Replies to post #21371 on Value Microcaps Junior Miners

[cl001]

Cormark up the target of AXU to 6.25 as well, perfect timing.

Alexco Resources (AXR-T): Alexco remains attractive as a burgeoning silver producer with significant
exploration potential that should fuel rapid growth in its silver resource and production profile as it brings
the historic and prolific Keno Hill silver mining district back into production. It has recently commissioned
the Bellekeno mine that should see its production ramp to almost 5 MMoz in 2012. The relatively short
reserve life should be increased through an ongoing and aggressive exploration program. Applying our
revised silver price deck, our 2011E CFPS estimate has increased to $0.58 from $0.50. Our NAVPS
estimate increases to C$3.62 from C$3.22. As such, we are increasing our target to C$6.25 from C$5.40
based on a 1.5x NAVPS and 11x multiple to our 2011E cash flow estimate. Alexco receives a slight
premium to capture the steep growth profile and a Buy (S) rating (unchanged) as much of its upside relies
on successful exploration.