Klondex Mines Ltd.

Klondex Mines Ltd. (TSX: KDX; NYSE MKT: KLDX) is on the path to building a leading integrated gold and silver producer focused in North Central Nevada. The company is producing from its Midas mine, and operating an ongoing bulk sampling program at its Fire Creek high-grade gold project. Midas, Klondex’s newly acquired operating mine and milling facility are located ~100 miles north of Fire Creek. Klondex’s secondary focus is acquiring, exploring and developing other gold and silver properties in Nevada. Currently Klondex has three other gold exploration properties, and it reviews and considers other projects for inclusion.

Expert Comments:

Philip Ker, PI Financial (8/25/16)
"Klondex Mines Ltd. announced a strategic acquisition of the Hollister and Esmeralda mines and mill from Waterton Global Resource Management for a total value of US$100M. . .we anticipate Hollister becoming a strong complement to high grade ore coming from Fire Creek and foresee Klondex realizing production in 2017 at a 200tpd rate. Notably, Hollister's high grades has the potential to realize head grades of >1oz/t Au-Eq and could provide Klondex an additional 86,000oz Au-Eq of production next year at exceptional cash costs in the $475/oz range."

Jamie Spratt, Clarus Securities (8/23/16)
"We are off restriction following the closing of Klondex Mines Ltd.'s C$129.5MM bought deal financing at C$5.00 per share which funds the acquisition of the Hollister mine. . .the transaction includes the acquisition of the Hollister Mine, the Esmeralda Mine and milling complex and other assets in Nevada. The transaction is accretive to our NAVPS (+14%) and to our 2018E CFPS (+14%). . .the deal puts Klondex on a solid path to ~280 koz in annual production by 2018 while leveraging management's experience and knowledge of the Hollister asset."

"Insider ownership [of mining companies] has been very low compared to other industries, thus there is little motivation to help existing shareholders to even recoup their original investment. I have seen shareholder revolts, but these revolts seldom succeeded. One of the few exceptions is Klondex Mines Ltd.; shareholders successfully went to court, fired the management team, and Klondex became one of the very few successful stories during the past downturn. But stories like Klondex are very rare, as many juniors wiped out most of their investors." read more >

Brien Lundin, Gold Newsletter (Jefferson Financial) (8/1/16)
"Klondex Mines Ltd. made a big splash with the announcement of an agreement to acquire the Hollister and Esmeralda mines in Nevada; the deal is subject to a number of conditions, not the least of which is Klondex's need to raise at least US$165M in equity financing to cover the purchase price. . .the move provides Klondex with a steep potential growth profile, and builds upon the success it has enjoyed at Fire Creek and Midas, its Nevada-based mining operations. . .Klondex recently released some eye-popping assays from underground drilling on its True North gold mine in Manitoba."

Stuart McDougall, M Partners (7/18/16)
"Klondex Mines reported Q2/16 production of 41,436oz AuEq, beating our estimate of 37,300 oz AuEq. . .Q1/16 reflects a combination of higher mining rates, stronger gold grades and improved silver recoveries at the Fire Creek mine. Production at the Midas mine was essentially in line, with higher throughput rates offsetting lower-than-expected grades."

Paradigm Capital's top picks for Q3/16 include gold and zinc mining companies with upcoming catalysts worthy of investors' attention.
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Heiko Ihle, Rodman & Renshaw (7/13/16)
"Klondex Mines Ltd. announced 2Q16 production results. . .which represent a strong increase over 1Q16 production figures. . .The increase in tonnage, coupled with higher grades during the quarter, paved way for the firm to achieve record quarterly production. In short, we continue to believe our 145,800 gold equivalent ounce estimate for 2016 remains not only achievable but could be beaten. . .We are reiterating our Buy rating and $5.25 per share price target."

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
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
Chen Lin What Is Chen Buying? What Is Chen Selling?
Brien Lundin, Author Gold Newsletter (Jefferson Financial)
Derek Macpherson, Analyst
Stuart McDougall, VP Research Analyst – Jennings Capital
Andrew Mikitchook, Analyst – M Partners
David Morgan, Publisher – Silver Investor
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