Excellon Resources Inc. (TSX:EXN) reported significantly improved Q3 2017 financial results. Excellon nearly doubled revenue to $7.1M compared to Q2
2017 and up 77% YoY. Production cost per tonne, cash cost per payable silver ounce and AISC all decreased significantly QoQ and YoY with a 70% drop
in AISC. With AISC currently below $12/oz Ag and a mining rate of 200 tpd, the company is well positioned to increase production going into 2018. The
successful completion of the company’s Optimization Plan resulted in higher tonnage and metal produced at La Platosa. For the remainder of 2017, the
focus for the company remains on ramping up production to 300 tpd. We view the results very positively and believe the following quarters are likely
to show incremental gains as the effects of dry mining conditions and overall improvements are realized. Excellon currently trades at a discount to
peers at 3.8x 2017e EV/CF versus peers at 4.9x 2017e EV/CF. Ongoing exploration should be an important catalyst for the company, as they highlight
the potential to expand and grow operations in the near-term.
Derek Macpherson | VP Mining Analysis
Victoria Ellis Hayes | Associate
Alex Pitcher | Associate
Red Cloud Klondike Strike Inc.
105 King Street East, 2nd Floor
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Company Specific Disclosure Details
Excellon Resources Inc. - TSX:EXN - 2,4
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