RE:AXU Overvalued ? What do you think about this one ? First post for the shorter or his paid minion.
"However, even if everything goes smooth and Alexco reaches an annual production rate of over 4 Moz of silver, reserves would need to triple
for a valuation of almost $330 million to make any sense.
Either that or silver prices would need to skyrocket.
Alexco has a relatively small silver mine in a great jurisdiction and the grades are compelling.
The exploration potential is good and I can see Keno Hill doubling its reserves in the next few years.
However, even if this happens, a market valuation of close to $330 million doesn't seem justified." Short broker
Actually,reality now,not some shorter's desk hoping to scare investors,the grades are more than "compelling".
Keno is one of the highest grade sets of deposits or districts in the world.
Of all the mines available on the TSX it is AXU with the highest grades of silver.
There are Bermingham Deep resources about to be added to the overall count in Q4.
That includes 25,000m drilling ongoing and as stated in the July Presentation on page five:
NE Bermingham drilling has added 36m indicated and 24 milion ounces of resources that are not in the present reserve.
There are 37 million oz listed as AXU's present reserve count.
With the present drilling campaign of 25,000m and the 36m oz I + 24m oz resource AXU will more than double their resource count in Q4.
AXU will expand production to 5 m oz annually in 2024.
This guy is full of it. AXU doubles their resources withing months , not "years".
Exceptionally high grade.cUSP of production goal being met.
AXU will put out at a rate of 4 million oz production per year at $11.59 US AISC-amongst the very lowest production costs of all silver producers.
The market cap is $318m right now and that does not reflect all that happens over the next three months.
This broker is short silver price so says short AXU.
If the company have met their production and drilling goals these are simply positives some broker can't spin negative.
At $25 silver and 4moz production that's $100mUSD profits minus the
AISC comes to $54m USD's profit or $65m CDN / $0.43 CENTS CAD per share earnings.
AXU have waited five months of drilling without an NR. Bermingham Deep is exceptionally high grade and there are massive drill results coming with next week's Q2 results.
If AXU ascertain meeting guidance next week with expected,exceptional drill results the share price should respond favourably.
Sorry, Mr.Slick broker.