Alexco Reports Third Quarter 2013 Financial Results
November 14, 2013 Alexco Resource Corp. (NYSE MKT:AXU, TSX:AXR) today reports its financial results for the third quarter of 2013. All figures are expressed in Canadian dollars unless otherwise stated. For the three months ended September 30, 2013, Alexco recorded income before taxes of $3.1 million and net income of $2.2 million or $0.04 per share.
Third Quarter Highlights
- Contained metal production of 452,392 ounces silver, 3.7 million pounds lead and 1.1 million pounds zinc in a shortened operating quarter comprising 64 operational days
- Bellekeno mine revenue of $17.0 million and gross profit of $2.1 million, on payable metal sales of 596,167 ounces of silver, 4.4 million pounds of lead and 1.0 million pounds of zinc
- As of early September, completed previously-announced interim suspension of Bellekeno mine and mill operations over the winter season to focus on cost cutting and permitting measures, as well as new plans including potential development of the Flame & Moth deposit.
- Recognized metal prices during the quarter averaged US$22.06 per ounce silver, US$0.96 per pound lead and US$0.86 per pound zinc
- Second quarter cash costs of production1 of $12.93 per ounce of payable silver produced, net of by-product credits
- Alexco Environmental Group (AEG) third quarter 2013 gross profit of $4.2 million compared to $1.0 million in 2012
- Announced an Amended and Restated Environmental Subsidiary Agreement with Canada in July, leading to approximately $2.4 million in resultant gains that are included in AEG’s gross profit for the quarter
- Exploration drilling extended the Flame & Moth mineralized strike length to more than 900 meters, and identified a significant mineralized structure at the new (2012) Flame & Moth West discovery approximately one half kilometer west of Flame & Moth
Alexco’s President and Chief Operating Officer Clynt Nauman said, “Our third quarter results were solid, especially given the fact that we only operated essentially two out of the three months of the quarter before suspending operations as previously planned. Most importantly, mill throughput increased 13% to a record 321 tonnes per day (tpd) relative to the prior quarter. The professionalism and performance of our operators during this phase-down period has been outstanding and an orderly suspension of operations achieved. Our financial results are also largely a result of a strong performance by our environmental business, which continues to grow with good operating margins, and was instrumental in enabling us to preserve our quarter-end working capital position at $15.4 million.”
Nauman continued, “Our ongoing efforts have focused on putting an overall preliminary economic assessment together that encompasses Bellekeno, Lucky Queen and Flame & Moth. We also continue to talk to our third party agreement participants in efforts to lower the fixed costs to operate in the District. As well, we are evaluating underground exploration results from the latter part of the season. As these items are accomplished, we will be releasing reports on our progress.”
Read more: http://www.alexcoresource.com/s/news.asp?ReportID=611546
