Klondex Mines Ltd.

Klondex Mines Ltd. has just received approval to list on the NYSE MKT exchange under the ticker KLDX, with trading beginning Oct. 7. The company 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:

"A company we have talked about since we've been doing the interviews is Klondex Mines Ltd. (KDX:TSX; KLDX:NYSE.MKT). Success really depends on the people running these companies. It was a game changer when Paul Huet, CEO of Klondex, came on the scene three years ago. Klondex recently completed an acquisition and the market got jittery. It bought the Rice Lake mine out of bankruptcy for around $30M from a controversial name, San Gold Corp. There is still some $20+M of mobile mining fleet at the mine site and the mill was on care and maintenance. I think the real problem with San Gold was that it was trying to grow this asset beyond the natural mining rate. The trouble is if a company upsizes the mill and the underground operation can't keep up, it is forced to mine lower grades to get the tonnage and that is a losing proposition. Klondex is looking at turning it into perhaps a 50 Koz producer, maybe 70 Koz. That is much more economic. . .Klondex is going to re-evaluate the mine plan. In nine months or so we should have a better understanding of how it will operate. We may have other catalysts before that related to Fire Creek and Midas exploration results. That is why I'm pretty confident this thing is going to be a very good performer for us this year." read more >

Andrew Mikitchook, M Partners (1/20/16)
"Klondex Mines Ltd.'s Q4/15 operating results saw production decrease 5% quarter-over-quarter, to 30,249 oz Au eq. . .the company reported Q4/15 operations were impacted by heavy snowfall at the mill during December. . .largely driven by lower-than-modeled silver grades during the quarter, we have increased our Q4/15 cash cost estimate. . .we are maintaining our Buy rating on Klondex's stock but are reducing our 12-month target price to CA$4.50/share (was CA$4/75/share)."

Philip Ker, PI Financial (1/20/16)
"Klondex Mines Ltd. announced its annual and quarterly operating results from its Nevada-based operations, realizing production of 127,527 oz Au eq in 2015 and 30,249 oz Au eq in Q4/15. Total results were in line with expectations. . .we continue to remain confident that the company can maintain its high-grade profile while focusing on increased throughput to its Midas mill as well as begin to adequately evaluate its new Rice Lake acquisition."

Josh Wolfson, Dundee Capital Markets (1/20/16)
"Klondex Mines Ltd.'s consolidated 2016 production guidance is for 145–150 Koz Au eq, 6% above our 137 Koz Au eq estimate. . .2016 output is expected to benefit from a higher proportion of tons sourced from the company's higher-grade, lower-cost Fire Creek mine. . .our Klondex 12-month target price is CA$3.50."

Jay Taylor, Gold, Energy & Tech Stocks (1/14/16)
"The Rice Lake mine looks like it should fit very well into Klondex Mines Ltd.'s skill set. The acquisition is expected to close sometime during the current quarter. . .the Klondex focus has always been on mining high-grade narrow structures from underground, and the company has proven to be very good at it. . .assuming we are at or near the bottom for the gold price, I believe Klondex will be one of the first big winners among our producers in 2016 as investors begin to realize the value added with the acquisition of Rice Lake."

Philip Ker, PI Financial (1/11/16)
"Klondex Mines Ltd. continues to be one of the sector darlings. The intermediate share price pressure likely comes on the heels of the Rice Lake mine acquisition for CA$32M, which leaves the company in uncertain territory with increasing capital cost expectations heading into 2016."

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
Doug Casey, CEO / Chair – Casey Research
Jeff Clark, Senior Editor – Casey Research
Sam Crittenden, Research Analyst – RBC Capital Markets
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
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 – Axiom Capital
Brien Lundin, Author Gold Newsletter (Jefferson Financial)
Derek Macpherson, Analyst
Andrew Mikitchook, Analyst – M Partners
David Morgan, Publisher – Silver Investor
Jeffrey Mosseri, President, Director – Greystone Asset Management, LLC., Axiom Capital
Björn Paffrath, Director – Stabilitas-Fonds
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
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