mine is very encouraging, says Klondex
Proactive Investors USA & Canada - Jun 22, 2017
Klondex has three producing mineral properties - the Fire Creek mine and the Midas mine and ore milling facility in Nevada, US and the True North gold mine and mill in Manitoba, Canada. It has also recently acquired two projects - the Hollister mine ...
Klondex Mines Ltd. (KDX:CA) Declines 7.3% for June 22 - Equities.com
BMO Capital Markets Lowers Klondex Mines Ltd (KDX) Price Target to C$5.25 - The Cerbat Gem
Klondex Mines to Join Russell 3000® Index
Junior Mining Network - Jun 23, 2017
VANCOUVER, BC--(Marketwired - June 23, 2017) - Klondex Mines Ltd. (TSX: KDX) ( NYSE MKT : KLDX) ("Klondex" or the "Company") is pleased to announce it has been added to the broad-market Russell 3000® Index at the conclusion of the Russell ...
What The Technical Indicators Are Saying About Klondex Mines Ltd. (KLDX ...
Post Analyst - 19 hours ago
Klondex Mines Ltd. (NYSE:KLDX) traded at an unexpectedly low level on 06/26/2017 when the stock experienced a -3.04% loss to a closing price of $3.51.
Klondex Mines Ltd (TSE:KDX) has analysts on the Bullish side this week. - WeeklyHub
Klondex Mines Ltd (KLDX) Earns “Buy” Rating from HC Wainwright - The Cerbat Gem
Klondex Mines Ltd. (KLDX) Closed at $3.47
HugoPress - Jun 19, 2017
While looking at the SMA values of Klondex Mines Ltd. (KLDX), the 200 simple moving average (SMA) is considered a key indicator by traders and market analysts for determining the overall long-term trend.
Klondex Mines Ltd. (KLDX) closed its previous trading session at $3.47 - TopChronicle
Price Target Analysis Klondex Mines Ltd. (KLDX) - News Oracle
Klondex Mines Ltd. (KDX:CA) Rises 7.99% for June 06
Equities.com - Jun 6, 2017
June 06 was a positive day for Klondex Mines Ltd. (KDX:CA) as its stock finished the day having gained 7.99% to hit a price of $4.46 a share.
Klondex Mines Ltd. (KDX:CA) Rises 10.44% for June 13
Equities.com - Jun 13, 2017
June 13 was a positive day for Klondex Mines Ltd. (KDX:CA) as its stock finished the day having gained 10.44% to hit a price of $4.76 a share.
Featured Stock: Klondex Mines Ltd. (KLDX) - FactsReporter
Is Buying Stock Like Klondex Mines Ltd (KLDX) After Such Increase Winning ... - Weekly Register
Klondex Mines Ltd. (KLDX) noted a price change of 4.32% and Cousins Properties ...
Stocks Gallery - Jun 26, 2017
In recent trading day Klondex Mines Ltd. (KLDX) stock showed the move of 4.32% with the closing price of $3.62. Closing price generally refers to the last price at which a stock trades during a regular trading session.
Klondex Mines Ltd. (KLDX) fell down -4.17% in the last trading session
HugoPress - Jun 15, 2017
While looking at the SMA values of Klondex Mines Ltd. (KLDX), the 200 simple moving average (SMA) is considered a key indicator by traders and market analysts for determining the overall long-term trend.
Klondex Mines Ltd (KLDX) Position Reduced by CIBC World Markets Inc. - The Cerbat Gem
Analysts Ratings for Klondex Mines Ltd. (KLDX) - Newburgh Gazette
Klondex Mines Ltd. (NYSE:KLDX) Recent Ownership Changes
Post Analyst - Jun 20, 2017
Klondex Mines Ltd. (NYSE:KLDX) reached 26.04% versus a 1-year low price of $2.88. The stock was last seen 4.61% higher, reaching at $3.63 on June 19, 2017.
Klondex Mines Ltd. (KLDX) jumped 4.61 percent in the last trading session - StandardOracle
Klondex Mines Ltd. (KLDX) — Traders Focused Stock - Newburgh Gazette
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.

$4.66 Current Price

$1.17 Growth Price (DCF)

Overvalued by 74.93%


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 23.14%


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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