Excellon Reports 1st Quarter Profit of $549K
TORONTO, ONTARIO -- (Marketwire) -- 05/14/10 -- Excellon Resources Inc. (TSX: EXN) (the 'Company' or 'Excellon') reports earnings after tax of $549,097 for the three months ended March 31, 2010. In December 2009 the Company changed its year end to December 31 from July 31. The year end change was desirable to the make the Company's financial statements directly comparable to other mining companies on a quarterly basis and to have a consistent year end with its subsidiaries. The three months ended March 31, 2010 represents the first quarter reported under the new fiscal year.
Period End Highlights:
-- The Company again reports profits with continued strong operating
performance at Platosa.
-- In the Quarter the Company shipped 431,580 oz. of payable silver,
2,051,175 lbs of payable lead and 2,200,573 lbs of payable zinc (on a
provisional basis)
-- Net cash costs after lead and zinc by-product credits for the three
months ended March 31, 2019 was US$5.44
-- Exploration expenses for the quarter totalled $2,279,883 for the on-
going programs at Platosa and Miguel Auza.
-- Cash at March 31, 2010 was $8.2million
'Platosa continues to provide consistent and profitable operating performance for Excellon as evidenced by these results for the quarter ended March 31, 2010.' commented Chris Hopkins, Excellon's Chief Financial Officer. 'Profits and a growing cash position in the quarter were achieved in spite of slightly lower silver prices and an aggressive drilling program in the quarter. Given these steady ongoing results we continue to remain confident that 2010 will produce record production volumes and revenues in line with previous guidance.'
Financial Highlights
Three months Five months
ended ended
31-Mar-10 31-Dec-09
--------------- ---------------
Sales $ 10,383,269 $ 16,031,660
Cost of production (including amortization) 3,404,238 6,761,477
------------- -------------
6,979,032 9,270,183
------------- -------------
Expenses:
Non-cash items 567,001 1,647,603
Exploration expenditures 2,279,883 2,672,450
G&A and other 2,938,457 3,284,535
Provision for (recovery of) income taxes -
current 835,582 (23,039)
Provision for (recovery of) income taxes -
future (190,990) 951,596
------------- -------------
6,429,934 8,533,145
------------- -------------
Net income (loss) for the period $ 549,098 $ 737,038
------------- -------------
------------- -------------
Cash provided by (used in) operating
activities $ 3,261,012 $ (3,089,166)
------------- -------------
------------- -------------
Cash, short-term investments and silver
bullion $ 8,169,210 $ 4,703,596
------------- -------------
------------- -------------
Working capital surplus (deficiency) $ 8,865,494 $ 7,736,614
------------- -------------
------------- -------------
Mining Operations
3 months 2 months 3 months
ended ended ended
-------- -------- --------
31-Mar-10 31-Dec-09 31-Oct-09 31-Jul-09 30-Apr-09
---------- ---------- ---------- ---------- ----------
Tonnes of
ore shipped 21,057 11,513 16,521 18,493 11,376
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Contained
metal
Silver
(ozs.) 565,361 304,816 421,942 672,934 356,076
Lead
(lbs.) 3,376,378 1,859,516 2,599,211 3,791,618 2,110,464
Zinc
(lbs.) 4,088,800 2,026,556 2,600,238 3,220,837 2,660,965
Average
grade:
Silver
(oz/ t) 29.6 29.2 28.1 40.1 34.5
(1)
Silver (g/
t) 920.8 908.0 875.9 1,248.0 1,073.5
Silver
(oz/ T) 26.8 26.5 25.5 36.4 31.3
Lead (%) 7.3 7.3 7.1 9.3 8.4
Zinc (%) 8.8 8.0 7.1 7.9 10.6
Payable
metal:
Silver -
(ozs.) 431,580 263,281 373,790 493,424 244,958
Lead -
(lbs.) 2,051,175 1,293,086 2,004,540 2,575,693 1,192,823
Zinc -
(lbs.) 2,200,573 1,289,748 1,781,358 2,041,744 1,244,589
Realized
prices
Silver -
($/ oz.) 16.31 17.37 16.79 14.14 14.01
Lead - ($/
lb.) 1.01 1.06 1.00 0.79 0.66
Zinc - ($/
lb.) 1.03 1.08 0.91 0.74 0.69
About Excellon
Excellon, a mineral resource company operating in Durango and Zacatecas States, Mexico, is committed to building value through production, expansion and discovery. Excellon is producing silver, lead and zinc from the high-grade manto Mineral Resource on its large Platosa Property, strategically located in the middle of the Mexican silver belt. In 2010, Excellon's focus is on expanding its operating capacity and increasing its Mineral Resources at Platosa through a CDN$11 million exploration program where four diamond drills are in operation. The Platosa Property, not fully explored, has several geological indicators of a large mineralized system. The equally large Miguel Auza property hosts an Indicated and Inferred Mineral Resource and was the site of considerable historic mining for silver,(gold), lead and zinc. The exploration potential of Miguel Auza remains to be fully evaluated and is the object of an ongoing exploration program, which began in the fall of 2009. A one-drill initial target testing program began there in early April.
On behalf of EXCELLON RESOURCES INC.
Peter Crossgrove, Chairman and CEO
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, the proposed construction of a mill, 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 April 14, 2008 NI 43-101-compliant technical report prepared by Scott Wilson 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.
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.
Contacts:
Excellon Resources Inc.
Morgan Knowles
Manager, Investor Relations
(416) 364-1130
info@excellonresources.com
www.excellonresources.com