Excellon restarts Mexico operations, stock rises

Excellon Resources (TSX: EXN) announced on Monday the restart of its Platosa and Miguel Auza operations in Mexico following the government’s decision to declare mining as an essential service.

The company has not reported any cases of covid-19 and there have been minimal cases reported in the surrounding communities, Excellon said in a release.

Excellon also reported production of 523,742 silver equivalent ounces for Q1 2020, a rise compared to 522,261 silver equivalent ounces in Q1 2019. Platosa, Mexico’s highest-grade silver mine, processed 19,042 tonnes.

The company had a net loss of $6.4 million or $0.06/share, compared to a net loss of $3.8 million or $0.04/share in the same period of 2019.

The primary contributors to the loss were unrealized foreign exchange losses, unrealized losses from currency hedges and a negative variance in costs of goods sold, the company said.

“Our markets are beginning to improve after the extreme swings of recent months in metal prices, currencies and input costs, which significantly impacted our financial results in the first quarter, despite a strong quarter operationally,” president and CEO Brendan Cahill said in the release.

“Looking forward, the improving gold to silver ratio is positive for the entire precious metals space and the better outlook on industrial metals is particularly positive for Platosa.”  

Midday Monday, Excellon’s stock was up 18.7% on the TSE. The company has a C$146 million market capitalization.