This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Alexco Resource's CEO Discusses Q2 2012 Results - Earnings Call Transcript

Before we get started, I do need to remind you that some statements made today by the management team may contain forward-looking information. Our business involves a number of risks that could cause results to differ from projections and investors are urged to consider those disclosures and discussions pertaining to risks that can be found in Alexco’s SEDAR filings. It should also be noted that past performance discussed in this conference call is not indicative of future results.

So now I’d like to turn the call over to Alexco’s President and Chief Executive Officer, Clynt Nauman. Clynt?

Clynton Nauman

Thank you, Vicki, and thanks to everybody for joining us today this morning or this afternoon. First of all, let me start by saying that the second quarter of 2012 full operations at the Bellekeno mine is not one that we intend to repeat and we will be talking about that. The write-offs, I’d like to offer you some longer term encouragements and that we have a plan in place that by the end of the year, we should be able to catch up on our earlier expectations stepping up primarily in the fourth quarter. Also we’ve invested a significant amount of cash during the quarter and I will address that as well.

Back to the most recent quarter, the second quarter, as you know, our cash costs were $15.53 per ounce of silver net of by-product credits. This was a full 41% increase compared to the first quarter of this year and even higher than the same period a year ago with cost of $6.30 per ounce in just the commercial operations at Bellekeno.

So let’s look at the reasons for the unit cost increases. A good portion of the approximately $9 per ounce increase compared to the second quarter of last year is due to the lower prices for lead and zinc. That decrease in prices has accounted for – and the base metal prices accounted for about $4 per ounce increase in the cash cost for the second quarter of this year.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.03 0.21%
FB $116.73 0.00%
GOOG $691.02 0.00%
TSLA $249.50 0.72%
YHOO $36.59 0.00%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs