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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:

Philip Ker, PI Financial (5/14/15)
"Klondex Mines Ltd. continues its solid performance after prereleasing Ag eq sales of 31,703 oz during the quarter. . .the company remains well positioned to meet capital requirements for development and exploration over the remainder of 2015 and possesses a working capital position of $56.2M. . .we continue to remain confident that the company's exploration and development efforts over 2015 will lead to further discoveries and conversion of resources to reserves while also increasing the number of working faces within its respective operations. After more aggressively advancing waste development into new ore zones and driving into deeper levels at Fire Creek, Klondex should realize decreasing cash costs to be more inline with guidance (CA$688–750/oz)."

Derek Macpherson, M Partners (5/14/15)
"Considering Klondex Mines Inc.'s reasonable cash costs and current stage of development, we view Q1/15 as another step in the right direction. . .to prepare for the planned resource and reserve update in Q3/15, the company currently has eight drills active (five at Fire Creek and three at Midas). We expect steady news flow as Klondex works to move existing resources into reserves and add resources in new areas at both projects."

Jamie Spratt, Clarus Securities (5/14/15)
"Klondex Mines Ltd. is on track to meet guidance of 120–125 Koz Au eq. . .with $55M in cash and projected free cash flow of $19M in 2015, the company remains well positioned to fund its $33M exploration/development program. . .Klondex is an undervalued low-cost producer with significant free cash flow growth generation from its two high-grade gold projects in Nevada."

Barry Allan, Mackie Research Capital (5/14/15)
"Klondex Mines Ltd. announced Q1/15 of production of 32.5 Koz having been pre-released (using the company's gold-silver ratio), better than our estimate of 30.1 Koz due to slightly better grade and more tons processed. . .we are raising our target to CA$4 from CA$3 due to better-than-expected ore grades coming out of Fire Creek. . .we foresee the share price continuing to rise with better operating results."

Josh Wolfson, Dundee Capital Markets (5/13/15)
"Klondex Mines Ltd. reported Q1/15 adjusted earnings per share of CA$0.03 (our estimate), above our estimate of CA$0.02. . .higher corporate costs were offset by lower depreciation expense, resulting in modestly better earnings relative to our estimate. . .despite weak free cash flow, cash increased by CA$2.1M from last quarter due to one-time inflows of CA$7.8M related to a reclamation bond recovery and foreign exchange benefit. In our view, financial results are weaker than expected, although we forecast future quarters will improve from Q1/15 results."

Derek Macpherson, M Partners (5/13/15)
"Klondex Mines Ltd. reported Q1/15 financial results which we would characterize as decent considering the company's ongoing ramp-up but were a slight miss relative to our estimates. . .earnings per share came in ahead of estimates as the result of the positive CA$9.5M foreign exchange adjustment in the quarter. . .partially offset by higher cash costs and general and administrative expenses. . .we are reviewing our estimates, but our long-term view is likely to remain unchanged."

More Expert Comments

Experts Commenting on This Company

Ralph Aldis
Barry Allan
Doug Casey
Jeff Clark
Sam Crittenden
Joe Foster
Tara Hassan
Frank Holmes
Tommy Humphreys
Louis James
Philip Ker
Henk Krasenberg
Pierre Lassonde
Thibaut Lepouttre
Douglass Loud
Derek Macpherson
Jeffrey Mosseri
Björn Paffrath
Lawrence Roulston
Rick Rule
Jamie Spratt
Jay Taylor
Oliver Turner
Josh Wolfson

The information provided above is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.
Investing Highlights
 
Free Cash Flow From Operations
 
High Gold Grades
 
Low Cash Costs
Klondex Mines Ltd. Content