Here’s why Alexco Resource Corp. (USA) (NYSEMKT:AXU) is gaining strength across the Friday session in the US.
At session open on Friday, small capitalization mining company Alexco Resource Corp. (USA) (NYSEMKT:AXU) Traded for a little over $1.1 a share. Within two hours of the bell, the company close to 8%, and action suggests it is set for further gains as the Friday session rituals in the US. Here is a look at the company, and what’s driving the buy side bias.
First thing, a quick look at Alexco. It’s a US-based mining company, with focus operations in both Canada and North America. Primarily, the company mines for industrial metals and minerals – specifically, aluminum, copper, lead and zinc. With a market capitalization of the little over $86 million, the company falls well within the lower bracket of the small capitalization space, but the latest gains illustrate its potential to attract buyers given the right releases.
So, with this said, what caused the upside momentum today? At session close on Thursday, Alexco published its fourth-quarter and year-end 2015 financial results. While the company reported a net loss of $1.5 million during the final quarter of 2015, revenues during the period came in at $4.1 million – pretty healthy for a junior minor such as this – and full-year revenues hit $14.7 million for a gross profit of $3.3 million, or gross margin of 22.2%.
Additionally, the company gave us some operational highlights – highlights that have likely contributed to positive sentiment heading into the weekend. These included the completion of a surface exploration drill program that expanded its current project and a $3 million equity financing round, which alongside a secondary $1 million non-brokered financing round, should see the company well-capitalized throughout the remainder of the year.
Cash on hand sits at $8.2 million as of December 31, 2015, and net working capital comes in at $12.2 million. At time of writing, the company traded for a little over $1.18 a share – testing the upper end of its 52-week range between $0.22 and $1.28. One to watch as we head into the weekend.
DISCLAIMER: There is a substantial risk of loss with any speculative asset, especially small cap stocks. The opinions expressed are those of the author, and do not constitute recommendations to buy or sell a stock. Do your own research before committing capital.