KLONDEX MINES LTD. T.KDX

Big Savings in Budget Items

[JintsuGehan]

CAPEX 2017: $ 63 M - $ 71 M 
CAPEX 2018: $ 48.2 M - $ 55.5 M

G&A 2017: $ 20 M - $ 22 M
G&A 2018: $ 18 M - $ 19 M

EXPLORATION 2017: $ 7 M - $ 9 M
EXPLORATION 2018: $ 10 M - 12 M   (gain here but that is OK because see below:

HOLLISTER 2017 RAMP-UP: $ 10 M - $ 11 M
HOLLISTER 2018 RAMP-UP: Not an expense

Company is saving I would say conservatively $ 20 M USD to $ 23 M USD to achieve up to 202,000 oz at high point at same AISC, but with a higher spot price of gold.

2017 is a write off as mentioned; 2018 looks far brighter. 

JIN

[JintsuGehan]

Let me re-phrase by taking midpoint of each range: CAPEX savings based on midpoint: $ 15.15 M  G&A savings based on midpoint: $ 1 M Hollister Ramp-up savings: $ 10.5 M Only gain is under Exploration based on midpoint: + $ 3 M Therefore, NET Estimated Savings of all spend categories = $ 23,650,000 USD for 2018 JIN

[TheWolff]

Thanks Jin for breaking it out, I am just glad the got it out of the way, and looks promising going foward, now with the outlook of the PoG for this year as well as the guidance, I think the best times are ahead, I think they really try with TN, glad they got it offline  sooner than later, thanks again brother for your comments.

[JintsuGehan]

You're welcome...here are some more key points - The main positives going forward: I. The Hollister ore processing is now at 80 % as of January 2018, which is much better than Q4 (70.5 % around only!!). P. Huet says they can get to 85 % - 90 % which would be almost at par with Fire Creek if they can get to 90 %.  II. You can see they have an extra $ 10 M - $ 12 M set up in CAPEX

[Highwave]

Jin, Didnt you forget to add back the negative cash flow fromlast year from TN into your equation for 2018?