Q1 2021 Financial and Operational Highlights
- Revenues increased by 76% to
$9.8 million during Q1 2020 ($5.6 million in Q1 2020) - Gross profit improved by
$3.0 million to$1.8 million (Q1 2020 – loss of$1.2 million ) - Cost profile impacted by additional energy costs of
$0.6 million due to increase in natural gas price during mid-February polar vortex in southwestU.S. - Total cash cost net of byproducts per silver ounce payable decreased by 13% to
$13.43 (Q1 2020 –$15.35 ) - AISC per silver ounce payable decreased by 7% to
$24.34 (Q1 2020 –$26.28 ) or$18.67 excluding non-cash items, the cash component of annual compensation grants and additional electricity costs associated with the polar vortex - Production cost per tonne increased by 2% to
$297 per tonne (Q1 2020 –$292 per tonne) - Cash and marketable securities of
$8.3 million atMarch 31, 2021 (December 31, 2020 –$10.7 million ) - Other highlights during the quarter included:
- Positive underground drilling results at the
Platosa Mine which identified multiple significant opportunities to define additional mineralization; - High-grade silver discovery at Silver City (
Grauer Wolf ) and drilling results confirming mineralization over 12 kilometres of strike within 36 kilometres of open strike potential; and - Doubling ground position at Silver City with the addition of 17,600 hectares of additional exploration licenses.
"Our team in
Financial Results
Financial results for the three-month periods ended March 31, 2021 and 2020 were as follows:
('000s of USD, except amounts per share and per ounce) | Q1 2021 | Q1 2020 |
Revenue (1) | 9,781 | 5,561 |
Production costs | (6,153) | (5,479) |
Depletion and amortization | (1,790) | (1,269) |
Cost of sales | (7,943) | (6,748) |
Gross profit (loss) | 1,838 | (1,187) |
Corporate administration | (2,342) | (1,163) |
Exploration | (1,073) | (373) |
Other (1) | (651) | (605) |
Net finance cost | (725) | (2,091) |
Income tax recovery (expense) | 31 | (953) |
Net loss | (2,922) | (6,372) |
Loss per share – basic and diluted | (0.09) | (0.28) |
Cash flow from (used in) operations (2) | 919 | (1,849) |
Production cost per tonne (3) | 297 | 292 |
Cash cost per silver ounce payable net of byproducts ($/Ag oz) | 13.43 | 15.35 |
AISC per silver ounce payable ($/Ag oz) (4) | 24.34 | 26.28 |
Realized prices:(5) | ||
Silver – ($US/oz) | 26.32 | 15.04 |
Lead – ($US/lb) | 0.92 | 0.79 |
Zinc – ($US/lb) | 1.25 | 0.90 |
(1) | Revenues are net of treatment and refining charges ("TC/RCs"). Refer to Note 18 of the Q1 2021 Condensed Consolidated Financial Statements for detail of the comparative period reclassification of foreign exchange differences on provisionally priced sales. |
(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) | AISC per silver ounce payable excludes general and administrative and share-based payment costs attributable to the Company's non-producing projects. The comparative has been revised to conform with the current allocation. |
(5) | 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 76% to
Cost of sales, including depletion and amortization, was
The Company recorded a net loss of
The
Cash cost net of byproducts per silver ounce payable (or Total Cash Cost) decreased by 13% to $13.43 in Q1 2021 (
AISC per silver ounce payable decreased by 7% to
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 press release should be read in conjunction with the Company's unaudited condensed consolidated financial statements for the three month periods ended
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 three-month periods ended
Operating Results & Outlook
Operating performance for the periods indicated below was as follows:
Q1 | Q1 | |
2021 | 2020 | |
Tonnes mined: | 21,212 | 19,899 |
Tonnes milled: | 21,764 | 19,042 |
Grades: | ||
Silver (g/t) | 524 | 542 |
Lead (%) | 5.35 | 5.44 |
Zinc (%) | 6.73 | 6.78 |
Recoveries: | ||
Silver (%) | 89.7 | 89.3 |
Lead (%) | 81.8 | 82.8 |
Zinc (%) | 74.7 | 74.9 |
Production(1) | ||
Silver – (oz) | 328,747 | 296,281 |
AgEq ounces (oz)(2) | 516,715 | 523,742 |
Lead – (lb) | 2,099,741 | 1,890,456 |
Zinc – (lb) | 2,412,458 | 2,131,034 |
Payable:(3) | ||
Silver ounces – (oz) | 291,967 | 246,062 |
AgEq ounces (oz)(2) | 442,582 | 434,190 |
Lead – (lb) | 1,859,932 | 1,514,285 |
Zinc – (lb) | 1,802,430 | 1,805,672 |
San Sebastián ore processed (t) | - | 4,785 |
(1) | Subject to adjustment following settlement with concentrate purchaser. |
(2) | AgEq ounces established using average realized metal prices during the period indicated, applied to the recovered metal content of the concentrates. AgEq ounces produced during Q1 2021 were lower than Q1 2020 as silver prices increased significantly more than base metal prices, resulting in base metal production contributing less to silver equivalency. |
(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. |
Production in Q1 2021 improved relative to Q1 2020 as the changes and enhancements made in mid-2020 continued to be refined. Head grades and recoveries in Q1 2021 were consistent with Q1 2020, although lower than Q3 and Q4 2020.
Plant improvements during Q1 2021 included rebuilt flotation cells, drying filters, shift schedule modifications and training and management of floor operations, which have begun to stabilize and improve zinc recovery.
Improved maintenance practices and increased plant reliability are expected to sustain high throughput in the upcoming quarters, with opportunities to increase mill recoveries and further improve the operation's economics.
COVID-19 Update
Excellon continues to implement measures to prevent COVID-19 among the workforce and local communities and to monitor the effectiveness of these measures in mitigating any potential impact on business activities. The Company's actions have been successful to-date and the pandemic has not had any material impact on production or shipment of concentrate.
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, Mexico's highest-grade silver mine since production commenced in 2005; Kilgore, a high quality gold development project in Idaho with strong economics and significant growth and discovery potential; and an option on Silver City, a high-grade epithermal silver district in Saxony,
Additional details on Excellon's properties are available at www.excellonresources.com.
Forward-Looking Statements
Cautionary Note to
SOURCE
© Canada Newswire, source