Excellon Resources Inc. (TSX: EXN) (NYSE American: EXN) (FSE: E4X2) Reports Strong Second Quarter Financial Results

  • The company reported revenues of $9.7M, in-line with Q1 2021’s sales while gross profit improved to $2.1M, up 16% quarter over quarter
  • Excellon’s production cost per tonne decreased to $273, down 8% quarter over quarter
  • The company also increased its exploration expenditures to $1.8M in Q2 2021, with ongoing mining activity at Mexico’s Platosa mine, as well as in their German and Idaho-based sites

Excellon Resources (TSX: EXN) (NYSE American: EXN) (FSE: E4X2), a silver and base metals producer with precious metal projects in Mexico, Idaho and Germany, has recently published their second quarter results for the 2021 fiscal year. The Company reported Q2 2021 revenues of $9.7 million, up from the $0.7 million registered in Q2 2020, while gross profit improved to $2.1 million, a significant improvement from last year when there was a loss of -$2.6 million. Excellon Resources also reported that the company had cash and marketable securities totalling $7.1 million at hand as of June 30, 2021.

Excellon Resources’ strong second quarter results were directly correlated to the robust production numbers generated from the Platosa Mine in Durango, Mexico. Excellon saw silver production of 296,013 ounces, lead production of 1.9 million pounds and zinc production of 2.5 million pounds – in aggregate totalling silver equivalent production of 487,009 ounces. Although comparative results relative to the equivalent period in 2020 were impacted by the suspension of activities in Mexico from April 2, 2020 to June 1, 2020 on account of the COVID-19 outbreak, the second quarter of 2021 marked the fourth consecutive quarter of over 21,000 tonnes mined and milled. 

“Platosa delivered a fourth consecutive quarter of production at historically high productivity rates,” stated Brendan Cahill, President & CEO of Excellon Resources (https://ibn.fm/eE7Hs). “We continue to see room for improvement, with our ongoing work to improve recoveries at Miguel Auza and, additionally, a sizeable inventory of ore and concentrate at quarter-end due to mill maintenance and weather conditions in late June.” 

In addition to the high productivity rates witnessed within the company’s operations, Excellon Resources were simultaneously able to reduce their marginal cost of extraction. Production cost per tonne decreased to $273 per tonne, a decline of 8 percent relative to the first quarter of 2021, with the all-in sustaining cost per silver ounce payable decreasing to $26.69 per ounce (https://ibn.fm/KPgIy).

Exploration expenditures rose by 597 percent year over year and by 80 percent quarter over quarter to $1.8 million as drilling operations continued to ramp up across various sites. Excellon Resources has recently commenced the process of drilling and adding a second rig at the Silver City site in Germany’s Saxony following the approval of the 2021 drilling operation plan, and it has looked to expand surface and underground drilling operations on multiple targets within the Platosa Mine property. Additionally, the company has commenced drilling at the Oakley Project in conjunction with Centerra Gold Inc. 

“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,” stated Cahill. “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.”

For more information, visit the company’s website at www.ExcellonResources.com

NOTE TO INVESTORS: The latest news and updates relating to EXN are available in the company’s newsroom at https://ibn.fm/EXN

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