Profit Increased To US$2.5 million
Excellon Resources Inc. (TSX:EXN) has reported strong financial results for the three- and nine-month periods ended September 30, 2020.
The company’s Q3 2020 Financial and Operational Highlights includes:
- Revenues increased by 56% to US$9.7 million during Q3 2020 (US$6.2 million in Q3 2019)
- Gross profit improved to US$2.5 million (Q3 2019 – loss of US$1.0 million)
- Production increased 23% to 524,312 silver equivalent (AgEq) oz (Q3 2019 – 427,131 AgEq oz), while sales increased 31% to 485,841 AgEq oz (Q3 2019 – 370,376 AgEq oz)
- Total cash cost net of by-products per silver ounce payable decreased 31% to $12.60 (Q3 2019 – $18.18)
- AISC per silver ounce payable decreased 34% to $18.92 (Q3 2019 – US$28.46)
- Production cost per tonne decreased 33% to $227 per tonne (Q3 2019 – US$339 per tonne)
- Net working capital totalled US$10.5 million at September 30, 2020 (December 31, 2019 – $7.6 million)
- Cash and marketable securities of US$10.1 million as at September 30, 2020 and improved liquidity following C$17.91 million convertible debenture issuance and repayment of Sprott Private Resource Lending US$6 million bridge loan
- Other highlights during the quarter included:
- listed and commenced trading on the NYSE American, LLC exchange (the “NYSE American”)
- released updated Mineral Resource Estimate on the Evolución Project in Zacatecas, Mexico, totaling an indicated resource of 35.1 million AgEq oz grading 170 g/t AgEq and an inferred resource of 64.8 million AgEq oz grading 135 g/t AgEq
- Finalised transition to private electricity supplier at Platosa, with substantial operational cost savings expected going forward
“This quarter was one of our best in years, with record tonnage, excellent metal recoveries and solid cost reductions, all in a rising metal price environment,” Brendan Cahill, President and CEO, said.
“We are confident that we can improve further by realizing the benefit of the new lower-cost electricity contract that is now in place and through other optimisations underway.
“Our teams in Mexico deserve great credit for continuing to improve the operation, while ensuring the safe operation of the business during the ongoing COVID pandemic.”
“On the exploration front, we currently have three rigs operating at Platosa and one at Silver City, and we expect to start drilling at Oakley in the near term. Our focus over the coming quarters is resource growth and discovery, supported by cashflows from our improving Mexican operations.”
