The Prospector News


You have opened a direct link to the current edition PDF

Open PDF Close

Share this news article







Excellon Resources Inc. (TSX: EXN) (OTCQB: EXNRF) (FRA: E4X2) is pleased to report financial results for the three- and twelve-month periods ended December 31, 2022.


2022 Financial and Operational Highlights (compared to 2021)

  • Identified remnants, pillars and stopes which extended Platosa production into October 2022.
  • Safely wound down operations at Platosa and Miguel Auza in Q4 2022, and transitioned to care-and-maintenance.
  • Settled termination benefits with over 70% of the unionized and 80% of the non-unionized workforce in Mexico. The remaining non-unionized employees have been retained for care-and-maintenance activities and potential transfer to the La Negra Mine.
  • Drilled six diamond drill holes totaling 2,145 metres at Kilgore, with assay results pending for five of the six drill holes. For further details see the Company’s news release dated December 6, 2022.
  • Q4 2022 and 2022 results were impacted by the wind-down of production in Q4 2022.
  • AgEq production of 1,517,940 oz (2021 – 2,017,639 oz), including:
    • Silver production of 891,185 oz (2021 – 1,222,991 oz)
    • Lead production of 4.6 million lb (2021 – 7.6 million lb)
    • Zinc production of 5.4 million lb (2021 – 9.0 million lb)
  • AgEq ounces payable sold of 1,370,132 AgEq ozs (2021 – 1,810,199 ozs)
  • Production cost per tonne decreased of $261 per tonne (2021 – $291 per tonne)
  • Total cash cost net of by-products per silver ounce payable of $11.80 (2021 – $13.01)
  • AISC per silver ounce payable of $18.31 (2021 – $24.78)
  • The Company will be reversing the US$22 million provision for litigation from its March 31, 2023 consolidated balance sheet as a result of the Mexican Bankruptcy Court declaring one of its care-and-maintenance subsidiaries bankrupt effective March 28, 2023. For further details see the Company’s concurrently announced separate news release.


Financial Results


Financial results for the periods indicated below were as follows:


(‘000s of USD, except amounts per share and per ounce) Q4 2022 Q4 2021 2022 2021
Revenue (1) 2,564 9,306 25,824 37,955
Production costs (2,055) (7,089) (18,055) (25,472)
Mine closure related costs (375) (1,584) (907) (735)
Depletion and amortization (1,127) (1,928) (7,497) (7,300)
Cost of sales (3,557) (10,601) (26,459) (33,507)
Gross (loss) profit (993) (1,295) (635) 4,448
General and administrative including care-and-maintenance (1,940) (1,255) (5,721) (6,689)
Exploration and holding expense (1,277) (1,783) (5,576) (7,194)
Other income (expense) 325 89 1,111 (758)
Provision for litigation (5) (22,282)
Impairment losses (3,344) (15,788) (3,344) (16,540)
Net finance expense (1,208) (1,242) (4,294) (3,680)
Income tax expense (185) (167) (379) (5,078)
Net loss (8,622) (21,446) (18,838) (57,773)
Adjusted net loss (2) (4,903) (4,069) (14,591) (14,311)
Loss per share – basic and diluted (0.23) (0.65) (0.54) (1.77)
Adjusted loss per share – basic and diluted (2) (0.13) (0.12) (0.42) (0.44)
Cash flow from operations (3) (1,386) (217) (1,167) 1,652
Production cost per tonne (4) 261 314 261 291
Cash cost per silver ounce payable net of by-products ($/Ag oz) 16.28 15.61 11.80 13.01
AISC per silver ounce payable ($/Ag oz) (5) 30.19 24.82 18.31 24.78
Realized prices: (6)
Silver – ($US/oz) 18.99 23.30 21.13 25.12
Lead – ($US/lb) 0.88 1.06 0.96 1.00
Zinc – ($US/lb) 1.36 1.53 1.64 1.37
(1) Revenues are net of treatment and refining charges (“TC/RCs”).
(2) Adjusted loss and adjusted loss per share exclude: for 2021, $22.3 million related to the Provision for litigation, the related $0.8 million impairment loss and $3.1 million deferred-tax asset derecognition expenses and for Q4 2021, impairment losses of $15.8 million and $1.6 million related to future mine closure accruals. For 2022, $0.5 million write-down of materials and supplies and for Q4 2022, impairment losses of $3.3 million and $0.4 million related to the write-down of materials and supplies.
(3) Cash flow from operations before changes in working capital.
(4) Production cost per tonne includes mining and milling costs, excluding depletion and amortization, materials and supplies write-down, and inventory adjustments.
(5) AISC per silver ounce payable excludes administrative and share-based payment costs attributable to the Company’s non-producing projects and includes underground drilling costs.
(6) Average realized price is calculated on current period sale deliveries and does not include the impact of prior period provisional adjustments in the period.



This news release should be read in conjunction with the Company’s consolidated financial statements for the years ended December 31, 2022 and 2021, and associated management discussion and analysis which are available on the Company’s website at and under the Company’s profile on SEDAR (


All financial information is prepared in accordance with IFRS, and all dollar amounts are expressed in U.S. dollars unless otherwise specified. The discussion of financial results in this news 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 a reconciliation of these measures to reported IFRS results.


Operating Results


Operating performance for the periods indicated below was as follows:


Q4 Q4
2022(2) 2021 2022(2) 2021
Tonnes Mined: 3,047 20,954 63,279 85,530
Tonnes Milled: 4,965 21,309 65,784 86,021
Silver (g/t) 512 438 464 494
Lead (%) 4.31 4.65 4.27 5.01
Zinc (%) 3.62 5.50 4.51 6.03
Silver (%) 93.2 90.5 90.9 89.5
Lead (%) 75.3 78.5 75.2 80.0
Zinc (%) 77.1 83.7 81.6 79.0
Metal Production: (1)
Silver – (oz) 76,219 271,525 891,185 1,222,991
Lead – (lb) 355,536 1,717,525 4,641,708 7,612,332
Zinc – (lb) 304,975 2,167,840 5,358,103 9,014,028
Silver equivalent (“AgEq”) (oz) (3) 114,536 492,013 1,517,940 2,017,639
Silver – (oz) 75,728 287,953 827,618 1,141,281
Lead – (lb) 328,871 1,762,293 4,291,803 7,073,488
Zinc – (lb) 449,325 1,697,098 4,477,550 7,101,992
AgEq (oz) (3) 123,147 479,566 1,370,132 1,810,199
(1) Period deliveries remain subject to assay and price adjustments on final settlement with concentrate purchaser. Data has been adjusted to reflect final assay and price adjustments for prior-period deliveries settled during the period.
(2) The production results for the year ended December 31, 2022 were impacted by the wind down of production at Platosa in early Q4 2022.
(3) AgEq ounces established using average realized metal prices during the respective period applied to the recovered metal content of the concentrates to calculate the revenue contribution of base metal sales during the period.



In early Q4 2022, production ceased at the Platosa Mine and Miguel Auza mill and the sites were transitioned into care–and–maintenance.


For further details on operating results for the three and twelve-month periods ended December 31, 2022, refer to the Company’s Financial Statements and MD&A for the same period.


Corporate Update


On January 9, 2023, the Company announced it had entered into a definitive acquisition agreement to acquire the permitted, past-producing La Negra Mine in Mexico. The Company is continuing to take steps necessary to advance the acquisition and discussions with potential investors in the equity offering proposed to be completed in connection with the acquisition. The required meeting of Excellon shareholders to approve the issuances of Excellon common shares contemplated by the acquisition (including pursuant to the closing equity offering and restructuring of the Company’s outstanding debentures) and, in turn, completion of the acquisition, are now expected to occur no later than end of June (as opposed to the previously announced April target dates), subject to the successful completion of the proposed equity offering and receipt of conditional listing approval of the Toronto Stock Exchange in respect of the acquisition and related matters. The Company is in discussions with the seller regarding the proposed timeline for the shareholder meeting and completion of the acquisition. The Company continues to strongly believe in the forward-looking value proposition of the La Negra acquisition to Excellon and its shareholders and remains optimistic that the acquisition and related transactions (including the closing equity offering) can be successfully completed in due course.

In addition, the Company is considering various other potential financing, corporate development and strategic opportunities that may include acquisitions, divestitures, mergers or spin-offs of the Company’s or third parties’ assets, as applicable, to compliment the Company’s go-forward strategy.


About Excellon


Excellon’s vision is to realize opportunities for the benefit of our employees, communities and shareholders, through the acquisition of advanced development or producing assets with further potential to gain from an experienced operational management team. The Company is advancing a portfolio of gold, silver and base metals assets including Kilgore, an advanced gold exploration project in Idaho; and Silver City, a high-grade epithermal silver district in Saxony, Germany with 750 years of mining history and no modern exploration. The Company has also entered into an agreement to acquire La Negra, a past-producing Ag-Zn-Cu-Pb mine with exploration potential, located in Querétaro State, Mexico.


Posted April 3, 2023

Share this news article


First Phosphate and Lithium Australia Sign MOU for Joint Development of an LFP / LFMP Pilot and Commercial Plant

First Phosphate Corp. (CSE: PHOS) (OTC: FRSPF) (FSE: KD0) is plea... READ MORE

December 6, 2023

New Found Intercepts 43 g/t Au Over 11.6m at Keats West

New Found Gold Corp.  (TSX-V: NFG) (NYSE-A: NFGC) is pleased to ... READ MORE

December 6, 2023

Northisle Makes New Discovery of Near Surface Copper-Gold Porphyry With Multiple Intercepts at West Goodspeed

Highlights: Drilling at the new West Goodspeed target has inter... READ MORE

December 6, 2023

Rob McEwen Increasing Ownership In Goliath Resources Limited To 5% And Crescat Capital To Maintain Its 18.4% Ownership

Goliath Resources Limited (TSX-V: GOT) (OTCQB: GOTRF) (FSE: B4IF)... READ MORE

December 6, 2023

enCore Energy Enters US$70 Million Transaction with Boss Energy; Proceeds to Accelerate Company-Wide Uranium Production Plans

enCore Energy Corp. (NYSE American: EU) (TSXV: EU) is pleased to... READ MORE

December 6, 2023

Copyright 2023 The Prospector News