Markets

Excellon Resources reports strong performance at the Platosa silver mine

Silver producer Excellon Resources (TSX EXN / NYSE EXN / MRS E4X2) has excellent news from its Platosa mine in Mexico. The production results of the third quarter are more than impressive!

The silver equivalent production in the September quarter, the first quarter after the Corona-related production stops in Mexio, increased significantly compared to the previous year’s result. As Excellon announced, the output reached 524,312 ounces of silver equivalent and was thus 23% above the result for the same quarter of 2019 (427,131 ounces).

With 326,909 ounces of silver (plus 27%), the company recorded the highest silver production on a quarterly basis since the second quarter of 2014! As Excellon also announced, lead production (+ 71% to 2.2 million pounds) and zinc output (+ 66% to 2.7 million pounds) also increased significantly. In addition, the company reported that the number of tons of ore mined on Platosa (21,877 tons) was set in the third quarter.

And, last but not least, Excellon signed a new contract to supply electricity to the Platosa mine. It is hoped that this will result in savings in this largest, operational cost pool.

No wonder, then, that Excellon CEO Brendan Cahill describes the performance of the operations team as “outstanding” in all areas – especially since the mine first had to be brought back into production and at the same time the employees had to be protected from COVID19. With regard to the new electricity contract, which is tied to the price of natural gas, the Excellon boss expects “much lower” prices in this important cost area in the future. According to Mr Cahill, this will also have an impact on the overall costs.

Excellon also achieved improvements on Platosa in the third quarter in terms of costs for consumables and personnel, as well as efficiency in mining and extraction, and with regard to the reliability of the equipment. Among other things, it was also possible to stabilize the operation of the processing plant and increase the recovery rates – a very important factor – which, according to the company, led to lower costs per unit of production. As Excellon said, the future will continue to focus on optimizing operations, which in conjunction with the expected lower energy prices on Platosa should continuously improve the profitability of the mine. An indication of how Excellon is doing, the company will provide on November 13th, when the quarterly figures are presented.

Delayed drilling results from Saxony

The drilling results from Saxony, where Excellon has been drilling on the Silver City project near Freiberg since July, as planned, have not yet made good progress. Unfortunately, there were massive delays in receiving the results of these activities, which is currently a problem for the entire industry. The drill core samples were delivered from Freiberg in preparation for the external setup of the laboratory in Poland and then flown to the central laboratory in Canada. This, together with COVID19-related problems and the current strong demand for drill core analysis, has led to the delays. Excellon will submit the drilling results from Saxony as soon as possible once received.

While these delays are regrettable given the potential of Silver City (we reported), we rate the news from Platosa as consistently positive. If Excellon can continue to increase productivity and reduce costs in the future – and the price of silver remains high – the profitability of the mine could increase significantly.

Risk warning: GOLDINVEST Consulting GmbH offers editors, agencies and companies the opportunity to publish comments, analyzes and news on http://www.goldinvest.de. This content serves exclusively to inform the reader and does not represent any kind of call for action, neither explicitly nor implicitly are they to be understood as a guarantee of possible price developments. Furthermore, they are in no way a substitute for individual, expert investment advice and represent neither an offer to sell the stock (s) in question nor an invitation to buy or sell securities. This is expressly not a financial analysis but a promotional one / journalistic texts. Readers who make investment decisions or carry out transactions on the basis of the information provided here act entirely at their own risk. There is no contractual relationship between GOLDINVEST Consulting GmbH and its readers or the users of its offers, as our information only relates to the company, but not to the reader’s investment decision.

The acquisition of securities involves high risks, which can lead to the total loss of the capital invested. The information published by GOLDINVEST Consulting GmbH and its authors is based on careful research, but any liability for financial loss or the content guarantee for the topicality, correctness, adequacy and completeness of the articles offered here is expressly excluded. Please take note of our Terms of Use.

In accordance with Section 34b WpHG and Section 48f Paragraph 5 BörseG (Austria), we would like to point out that GOLDINVEST Consulting GmbH and / or partners, clients or employees of GOLDINVEST Consulting GmbH can hold shares in Excellon Resources and thus a conflict of interest may exist. GOLDINVEST Consulting GmbH also reserves the right to buy or sell shares in the company at any time, which could affect the price of Excellon Resources’ shares. In addition, there is a consulting or other service contract between Excellon Resources and GOLDINVEST Consulting GmbH, which creates a further conflict of interest, as Excellon Resources remunerates GOLDINVEST Consulting GmbH for reporting on Excellon Resources.

Note: PERSONAL-FINANCIAL.COM publishes analyzes, columns and news from various sources in this section. PERSONAL-FINANCIAL.COM AG is not responsible for content that is recognizably posted by third parties in the “News” area of ​​this website and does not adopt it as its own. This content can be identified in particular by a corresponding “from” label below the article heading and / or by the link “To read the full article, please click here.”; The named third party is solely responsible for this content.

Tags

Related Articles

Back to top button
Close
Close