RE:RE:Underwhelmed by the 2024 guidance on Keno HillStratocheif wrote: Thanks for a good report. Sheds light on many issues.
No Alexco is not involved. Mr Genius Clynton Nauman stabbed shareholders in the back. One moment boasting he's got the best silver mine and then selling out to Hecla for something like 40 cents when the stock was in the 2.50 range up to that point. I lost a ton of money because of him.
Now he's collecting a few million a year sitting on the board of directors of Novagold with his freind Thomas Kaplan.
Nevertheless, Keno Hill is a world class ore body containing OVER A KILO of silver per ton. I'm hoping Hecla will be able to deal with the environmental issues there and bring this to full production.
Of course we're all waiting for that big rise in silver price. If it comes Hecla will be a 2 or 3 bagger at least
Sorry to hear but promoters are "blue sky" untill theres a tornado and then its "ooops we have a problem shareholders" (bag holders). I can imagine there are some on here that gained and still own HL stock via the AXU deal.
I did not follow HLs doings in detail untill the AXU sale, other to know the history and what HL has going on right now. I really got interested when HL started to promo how much has been dragged out of Keno Hill in the last 125 years (Blue Sky stuff) just like AXU did.
I beleive HL needs this mine for the Ag, but mainly for the optics. As others have stated they are also exploring other options in NA and also in SA. Nothing that I know off is even close to producing and what they do have is exploratory (welcome any corrections). In the meantime the board has to be paid...
Back to Keno Hill, I am very interested how much Ag they get to the smelter from Keno Hill vs cost in 2024. I beleive it is obvious that they need KH (as a filler), imo at least the guidance seems to indicate this. Hey if I'm wrong HL's auditors can certainly correct this view.
The area is nasty (difficult) and expensive to mine (the freewheeling 50's,60's,70's, 80's are so much history), multiple thrusts over eons, dragged back glacial till, it's remote, now going deep, fly in/out and the list goes on.
How much does HL need Keno Hill, probably a lot as it seems they are spending a lot of additional money on shotcrete, materials for stabilization, additional equipment which could indicate that Hector, Deep, etc. are now again in the areas where timbering and maybe steel bents are getting crushed and therefore shotcreting is required.
Expensive for a mine that may have 10 years of current resources (at the recovery rate HL proposes) based on reports. If Ag stays at 22+/- it will be interesting to see where the breakeven point will be.
Of course HL has deep pockets so spending is not the issue it's the cost recovery. That said it is also interesting that HL did not purchase during the 10 years after 1989 that UKHM was trying to sell (they approached a lot of companies) but rather waited untill 20+ years later to purchase AXU Keno Hill (with the fresh AXU assets).
From HLs perspective it was a great play plus the right to say "We own Keno Hill" but for sure if they send in the GC team hopefully they send the A team seems GC has it's own issues.
But for sure a big increase in silver would raise HL share price substantially. Best.