Financial Results Show Good Growth Across The Board
Excellon Resources Inc. (TSX:EXN) has achieved a revenue increase to US$9.7 million compared to the Q2 2020 result of US$0.7 million.
Q2 2021 Financial and Operational Highlights (compared to Q2 2020)
- Gross profit improved to US$2.1 million (Q2 2020 – loss of US$2.6 million) and increased by 16% compared to Q1 2021
- Total cash cost net of by products per silver ounce payable decreased to US$11.96 (Q2 2020 – $51.14) and decreased by 11% from Q1 2021
- All-in sustaining cost (AISC) per silver ounce payable decreased to US$26.69 (Q2 2020 – US$105.49) and increased by 10% from Q1 2021
- Production cost per tonne decreased to US$273 per tonne (Q2 2020 – US$2,498 per tonne) and decreased by 8% from Q1 2021
- Fourth consecutive quarter of over 21,000 tonnes mined and milled, with record tonnes mined (86,316) and milled (88,648) over trailing twelve months, with sizeable stockpiles of ore and concentrate at quarter-end that were processed and/or delivered in early July
- Exploration expenditures increased 597% to US$1.8 million (Q2 2020 – US$258,000) and increased 80% from Q1 2021 as drilling continued to ramp-up, including:
- Commencement of drilling and addition of second rig at Silver City in Saxony following approval of the 2021 Drilling Operation Plan;
- Surface and underground drilling on multiple targets at the Platosa Mine and broader property; and
- Commencement of drilling at the Oakley Project in collaboration with and funded by Centerra Gold Inc.
- Cash and marketable securities of US$7.1 million at June 30, 2021 (December 31, 2020 – US$10.7 million)
“We realised another good quarter at Platosa, with financial results partially impacted by delayed processing and delivery of ore and concentrate at the quarter-end by weather conditions,” said Brendan Cahill, President and CEO.
“The operation delivered good improvements in cost-per-tonne and cash costs, while AISC was higher in the quarter due to sustaining capital expenditures, a part of which had been deferred from earlier periods.
“Most importantly, we continued to ramp-up exploration on our projects, with Platosa ongoing and Silver City and Oakley getting started. We look forward to drilling results from our resource growth and discovery-focused projects through the remainder of the year.”
The revenues of $9.7 million in Q2 2021 were consistent with Q1 2021 revenues ($9.8 million) as payable metal sold and average realized prices were stable over H1 2021.
Cost of sales increased by $4.3 million during Q2 2021 and $5.5 million for H1 2021 relative to the comparative periods, primarily due to the Suspension. Production costs in Q2 2021 were $0.4 million lower than Q1 2021, partly reflecting $0.6 million in incremental energy costs incurred in Q1 2021 relating to the polar vortex and resulting significant increases in electricity costs in February 2021. The increase in depletion and amortization was driven primarily by increased production following the Suspension in Q2 2020.
For further information please visit:www.excellonresources.com
