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Klondex Mines earns $7.21mln in Q3

Friday, November 4, 2016 7:41
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(Before It's News)

Klondex Mines Ltd. (TSE:KDX, NASDAQ:KDX) earned $7.21mln in the third quarter ended Sept 30, up from $4.12mln in the same period a year ago.

That translates into net income per share of $0.05 versus $0.03 a year earlier. Revenue burgeoned to $53mln, up from $38mln a year ago.

Cost of sales edged up but income from operations more than doubled to $13.1mln from $6.4mln.

In the third quarter the True North project showed how a positive production decision led to the first gold there to be sold, ad there are three producing mines.

Emphasising a strong safety record the company said that there were no lost-time injuries or environmental citations at Fire Creek, Midas or True North.

The company’s financial and liquidity position has been strengthened. Following a C$129.5mln equity offering, the cash balance is $131.1mln, working capital $119.9mln (ratio of 4.1:1), and total liquidity $144.9mln when including the Revolver availability. On October 3, the company remitted $80.0mln for the completion of the Hollister acquisition.

“We continue to deliver on our commitments as our third quarter operating and financial results were in line with our plans. Due to the planned development activities conducted throughout the year, we are well positioned to achieve our full year production and cost guidance,” said Paul Huet, President and CEO.

“We also achieved a milestone in the third quarter by placing our third mine into production. True North has become an important asset in our portfolio and we are excited about its future contributions to our profitability,” he added.

At the Nevada operations the company said in a statement it plans to maintain “our targeted total annual production costs and GEO production guidance, which is expected to be weighted approximately 45%-50% in the first-half of 2016 and 50%-55% in the second-half of 2016.”

It added: “While we maintain our annual total Nevada Operations guidance, our production cash cost per GEO range was decreased by $50 at Fire Creek and was increased by $50 at Midas. Our 2016 GEO production and grades are expected to progressively increase from the first half of the year to the second half of the year following the completion of planned first-half development and silling activities. GEO grades milled at our Nevada Operations were 0.44 oz/ton, 0.52 oz/ton, and 0.55 oz/ton during the first, second, and third quarters of 2016, respectively.”

Story by ProactiveInvestors

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