bbotcs Re EXN EXLLF Excellon. They caught me by surprise on the PP but here's my thoughts.
Firsts the givens:
With the progress of the optimization being basically done, production volume is increasing while costs are rapidly decreasing. That alone will be a great story. There has to be sufficient cash flow to carry on at Platosa without the placement.
Eric Sprott, While Im not a fan, his purchases are telling. After owning 20% of the company, hes spent $1 Million more on the shares, in the open market, in the last 30 days at prices at or above the current price, and near the private placement at $2. Eric wants to make some money.
After the PP, Excellon will still have only 83 Million OS. They have been prudent and without any reverse splits.
The answer has to be GROWTH through discovery or/& M & A: They are currently expanding by drilling high grade results at Platosa, but the biggy sits about 1KM outside the current zone. This possible CRD Carbon Replacement Deposit could easily dwarf the current operations. They were drilling this before the crash in silver and thought they were on to something, ran out of money and shelved it. Excellon has the highest grades of any silver producer and should have great cash flow from Platosa starting now. To find a major discovery with a lot more silver would make Excellon one of the best storys out there again IMO.
My guess is they are going to get as many drills going as they can and probably purchase more surrounding property or even another mine somewhere near.
Checkmate28 JMHO
