Last Thursday Alexco Resource Corp (NYSEAMERICAN:AXU) had been in the news in a big way after it announced its financial results for the fiscal quarter that had ended on March 31, 2022. It appears that the numbers proved to be a source of excitement for investors as the stock rallied the next day and ended up with gains of as much as 5%.
Trading Data
On Friday, AXU stock went up 5.50% to $0.8440 with more than 2.01 million shares, compared to its average volume of 1.08 million shares. The stock moved within a range of $0.7500 – 0.9000 after opening trade at $0.78.
Earnings Recap
In this situation, it could be a good idea for investors to consider taking a look at the results a bit more closely and then come to a decision with regards to the merits of the stock.
Alexco Resource announced that in the first quarter of 2022 its mining operations had been ramped up and it goes without saying that it was a significant announcement. During the quarter, the company managed to generate revenues of as much as C$2,054,000 from mining operations.
However, that proved to be lower than the mining revenues of C$2,814,000 that it had generated in the prior year period. The operating loss for the quarter stood at C$6,215,000 and that was far lower than C$10,646,000 that the company had suffered in the prior year period.
Key Quote
“We have seen improvements and better results recently with our underground activities at Keno Hill,” said Clynt Nauman, Chairman and CEO of Alexco, “but with that said, we remain below where we need to be for development rates, equipment availability, and ore extraction rates. In terms of providing a formal outlook for the balance of 2022, the Keno Hill operation needs an additional period of time to confirm improvement in supply chain efficiencies and mechanical availability of underground equipment, which is the primary driver for accelerated ramp up progress. The Company is evaluating a number of production and operating scenarios keying off supply line risk and availability of maintenance technicians as the basis for forecasting underground development rates with the objective of providing further clarity and confidence on reaching our targeted 400 tonnes per day mill throughput. Therefore, while the Company had previously anticipated providing formal guidance for the balance of 2022, we are deferring such guidance until such time when we can confidently guide the market. I am hopeful that with another several weeks of performance under our belts, we will be in a much better position to update the market.”
Technical Data
AXU stock is below the 20-Day and 50-Day Moving averages of $1.10 and $1.48 respectively. Moreover, the stock is trading below the 200-Day moving average of $1.67.
