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 GOLDINVEST.de 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.
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 is intended solely for the information of 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 offered 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.
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 has been recognized 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” mark 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.