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AMREP Corp T.AXR


Primary Symbol: AXR

AMREP Corporation, through its subsidiaries, is a holder of land, developer of real estate and homebuilder in New Mexico. The Company operates through two business segments: land development and homebuilding. The land development segment offers for sale both developed and undeveloped real property to national, regional and local homebuilders, commercial and industrial property developers and others. Activities conducted or arranged by the Company include land and site planning, obtaining governmental and environmental approvals (entitlements), installing utilities and storm drains, ensuring the availability of water service, building or improving roads necessary for land development and constructing community amenities. The homebuilding segment offers a variety of home floor plans and elevations at different prices and with varying levels of options and amenities to meet the needs of homebuyers. The Company focuses on selling single-family detached and attached homes.


NYSE:AXR - Post by User

Comment by AngelEyes3on Aug 02, 2020 9:15pm
147 Views
Post# 31356507

RE:RE:RE:RE:Is this company hedged at all?

RE:RE:RE:RE:Is this company hedged at all?Yes they are with Wheaton.  From yahoo finace:


The amended silver streaming agreement applies to 25% of Alexco's payable silver produced at its Keno Hill silver mining operations in Yukon, Canada. The newly agreed variable production payment is defined by a pricing curve with an apex at $19.45 spot silver price where Silver Wheaton will make a production payment to Alexco of $18.00 per ounce of silver delivered; that payment decreases by $0.91 per ounce for each $1.00 increase or decrease in silver price from $19.45, returning to a fixed $3.90 per ounce for spot silver prices of $35.00 per ounce and higher. The amendments to the underlying Silver Purchase Agreement are subject to Alexco paying Silver Wheaton $20 million by December 31, 2014 (or such later date as the parties may agree), with Silver Wheaton taking a lead role via participation in $5 million of any Alexco equity raise in excess of $10 million towards the $20 million payment. In addition, a Silver Wheaton area of interest is established to include additional Alexco currently owned and future acquired properties within one kilometer of existing Alexco holdings in the Keno Hill Silver District. The amendment will be effective for a 10 year term from the time mining production re-commences in the District, with an option for Alexco to extend the amendment for another 5 or 10 years for an additional $10 million or $20 million, respectively.

This will add major drag to the share price as it moves up past 19.45.. I am not a fan of miners giving royalties but given the poor environment in this sector over the past several years this is the new reality.
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