EXN.T: What were your thoughts regarding the most recent Q? Guidance is for a decline in production in Q1. Stock seems to be holding steady around a buck fifty.
TORONTO, March 22, 2018 /CNW/ - Excellon Resources Inc. ("Excellon" or the "Company") is pleased to report financial results for the three- and twelve-month periods ended December 31, 2017.
2017 Financial and Operational Highlights (compared to 2016)
Completion of Optimization Plan resulting in dry mining conditions with two consecutive quarters of increased production and lower costs
Underground drilling successfully added near-term mineable mineralization
Commenced surface exploration program to define new targets surrounding Platosa; initial drilling program at Miguel Auza to commence in Q2
Revenue increased 25% to $21.2 million (2016 – $17.0 million)
Silver equivalent ("AgEq") production increased 14% to 1.5 million ounces (2016 – 1.3 million AgEq ounces)
AgEq ounces payable increased 18% to 1.3 million ounces (2016 – 1.1 million AgEq ounces payable)
Gross profit decreased 42% to $0.4 million (2016 – $0.7 million), but totaled $2.6 million in the second half of the year following completion of the Optimization Plan
Total cash cost per Ag oz payable decreased 23% to $10.38 (2016 – $13.42)
Adjusted all-in sustaining cost per Ag oz payable ("AISC") decreased 15% to $21.89 (2016 – $25.83), excluding the one-time sustaining capital expenditures associated with the Optimization Plan, with Adjusted AISC per Ag oz payable of $13.73 in the second half of the year
Adjusted net loss of $3.7 million or $0.05/share (2016 – adjusted net loss of $3.4 million or $0.05/share), excluding non-cash financing loss associated with convertible debentures ("Debentures") issued in November 2015 and accelerated to conversion in December 2017
Net working capital totaled $13.8 million at December 31, 2017 (December 31, 2016 – $8.6 million), following successful equity financing to advance exploration
Q4 Financial Highlights (compared to Q4 2016)
Continued improvement in operations post-Optimization Plan, revenue increased 112% to $7.1 million (Q4 2016 – $3.4 million)
Production increased 55% to 475,007 AgEq ounces (Q4 2016 – 305,934 AgEq ounces)
Sales increased 80% to 435,924 AgEq ounces payable (Q4 2016 – 241,867 AgEq ounces payable)
Gross profit of $1.1 million (Q4 2016 – loss of $0.9 million)
Adjusted net income of $0.9 million (Q4 2016 – adjusted loss of $2.5 million)
Total cash cost per Ag oz payable reduced by 66% to $6.27 (Q4 2016 – $18.48)
Adjusted AISC per Ag oz payable reduced by 67% to $15.84 (Q4 2016 – $48.49)
"During 2017, we achieved dry mining conditions for the first time since the earliest days of Platosa," stated Brendan Cahill, President and Chief Executive Officer. "The stage is now set to ramp production up to optimal levels and begin realizing Platosa's full potential. During Q4 2017 and into Q1 2018, we resolved a few of the outstanding challenges to increased production. Most importantly, we drove the 730 and 725 ramps below Rodilla and 623 mineralization to set up more productive cut-and-fill mining of those mantos in the coming weeks. We expect first quarter production to be 410,000 - 440,000 AgEq ounces, but the work done during the quarter prepares for stronger production through the remainder of the year. We expect to publish an updated mineral resource statement and technical report in April, along with a production outlook for the remainder of 2018."
