RE:RE:Axu all "blue sky" and is it a "CHEAP" sale?IMO only.
Serious answer.
1080980 B.C. Ltd. = HECLA CANADA LTD. = Hecla Mining Co. of C L (old notation in 67)
First one can only hope no one is laughing,
A lot of investors were shocked and lost money with the recent turn of events, but, and this is a big BUT, it is not the first time this has happend in Keno Hill. This AXU/HL deal will also reflect on those in managment moving forward. Who wants "my heavily blue sky promo mine got sold for pennies on the dollar" on their resume.
BTW - AXU website still promotes all the "blue sky" material and make it appear that all is "business as usual".
Was AXU talking to HL (and others) for at least the last six months, possibly longer while not saying anything? Likely. Did AXU know of HL interest? Of course, HL was pocking around on Sourdough Hill in 67 and spending cash. Never went anywhere, Even Anvil took a peek and said thanks but no thanks. At least that is my recollection.
Keno Hill location IS an issue, it is remote, expensive and difficult to mine in and ship out of. I personally do not listen to analysts as a lot of time they have a vested interest one way or another.
The mill was tested at 400TPD, continuous feed is another issue (this is simply a hard area to mine and is well documented) , this along with a continuous depressed silver market led to the sudden sale/takover. 400 TPD with the oz per ton sounds great on paper, executing that is another matter.
Look at this another way at one time it took multiple mines to feed a 500 TPD mill fed by tram, track and truck with a work force of say 500+ to survive and in 89 due to price of silver UKHM bankrupted. If I look at the cost per oz in say 70/80 $ and account for inflation alone plus the addtional cost of modern mining (safety, ventilation, cribbing, etd. (all good things) I really want to see the HL proposal to profitability.
The reason (and I could be wrong) I gave for HL shuttering or idling is because the price of silver makes it currently unprofitable to mine the deposit as AXU so "suddenly" found out. If you shutter a mine in this area a lot of it fills with water and the working collapse. so it all needs to be re-done.
I personally had a bad feeling after AXU shuttered the first time and things were not moving in a positive direction. More expenses, negaive earnings per share and the continuous raising of capital and deal making.
No Investor knew what was going to happen as mangment was very tight with news releases and only gave them out as required, probably because they just didnt have good news.
Who knew - Stakeholders and managment most likely.
As for the shareholders walking away? Depends, I personally walk (run) away after to much "blue sky" and a lack of revenue and profits.
grape562000 wrote: Serious question:
I have been invested (heavily) in AXU for years and kept in touch with the company (IR).
The things I was told appear to have been untrue. I have been waiting for 'full production; which despite delays and in spite of the stream with Wheaton should have resulted in very decent earnings (by my estimate around .30 a share.
After the laughter subsides...
I also assumed location to be a non-issue as they were to be working underground, they have an airfield, etc.
The analysts were also positive on the company and I assumed they were experts (including Chen Lin)
So, the question: how 'could or should' I have known better? In retrospect, the share price was close to $3 USD when the delays were first reported. Should I/we have bailed then?
Are the analysts not to be trusted? Are the actually just selling the narrative the company wants sold?
Lastly, there is and has been production from the mines and I expected that this would improve and grow as Keno Hill is an entire and rich district. You seem to suggest that HL will leave them idle.
At the end of the day I feel foolish and lost a lot...a lot.
You say to do you due diligence and I thought I had. I would really like to know 'who knew' and when I should have known to bail.