News Release

News Release

Excellon Reports Third Quarter 2015 Financial Results

Toronto, Ontario – November 12, 2015 – Excellon Resources Inc. (TSX:EXN; OTC:EXLLF) ("Excellon" or the “Company"), Mexico’s highest grade silver producer, is pleased to report financial results for the three and nine-month periods ended September 30, 2015.

Q3 2015 Financial Highlights

  • Revenue of $4.6 million (Q3 2014 – $7.2 million)
  • Sales of 372,485 silver equivalent ounces (“AgEq oz”) payable (Q3 2014 – 449,060 AgEq oz payable)
  • Mine operating earnings of $136,000 (Q3 2014 – loss of $142,000)
  • Net loss of $1.3 million or $0.02/share (Q3 2014 – adjusted net loss of $2.4 million or $0.04/share)
  • Cash flow from operations of $382,000 or $0.01/share before changes in working capital (Q3 2014 – loss of $1.1 million or $0.02/share)
  • Production cost per tonne decreased 47% to $242 (Q3 2014 – $455)
  • Cash costs per Ag oz payable of $11.58 (Q3 2014 – $15.52)
  • All-in sustaining cost per Ag oz payable (“AISC”) decreased 39% to $15.76 (Q3 2014 – $25.77 per Ag oz payable) and 30% relative to first six months of 2015
  • Cash and current accounts receivable totaled $2.9 million at September 30, 2015 ($3.0 million at June 30, 2015)
  • Strengthened balance sheet with a fully subscribed financing, increased to C$6.6 million and comprising $5.61 million principal amount of 3.75% secured convertible debentures and the sale of a 1.25% net smelter return royalty for C$0.99 million
  • Revised Optimization Plan and reduced capital cost by 40% to $6.0 million

 “We made significant progress this quarter with improved production, recoveries, cash flow and significantly reduced costs despite continued challenging market conditions,” stated Brendan Cahill, President and Chief Executive Officer. “Our continued efforts to minimize costs resulted in operating costs improving by 40% this year and we expect this trend to continue as we implement the optimization plan for Platosa. With the balance sheet strengthened as a result of the recently announced $6 million financing, we are now well positioned to meet our long-term operational and financial objectives.”

Financial and Operating Highlights

 Financial results for the three and nine-month periods ended September 30, 2015 and 2014 are as follows:

(‘000s of USD, except amounts per share 
and per ounce)

Q3 2015

Q3 2014

9-Mos 2015

9-Mos 2014

Revenues (1)





Production costs





Depletion and amortization





Cost of sales





Earnings/(loss) from mining operations






Corporate administration










Other (incl. finance cost)





Impairment of mineral rights





Income tax recovery (expense)





Net income (loss)





Adjusted net (loss)





Earnings (loss) per share – basic and diluted






Cash flow from (used in) operations (2)





Cash flow from (used in) operations per share – basic (2)






Production cost per tonne ($/t) (3)





Total cash cost per silver ounce payable ($/Ag oz)





All-in sustaining cost per silver ounce payable ($/Ag oz)





  1. Revenues are net of treatment and refining charges.
  2. Cash flow from operations before changes in working capital.
  3. Production cost per tonne includes mining and milling costs excluding depreciation.

Production of 419,583 AgEq oz during the quarter (Q3 2014 - 455,150 AgEq oz) was lower as a result of lower lead and zinc production and lower lead and zinc grades (of 26% and 21%, respectively). Silver production increased 12% to 241,872 ounces compared to Q3 2014, with improved grades of 547 g/t in Q3 2015 (550 g/t in Q3 2014).  Recoveries also returned to normal levels as higher grade ore was mined in mantos 623 and 6A. Grades are expected to increase as the Company moves into higher grade areas of the mine in 2016. While water management at Platosa was effective at controlling inflows during the period, productivity and development continue to be slowed. The Company is currently implementing an optimization project to comprehensively manage water through an enhanced pumping system, which should allow for increased production and lower costs.  Refer to the press release dated November 2, 2015 and the July 9, 2015 NI 43-101-compliant technical report prepared by Roscoe Postle Associates Inc. for additional information regarding the optimization program.

The Company recorded a net loss of $1.3 million during the quarter (Q3 2014 – adjusted net loss of $2.4 million), with lower net revenues of $4.6 million (Q3 2014 – $7.2 million) primarily due to lower silver, lead and zinc prices and the impact of lower byproduct production on revenues. As silver prices were relatively stable during the quarter, revenues were not significantly impacted by any mark-to-market adjustments on finalization of concentrate sales. The Company recorded a foreign exchange loss of $0.7 million in Q3 2015 compared to a foreign exchange gain of $0.5 million in Q3 2014 net against a $0.4 million loss on marketable securities.

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. Production cost per tonne has improved by 40% since early 2015 as management continued its long-term cost saving initiatives at the mine and mill. Approximately 20% of these cost savings are related to beneficial improvements in the exchange rate for the Mexican peso, while the other 80% derive from management’s efforts in evaluating and managing costs. Additional cost saving initiatives are currently being implemented for the remainder of the year and expected to continue into 2016.

Cost of sales which includes depletion and amortization decreased by $2.9 million to $4.5 million in Q3 2015 compared to $7.3 million the same period of 2014 representing a 39% improvement. On a year-to-date basis, cost of sales decreased by $7.1 million to $14.7 million compared to $21.8 million in Q3 2014, representing a 33% decrease, though resulting in part from lower mined and processed tonnes.  The significant reduction in costs in Q3 2015 versus Q3 2014, however, demonstrates the material reductions in unit costs made over the course of 2015 and particularly in Q3 2015.

Cash corporate administrative expenses of $0.5 million in Q3 2015 (Q3 2014 – $0.8 million) were 38% lower than in the comparable period of 2014 and reflective of the ongoing cost discipline at the corporate head office in Toronto. Cash G&A expenses remain at the lowest levels since 2005 (the year prior to Platosa’s first full year of production).

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. Total cash costs net of by-product revenues may vary from period to period as planned production and development accesses different areas of the mine with different ore grades and mining characteristics.

All financial information is prepared in accordance with IFRS, and all dollar amounts are expressed in U.S. dollars unless otherwise specified. The information in this news release should be read in conjunction with the Company's consolidated financial statements for the three- and nine-month periods ended September 30, 2015 and associated management discussion and analysis (“MD&A”), which are available on the Company's website and under the Company's profile on SEDAR at

The discussion of financial results in this press release includes reference to “cash flows from operations before changes in working capital items”, “production cost per tonne”, “cash cost per payable silver ounce net of byproducts” and “all-in sustaining cost per payable silver ounce,” which are non-IFRS performance measures. The Company presents these measures to provide additional information regarding the Company's financial results and performance. Please refer to the Company's MD&A for the three- and- nine month periods ended September 30, 2015, for a reconciliation of these measures to reported IFRS results.

Production Results


Q3 2015

Q3 2014

9-Mos 2015

9-Mos 2014

Tonnes Mined





Tonnes Milled







Silver (g/t)





Lead (%)





Zinc (%)







Silver (%)





Lead (%)





Zinc (%)





Metal Production*


Silver (oz)





Lead (lb)





Zinc (lb)





AgEq (oz)**





*   Subject to adjustment following settlement with concentrate purchaser.

** Silver equivalent ounces established using average metal prices during the period indicated applied to the recovered metal content of concentrates. 

Ore production during the third quarter was primarily from the 6A, Guadalupe South and the 623 mantos, with development continued to be focused on the 6A and 623 mantos.

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.

Update on Key Assumptions in the PEA

On November 2, 2015, the Company announced positive updates to the optimization plan, as described in the technical report prepared by Roscoe Postle & Associates Inc. dated July 9, 2015 (the “Technical Report”), primarily reducing the capital cost of the plan from the previously estimated $9.9 million to $6 million. 

Since the release of the PEA in July 2015, certain key inputs reflected in the PEA (other than commodity prices) have changed due to economic and market conditions, which are reflected below:


PEA as at July 2015

Nov. 10, 2015

Capital Expenditure



Energy cost per KWH



Foreign exchange rate







Of particular note is the significant reduction in energy costs in Mexico, which is largely a result of lower oil prices (resulting in reduced electricity tariffs) and the depreciation of the Mexican peso.  With approximately 25% of the Company’s operating costs in 2014 composed of direct electricity expenses and 85% of all expenditures in Mexican pesos, the improvements in these inputs are significantly beneficial to the Company’s ongoing operation and future operations following implementation of the Optimization Plan.

Corporate Update

At the request of the Ontario Securities Commission, the Company has provided additional disclosure regarding its diversity policy in compliance with disclosure requirements under National Instrument 58-101 regarding the representation of women on the board and in executive officer positions. Please refer to the Company's MD&A for the three- and nine- month periods ended September 30, 2015, for more information, which is available on the Company's website at and under the Company's profile on SEDAR

About Excellon

Excellon’s 100%-owned La Platosa Mine in Durango is Mexico’s highest grade silver mine, with lead and zinc by-products historically making it one of the lowest cash cost silver mines in the country. The Company is positioning itself to capitalize on undervalued projects by focusing on increasing La Platosa’s silver production and near-term mineable resources.

Additional details on the La Platosa Mine and the rest of Excellon’s exploration properties are available

For Further Information, Please Contact:

Excellon Resources Inc.
Brendan Cahill, President & Chief Executive Officer or
Rupy Dhadwar, Chief Financial Officer
(416) 364-1130

Forward-Looking Statements

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. Except for statements of historical fact relating to the Company, such statements forward-looking 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, the potential of the Companys properties, proposed production rates, potential mineral recovery processes and rates, business plans and future operating revenues Forward-looking statements are made based on managements beliefs, estimates, assumptions and opinions on the date the statements are made. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct and the Company undertakes no obligation to update forward-looking statements. Forward-looking statements are typically identified by words such as: believes, expects, anticipates, intends, estimates, targets, plans, postulates, 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. A description of the risk factors applicable to the Company can be found in the Companys most recent Annual Information Form under Description of the Business  Risk Factors. All of the Company's public disclosure filings may be accessed via and readers are urged to review these materials, including the technical reports filed with respect to the Company's mineral properties, and particularly the latest technical report dated  July 9, 2015  prepared in accordance with National Instrument 43-101 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 United States.

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