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Strategies & Market Trends : The Ego Forum

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To: hubris33 who wrote (11607)1/3/2013 7:05:36 AM
From: TheSlowLane2 Recommendations  Read Replies (1) of 12175
Nice list. I can offer some comments on Alexco. I think the company has good prospects here as an emerging silver producer. The company has been running Belle Keno for a couple of years and while there have been the "learning experiences" and growing pains that are commonly associated with going into production, my sense is that they have done a good job of identifying problem areas and addressing them. That has been their stated focus and the numbers are starting to reflect it.

In addition to Belle Keno they have two mines that are in the permitting process and are expected to get permits in 2013 that will enable production to increase further. Tons of exploration upside on the property as the work they are doing on Flame & Moth and Bermingham is showing.

Operating in the Yukon is not without its challenges. The infrastructure is going to make it challenging for anyone hoping to build a mine there (there is only grid power for one or possibly two more mines) and from what I understand at least some of the skilled personnel required to run mine and mill operations are commuting from eastern Canada (2 weeks on/2 weeks off). The good news is that Alexco is already in operation so they have the power they need and are developing the workforce over time.

Clynt N., the CEO, seems like just the kind of guy you want to see running a mining company, imo. He's down to earth, non-promotional and tightly focused on the task at hand. He has had to deal with a number of hurdles bringing the company to this point but it is a CEO's capability for dealing with issues rather than being able to avoid them altogether (impossible) which is of interest to me. The stock has gotten creamed due to, I suspect, frustration over the production issues. Assuming that it is true that production issues are successfully addressed and margins improve, then the price at this level may represent an attractive opportunity.

Here are some photos I took this summer:

Entrance to the Belle Keno mine:

The view from the Lucky Queen mine portal area:

Drilling at Flame & Moth:

Alexco's core shack:
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