Alexco Resource Corp (AXU)

[geodan]

Comparing Golden Arrow and AXU?

Am listening to presentation right now for AXU. 77% IRR sounds good. The stock has done well. Since the run up in 2016, has held most of the gain.

GARWF Arrow is comparable in many ways to AXU it struck me as viewing the video. With current projected mine life, amount of annual product due the companies and cost per oz and both are going into production in months. Amazingly similar. Even cash amount close.

If you are not familiar with Golden Arrow they have found the biggest silver mine in world and one of bigger gold mines in world and sold both, then they found Chinchillas, all 3 in Argentina where they are the pioneers of getting mining going again. Chinchillas is silver deposit that will be in operation in a few months with Silver Std (SSRM) as the operator and 75% owner, and Arrow got cash and 25% of SSRM's current mine Piriquitas and the mill there which will run Chinchillas ore. It sounds like Arrow will get about the same cashflow and silver out of Chinchillas as AXU will out of Keno. Their presentation is here: https://goldenarrowresources.com/assets/docs/presentations/2017-09-20-grg-cp.pdf and excerpt below.

So they seem similar and Arrow has tremendous land package in Argentina and about 6 targets already there which they are drilling now.

The one difference is Alexco has $150 mkt cap and GARWF only $50, and it has no debt and $20 million cash so just $30 million EV. AXU has about $20 million cash too.

Any thoughts on this compare? My guess is GARWF is way undervalued, not AXU overvalued.



Yearly production 8.4Moz silver equivalent at $19.50 per oz silver = US$163.8M (gross
revenue)
6.3Moz silver equivalent - Silver Standard at $19.50 per oz silver = US$122.9M (gross
revenue)
2.1Moz silver equivalent - Golden Arrow $19.50 per oz silver = US$40.9M
? Total 8 year production at 8.4Moz silver equivalent at $19.50 per oz silver = US$1.310B
(gross revenue):
75% Silver Standard = US$982.8M 25% Golden Arrow = US$327.6M
STAGE 2
Requires a Higher
Silver Price
Drilled: 140Moz Silver Equivalent (Measured and Indicated)
63Moz Silver Equivalent (Inferred)