EXN.T Excellon Res Q1 Production and Financials numbers out.
No surprises, The dewatering program is working well and there actually ahead of schedule. Phaze 2 is starting now.
Q1 AISC of $16.98 but $11.72 in March as they accessed the 1,000 g/t Ag Rodilla Manto that was previously under water.
From the release
"In late February, we accessed the Rodilla Manto, approximately seven months ahead of schedule as we encountered mineralization outside of the Platosa resource block model and dry mining conditions facilitated rapid development. A significant amount of this 'bonus' mineralization was ultra high grade, with approximately 1,600 tonnes of ore produced from Rodilla during March grading over 1,000 g/t Ag, 10% Pb and 10% Zn. This ore was blended with lower grade and low-cost stockpiles to improve mill recoveries and concentrate payability. We are currently developing into the next level of the Rodilla Manto and expect the continuing optimization program at Platosa to deliver further operational improvements as the year progresses."
The dewatering program will be completed during the second half of the year with continuing improvements throughout the year. What were waiting for here, is the water level to lower, allowing them to access the 1777gpt AuEq ore. At this point the PEA calls for $15 Million CF per year at $17 silver and an AISC of $9 for years 2016 - 2020. Since they are scheduled to have about $3.5 million less in CAPEX than the PEA estimates, these numbers should improve by about $1M CF per year if you do the math.
Excellons recent rise in price came, when the market figured out this was going to happen and Eric Sprott put in his $3 M
Next catalyst will be when further dewatering produces reported cash flow numbers that some investors must see first. The grades they pull will be second to none in all of Mexico.
So with current market cap, and $1.25/share, they are trading at about 4.5 x Future 2016 cash flow with an improving balance sheet. Still represents a near guaranteed re rating at $17 silver and even more at higher prices.
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