Excellon reported one of its strongest quarters in years after reaching record production volumes and metal recoveries.
The company has three rigs running at its Platosa site in Mexico that mines lead and zinc. The producer also plans to generate positive cash flows for the rest of 2020 due to recent metal price increases.
Continuing business developments and reduced electricity costs from the newly initiated power contract at its Platosa site are anticipated to drive improved operations, Excellon noted in its quarterly update.
In January-September Excellon mined 45,046mt of ore at Platosa, down 21pc from 56,967mt in the same 2019 period. However, in Q3 2020, The company mined 21,877mt of ore from Platosa up 20pc from 18,167mt in Q3 2019. The increase during the quarter was attributed to better mine efficiency and improved equipment reliability.
Excellon’s lead production fell by 4pc to 4.25mn lb in January-September 2020 from 4.44mn lb during the same year-ago period. In Q3, however, lead output increased by 71pc to 2.23mn lb (1,010mt) compared with 1.3mn lb in Q3 2019.
The miner’s zinc production dropped by 21pc to 5.04mn lb in the first nine months of the year from 6.36mn lb in January-September 2019. It increased by 66pc to 2.75mn lb in Q3 2020 from 1.65mn lb in Q3 2019.
The company’s revenue rose by 56pc to $9.67mn in Q3 2020 against $6.2mn in Q3 2019.