Klondex Mines Ltd
Klondex Mines Ltd
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Miner Klondex is looking to raise up to $115M to buy the Hollister-Esmeralda mines near its Midas Mine and Fire Creek operations in N Nevada, US.
With increased FY/CY2015 gold equivalent production and more expected in 2016, Klondex Mines has lifted its after tax 2015 net profit to $US22.5M from 2014’s $16.M profit.
The result was on revenue up to $115.2M from $110M for a $42.2M gross profit from $32.6M.
Klondex Mines is looking for an even better 2016 after increased 2015 gold-silver production from its US operations lifted profit $6.5M to $22.5M
Klondex Mines has followed the 1st year of production from its Midas Mine and Fire Creek project in N Nevada, US, with a FY/CY2015 127,530oz gold equivalent, up 20% on the previous year, but short of its Oct upgraded guidance of 130,0000z-135,000oz AuEq.
However, the company is expecting a 16% jump in 2016 production to 145,000oz-150,000oz AuEq at cash costs of $C600oz-$650oz AuEq, AISC of $850oz- $900oz gold and all-in-costs, including both growth and sustaining capital, of $950oz- $1,000oz Au.
Klondex will rely on its expertise with narrow vein underground mining after acquiring the idle Rice Lake mine and mill complex near Bissett in Manitoba, Canada for $US32M in a bankruptcy sale.
President-CEO Paul Andre Huet says Fire Creek and Midas in Nevada USA remain its prime focus, but Klondex will use selective mining techniques to deliver higher-margin ounces at Rice Lake.
Despite a slip in Sept 2015 qtr (Q3 2015) gold equivalent production from its Midas Mine and Fire Creek projects in Nevada, US, Klondex Mines has lifted FY/CY2015 production expectations by 5,000oz to 130,0000z-135,000oz AuEq.
Klondex Mines has lifted measured/indicated gold equivalent resources for its Fire Creek and Midas operations in N Nevada, US, by 88,400oz after FY2015 depletion.
Using a gold price of $US1,200oz and $19oz silver, Fire Creek’s M&I resources are up 13% to 473,300oz AuEq, with inferred resources up 22% to 441,500oz.
Midas’ M&I resources are also up 7% to 561,600oz, but with inferred resources down 8% to 267,500oz.
Gold-silver miner Klondex Mines is raising up to $C30.2M on a bought deal basis from a syndicate of underwriters -- $26.27M from 7.4M shares at $3.55oz, with an option for an additional 1.11M shares.
The proceeds are expected to be used primarily for debt repayment and continued exploration/development at the Midas Mine and Fire Creek project in north-central Nevada, US, expected to produce 125,000oz-130,000oz gold equivalent in FY/CY2015.
A strong first half has prompted Klondex Mines to lift FY/CY2015 gold equivalent production to 125,000oz-130,000oz from 120,000oz-125,000oz from its Midas Mine and Fire Creek Gold-Silver Project in north-central Nevada, US.
The move follows record sales of 34,188oz AuEq in Q2 2015 from 26,768oz gold and 543,251oz silver from Q1’s 32,542oz AuEq, comprised of 27,225oz gold and 354,455oz silver.
H1 sales were up 120% on H1 2014 to 65,601oz AuEq, with gold up 128% to 53,900oz and silver up 111% to 847,808oz.
Increased costs have taken some of the shine off Klondex Mines’ Mar 2015 qtr (Q1 2015), with production from its 2 gold-silver projects in north central Nevada, US, and net income both up a little.