Excellon Resources: One of the best quarters in years!

Brendan Cahill, CEO of the silver producer Excellon Resources (WKN A2QEQZ / NYSE EXN) Justifiably show satisfaction: The Canadian company has just presented one of the best quarters in years!

The fact that Excellon can present this significant improvement is due to the fact that the Platosa silver mine in Mexico processed a record volume of ore, achieved excellent extraction rates and at the same time was able to reduce costs, while precious metal prices rose at the same time, Mr. Cahill continued.

In the period from July to the end of September, Excellon was able to increase sales by 56% to $ 9.7 million compared to the same period in the previous year. The company’s gross profit for the past quarter was $ 2.5 million after a loss of $ 1 million in the third quarter of 2019. Excellon reported the net loss for the quarter at just 1 cent per share, compared to the previous year were 14 cents per share.

While production on Platosa increased 23% to 524,312 ounces of silver equivalent in the three months to the end of September, sales rose 31% to 485,841 ounces of silver equivalent, according to the company. At the same time, however, and this is really good news in our opinion, the total cash cost (net of byproducts) fell 31% to $ 12.60 an ounce of silver. The all-in sustaining costs (AISC) per ounce of silver even fell by 34% to USD 18.92 compared to the previous year. In the third quarter of 2019, they were still at $ 28.46 an ounce!

As Excellon also announced, net working capital grew to $ 10.5 million as of September 30, 2020. As of December 2019, this was still at $ 7.6 million. Cash and salable securities at the end of the quarter were $ 10.1 million, and following the issuance of a convertible bond and the repayment of a $ 6 million loan, the company’s liquidity improved to $ 17.91 million.


Excellon Resources (WKN A2QEQZ / NYSE EXN) In our opinion it had an excellent third quarter! While production and metal prices rose, costs could already be reduced substantially. Since the company was also able to report the successful transition to a private electricity supplier after the end of the quarter, which is expected to bring about a significant reduction in operating costs, the next few quarters could, we believe, with persistently strong precious metal prices and ongoing good operating performance turn out even better at the Platosa mine.

In addition, Excellon is also putting pressure on the exploration front. The drills are not only turning on Platosa itself, the company is also already active on the Silver City project in Germany and plans to work on the Oakley project in the near future. If you find what you are looking for, we believe that the share price will also develop positively.

We keep the readers of up to date on how this promising silver play will continue. We would like to point out that investments in the commodities sector are always risky and investors should also take this into account in this case.

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