Klondex Mines Ltd
Klondex Mines Ltd
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Completion of Klondex Mines’ takeover in July 2018, bringing 3 high-grade gold mines in Nevada, US, into the Hecla Mining fold, has had little impact on the company’s bottom line other than reduce the company’s Dec 2018 year (FY/CY18) net loss to $US27.1M from FY/CY17’s $29.07M loss.
The loss was on silver-gold-lead-zinc sales easing to $567.13M from $577.77M, gross profit down to $79M from $152.4M, adjusted EBITDA to $211.9M from $231.9M and cash from operating activities falling to $94.2M from $115.8M.
Despite record FY18 gold production following the mid-2018 Klondex takeover, Hecla’s silver production has fallen over 2Moz, albeit cutting its loss $2M to $27M
The recent acquisition of Klondex Mines and its 3 high-grade gold mines in Nevada, US, but still hampered by the long-running Lucky Friday mine strike in Idaho, US, has seen Hecla Mining post record Dec 2018 year (FY/CY18) gold production of 262,103oz, up 13% on 2017.
However, silver production fell 17% to 10.4Moz, with lead output down 12% to 20,091t, but zinc up 2% to 56,023t.
The recent Klondex acquisition has helped Hecla to record FY18 gold production, countering strike-riven San Sebastian, albeit with silver down 17%
2-months of gold production from recently acquired Klondex Mines, adding 3 high-grade gold mines in Nevada, US, has lifted Hecla Mining’s Sept 2018 9-months (YTD18) gold output 11% to 191,115oz on the 2017 period, while its primary focus silver output fell 19% to 7.65Moz on expected lower grades at Greens Creek in Alaska.
US, Canada and Mexico primarily silver miner Hecla Mining has completed its mutually agreed $US462M cash or shares takeover bid for US-Canada miner Klondex Mines adding 3 high-grade mines in Nevada, US, to its portfolio, along with other assets.
The addition of Klondex’ 3 Nevada operations is expected to lift pro-forma FY18 production by 27% or about 162,000oz pa AuEq on top of Hecla’s 3 high quality, precious metals mines.
An acquisitive, cashed up Hecla Mining has seen its Mar 2018 qtr (Q1 18) silver production fall to 2.5Moz from Q4 17’s 2.98Moz and gold down to 57,808oz from 60,964oz, but with lead up to 5,627tons from 4,307t and zinc to 15,211t from 12,107t.
Canada-US-Mexico gold-silver miner Hecla Mining has launched a $US462M cash or shares takeover bid for US-Canada miner Klondex Mines.
The mutually agreed plan of arrangement, for either 0.6272 Hecla shares or $2.47 in cash, will give Klondex a 16.2% stake in Hecla, which will also acquire a 13.46% stake in new company Klondex Canada, formed to hold Klondex’ Canadian assets, for $7M.
Hecla Mining has launched a mutually agreed, $462M cash/shares bid for Klondex Mines and its burgeoning Nevada, US, operations. By MBM’s North American correspondent
Klondex Mines’ 9-months Sept 2017 YTD net loss has blown out to $US15.92M from the 2016 period’s $3.87M loss, on revenues down to $37.73M from $52.28M.
The US/Canada miner’s bottom line was savaged by production costs up to $94.03M from $70.68M, depreciation/depletion to 33.27M from 19.11M and $12.3M of write-downs of production inventories.