(All amounts in CDN$ unless otherwise indicated)
VANCOUVER, March 11, 2020 /PRNewswire/ - Alexco Resource Corp. (NYSE American: AXU) (TSX: AXU) ("Alexco" or the "Company") today reports financial results for the quarter and year ended December 31, 2019 ("Q4 2019" and "FY 2019", respectively). For Q4 2019 Alexco reported a net loss of $6.3 million ("M"), or ($0.06) per share. For FY 2019 Alexco recorded a net loss of $8.9 M or ($0.08) per share. The Company's net cash position and working capital at December 31, 2019 were $6.8 M and $10.1 M, respectively. Alexco Environmental Group ("AEG"), a wholly owned subsidiary of Alexco, recorded revenues of $29.2 M and a gross profit of $6.1 M during FY 2019.
On February 14, 2020 AEG was subsequently sold to AEG management for consideration of $13.35 M (see press release dated February 18, 2020 entitled "Alexco Divests Subsidiary Environmental Business AEG"). All amounts below include results from AEG operations.
FY 2019 Highlights
MINE OPERATIONS AND EXPLORATION
ALEXCO ENVIRONMENTAL GROUP ("AEG")
SELECTED ANNUAL CONSOLIDATED INFORMATION
As at and for the year ended December 31
(expressed in thousands of Canadian
Loss per share:
Total long-term liabilities
KENO HILL DEVELOPMENT
The Flame & Moth production decline is completed to 452 m and requires an additional 336 m of ramp and infrastructure development to reach the first ore level access at the Lightning Zone. In addition, a 100 m ventilation raise to surface will be required before commercial ore production can be achieved. Completion of the remaining ramp development, raise, and infrastructure will commence in Phase II of the development strategy once a positive production decision is made.
The Bermingham deposit has underground development totaling 550 m of decline and supporting development completed. Approximately 210 m of ramp and infrastructure development remains to be driven to reach the first ore level access. In addition, a 170 m ventilation raise to surface will be required before commercial ore production can be achieved. Completion of the remaining ramp development, raise and infrastructure will commence in Phase II of the development strategy once a positive production decision is made.
As of December 31, 2019, Alexco had the requisite permits and authorizations for development and future ore production from the Flame & Moth, Bermingham, Bellekeno, Lucky Queen, and Onek deposits.
Alexco is in the final steps of amending and renewing the primary WUL for mine-related activity in the District. Apublic hearing was held in mid-February 2020 and the Company expects the granting of the WUL renewal late in the first quarter of 2020. Once renewed, the WUL will authorize the use of water and deposition of waste from mining and milling operations at the Bermingham, Flame & Moth, Bellekeno and Lucky Queen (and Onek) deposits for a period of 15 years.
2020 EXPLORATION PROGRAM
In 2020, Alexco is planning a $3.5 M, 11,500 m surface exploration drilling program incorporating both diamond and rotary air blast drilling as follows:
Alexco's Chairman and Chief Executive Officer, Clynt Nauman, commented, "2019 was a pivotal year for Alexco. The sale of AEG to AEG Management was consistent with our continued goal to increase shareholder value and to focus on mining activities, while retaining our interest in ERDC. In our mining business, during the year we completed construction of surface infrastructure activities, advanced permitting and carried out a successful exploration program. In 2020 we continue to advance the project by making key hires on our mining team, ordering long lead-time mining equipment in order to position Alexco for a positive production decision and maintain our schedule for production in 2020, subject to the granting of the WUL and market conditions. In the meantime, we prepare to launch our 2020 exploration program to follow on last year's success at the Bermingham 'deep target' and the newly discovered Inca Vein. I look forward to continued delivery of results as we move toward becoming Canada's only primary silver mine in 2020."
Full details of the financial and operating results for the Q4 2019 and FY 2019 are described in Alexco's consolidated financial statements for the years ended December 31, 2019 and 2018 with accompanying notes and related management's discussion and analysis. These documents and additional information Alexco, including its annual information form, are available on Alexco's website at www.alexcoresource.com and on SEDAR at www.sedar.com and on EDGAR at www.sec.gov/edgar.shtml.
Conference Call for FY 2019 Results
Alexco is holding an audio webcast conference call to discuss these results at 11:30 a.m. Eastern (8:30 a.m. Pacific) on Thursday, March 12, 2020. To participate in the live call, please use one of the following methods:
Dial toll free from Canada or the US:
Dial from outside Canada or the US:
Ask to join the Alexco conference call
Live audio webcast:
Participants should connect five to ten minutes before the call. The conference call will be recorded and an archived audio webcast will be available at www.alexcoresource.com.
The disclosure in this news release of scientific and technical information regarding exploration projects on Alexco's mineral properties has been reviewed and approved by Alan McOnie, FAusIMM, Vice President, Exploration, while that regarding mine development and operations has been reviewed and approved by Neil Chambers, P.Eng., Mine Superintendent, both of whom are Qualified Persons as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101").
Alexco is a Canadian primary silver company that owns the majority of the historic high-grade Keno Hill Silver District in Canada's Yukon Territory. Alexco has a long history of expanding Keno Hill's mineral resources through successful exploration and is currently advancing a development plan for the District. In 2019, the Company published a positive pre-feasibility study that estimates production of 1.12 million tonnes of ore at an average rate of 430 tonnes per day at an average grade of 805 grams per tonne silver over an 8-year mine life from the Flame & Moth, Bermingham, Bellekeno and Lucky Queen deposits. Alexco is in the final phase of the permitting process and is currently advancing key surface infrastructure while it awaits the final permit to make a positive construction decision.
Further information about the project, including the effective date of the estimates and summary of assumptions, parameters and risks relating to mineral resources, mineral reserves and the pre-feasibility study, can be found in Alexco's technical report entitled ""NI 43-101 Technical Report on Preliminary Feasibility Study of the Keno Hill Silver District Project, Yukon Territory, Canada" filed on May 8, 2019 as amended February 14, 2020 that is available on Alexco's profile on Sedar at www.sedar.com.
Some statements ("forward-looking statements") in this news release contain forward-looking information concerning Alexco. Forward-looking statements include, but are not limited to, statements with respect to payment to Alexco of future consideration for the sale, future mine construction and development activities. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors, which could cause actual events or results to differ from those expressed or implied by the forward-looking statements. Such factors include, among others, risks related to delays in obtaining governmental approvals or financing or in the completion of development activities. Forward-looking statements are based on certain assumptions that management believes are reasonable at the time they are made. In making the forward-looking statements included in this news release, Alexco has applied several material assumptions, including, but not limited to, those matters identified in is continuous disclosure filings. There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Alexco expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as otherwise required by applicable securities legislation.
SOURCE Alexco Resource Corp.