Alexco Reports Fourth Quarter and Year End 2014 Results

Press Releases

March 25, 2015 Alexco Resource Corp. (NYSE MKT:AXU, TSX:AXR) today reports financial results for the fourth quarter and year ended December 31, 2014. All figures are expressed in Canadian dollars unless otherwise stated. For the fourth quarter of 2014 Alexco recorded an adjusted net loss1 of $1.6 million or $0.02 per share, including $0.8 million in depreciation and other non-cash costs. Alexco Environmental Group (“AEG”), a wholly owned subsidiary of Alexco, recognized revenues of $4.1 million in the fourth quarter and $14.9 million for the year ended December 31, 2014, with an annual gross profit of $4.9 million, achieving a gross margin of 32.8%. For the full year 2014 Alexco recorded an adjusted net loss1 of $5.4 million or $0.08 per share. The consolidated net loss for the year was $32.8 million, including the impact of non-cash asset write downs of $29.9 million, along with an offsetting $2.6 million deferred income tax recovery recorded in the fourth quarter. The write downs were primarily due to significantly depressed silver prices in 2014 and the continued interim suspension of mining operations.

2014 Highlights

• Adjusted net loss1 of $5.4 million or $0.08 per share. Consolidated net loss was $32.8 million, including a non-cash charge of $29.9 million, reflecting the impact of depressed silver prices in 2014 and the continued interim suspension of mining operations.
• Cash and cash equivalents at December 31, 2014 of $8.6 million and net working capital of $11.3 million compared to $8.6 million and $15.3 million, respectively, at December 31, 2013.
• AEG full year gross profit of $4.9 million on revenues of $14.9 million, achieving a gross margin of 32.8%.
• Completed 18,267 meters of surface exploration drilling with continued success; Alexco drilled its best hole ever at Keno Hill, intersecting 5,667 grams per tonne (g/t) silver over 6.39 meters true width at Bermingham, while also enjoying continued success with infill and extension drilling at Flame & Moth.
• Achieved a 32% decrease in G&A costs in 2014 compared to the previous year.
• Completed a bought deal financing in August 2014 for net cash proceeds of $7.2 million.
• Extended by one year, to December 31, 2015, the date by which Alexco may make a US$20 million payment to Silver Wheaton to implement an amendment to its silver streaming agreement.
• Completed a positive preliminary economic assessment (“PEA”) encompassing Bellekeno, Flame and Moth and the Lucky Queen deposits, in addition to outlining resources at the Onek and Bermingham deposits.
• Moved forward with the permitting process required for development and future production from the Flame & Moth deposit. A Decision Document has been issued by the Government of Yukon, which is a necessary step toward amending the Quartz Mining Licence and the Water Use Licence.

Adjusted net loss excludes amounts recorded with respect to impairment charges, and is a non-IFRS measure with no standardized meaning prescribed under IFRS. See page 16 of Alexco’s December 31, 2014 MD&A for explanation and reconciliation.

Alexco’s President and Chief Executive Officer Clynt Nauman said, “Although 2014 will be remembered as a year of challenges in the silver business, Alexco was able to move forward with a substantial and very successful exploration program, renegotiate our silver streaming agreement, advance permitting and development activities for our Flame & Moth deposit and position Alexco for a restart of silver mining operations when market conditions strengthen. We are further encouraged to report that by cutting our expenses and prudently applying the cash flow from the Alexco Environmental Group, we have good flexibility and resilience for the foreseeable future while we continue to optimize our future operating plans.”

Read More: http://www.alexcoresource.com/s/news.asp?ReportID=701451

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