Although Bunker Hill Mining Corp (OTCMKTS:BHLL) made a fairly positive announcement yesterday, it did not do much for the company’s stock, which went down by as much as 4% amidst a selloff. The company came into focus yesterday after it made an announcement with regards to the results of the feasibility prefeasibility study regarding the first stage of the restart of its Bunker Hill Mine.
Trading Data
On Tuesday, BHLL stock decreased 4.02% to $0.0930 with more than 308.58K shares, compared to volume of 93.63K shares. The stock moved within a range of $0.0911 – 0.1050 after opening trade at $0.0990.
Bunker Hill Announces Prefeasibility Study for First Phase of Mine Restart
The mine in question is situated in Silver Valley in Idaho. The prefeasibility study had described a plan in which Bunker Hill Mining would need to shoulder initial capital costs to the tune of as much as $55 million.
That would help the company in accelerating the process of restarting the mine by the end of next year. However, more importantly, it was also pointed out that in the initial 5 year mine plan, the mine was going to generate free cash flow to the tune of as much as $25 million.
The study managed to come to that figure after coming up with an estimate with regards to the Probable Mineral Reserves at the mine. It was an important announcement and the whole thing may have a significant bearing on Bunker Hill Mining as a company in the near future.
Key Quote
Sam Ash, CEO of Bunker Hill, stated: “We are very pleased to announce our Prefeasibility Study for ‘Phase 1’ of our multi-phase value-generation plan for the Bunker Hill Mine outlining how we intend to commence profitable, sustainable, modern operations by the end of 2023. As demonstrated in our PFS, Bunker Hill is a sustainable low-risk, high-margin asset with the potential to generate free cash flow of over $25 million per year while contributing to strategic metal production in the United States beginning in 2024 and providing a significant economic boost to our many community partners in the Silver Valley of Northern Idaho. We are now focused on driving forward to a formal construction decision while maintaining momentum with ongoing restart activities.”
Technical Data
BHLL stock is below the 20-Day and 50-Day Moving averages of $0.1077 and $0.1227 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.1993. The stock is down 63% over the past 6-month.
