Rodman & Renshaw Starts Klondex Mines (KLDX) at Buy

Rodman & Renshaw initiated coverage on Klondex Mines (NYSE: KLDX) with a Buy rating and a price target of $4.75. Analyst Heiko F. Ihle noted the company's high grade assets.

"Klondex is currently operating two of the highest-grade underground gold mines in the world; Midas and Fire Creek, which are both located around Winnemucca, Nevada. The Midas Mine and Mill was purchased from Newmont Mining (NEM; not rated) in 2014 for $83.0 million, and provided the firm with a 1,200 tpd mill in addition to a mine. By owning the mill outright, Klondex was able to save approximately $32.0 million in toll milling fees payable to Newmont for the processing of Fire Creek ore. In essence, the Midas Mine and Mill were purchased primarily for full ownership of the mill with any additional upside at the mine serving as an added bonus. In our view, this strategic purchase created a strong foundation for Klondex to build upon as it embarks on a journey towards mid-tier status," said Ihle.

For an analyst ratings summary and ratings history on Klondex Mines click here. For more ratings news on Klondex Mines click here.

Shares of Klondex Mines closed at $3.76 yesterday.

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