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.
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
EXN.T Excellon Resources Traded at .54 + 150% from 2016 low. Havent mentioned this much because I was still accumulating and its not very liquid. The following 2 posts are still 100% the reason this will move much higher the coming months. To back me up, Greg McCoach in a presentation at March 8th PDAC said Excellon was an easy 10 bagger.
checkmate28 Monday, 11/02/15 11:57:54 AM Post # 32016
EXN.T Excellon Resources. Trading at $17MC. I would call this Great buy today. I dont think the market sees where this is going. Todays financing was more than fair for a the $6 Million they need to fully pay for their de-watering project. They are going to tackle it for good and this turn around will happen fast.
First off, they projected needing $10M for the dewatering project. They now say $6M will do the entire project. The new IRR will be over 100% based on similar metals price today.
1,231 g/t Ag (1,766 g/t AgEq Thats almost 70 US ounces per ton.
The Company is currently accessing the periphery of the high-grade 623 Manto, hosting mineral resources of 83,000 tonnes at 1,231 g/t Ag (1,766 g/t AgEq), which is expected to reach full production during 2016 as ramps providing full access to the manto are completed.
Optimization Project: PEA Highlights Base case of $17/oz silver, $0.90/lb lead, $1.00/lb zinc
2016 - 2019 $58.4 million cumulative net after-tax cash flow • $6.02 average total cash cost per payable silver ounce • $9.00 average all-in sustaining cost per payable silver ounce
They should be producing at $4Million AuEg oz very profitably somewhere mid 2016. The increased cash flow will allow them to follow up their drilling program that could change the company in a bigger way. Checkmate28
Checkmate said While they lost money this quarter, this report clearly presents the path Excellon is on. Trading now near 1x next years CF
Currently I am holding for at least $1.00 this year. After the water table is drawn down and production level increases to 4Million OPY we can calculate the following.
4,000,000oz X AISC $9 @ leaves a $7 margin ($16Ag) or $28 million. CAPEX will be low, but they need to drill and they will. That is another good story in itself but requires some DD. They will also have cash for M @ A should something arise. They will be producing at 1200 GPT or 6 times the grade of the average silver producer producing around 200gpt.
This is easy stuff here. Excellon just needs to finish its paid for Dewatering program later mid 2016.
I know its been fairly easy lately but all my most posted companies last 12 mths AG.T GORO ICG.V AUMN EXN.T SAS.T(bought) & GWA.V all recent home runs. I Still like all of the above. Soon GWA Gowest Gold might be ready for a pop when the environmental permit comes in laying the grounds for execution of financing of the bulk sample that is backed by a low CAPEX, High IRR and sub $900AISC pre feas. Soon possibly DNI.ca will be on that list. DNI is an amazing little company with 3 sources of cash flow soon & trading at about $2M MC More on this when I have time and when I feel 100% confident they will succeed.
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