Klondex Reports 3Q Loss, To Tackle Stockpile In 4Q
Klondex Mines Ltd. (TSX: KDX; NYSE American: KLDX) reports a net loss in the third quarter as revenue fell on lower sales of metals and prices. However, officials hinted at more production in the fourth quarter as the company works through stockpiles. The company lists a net loss of $13.4 million, or 8 cents per share, compared to a profit of $7.3 million, or 5 cents, in the same quarter of 2016. Revenues decreased to $48.9 million from $55.6 million due to fewer ounces sold and a lower realized price per ounce of gold, Klondex says. The company mined 54,172 gold-equivalent ounces, produced 40,819 and sold 38,012. “Mined ounces and consolidated production cash costs for the third quarter were in line with our expectations,” says Paul Huet, president and chief executive officer. “However, we did not process all of the mined ore and built stockpiles, both in Nevada and Canada, during the quarter. We are working through the stockpiles now and anticipate the majority of those ounces will be processed in the fourth quarter, in addition to our planned fourth-quarter production. A significant accomplishment was reached during the third quarter as we began processing Hollister ore through the Midas mill for the first time.” Klondex says it held metal inventory valued at approximately $43.1 million at the end of the third quarter. Klondex says its 2017 production guidance of 213,000 to 230,000 gold-equivalent ounces remains unchanged. This projection now consists of 178,000 to 185,000 produced from Nevada operations. The company is widening its annual production guidance range for Canadian operations by 6,000 ounces to a range of 35,000 to 45,000 gold-equivalent ounces.
By Allen Sykora of Kitco News; firstname.lastname@example.org