Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Canadian metals miner Alexco Resource is ramping up production at Keno Hill to reach 400mt of daily capacity through its District mill by Q2 2021. 


It is also on track to commence ore extraction at its Bermingham site in Q2 2021 and at Flame & Moth by Q3 2021.


The company mined 4,427mt of ore in Q1 2021 through its Bellekeno mine. Ore grades from Bellekeno have largely surpassed the block model grades and Bellekeno’s ore production is projected to continue into Q2 2021.


The miner milled 3,850mt of ore in Q1 2021, and the mill has been running on a revised rotation plan to balance Bellekeno mine’s ore production. 


The company produced 539mt of lead concentrate and 105mt of zinc concentrate in Q1 2021. Alexco sold 521mt of lead concentrate and 87mt of zinc concentrate in Q1 2021 to partners under the company’s offtake agreement.


Alexco reported net income of C$4.2mn ($3.45mn) in Q1 2021 compared to C$12.1mn in the same quarter last year. Revenue stood at C$3.8mn compared to C$600,000 in the same period. Operationally, the company’s gross loss tallied at C$1.1mn in Q1 2021 compared to a gross profit of C$30,000 in the previous year, primarily related to continuing ramp-up related costs at Keno Hill. 


The company’s operating loss was C$3.1mn in Q1 2021, compared to an operating loss of C$2.6mn in Q1 2020, which was also related to ramp-up costs as the company advances towards commercial production.


($1 = C$1.22)


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