Excellon Resources reports financial results for the six months ended June 30, 2012
Toronto Stock Exchange – EXN
TORONTO, Aug. 9, 2012 /PRNewswire/ – Excellon Resources Inc. (TSX:EXN) (“Excellon” or “the Company”) Mexico’s highest grade silver producer, is pleased to provide results for the second quarter of 2012.
Excellon reports net income of $0.5 million ($0.00 per share) and a
total comprehensive loss of $0.8 million for the six months ended June
30, 2012 (all dollar amounts are in US dollars). For complete details
please see Management’s Discussion & Analysis of Financial Results,
which is available on SEDAR at www.sedar.com.
2(nd) Quarter Highlights:
-- Silver production of 374,204 ounces at 825 g/t Ag as compared to 383,500 ounces at 844 g/t Ag in the same period of 2011; -- Lead and zinc production of 6.5 million pounds up 74% over the same period of 2011; -- Cash operating cost per ounce silver (net of by-product credits) of $4.25; -- Purchase of 1% Net Smelter Royalty ("NSR") from Golden Minerals Company during second quarter expected to be accretive to cash flow going forward; and -- Excellon holds cash, marketable securities and trade receivables of $18.6 million as of June 30, 2012.
Financial and Operating Highlights:
Highlights for the three and six months ended June 30, 2012, and June
30, 2011 are as follows:
Three months Three months Six months Six months ended ended ended ended June 30, 2012 June 30, 2011 June 30, 2012 June 30, 2011 $ 000's $ 000's $ 000's $ 000's Revenue 13,994 15,442 27,100 22,827 Cost of sales (5,377) (4,129) (10,218) (8,767) 8,617 11,313 16,882 14,060 Expenses: Corporate (2,294) (1,493) (4,098) (2,960) administration Exploration (2,498) (1,504) (4,578) (2,304) Other income (2,542) 1,103 (338) 1,500 (expense) Income tax (805) (1,364) (1,770) (1,786) Net income for 478 8,055 6,098 8,510 the period Other (1,304) (667) (1,226) (183) comprehensive loss Total (826) 7,388 4,872 8,327 comprehensive income (loss)
The following are the La Platosa mine production statistics for the
Three months Three months Six months Six months ended ended ended ended June 30, 2012 June 30, 2011 June 30, 2012 June 30, 2011 Tonnes of 17,463 15,373 34,596 27,318 ore processed Ore Grades: Silver 825 844 884 739 (g/t) Silver 24.06 24.63 25.78 21.57 (oz/T) Lead (%) 7.07 6.24 6.83 5.75 Zinc (%) 13.52 7.91 12.07 7.55 Recoveries: Silver 93.5 94.7 92.9 86.7 (%) Lead (%) 83.9 81.8 80.6 72.8 Zinc (%) 86.3 76.1 85.4 74.0 Production: Silver 374,204 383,500 810,555 577,221 (oz) Lead 2,157,535 1,721,354 4,059,564 2,666,109 (lb) Zinc 4,348,176 2,025,098 7,638,129 3,376,925 (lb) Sales: Silver 380,299 383,500 782,395 577,221 (oz) Lead 2,196,453 1,721,354 3,912,626 2,666,109 (lb) Zinc 4,348,078 2,025,098 7,369,372 3,376,925 (lb) Realized Prices: Silver 29.26 38.23 31.66 37.12 ($US/oz) Lead 1.11 0.93 1.13 ($US/lb) 0.90 Zinc 0.89 1.06 0.92 1.06 ($US/lb)
Note: "t"= tonne; "T"= ton
Excellon, a mineral resource company operating in Durango and Zacatecas
States, Mexico, and Ontario and Quebec, Canada, is committed to
building value through production, expansion and discovery.
Excellon is Mexico’s highest-grade silver producer; it produces silver,
lead and zinc from the high-grade manto Mineral Resource on its large,
100% owned Platosa Property, strategically located in the middle of the
Mexican CRD/silver belt. Excellon’s focus is on expanding its operating
capacity and increasing its Mineral Resources at Platosa where an
exploration program focused on diamond drilling and advanced
geophysical techniques is ongoing. The Platosa Property, not fully
explored, has several geological indicators of a large mineralized
system. The Miguel Auza Mill Operation in Zacatecas also has 41,000
hectares of under explored land. Excellon also has ongoing gold
exploration programs on the DeSantis Project, located near Timmins,
Ontario and the Beschefer Project, located in northwestern Quebec.
Both these projects host gold mineralization and significant potential
for the discovery of more. Excellon will continue to use cash from
operations to fund its ongoing exploration activities.
On behalf of
EXCELLON RESOURCES INC.
The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the content of this
Press Release, which has been prepared by management. This press
release contains forward-looking statements within the meaning of
Section 27A of the Securities Act and Section 27E of the Exchange Act.
Such statements include, without limitation, statements regarding the
future results of operations, performance and achievements of the
Company, including potential property acquisitions, the timing,
content, cost and results of proposed work programs, the discovery and
delineation of mineral deposits/resources/reserves, geological
interpretations, proposed production rates, potential mineral recovery
processes and rates, business and financing plans, business trends and
future operating revenues. Although the Company believes that such
statements are reasonable, it can give no assurance that such
expectations will prove to be correct. Forward-looking statements are
typically identified by words such as: believe, expect, anticipate,
intend, estimate, postulate and similar expressions, or are those,
which, by their nature, refer to future events. The Company cautions
investors that any forward-looking statements by the Company are not
guarantees of future results or performance, and that actual results
may differ materially from those in forward looking statements as a
result of various factors, including, but not limited to, variations in
the nature, quality and quantity of any mineral deposits that may be
located, significant downward variations in the market price of any
minerals produced [particularly silver], the Company’s inability to
obtain any necessary permits, consents or authorizations required for
its activities, to produce minerals from its properties successfully or
profitably, to continue its projected growth, to raise the necessary
capital or to be fully able to implement its business strategies. All
of the Company’s public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the
technical reports filed with respect to the Company’s mineral
properties, and particularly the November 22, 2011 NI 43-101-compliant
technical report prepared by Roscoe Postle Associates Inc. with respect
to the Platosa Property. This press release is not, and is not to be
construed in any way as, an offer to buy or sell securities in the
SOURCE Excellon Resources Inc.