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Alexco Resource Corporation Message Board

  • dope.slap dope.slap Mar 29, 2012 2:18 PM Flag

    CC highlights

    Based on the CC, these are new facts I did not previously know:

    1. ELSA: The process they will be using: Agitation Leach Circuit. There will be a new process and equipment needed in 2013. CEO mentioned that Elsa is critical for hitting the 5M ounces of silver per year.

    2. IFRS: Canadian GAP is effected by SLW deal. This whole SLW deal gets more convoluted, but it is reality.

    3. CEO quote" "Environmental division is a lasting legacy". So I guess this means AXU will NEVER spin off this division to raise money.

    4. Expectations for 1Q2012 are 250 TPD minus 10% for shutdown of the mill (due to chemistry adjustments and abrasive ore (wearing out parts faster then expected). The TPD for 1Q2012 will NOT be 300, as predicted on this board.

    5. $10 is the new target for Cash Costs. This is very disappointing for long-term AXU investors as expectations have drifted: first NO cash costs, then $6, then i$10 (but actually it is $13)

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    • I think cash costs are also being affected by inflation. I agree that they made mistakes in projecting much lower cost per ounce. We also have to realize that doing business in Canada costs more, but with those higher costs we get high jurisdiction security. In my opinion, this trade off is worth it. As the silver price rises over time, I think we will see $10 as cheap. I also think we will see a good rise in base metals prices over the next three years. It will take the rest of this year to get the mill situation under control. I look forward to the reserve estimate increases later this year.

      Thanks for your post.

      • 1 Reply to admiralleahy
      • For comparison purposes, I believe Silver Majestic's cash costs average in the $7 range with the highest mine being $10. But ... they need to hire a small, armed security force to provide a safe working environment. Mexico. Drugs. Violence.

        The fact that AXU is located strictly in Canada is the main reason I own this stack over other silver producers. The residents of Keno City don't scare me like drug lords do.

        BTW, I did not mean to be snarky by bringing up the NO Cash Cost issue, but it was freely bantered about by both AXU and lots of posters on this board. I still have my own Excel spreadsheets from a couple years ago, where I was estimating a share price and DID NOT include cash cost per ounce of silver.

    • Thanks for the summary. Looking for more, and will listen to the recording, hopefully tonight. TBurke, hope you will be commenting.

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