Klondex Mines Ltd.

Klondex Mines Ltd. is focusing on the exploration, development and production of its two high-quality gold and silver projects in the mining-friendly jurisdiction of north-central Nevada. The 1200 tpd milling facility is processing mineralized materials from the Midas mine and the Fire Creek project. Midas is fully permitted and has been in operation since 1998. Fire Creek is located ~100 miles south of Midas and is operating an ongoing bulk sampling program that began in 2013. All major infrastructure is in place at Fire Creek.

Expert Comments:

"Among the midtier producers in Nevada, Klondex Mines Ltd. has done a fantastic job. CEO Paul Huet has brought two mines—Fire Creek and Midas—into production, just as he promised. In 2014, the company delivered almost 25% more gold than guidance, over 100,000 ounces (100 Koz). The company has a good EBITDA margin, and a nice free cash flow yield. That company makes money for the investor. Klondex, with a net income of about $18M last year, really made it happen. The first quarter was also impressive, so we expect another outstanding year from Klondex. [On being a possible takeover target] I am sure lots of companies looked at it already and probably have signed confidentiality agreements. The big producers need low-cost production, especially if they have problems with their own operations and fall short on numbers. I just hope a takeover doesn't happen too soon. I really want Paul and his team to show us the potential of these assets." read more >

Derek Macpherson, M Partners (4/15/15)
"Klondex Mines Ltd. delivered another solid quarter from Fire Creek. . .Q1/15 production of 27.2 Koz Au and 354.5 Koz Ag, ahead of our estimates of 22.0 Koz Au and 287.9 Koz Ag. . .driven by better-than-expected gold and silver grades along with modestly more tons processed than modeled. . .we view Q1/15 as another solid quarter for the company as it works to demonstrate consistency to the market. . .consistent operating results and mine-life extension are key to Klondex's shares moving higher. . .we maintain our Buy rating and are increasing our 12-month target price to CA$5.00 per share."

Philip Ker, PI Financial (4/15/15)
"Klondex Mines Ltd. announced a slight beat to production estimates with 32,542 oz Au eq recovered during Q1/15 versus our target of ~30 Koz Au eq. The beat is a result of higher throughput rates at the Midas mill (641 tpd versus estimate of 620 tpd) and increased gold grades leading to higher-than-expected gold recovered during the quarter (27,225 oz versus ~24,500 oz). . .we are increasing our target price to $3.30/share (was $3/share) and maintaining our Buy."

Jamie Spratt, Clarus Securities (4/15/15)
"Klondex Mines Ltd.'s Q1/15 operating results were solid with Au eq production of 32.5 Koz, in line with our estimates. Overall, we view the quarterly results as positive and believe they provide further confirmation that the company is well positioned to drive higher production and free cash flow with the continued ramp-up of its high-margin Midas and Fire Creek projects in Nevada."

"Klondex Mines Ltd. is up more than 30% YTD. . .one of our favorite names continues to be Klondex. It has two high-grade mines in Nevada. We like high grades in a volatile metal price environment because it provides protection for margins and can provide operating flexibility. With the company ramping up production and actively exploring at both assets, it is likely to have positive news flow throughout the balance of 2015 to support the stock. . .recent share price performance may suggest the market is starting to reflect the potential of Midas and Fire Creek. Klondex recently published some drill results from Midas that continue to highlight the high-grade nature and longer life of that mine. Obviously, we continue to like Fire Creek; it has exceptional grades and has the potential for the mine-life to grow. We believe a portion of the discount that Klondex trades at relates to the fact that it is still at an early stage of production, as it has been in commercial production for just over one year. We believe the discount to peers is likely to decline as Klondex continues to execute at both operations. . .we are starting to see a shift in the shareholder base toward institutions and not just traditional mining investors. Some generalists are starting to look at Klondex as a go-to gold name. . .Klondex has been on a good run but we think it is still relatively undervalued." read more >

Henk Krasenberg, European Gold Centre (4/13/15)
"Klondex Mines Ltd. has turned out to be a very remarkable performer since it started production from its newly acquired Midas mine in Nevada in Q1/14, reporting CA$121.7M revenues from 88,352 oz Au eq in 2014. . .with Midas and Fire Creek, the company is estimating to produce 120,000–125,000 oz Au eq in 2015 at an all-in sustaining cost of $800–850/oz. Klondex is an old company with a remarkable young spirit. It is a company on the move."

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Investing Highlights
Free Cash Flow From Operations
High Gold Grades
Low Cash Costs
Klondex Mines Ltd. Content