Alexco Resource Hit With Larger Quarterly Loss; Shares Slip 3%

Alexco Resource posted a wider-than-expected loss in the fourth quarter, while revenues surpassed analysts’ expectations. Shares of the Canadian primary silver company fell 2.8% in Thursday’s extended market session after closing almost 4% higher on the day.

Alexco (AXU) incurred an adjusted loss of C$0.07 per share in 4Q, compared to the C$0.02 loss per share estimated by analysts. The company reported a loss of C$0.04 per share during the same quarter last year.

Meanwhile, total sales generated during the quarter amounted to C$633,000, topping consensus estimates of C$320,000. However, revenues declined 4.2% year-over-year. (See Alexco Resource stock analysis on TipRanks)

Alexco CEO Clynt Nauman commented, “2020 marked the restart of silver mining activities at our Keno Hill Silver District. We expect to complete all mill upgrades in Q2 2021; and mining operations and underground development are anticipated to achieve nameplate capacity of 400 tonnes per day in Q3 2021.”

On Feb. 2, Roth Capital analyst Joseph Reagor initiated coverage on the stock with a Buy rating and a price target of $3.60 (42% upside potential).

Reagor believes that “Alexco Resource is on the cusp of reaching commercial production from its restarted Keno Hill operations.”

The analyst argues that company “should benefit from its production being heavily weighted towards silver.”

The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. That’s based on 2 Buys and 1 Hold. The average analyst price target of $3.28 implies 29% upside potential to current levels. Shares have rallied more than 138% over the past year.

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