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Klondex Mines (TSX:KDX) has filed its financial statements for the three and nine months ended September 30, as well as its management discussion and analysis for the period. Highlights included a production cost of just $613 per gold equivalent ounce sold for the third quarter.
As quoted in the press release:
- Production costs for the third quarter per gold equivalent ounce (“GEO”) sold were $613 (US$563); year-to-date were $676 (US$617); third quarter production costs per gold ounce sold on a by-product basis were $478 (US$439); year-to-date were $510 (US$465) (See “Non-IFRS Measures”).
- Cash balance as of September 30, 2014 was $43.2 million.
- Working capital (current assets minus current liabilities) as of September 30, 2014 was $48.2 million.
- Revenue for the third quarter was $38.0 million from the sale of 28,162 GEOs which consisted of 23,166 gold ounces and 315,504 silver ounces, at an average realized price of $1,374 (US$1,262) and $19.62 (US$18.02), respectively.
- Revenue year to date was $77.1 million from the sale of 58,174 GEOs which consisted of 46,828 gold ounces and 716,582 silver ounces, at an average realized price of $1,398 (US$1,276) and $20.97 (US$19.13), respectively.
- Net income for the third quarter totaled $7.2 million or $0.06 per share, which is an improvement from Q2 net income of $4.4 million or $0.04 per share.
- Cash flow for the third quarter provided by operating activities was $16.2 million; year-to-date was $27.8 million.
- Capital expenditures for the third quarter were $8.9 million; year-to-date were $20.3 million, principally for the rapid infiltration basin and ramp expansion at Fire Creek, and exploration and development at both sites.
- GEOs recovered in the third quarter were 39,109 which consisted of 33,339 gold ounces and 364,435 silver ounces; year-to-date GEOs recovered were 77,401 which consisted of 63,977 gold ounces and 847,825 silver ounces.
Klondex CEO, Paul Huet, said:
The third quarter operational results continue to transform Klondex from a development company into a profitable low-cost precious metals producer. The strength of our first three quarters of production allows us to increase our targeted production to 95k GEOs recovered. I am very grateful for the dedicated efforts of the Midas and Fire Creek teams as they continue to produce exceptional operational results. We anticipate that even within the current volatile gold price environment, Klondex will continue to generate positive cash flows from operations, further strengthening our balance sheet.
Click here to read the Klondex Mines (TSX:KDX) press release