The September quarter has been a tough one for Mexico-focused Excellon Resources, which on Thursday reported significantly lower revenue and production, citing surveying and planning issues.
Excellon, which operates the Platosa mine in Durango, produced 300 766 oz of silver-equivalent, down from 500 763 oz in the corresponding period of 2017. Sales amounted to 258 920 oz of silver equivalent, a 42% decrease on that of the previous-year period.
The lower tonnages and weaker prices resulted in revenue decreasing sharply to $2.6-million, from $7.1-million a year earlier.
Production costs increased by 40% to $292/t, mainly owing to lower tonnage mined and higher electricity costs associated with increased pumping and price hikes.
"It was a tough quarter that is not representative of the many operational improvements made at Platosa in recent quarters," stated Excellon president and Brendan Cahill.
He said that Excellon had assessed the causes of the lower production and that it had made some management changes at Platosa.
“Over the six weeks since making those changes, we have increased production and development rates and realised a number of other improvements in the operation.”
Excellon posted a net loss of $3.6-million in the three months, compared with a net loss of $9.5-million a year earlier.