TORONTO,
Q4 2020 Financial and Operational Highlights (compared to Q4 2019)
- Revenues increased by 41% to
$9.0 million (Q4 2019 –$6.4 million ) - Gross profit improved to
$1.6 million (Q4 2019 – loss of$0.6 million ) - Silver production increased by 37% to 355,581 oz (Q4 2019 – 259,282 oz), exceeding Q3 2020 as the strongest quarter of silver production since Q2 2014
- All-In Sustaining Cost (AISC) per silver ounce payable decreased 21% to
$21.19 (Q4 2019 –$26.76 )
2020 Financial and Operational Highlights (compared to 2019)
- Revenues of
$26.2 million (2019 –$26.5 million ) impacted by the temporary suspension mandated by the Government ofMexico in response to the COVID-19 pandemic in Q2 2020 (the "Suspension") - Significant improvements in productivity and cost profile in H2 2020 (compared to H2 2019):
- Record 43,332 tonnes mined (H2 2019 – 37,789 tonnes) and 45,237 tonnes milled (H2 2019 – 37,063 tonnes) from Platosa following restart in late Q2 2020
- Silver equivalent ("AgEq") production increased by 20% to 1,080,644 oz (H2 2019 – 896,838 AgEq oz
- Production cost per tonne decreased by 23% to
$239 per tonne (H2 2019 –$311 per tonne) - Net working capital totaled
$9.8 million atDecember 31, 2020 (December 31, 2019 –$7.6 million ), with cash and marketable securities of$10.7 million as atDecember 31, 2020 (December 31, 2019 –$6.7 million ) - Other highlights during 2020 included:
- Acquisition of
Otis Gold Corp. adding two high-quality gold growth assets inIdaho, USA and developing team for the next phases of project advancement - Listed and commenced trading on the
NYSE American, LLC exchange (the "NYSE American") - Finalized transition to private electricity supplier at Platosa, resulting in a 33% unit-cost reduction for electricity
- Released updated mineral resource estimate on the Evolución Property delineating a large-tonnage silver, zinc, lead deposit immediately adjacent to the
Miguel Auza Mill - Restarted underground and surface exploration on multiple targets at the
Platosa Project - Completed successful drill permitting, land access and ramp-up of the drilling program at the
Silver City Project in Saxony,Germany with high-grade discoveries from the first holes drilled on the property for precious metals in modern times
"Our greatest success in 2020 was ensuring the health of our people during the COVID-19 pandemic," stated
Financial Results
Financial results for the three- and twelve-month periods ended
('000s of USD, except amounts per share |
Q4 2020 |
Q4 2019 |
2020 |
2019 |
Revenue (1) | 9,029 | 6,414 | 26,202 | 26,469 |
Production costs | (5,986) | (5,757) | (19,981) | (23,216) |
Depletion and amortization | (1,445) | (1,250) | (4,649) | (4,708) |
Cost of sales | (7,431) | (7,007) | (24,630) | (27,924) |
Gross profit (loss) | 1,598 | (593) | 1,572 | (1,455) |
Corporate administration | (1,886) | (1,282) | (6,896) | (4,822) |
Exploration | (1,400) | (1,023) | (4,032) | (3,853) |
Other expenses, net | 1,062 | 1,222 | (373) | 782 |
Finance income (expenses), net | (679) | 753 | (2,508) | 295 |
Income tax recovery (expense) | (4,703) | (258) | (3,783) | (1,022) |
Net loss | (6,008) | (1,181) | (16,020) | (10,075) |
Loss per share – basic and diluted | (0.19) | (0.05) | (0.55) | (0.49) |
Cash flow from operations (2) | 2,529 | (1,707) | (3,733) | (4,314) |
Production cost per tonne (3) | 252 | 286 | 299 | 300 |
Cash cost per silver ounce payable net of byproducts ($/Ag oz) | 12.73 | 14.36 | 15.38 | 13.01 |
All-in sustaining cost ("AISC") per silver ounce payable ($/Ag oz) | 21.19 | 26.76 | 26.46 | 23.57 |
Realized prices: (4) Silver – ($US/oz) Lead – ($US/lb) Zinc – ($US/lb) |
24.46 0.87 1.21 |
17.12 0.87 1.04 |
21.59 0.83 1.08 |
16.07 0.88 1.12 |
(1) | Revenues are net of treatment and refining charges ("TC/RCs"). |
(2) | Cash flow from operations before changes in working capital. |
(3) | Production cost per tonne includes mining and milling costs excluding depletion and amortization. |
(4) | Average realized price is calculated on current period sale deliveries and does not include the impact of prior period provisional adjustments in the period. |
Revenues increased by 41% during Q4 2020, driven by a 39% increase in silver ounces payable and a 43% increase in the average realized silver price relative to the comparative period. Revenues for the 12-month period were impacted by the Suspension.
Cost of sales in Q4 2020 is
Gross profit of
General and corporate administration expenses increased by
The
AISC net of by-products per silver ounce payable increased by
The increased TC/RCs were in line with charges in the global zinc and lead concentrate industry, which saw a marked increase in TC/RCs start in 2019 that continued into 2020. TC/RCs dropped marginally in Q3 2020 based on a renegotiated zinc offtake agreement, but the operation incurred higher penalties for deleterious elements, particularly antimony. After adjusting for
All financial information is prepared in accordance with IFRS, and all dollar amounts are expressed in
The discussion of financial results in this press release includes references to "cash flow from operations before changes in working capital items", "production cost per tonne", "cash cost per silver ounce payable", and "AISC per silver ounce payable", 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 year ended
Operating Results & Outlook
Operating performance for the periods indicated below was as follows:
Q4 | Q4 | |||||
2020 | 2019 | 2020 | 2019 | |||
Tonnes of ore mined: | 21,455 | 19,622
| 66,501 | 74,876
| ||
Ore processed (t): | 22,626 | 19,828 | 65,567 | 73,797 | ||
Historical stockpile processed (t): | - | - | - | 1,450 | ||
Platosa ore processed (t): | 22,626 | 19,828 | 65,567 | 75,247 | ||
Blended head grade (ore and historical stockpiles): | ||||||
Silver (g/t) | 536 | 435 | 519 | 490 | ||
Lead (%) | 5.42 | 4.84 | 5.37 | 4.75 | ||
Zinc (%) | 6.12 | 6.39 | 6.57 | 6.82 | ||
Recoveries: | ||||||
Silver (%) | 91.2 | 91.7 | 91.4 | 89.9 | ||
Lead (%) | 82.9 | 80.2 | 83.7 | 79.2 | ||
Zinc (%) | 80.1 | 76.5 | 78.9 | 77.7 | ||
Production(1) | ||||||
Silver – (oz) | 355,581 | 259,282 | 997,690 | 1,054,029 | ||
AgEq ounces (oz)(2) | 556,332 | 469,707 | 1,639,310 | 2,002,036 | ||
Lead – (lb) | 2,223,465 | 1,690,610 | 6,470,637 | 6,134,888 | ||
Zinc – (lb) | 2,452,728 | 2,062,018 | 7,488,825 | 8,425,221 | ||
Payable:(3) | ||||||
Silver ounces – (oz) | 323,139 | 232,034 | 928,240 | 962,355 | ||
AgEq ounces (oz)(2) | 499,644 | 408,899 | 1,501,354 | 1,823,005 | ||
Lead – (lb) | 2,049,065 | 1,563,313 | 6,087,239 | 5,766,608 | ||
Zinc – (lb) | 2,088,975 | 1,614,046 | 6,442,712 | 7,410,202 | ||
San Sebastián ore processed (t) | - | 6,398 | 4,785 | 14,231 |
(1) | Period deliveries remain subject to assay and price adjustments on final settlement with concentrate purchaser(s). Data has been adjusted to reflect final assay and price adjustments for prior period deliveries settled during the period. Tonnes Mined and Ore processed are in DMT. |
(2) | AgEq ounces established using average realized metal prices during the period indicated applied to the recovered metal content of the concentrates to reflect the revenue contribution of base metal sales during the period. |
(3) | Payable metal is based on the metals delivered and sold during the period, net of payable deductions under the Company's offtake arrangements, and will therefore differ from produced ounces. |
(4) | Average realized price is calculated on current period sale deliveries and does not include the impact of prior period provisional adjustments in the period. |
In 2020, Platosa continued to outperform 2019 productivity while reducing operating costs, improving safety performance and managing the ongoing threat posed by COVID-19. In the second half of 2020, the Company achieved record tonnes mined (43,332) and milled (45,237) following the Suspension and restart in late Q2 2020. Silver production in Q4 2020 increased by 37% to 355,581 oz (Q4 2019 – 259,282 oz), exceeding Q3 2020 as the strongest quarter of silver production since Q2 2014.
During 2020, the Platosa operation realized improvements in shift scheduling, mining methods, offtake arrangements and electricity costs, while completing a phase-2 tailings dam raise and strengthening the management and technical teams. Recoveries at the
Lower electricity prices from the newly activated natural-gas backed power contract at Platosa are expected to continue improving the operation's economics, despite a price shock in
COVID-19 Update
COVID-19 prevention, hygiene and safety measures, health screening, travel restrictions, contact tracing, testing and quarantine protocols are in place and have so far proven effective in protecting the workforce from confirmed COVID-19 cases that originated from community spread.
To date, there has been no material impact to production or the shipment of concentrate from any of the Company's operations as a result of COVID-19. Additionally, there has been no significant disruption to the supply chain of the Company's operations. Excellon continues to monitor and implement business continuity measures to mitigate and minimize to the extent possible any potential impacts of the pandemic that might emerge in our operations or affect our procurement and commercial activities.
About Excellon
Excellon's vision is to create wealth by realizing strategic opportunities through discipline and innovation for the benefit of our employees, communities and shareholders. The Company is advancing a precious metals growth pipeline that includes: Platosa,
Additional details on Excellon's properties are available at www.excellonresources.com.
Forward-Looking Statements
Cautionary Note to
SOURCE
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