Klondex Mines Ltd.

Klondex Mines Ltd. 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:

"The Hollister and Esmeralda acquisition will allow Klondex Mines Ltd. to grow through both production and exploration and to build on the impressive results from its active Fire Creek and Midas mines, which are also in Nevada. Those mines delivered a strong Q2/16 to Klondex. The company achieved revenue of $48 million from sales of gold and silver that averaged, respectively, $1,266 per ounce and $16.78 per ounce. Management continues to expect production to increase in the back half of 2016 and is maintaining its guidance for Fire Creek and Midas of 145,000–150,000 GEOs for the full year. . .the acquisition of Hollister and Esmeralda has the potential to supercharge the company's growth plans and to provide shareholders with even more reasons to smile down the road." read more >

Barry Allan, Mackie Research Capital (9/20/16)
"KDX hosted a site visit to True North project and announced results of an initial mine plan. . .resources and reserves were updated at key Fire Creek and Midas mines, and closure on purchase of the Hollister mine is pending. . .KDX also released updated resources for both Fire Creek and Midas. . .Fire Creek is a very high-grade deposit with expansion potential. . .Building in True North, adding new resources at Fire Creek and Midas, and making an estimate of Hollister’s potential worth, offset by share dilution to fund the Hollister acquisition, caused our core NAV/sh to rise."

Josh Wolfson, Dundee Capital Markets (9/20/16)
"Klondex reiterated its 2016 guidance of 145-150 kGEO at total cash costs of $600-650/oz. . .we forecast 2016 production of 155 kGEO at total cash costs of $611/GEO, excluding production associated with test mining & tailings reprocessing at True North. . .in 2H16, Klondex is expecting to recover 8-10 koz from tailings reprocessing and test stope mining. Once fully ramped-up, True North is expected to deliver steady-state average annual production of 45-65 koz at AISC of C$950-C$1,050/oz."

Tara Hassan, Haywood Securities (9/15/16)
"We are increasing our target price for Klondex Mines Ltd. and moving to a Buy as we reflect the Hollister acquisition and slightly more positive assumptions at True North. . .Over the last 9 months, Klondex has made notable headway at True North; most significantly, Klondex has rebuilt the operating team, commenced underground mining, and began retreatment of tailings. . .we expect the addition of Hollister could be a game changer for Klondex as it will improve its cost profile and provide Midas the time it needs to get development and exploration completed on higher grade areas."

Philip Ker, PI Financial (9/15/16)
"We recently participated in a site visit to Klondex Mines Ltd. True North asset in Manitoba. . .management announced a positive go-ahead decision to commence commercial production at the project after completion of an updated reserve/resource estimate and mine plan. . .after review of the project and a small initial resource to work with, we are now believers in the True North asset. . .the True North Mine is expected to add 45,000 – 65,000oz of annual production to Klondex in 2017."

Jamie Spratt, Clarus Securities (9/15/16)
"The reserve and resource update at Klondex Mines Ltd.'s Fire Creek and Midas saw a 5% increase in total reserve ounces to 468k AuEq oz at a grade of 23.2 g/t AuEq. . .we expect the continued extension of mine lives at both assets to continue as further exploration is carried out. . .exploration potential at both Fire Creek and Midas remains significantly untapped. . .KDX offers best in class production growth, low cost production and a solid management execution track record."

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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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
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, VP Mining Analysis – Red Cloud Klondike Strike Inc.
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