KDX:TSX; KLDX:NYSE.MKT

Klondex Mines Ltd.

Klondex Mines Ltd. is on the path to building a leading integrated gold and silver producer focused in North Central Nevada. The company is producing from its Midas mine, and operating an ongoing bulk sampling program at its Fire Creek high-grade gold project. Midas, Klondex’s newly acquired operating mine and milling facility are located ~100 miles north of Fire Creek. Klondex’s secondary focus is acquiring, exploring and developing other gold and silver properties in Nevada. Currently Klondex has three other gold exploration properties, and it reviews and considers other projects for inclusion.
KDX:TSX KLDX:NYSE.MKT

Expert Comments:

Brien Lundin, Gold Newsletter (Jefferson Financial) (4/1/18)
"Klondex Mines Ltd. announced in mid-March that Hecla Mining would acquire it in a mix of cash and Hecla common stock. The deal is valued at $462M; Klondex shareholders will receive $2.47/share, consisting of either cash or shares of Hecla."

Three analysts shared the details and their opinions of the proposed transaction.
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Don Blyth, Paradigm Capital (3/20/18)
"Klondex Mines Ltd.'s board supports Hecla's bid to acquire the company. . .based on the closing prices of both companies the day prior to the bid (March 16), the bid represents a 72% premium. . .we view this transaction as somewhat opportunistic by Hecla but a good deal for Klondex shareholders under the current circumstances."

Jamie Spratt, Clarus Securities (3/20/18)
"Klondex Mines Ltd. announced the proposed acquisition of the company by Hecla for $2.47/share (CA$3.21), a 59% premium to the 30-day volume weighted average price. In our view, the transaction is positive for Klondex shareholders as it puts the assets in the hands of a well-funded company with a seasoned, narrow vein operating team."

Jake Sekelsky, ROTH Capital Partners (3/19/18)
"On March 19, 2018, Klondex Mines Ltd. announced a proposed acquisition by Hecla Mining. . .based on the terms of the transaction, consideration for the company totaled $462M, or $2.47/share. . .based on Hecla's closing share price on March 19, 2018, we estimate a transaction value of $2.22/share for Klondex's Nevada assets and view the Klondex Canada spinout as additional upside for existing shareholders."

Philip Ker, PI Financial (3/19/18)
"Klondex Mines Ltd. announced that Hecla Mining will acquire all of its Nevada-based assets for stock and cash considerations of $462M or $2.47/share. . .'Klondex Canada,' containing the company's Canada-based assets, will be spun out to existing shareholders. . .the spin-co will consist of the True North mine, which is currently on care and maintenance, and the recently acquired Bison Gold property."

Jefferson Research (3/16/18)
"Klondex Mines Ltd. is showing strong earnings quality and cash flow quality, and valuation suggests a lower amount of price risk. . .with an adjusted net income of -$8M in Q4/17 that was greater than the reported number, the company's quality of net income earnings is extremely high. . .the operating cash flow quality year over year improved."

More Expert Comments

Experts Following This Company

Ralph Aldis, Portfolio Manager, Gold and Natural Resources – U.S. Global Investors
Michael Ballanger, Gold Industry Consultant
Don Blyth, Analyst – Paradigm Capital
Frank Holmes, Chairman – U.S. Global Investors
Heiko Ihle, Managing Director – H.C. Wainwright & Co., Rodman & Renshaw
Philip Ker, Mining Analyst – PI Financial
Jeff Killeen, Analyst – CIBC World Markets
Steve King, Analyst – M Partners
Justin Kinney – Stifel
Chen Lin What Is Chen Buying? What Is Chen Selling?
Brien Lundin, Author Gold Newsletter (Jefferson Financial)
Bob Moriarty, Author 321 Gold
Jake Sekelsky, Analyst – ROTH Capital Partners
Jamie Spratt, Analyst – Clarus Securities
Josh Wolfson, Precious Metals Analyst – Eight Capital

The information provided above is from analysts, newsletters, the company and other contributors.

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Investing Highlights
 
Free Cash Flow From Operations
 
High Gold Grades
 
Low Cash Costs