KDX:TSX; KLDX:NYSE.MKT

Klondex Mines Ltd.

Klondex Mines Ltd. has just received approval to list on the NYSE MKT exchange under the ticker KLDX, with trading beginning Oct. 7. The company 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.
KDX:TSX KLDX:NYSE.MKT

Expert Comments:

Andrew Mikitchook, M Partners (5/12/16)
"Early mining at Klondex Mines Ltd.'s Rice Lake is expected in Q3/16. . .[with] two drills currently operating on site, development work and mining located at the 710 area is expected to begin in July. Klondex then anticipates the release of an updated resource in Q3. . .the company is on track to make a production decision in H2/16. . .with production beginning to ramp up in Q1/17. . .we are maintaining our Buy rating."

Don Blyth, Paradigm Capital (5/12/16)
"Klondex Mine Ltd.’s Q1 results were weak. . .this is an issue of mine sequencing and that the operations should return to normalized levels. The company had guided that the 2016 performance would be back-end weighted. . .this management team has a good track record, and we are willing to believe the full-year guidance will be achieved. We maintain our Buy rating."

Heiko Ihle, Rodman & Renshaw (5/12/16)
"Klondex Mines announced 1Q16 results. . .while cash costs were above our $613/oz estimate, we feel this figure should trend lower over the next three quarters. . .1Q16 grades averaging 0.70 opt at Fire Creek were well below our 1.10 opt estimate, in part due to increased silling activities at the mine. . . [we] recognize the positive benefits the work should have over the remainder of the year and for the long-term development of the mine. We expect a bounce back in both grades and production rates over the remainder of the year."

Philip Ker, PI Financial (5/11/16)
"Klondex Mines Ltd. noted it plans to increase their annual capex budget by US$10M. The quarter was impacted by increased development rates which led to lower head grades. . .this was offset with significant improvements to the mill throughput, which set a record of 810tpd during the quarter. . .with increased capital spending positioning Klondex to have a backend-loaded year of production, we maintain our view management can meet its target of 145-150 Koz Au eq at cash costs of $600-650/oz and AISC of $850-900/oz for 2016."

Barry Allan, Mackie Research Capital (5/11/16)
"Klondex Mines Ltd. has decided to lock in the price of gold and silver for the balance of 2016, hedging 75% of remaining production at US$1,258/oz for gold and US$16.71/oz for silver. At the same time, the company announced increasing 2016 capital to ~US$60M on the Nevada mines. . .Klondex is being both aggressive and defensive."

Josh Wolfson, Dundee Capital Markets (5/11/16)
"Klondex pre-released 1Q production and sales of 30.1 koz AuEq and 31.2 koz AuEq. Co-product total cash costs of $685/oz were 4% below our $711/oz estimate, benefiting from lower implied unit costs at both Fire Creek and Midas. . .Klondex reported basic 1Q earnings of -$1.1MM. After adjusting for one-time items, we calculate adjusted earnings of $1.3MM, $1.9MM above our -$0.7MM estimate."

More Expert Comments

Experts Following This Company

Ralph Aldis, Portfolio Manager, Gold and Natural Resources – U.S. Global Investors
Barry Allan, Vice Chair of Mining Group, and Senior Mining Analyst – Mackie Research Capital
Don Blyth, Analyst – Paradigm Capital
Sam Crittenden, Research Analyst – RBC Capital Markets
Michael Curran, Managing Director, Research Analyst – Beacon Securities Ltd.
Ryan Hanley – Mackie Research Capital
Tara Hassan, Analyst – Haywood Securities
Frank Holmes, Chairman – U.S. Global Investors
Heiko Ihle, Managing Director – H.C. Wainwright & Co., Rodman & Renshaw
Louis James, Editor – Casey Research
Philip Ker, Mining Analyst – PI Financial
Douglass Loud, Executive Director – Axiom Capital
Brien Lundin, Author Gold Newsletter (Jefferson Financial)
Derek Macpherson, Analyst
Andrew Mikitchook, Analyst – M Partners
David Morgan, Publisher – Silver Investor
Jeffrey Mosseri, President, Director – Greystone Asset Management, LLC., Axiom Capital
Menal Patel, Analyst – National Bank Financial
Rahul Paul, Research Analyst, Metals and Mining – Canaccord Genuity
Gwen Preston, Founder Resource Maven
Carsten Ringler, Founder – Ringler Research
Jamie Spratt, Analyst – Clarus Securities
Jay Taylor, Author Gold, Energy & Tech Stocks
Josh Wolfson, VP, Senior Analyst Gold & Precious Metals – Dundee Capital Markets

The information provided above is from analysts, newsletters, the company and other contributors.

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Investing Highlights
 
Free Cash Flow From Operations
 
High Gold Grades
 
Low Cash Costs