Excellon Resources has released its Q2 production and financial results, announcing an impressive 120 percent year-on-year increase in production of silver equivalent and an increase in sales to 568,370 ounces from 249,733 ounces in Q2 2017.
Mexico-focused Excellon Resources’ (TSX:EXN,OTC:EXLLF) second quarter silver equivalent production jumped 120 percent year-on-year, with output reaching 637,205 ounces compared to 289,566 ounces this time last year, the company reported on Monday (July 30).
The company also noted that its sales increased from 249,733 ounces of silver equivalent to 568,370 ounces, boosting revenue by 177 percent to US$9.9-million and posting a net profit of US$1.3-million, which is up year-on-year from US$0.5-million.
“We saw strong improvements in all areas of operational and financial performance during the second quarter. Most importantly, we realized all-in sustaining costs per silver ounce payable of less than US$10, greatly improved cash flow and added cash to our balance sheet while internally funding exploration programs on both of our projects,” stated Brendan Cahill, President and CEO.
All-in sustaining costs for each ounce of silver decreased to US$9.75, compared to US$37.87 in the same quarter last year. Meanwhile, net working capital totalled US$15.8-million in Q2, with US$15.7-million in cash and cash equivalents.
Excellon also noted that Q2 production was aided by its access to multiple high-grade ore faces and continual effort to improve underground productivity.
“During the second half of the year, we’re looking forward to increasing exploration, increasing cash flow through our milling arrangement with Hecla (NYSE:HL) and continuing to implement operational improvements at Platosa,” said Cahill.
In June, the company commissioned two bolting units in order to facilitate ground support installation as ground conditions have been and remain to be a primary area of focus to support production increases. Additionally, ongoing dewatering efforts will continue to be an integral part of the mining process at Platosa, as they are essential to ensure dry and efficient mining conditions.
In late February, Excellon entered into a milling arrangement with Hecla in order to process ore from the San Sebastian mine. The company recently amended the agreement to expand the initial bulk tonnage sample from 4,000 to 12,000 tonnes, with initial shipments of San Sebastian ore expected to arrive at Miguel Auza in late Q3 or early Q4 2018. Preparations for the expansion of milling operations at Miguel Auza are well underway.
As of 12:13 p.m. EST, Excellon was down 0.81 percent, trading at US$1.23.
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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.