Klondex Mines Reports Adjusted Profit In 4Q
Klondex Mines Ltd. (TSX: KDX; NYSE American: KLDX) reports a net loss in the fourth quarter that the company attributes to changes in U.S. tax laws, but finished with an adjusted profit. The net loss was $7.7 million, or 4 cents per share, compared to a profit of $2.2 million, or 2 cents, in the year-ago period. The October-December bottom line was negatively impacted by $8.9 million for higher income-tax expense related to changes in tax laws, Klondex reports. Excluding this impact, company’s adjusted net income was $1.2 million, or a penny per share. Klondex says it mined 55,893 gold-equivalent ounces (GEOs), with production of 47,619. For full-year 2017, the company reports a net loss of $23.7 million, or 13 cents, compared to a loss of $1.7 million, or a penny, in 2016. Excluding the impact of tax-law changes, the adjusted net loss for 2017 was $14.8 million, or 8 cents, Klondex says. The company reports that it mined 222,233 GEOs, with production of 189,456 GEOs, an increase of 17% from 161,289 produced during 2016. “The company produced more ounces and generated more revenue during 2017 than any year in the organization’s history,” says Paul Huet, president and chief executive officer. “However, we did not deliver on our stated objectives and we understand that is not acceptable. We have learned from the challenges in 2017 and are moving forward….We are confident in our plans and are determined to deliver on our stated operating and cash-flow objectives for 2018.” The company projects output of between 186,000 and 202,000 GEOs during 2018 at an expected production cash cost per GEO sold of $675 to $725. Higher levels of output are expected during the second and third quarters due to the processing of tailings, Klondex says.