Klondex: Record 2017 Output Falls Short Of Revised Guidance
Klondex Mines Ltd. (TSX: KDX; NYSE American: KLDX) reports that 2017 production was a record 189,456 gold-equivalent ounces, an increase of 17% from 161,289 in 2016. However, this was below the most recent guidance range primarily due to results from Hollister and True North, Klondex says. At Hollister, the company opted to defer processing of a majority of the mined Hollister ore as it continued to optimize recoveries at the Midas mill for this ore. Stockpiles at the end of 2017 contained approximately 15,000 GEOs from 44,000 tons, in line with expectations. Also, expected output was not achieved at True North as a result of aggressive expectations and operational issues, Klondex says. Fourth-quarter output was 47,619 GEOs. “2017 was a year of progress and learning for Klondex,” says Paul Huet, president and chief executive officer. “The company produced more ounces than any year in the company’s history, 28,000 GEOs or 17% more than last year. Our core operations, Fire Creek and Midas, continue to perform well, as expected.” For 2018, Klondex listed guidance of 186,000 to 202,000 ounce at all-in sustaining costs of $940 to $990. Production will not be equally distributed by quarter during the year as higher levels are expected during the second and third quarters due to the processing of tailings, Klondex says.