The release of Klondex Mines’ full-year and fourth-quarter numbers for 2016, as well as limited guidance for 2017, prompted commentary by analysts following the company’s operations in both the United States and Canada.
In 2016, Klondex Mines Ltd. (KDX:TSX; KLDX:NYSE.MKT) reported that, “operations at Fire Creek and Midas produced a record 43,264 gold equivalent ounces (GEOs) during the fourth quarter, bringing the full year 2016 Nevada production total to 150,099 GEOs, slightly above the top end of the Company’s guidance of 145,000 to 150,000 GEOs. Fourth quarter production benefited from planned higher grades at both Fire Creek and Midas as well as planned higher mining rates.”
Also in its Jan. 18 announcement, Klondex stated that it “expects to produce between 210,000 and 225,000 GEOs during 2017 at an expected cash cost of $680 to $710 per GEO sold. This represents an increase in GEOs sold of approximately 37% from the prior year as the Company benefits from bulk sampling production at its Hollister project in Nevada as well as higher production from its True North mine in Canada as ramp-up continues. Fire Creek and Midas’ 2017 production is expected to be in line with the prior year.”
Commenting in a research report released Jan. 19, Mackie Research analyst Barry Allan observed, “KDX continues to achieve good operating results while at the same time digesting two new mines that presented prior operators with challenges. Adding value for the newly purchased Hollister mine and upgrading our forecast for 2017 and beyond, coupled with a drop in the share price, allows us to upgrade to BUY from HOLD.”
“We expect 2017 to feature strong production growth,” Heiko Ihle of Rodman & Renshaw wrote in a Jan. 20 research report. The analyst noted that, “In our view, operations at both Midas and …read more