08:28 AM EDT, 05/05/2017 (MT Newswires) -- Klondex Gold Mines (KDX.TO) has released its first quarter results which showed the company had higher revenue but higher costs resulted in the company posting a bigger loss yoy.

Revenue was $41.71 million versus $36.44 million in the comparable quarter due to the addition of production at True North and higher average realized prices offset by fewer ounces milled during the quarter at the Nevada locations.

First quarter 2017 operating cash flows decreased as compared to the first quarter 2016, in part, due to higher General and administrative and Development and projects costs associated with Hollister. The company posted a loss per basic share of $0.06 versus a loss of $0.05 in the comparable quarter. Analysts were looking for a loss of $0.01 per share.

All-in costs per gold ounce sold in the first quarter were impacted by substantial development and project costs at Hollister. These costs are heavily weighted to the first half of the year and should decrease as they expect the mine to move into steady-state production levels in the second half of the year. Additionally, the company incurred a write-down of production inventories (cash portion) at True North of $2.2 million. As production levels increase, the write-down of production inventories is expected to decrease. The company continues to expect all-in costs per gold ounce sold to be between $1,070 and $1,130 for the year.

Klondex mined a total of 57,633 gold equivalent ounces, in-line with management's expectations, and produced a total of 34,454 GEOs.

The company reiterated their 2017 consolidated production guidance of 210,000 to 225,000 gold equivalent ounces during 2017 at an expected production cash cost per GEO sold of $680 to $710 per GEO sold. This represents an increase in GEOs produced of approximately 36% from the prior year as they benefit from bulk sampling extraction at Hollister in Nevada as well as higher production from True North mine in Canada as ramp-up continues. Fire Creek and Midas' 2017 production is expected to be in line with the prior year. Production for 2017 is weighted more heavily in the second half of the year as True North and Hollister continue to ramp up towards full production.

The company is targeting 2017 capital expenditures of between $57 and $62 million with an additional $3 and $5 million to be spent on exploration.

Klondex Mines' shares closed Thursday's session at $4.36.