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01:09 PM EDT, 06/16/2016 (MT Newswires) -- Klondex Mines (KDX.TO) rose 5% in recent trade after BMO Research reiterated a market perform rating and $5.75 target price after the company provided an update on its True North Gold Mine.
BMO views the preliminary work at True North as "encouraging." Although early days, Klondex has a proven track record with selective underground mining. The company appears to have made solid progress at rehabilitating the underground track at True North, and the broker looks forward to the results of the test stopes. BMO anticipates that the 8-12koz of pre-commercial gold produced in 2016 will broadly offset the required capital spend at True North for the year, and therefore view today's update as valuation neutral.
BMO's EPS forecasts remain at $0.21 for 2016 and at $0.45 for 2017.
The stock was at an all-time high of $4.93 earlier.
Price: 4.88 , Change: +0.21 , Percent Change: +4.5
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