idle and fond bondage

Oh Alexco

I once owned and, on selling, broke even to the penny on the trade (so no hard pocket feelings, Clynt). It’s also burned in the memory for having the most beautiful scenery of any site visit I’ve ever been on (and the coldest, which was half the fun). So reading this today…

“…demonstrated supply of 150-250 tpd of ore to the mill has been important, it is also apparent from results to date that the rate of improvement in the advance of underground development remains insufficient to achieve the necessary number of production headings to sustain 400 tpd feed to the mill before the end of 2022. To rectify this imbalance, the Company has elected to temporarily suspend milling operations for five to six months and to focus all efforts on advancing underground development.”

…is no fun at all. There’s plenty more in that NR to mitigate the news, but the above is what matters. That and the way they need to raise more cash, of course. Those shareholders who have roughed out its rough ride for the past couple of years have my admiration, but they’re about to have another BOHICA moment when the bell rings today. Markets suck sometimes.


    Metallica wrote a song about Alexco in 2016. It’s titled “Moth into Flame”. Burned.


    IF their development rate is their only issue, they will be cash-flow positive Jan-2023 which would create a major re-rating/trade opportunity.


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