Value Microcaps Junior Miners

[checkmate28]

Excellon Reports Third Quarter 2015 Financial Results

http://web.tmxmoney.com/article.php?newsid=80575695&qm_symbol=EXN

While they lost money this quarter, this report clearly presents the path Excellon is on. Trading now near 1x next years CF


Production costs decreased to $3.7 million during the period from $6.4 million in Q3 2014 and $4.0 million in Q2 2015, primarily due to improved maintenance practices and costs for pumps and mobile equipment in 2015, despite similar tonnes mined and milled. These improvements resulted in significantly lower production costs per tonne of $242/t in Q3 2015 compared with $455/t in Q3 2014, reflecting a 47% cost improvement.
Additional cost saving initiatives are currently being implemented for the remainder of the year and expected to continue into 2016.

Total cash cost per silver ounce payable was $11.58/oz in Q3 2015 (Q3 2014 - $15.52/oz), while AISC per silver ounce payable also decreased to $15.76 in Q3 2015 (Q3 2014 - $25.77), primarily due to lower total cash costs, significant reductions in general and administration cost and capital expenditures. The Company expects costs to improve significantly as higher grade areas of the mine are accessed and further cost reductions are realized in the operation.

The net result of the Optimization plan should give EXN yearly production of 4 million Silver equivalent oz with AISC near $9/oz and allow them significant cash flow even at todays prices.

Details of the optimization plan in the link below. Note that True CAPEX is down 40% and OPEX is down significantly due to electricity costs being down 50%
http://web.tmxmoney.com/article.php?newsid=75863271&qm_symbol=EXN


The optimization plan is fully paid for and will be fully implemented during 2016. Current progress of the plan has helped bring costs down significantly already. Additionally, Excellon is entering much higher grade ore in the 1200+gpt AgEq area. This is the highest grade ore I know of in Mexico.

PEA shows net $59Million cash flow for years 2016 - 2019 $17Ag. While were not at $17 Silver, true costs are lower and should present a wash. Thats $15M/year and my case for EXN Trading now near 1x next years CF.

Applying 6x CF to todays share price translates to $1.80/share