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:

Philip Ker, PI Financial (10/17/16)
"Klondex Mines Ltd. provided its Q3/16 production results from its Nevada operations and its recently commissioned True North mine in Manitoba. . .on a positive, Fire Creek exceeded our expectations with head grades of 0.97 oz/t gold versus our target of 0.90 oz/t. . .Klondex made a “go-ahead” production decision at its True North project in Manitoba and contributed to 1,752oz of gold production from its tailings reprocessing initiative. . .with three mines now in operation and generating cash flow, we now rate Klondex with an Above Average risk rating (was Speculative)."

Heiko Ihle, Rodman & Renshaw (10/17/16)
"Following the positive production decision at the True North Gold Mine in Canada, Klondex Mines Ltd. continued with its acquisitive stance and purchased the Hollister and Esmeralda mines and mill. . .we think Klondex is well on its way to becoming an underground gold mine consolidator in Nevada as the firm should have three operating mines in close proximity of each other feeding the Midas mill. . .we are reiterating our Buy rating and C$5.75/share price target on Klondex Mines. . .our valuation is based on an equally weighted composite of a DCF of operations at Fire Creek and Midas."

Jamie Spratt, Clarus Securities (10/14/16)
"We believe Klondex Gold Corp. is well positioned with a best-in-class growth profile driven by the addition of the True North and Hollister mines that would approximately double companywide production to ~300 koz by 2018. . . We now estimate production of 150 koz AuEq for 2016, in line with annual guidance of 145 – 150 koz. We model 222 koz AuEq of production in 2017 which includes 50 koz from True North. approximately double companywide production to ~300 koz by 2018. . . We maintain our BUY rating at a target price of $8.50 per share."

Stuart McDougall, M Partners (10/13/16)
"Klondex Mines Ltd. released results from 36 historic underground and five historic surface holes drilled at the Hollister mine in Nevada. . .The underground holes tested the Gloria West area, tracing a multi-vein system over 244m of strike and 91m of vertical extent. . .our BUY recommendation and target price of C$8.50/share remain unchanged. . .our target continues to be based on 1.3x our project NPV of $3.46/share, plus adjustments for exploration upside($2.44/shr), corporate expenses, cash and options/warrants at par. Our long-term(2017+)commodity and forex assumptions are:$1,400/oz Au, $22/oz Ag, and 0.80 US$/C$."

Brien Lundin, Gold Newsletter (Jefferson Financial) (10/1/16)
"Klondex Mines Ltd. announced a modest increase in the global reserves at its Fire Creek and Midas operations in Nevada. . .The new estimate included a 41% increase in Midas' mineral reserves (to 174,000 gold equivalent ounces). . .Good news on the reserve and resource fronts comes as the company is in the process of acquiring the Hollister mine and Esmeralda processing facility. . .the addition of these assets has the potential to raise Klondex's production profile considerably at a time when higher gold prices seem to be in the cards. . .the company continues to perform well in 2016."

Jeff Killeen, CIBC World Markets (9/29/16)
"As of September 29, we are initiating coverage of Klondex Mines Ltd. with a Sector Performer rating and a 12-to-18 month price target of C$8.00. Klondex has emerged as a gold and silver producer with two operating underground mines in Nevada and has augmented operations with two recent acquisitions, including the True North mine in Manitoba, Canada, and the Hollister and Aurora (previously Esmerelda) mines in Nevada. . .We foresee opportunity for KDX to drive shares higher. . .We regard successful re-starts in Canada and Nevada as primary catalysts for KDX shares over the medium term."

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
Heiko Ihle, Managing Director – H.C. Wainwright & Co., Rodman & Renshaw
Philip Ker, Mining Analyst – PI Financial
Jeff Killeen, Analyst – CIBC World Markets
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
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