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Alexco Resource Corp. T.AXU

Alexco Resource Corp is engaged in mineral exploration, and mine development and operational activities primarily in Yukon Territory, Canada. The company explores silver, lead, zinc, and gold deposits. The firm's projects include Keno Hill Silver District, Flame and Moth, Bermingham, Lucky Queen, Bellekeno, and others.


TSX:AXU - Post by User

Post by GreyWhiskerson Apr 16, 2022 1:04pm
854 Views
Post# 34607603

Hey J

Hey J
ru just thick, you get an apology but u just come back with more craaaap for me.

So here ya go.

I expect some posters to now come out and do more name calling.  Whatever.  Don't like my post(s) don't read further.

I'm an unknown poster with no history, so apparently that make everything I post not true.   But don't be a sheple.  Do your own DD.  IMO invest/bet all you want but not the farm...

Historically this has been an interesting place to mine and profitability is dependent on the price of silver at any point in time.  One year(s) companies here have earned great revenues the next year(s) maybe not.   Can you get a 5, 10 bagger or more here maybe, maybe not...  Don't be sheple.

AXU has nothing to do with VGCX; completely different mining methods (open pit) and it's not silver.  They have their own fair share of racket and stuff going on over at the VGCX bullboard. :)

My giving the personal basher the benefit of the doubt here to stop the squabbling wasn't enough and now there is an insistance on more personal bashing personal name calling. Whatever...  So lets rock on.

Potential investors do your own DD before buy into this, check out the Blue Sky promo material and feel comfortable with it, that way you maybe won't have to come back here and post things like "scam", "worst investment ever" and so forth if it goes sideways.

The loudest promoters here will keep saying things will be great and they own lots of shares, and the problems are due to shorters, comex, bankers, of course never the large houses who of course don't make profits and trade.    Whatever,  

I'll say it again companies operate and are either profitable or not in any current given environment.  Can't make a buck don't blame everyone else.

I never advised anyone to sell, hold or buy shares, own what you want, hell buy all you want.  

Do whatever floats your boat, but to date imo this just feels like it's underperforming  and possibly there will be no increase in share value until there is an increase in either silver or the books start showing a profit and expectations are met or maybe someone sees loads of value here and buys them out...

I can not stress this enough there was one closure already, later due to silver price and the known ore body from exploration there was a decision to reopen, was a that a good decision who knows, time will tell.  I have never said there is no ore here, the entire valley has historically been nothing but silver (galena).  

The stated contination of additional expense due to covid, etc. for 22 imo is troubling, On the back of this now comes supply issues (last report)  and other sundry items such as the cost of another year of of drilling program along with the just recent raising of capital for ongoing 2022 works.  I'm waiting for the next Q report.

Here's an article that was written Aug 02, 2021 so it's a bit dated and some things have changed.   Note the talk of puts and shorting and so forth at the end.  LOL  Maybe some ppl here need to contact seekingalpa  to discuss.  Maybe they gave a lot of ppl a lot of  bad ideas.  

Alexco Resource Looks Overvalued Based On Fundamentals (NYSE:AXU) | Seeking Alpha

Revisiting Alexco Resource, The Company Looks Overvalued Based On Fundamentals
Aug. 02, 2021 4:49 PM ETAlexco Resource Corp. (AXU)66 Comments7 Likes

Summary
Alexco recently restarted production at Keno Hill, and the silver grades at the latter are among the highest in the world.
The company has $32 million in the bank, and the NPV of the project stands at $123.7 million.
The exploration potential looks great, but Alexco has a market capitalization of $329.7 million.
This looks too much even if reserves doubled, and in light of this, I’m bearish now.

....... more


Today, I'm revising Alexco Resource Corp., which has just restarted production and has a market capitalization of $329.7 million as of the time of writing. Overall, I think the company looks overvalued from a fundamentals point of view and I'm bearish. A valuation of close to $330 million looks too high even if the company's reserves were to double.

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The district produced over 200 Moz of silver between 1913 and 1989 with average grades of 44 oz/t. These are fantastic grades.

Alexco built the Bellekeno silver mine, which had grades of up to 1,000 g/t silver, and was the only operating primary silver mine in Canada from 2011 to 2013. Following the closure of the mine, Alexco discovered two high-grade silver deposits and in 2020 it decided to resume production. Looking at the current reserves, my opinion is that there isn't a lot of silver out there but the grades are compelling.

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Investor takeaway

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.

In my view, Alexco is overvalued and investors can take advantage of this by short-selling the shares or buying put options. According to Fintel, the short borrow fee rate stands at 11.32% as of the time of writing.

In case you prefer to protect the downside, I think long-dated put options could be a good idea.
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