Ben Kramer-Miller
Gold & precious metals, macro, research analyst, deep value

The New And Improved Klondex Mines Is Highly Undervalued

Klondex Mines (OTCQX:KLNDF) has been one of the best performing gold stocks this year, having gained 20% despite the broader sector falling more than 60%.

(click to enlarge)

This outperformance is likely due to several factors:

  • Klondex's operations are in Nevada, which is an appealing place to mine.
  • Klondex has very high grade deposits at its Fire Creek property.
  • Klondex is moving rapidly towards production, which is expected to begin in 2014.

These are all points I made when I first recommended the company's shares back in August to investors looking for speculative gold mining companies.

Since then the company has released an updated resource estimate that is very telling with regard to management's strategy. While in the...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details