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:

"I really like Klondex Mines Ltd. The share price is up 70% since the beginning of 2015. [The assay results from 44 holes at Fire Creek in Nevada] are very positive. The drill campaign confirmed that Fire Creek is a high-grade asset that is underexplored. All of those results will be put into a new resource model. The company generates free cash flow on production, even in this market. Klondex has an underutilized 1,200 tpd mill, so it has the capacity to further boost production. I think management did an excellent job delivering what it said it would deliver. [Until recently the tonnage that Klondex could actually mine was capped. But the cap has been lifted.] That was a big milestone, and until it was lifted Klondex produced gold under a bulk-mining permit. Now that the company has no restrictions, it can mine more ore there. All the news in the last two or three months has been quite positive. I expect the company to grow in the coming years." read more >

Tara Hassan, Haywood Securities (8/14/15)
"We continue to expect Klondex Mines Ltd.'s share price performance to remain strong given its ability to generate free cash flow at gold prices below current levels. . .the company has grown its cash balance by CA$15M in H1/15, which we believe has been a key driver of its outperformance. . .with cash of CA$68M and only CA$23M in debt, Klondex is well positioned to weather a lower-price environment and still has the ability to consider internal and external growth opportunities."

Tara Hassan, Haywood Securities (8/13/15)
"Last night Klondex Mines Ltd. released Q2/15 financial results that topped consensus and our expectations. The beat was largely driven by higher production at lower than expected operating costs. . .we were encouraged to see a ramp-up of mill throughput in the quarter (up 9%) and an improvement in silver grades (up 15%). The company has increased its production guidance and decreased its all-in sustaining cost guidance. . .Klondex ended the quarter with a cash balance of CA$68M, well above our estimate of CA$56.7M."

Derek Macpherson, M Partners (8/13/15)
"Klondex Mines Ltd. reported Q2/15 financial results that reflect the company's strong operating performance in the quarter and were generally in-line with our estimates. . .we believe investors are likely to view this quarter positively as strong operating results translated into strong financial results. . .we expect Klondex to steadily ramp up production to over 200 Koz Au eq per year by 2020."

Josh Wolfson, Dundee Capital Markets (8/13/15)
"Klondex Mines Ltd. reported Q2/15 adjusted earnings per share of $0.05, above our estimate of $0.02 and consensus of $0.04. . .co-product total cash costs of $605/oz were 9% below our estimate of $663/oz largely due to better performance at Midas ($754/oz vs. $938/oz). . .quarter-end cash improved to CA$67.8M, CA$11.5M better than our CA$56.3M estimate. . .at Midas, construction of its tailings dam life is underway, while at Fire Creek the company continues to work on its environmental assessment, with completion now expected by late 2015 or early 2016."

Barry Allan, Mackie Research Capital (8/13/15)
"Klondex Mines Ltd.'s Q2/15 production was 33.0 Koz Au eq at $605/oz compared to our 31.1 Koz Au eq at $640/oz, mostly due to slightly better silver production from Midas mine. . .we had forecast a good operational quarter, and the company delivered. . .the balance sheet continues to strengthen nicely. . .we foresee the share price continuing to rise with better operating results, particularly following the completion of the economic assessment and ramp-up at Fire Creek."

More Expert Comments

Experts Commenting on 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
Doug Casey, CEO / Chair – Casey Research
Jeff Clark, Senior Editor – Casey Research
Sam Crittenden, Research Analyst – RBC Capital Markets
Tara Hassan, Analyst – Haywood Securities
Frank Holmes, Chairman – U.S. Global Investors
Tommy Humphreys, Author – CEO.CA
Louis James, Analyst – Casey Research
Philip Ker, Mining Analyst – PI Financial
Henk Krasenberg, Chairman – European Gold Centre
Pierre Lassonde, President – Franco-Nevada Corp.
Thibaut Lepouttre, Editor Caesars Report
Douglass Loud, Executive Director – Greystone Asset Management, LLC.
Derek Macpherson, Analyst – M Partners
Jeffrey Mosseri, President, Director – Greystone Asset Management, LLC., Axiom Capital
Björn Paffrath, Director – Stabilitas-Fonds
Gwen Preston, Founder – Resource Maven
Carsten Ringler, Founder – Ringler Research
Lawrence Roulston – Metallica Development Fund Ltd., Quintana Resources Capital ULC
Rick Rule, Chairman – Sprott Global Resource Investments Ltd.
Jamie Spratt, Analyst – Clarus Securities
Jay Taylor, Author Gold, Energy & Tech Stocks
Oliver Turner – GMP Securities
Josh Wolfson, VP, Senior Analyst Gold & Precious Metals – Dundee Capital Markets

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