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In its first year of production, Klondex Mines (TSX:KDX,OTCQX:KLNDF) reported a CAD$18.3 million net income for 2014, with a cash balance of $52.8 million as of December 31, 2014. Cash flow for 2014 was $33.1 million.
As quoted in the press release:
Fourth Quarter and Year End 2014 Financial Highlights
- Production costs for the fourth quarter per gold equivalent ounce (“GEO”) sold were $685 (US$603); full year were $679 (US$585); fourth quarter production costs per gold ounce sold on a by-product basis were $553 (US$487); fiscal year were $526 (US$454) (See “Non-IFRS Measures”).
- Cash balance as of December 31, 2014 was $52.8 million.
- Working capital as of December 31, 2014 was $56.0 million.
- Revenue for the fourth quarter was $44.6 million from the sale of 32,617 GEOs which consisted of 26,272 gold ounces and 400,706 silver ounces, at an average realized price of $1,401 (US$1,234) and $19.48 (US$17.15), respectively.
- Revenue for the year was $121.7 million from the sale of 88,352 GEOs which consisted of 70,661 gold ounces and 1,117,288 silver ounces, at an average realized price of $1,399 (US$1,264) and $20.44 (US$18.47), respectively.
- Net income for the fourth quarter totaled $9.0 million or $0.07 per basic share. Net income for the year was $18.3 million or $0.16 per basic share.
- Cash flow for the fourth quarter provided by operating activities was $10.7 million; for the year was $33.1 million.
- Capital expenditures for the fourth quarter were $10.5 million; for the year were $30.8 million, principally for exploration and development at both sites.
- GEOs recovered in the fourth quarter were 30,460 which consisted of 22,262 gold ounces and 517,761 silver ounces; fiscal year GEOs recovered were 107,861 which consisted of 86,239 gold ounces and 1,365,586 silver ounces.
2015 Operational Targets
- Klondex provides the following guidance for 2015:
- Production of 120K-125K GEOs
- Production costs on a gold equivalent basis $688-750 (US$550- $600)
- All-in sustaining costs on a gold equivalent basis $1,000-1,063 (US$800 – $850)
- The cost guidance was prepared in USD and converted to CAD using an exchange rate of 1.2511, the Bank of Canada noon rate at March 24, 2015.
Klondex President and CEO, Paul Huet, said:
In our inaugural year of production, we recovered approximately 108K gold equivalent ounces, and our working capital increased to $56.0 million. The year was highlighted by the acquisition of the Midas mine and mill, transforming the Company into a multi-asset producer. We were able to take advantage of the many synergies between Fire Creek and Midas to become one of the lowest cost gold producers with a company-wide production cost per gold ounce sold on a by-product basis of US$454 in 2014.
We begin 2015 with newly published reserve plans for Midas and Fire Creek that will generate free cash flow and profitability for years to come. We are dedicated to ongoing resource development with a view to deliver sustainable production and organic growth. We will build on the foundations we established in 2014 as we benefit from continuing cost reductions and productivity improvements.
Click here to read the Klondex Mines (TSX:KDX,OTCQX:KLNDF) press release
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