By Deborah Bacal
Proactive Investors
Klondex Mines (TSE:KDX) (OTCQX:KLNDF), Nevada’s newest gold producer, swung to a profit in the second quarter as it started to generate enough revenue to cover its costs, benefiting from the acquisition of the producing Midas mine from Newmont Mining in February.
The Vancouver, BC-based gold producer posted net income of $4.4 million or 4 cents per share for the three months to June 30, compared to a net loss of $0.8 million in the corresponding period of 2013.
Revenue in the latest period was $36.4 million, from the sale of 25,725 ounces of gold equivalent, compared to nil revenue recognized in 2013. Klondex began recording sales from its Midas mine in the first quarter of 2014.
The company recorded production of 22,239 gold equivalent ounces, made up of more than 17,000 ounces of gold and 325,000 ounces of silver, an increase of nearly 39 percent from the first quarter of this year.