Excellon Generates Positive Q2 Cash Flow Despite Low Silver Prices

Excellon Resources Inc. (TSX:EXN) announced its financial results for the three- and six-month periods ended June 30, 2014, commenting that during Q2 its revenue saw a 110-percent increase compared to the second quarter of 2013. It came in at $8.8 million.

Other Q2 financial highlights include:

• 45% increase in payable ounces produced to 545,343 AgEq ounces (Q2 2013 – 374,207 AgEq ounces), the best quarter of AgEq production since Q1 2010
• Mine operating earnings of $2.1 million (Q2 2013 – net loss of $1.8 million)
• Net  loss of $0.7 million or $0.01/share (Q2 2013 – net loss of $5.0 million or $0.09/share)
• Improved cash flow from operations to $1.6 million or $0.03/share before changes in working capital (Q2 2013 – out flow of $3.3 million or $0.06/share)
• Total cash cost per Ag ounce payable of $9.03 (Q2 2013 – $13.69) and $10.44 year-to-date
• All-in sustaining cost (‘AISC’) per Ag ounce payable decreased to $14.59 (Q2 2013 – $30.64) and $15.98 year-to-date
• 20% increase in cash, receivables and marketable securities during the quarter to $10.9 million at June 30, 2014 ($9.1 million at March 31, 2014)
• 19% increase in working capital to $14 million at June 30, 2014 ($11.8 million at March 31, 2014)

Brendan Cahill, president and CEO of Excellon, commented:

We continued to generate positive cash flow during Q2 despite another period of low silver prices. Our all-in sustaining costs continued to improve this quarter and, with improved silver prices and higher grade mineralization ahead, we expect to continue building our cash position through the rest of the year.  We are also encouraged by the ongoing strengthening of zinc and lead prices, which currently contribute approximately 40% of our revenue and ensure low per ounce production costs on a byproduct basis.

Click here to read the full Excellon Resources Inc. (TSX:EXN) press release.