RE:Alexco eyes Bellekeno restart and a second Keno Hill mineSounds great, but where are they going to get $53 million? At today's share price, that's a 66% dilution. Or are they planning to sell another 25% of the resource to SLW?
What Alexco needs is a significant boost in the silver price, end of story. Anything they do to tweak profitability is great but is far from enough to turn the tide, and furthermore begs the question: why wasn't it done before? And mining the high grade ore at F&M is giving away the family silver (pun intended) just to remain profitable. The fact is, Alexco's timing was poor (granted, through no fault of their own) and IMO, it would be preferable to sit back and wait for the market to catch up before throwing more money into the mineshafts that litter Keno Hill.
If I sound critical, I've earned the right: I've averaged down for over two full years now but am still in a hole deeper than their tailings pile, and about as pleasant to wallow in. Does anybody here remember when management was boasting about "zero costs" due to byproduct credits? Now they apparently require $24 silver just to stay in business. Something went horribly wrong, and unfortunately, it wasn't just the price of silver.