Hey Silver Bugs!
Trades on the Toronto Stock Exchange under the symbol AXR and on the AMEX (US) stock exchange under the symbol AXU .
Originally an environmental services company that agreed to clean up the old mine site at Keno Hill (Yukon), the company acquired most of the claims in one of the oldest and highest grade silver districts on this continent and maybe the world and became a miner in 2011 until 2014 when low silver prices forced the company to put the min on an enhanced care & maintenance.
The website says that the district produced over 214 million ounces of silver at an average grade of approximately 1,373 grams per ton (44 ounces per ton) during the first half of the last century.
In March, the company announced a positive pre-feasibility study with a mine plan that contemplates the processing of 430 tons per day of ore with average feed grades of 804 grams per ton silver , 3% lead, and about 1% zinc from four deposits. The mine is expected to produce 4 million ounces of silver annually in high quality lead and zinc concentrates over an 8 year mine life. At current silver prices the project may generate a pre-tax cash flow of around $20 million per year, and has an after tax NPV (5%) of $101 million.
The deposits are underground veins. To get an idea of their richness, the average gross silver value of the rock up there is more than $400 per ton—over $600 including the lead and zinc. The high grades and vein style deposit means that the preproduction capital outlay will only be about $23 million to expand the present facility. Sustaining capex will be in the $70 million range but spread out over the life of the mine.
At a $25 silver price the valuation (NPV5) of this deposit doubles. The company is currently trading at a value that corresponds with that higher silver valuation so, it is not cheap either. But it has a lot of leverage and is an institutional favorite in hot silver markets. The project is awaiting a water use license from the government, which it expects to receive at the end of this year. Meanwhile, it is continuing to explore and develop Keno.
Stay ahead of the masses,
Seth Maniscalco
Founder, Crypto Wealth Coach LLC
Owner, Modern Wealth Management LP
www.CryptoWealthCoach.com/VIP
Trades on the Toronto Stock Exchange under the symbol AXR and on the AMEX (US) stock exchange under the symbol AXU .
Originally an environmental services company that agreed to clean up the old mine site at Keno Hill (Yukon), the company acquired most of the claims in one of the oldest and highest grade silver districts on this continent and maybe the world and became a miner in 2011 until 2014 when low silver prices forced the company to put the min on an enhanced care & maintenance.
The website says that the district produced over 214 million ounces of silver at an average grade of approximately 1,373 grams per ton (44 ounces per ton) during the first half of the last century.
In March, the company announced a positive pre-feasibility study with a mine plan that contemplates the processing of 430 tons per day of ore with average feed grades of 804 grams per ton silver , 3% lead, and about 1% zinc from four deposits. The mine is expected to produce 4 million ounces of silver annually in high quality lead and zinc concentrates over an 8 year mine life. At current silver prices the project may generate a pre-tax cash flow of around $20 million per year, and has an after tax NPV (5%) of $101 million.
The deposits are underground veins. To get an idea of their richness, the average gross silver value of the rock up there is more than $400 per ton—over $600 including the lead and zinc. The high grades and vein style deposit means that the preproduction capital outlay will only be about $23 million to expand the present facility. Sustaining capex will be in the $70 million range but spread out over the life of the mine.
At a $25 silver price the valuation (NPV5) of this deposit doubles. The company is currently trading at a value that corresponds with that higher silver valuation so, it is not cheap either. But it has a lot of leverage and is an institutional favorite in hot silver markets. The project is awaiting a water use license from the government, which it expects to receive at the end of this year. Meanwhile, it is continuing to explore and develop Keno.
Stay ahead of the masses,
Seth Maniscalco
Founder, Crypto Wealth Coach LLC
Owner, Modern Wealth Management LP
www.CryptoWealthCoach.com/VIP
