Klondex Mines Ltd (NYSEMKT:KLDX) Produces 37,000 Gold Equivalent Ounces


Canadian gold and silver mining company Klondex Mines Ltd (NYSEMKT:KLDX) closed Thursday at $5.39, up 3.26% on volume of 280K shares.

Despite slow gold prices, precious metal mining companies generally closed in the green yesterday: Argonaut Gold was up 6.16%, Franco Nevada Corp gained 1.59%, Teranga Gold Corp closed higher by 5.73% and Timmins Gold Corp was higher by 2.66%.

Klondex is a junior mining company having 100% ownership interest in the Fire Creek Mine and the Midas Mine and ore milling facility, both of which are located in the state of Nevada, USA, and the True North Gold Mine and mill in Manitoba, Canada. It recently acquired additional interests in the Hollister mine and the Aurora mine and ore milling facility, also located in Nevada.

Klondex had some tailwind from its announcement yesterday of preliminary production numbers for its third quarter 2016.

Klondex Mines Ltd (NYSEMKT:KLDX) third quarter production

The company produced 37,070 gold equivalent ounces (GEOs) from its Fire Creek, Midas and True North mines during its third quarter ended September 30, 2016.

For the nine months ended on that date, it produced 108,634 GEOs.

Mr. Paul Huet, President and CEO, said the third quarter production was in accordance with plans and that the company remained on track to achieve its annual production guidance.

The company reaffirmed its 2016 production guidance of 145,000 to 150,000 GEOs from the Nevada operations and 8000 to 12,000 gold ounces from mining and processing tailing at the True North mines.

It anticipates that cash costs per GEO will be in the range of $600-$650 through 2016 and that its capex will range from $55 million-$60 million in that period.

All in cost per gold ounce is expected in the range $1025-$1075.

“We have positioned ourselves to finish the year on a high note,” said Mr. Huet.


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