Excellon Resources (TSX: EXN) is back in the black, after more than two years of losses.
The operator of the high grade Platosa silver-lead-zinc mine in Mexico reported a second quarter adjusted profit of US$900,000, or a penny per share, up from an adjusted loss of US3¢ per share, a year ago. Excellon last recorded a net profit of US$1.9 million, or US3¢ per share, in the first quarter of 2014.
The second quarter adjusted earnings were ahead of the nil per share that Cormark analyst Graeme Jennings had projected, while cash flow per share of a penny met expectations. (The adjusted profit removed a US$5.4 million fair value adjustment loss on embedded derivatives and warrants.)
The return to profitability resulted largely from improved costs, Brendan Cahill, Excellon’s president and CEO, says in an interview. “We’ve seen mining costs per tonne go down by 50% or more, since the beginning of 2015, end of 2014.”
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