Excellon Resources (EXN.TO) has announced its financial results for the third quarter of this year, revealing a decent operational cash flow of $4.8M. The company sold almost 604,000 silver-equivalent ounces at an all-in cost of $10.65/oz, which means that the company is still very profitable despite the low silver price. Excellon operates one of the highest-grade silver mines which is obviously very beneficial for the cash costs.
Excellon had a working capital of $11.7M at the end of September (a $5M increase compared to the end of June), and we expect this number to increase further towards $14M by the end of this year which allows the company to build up a cash buffer before re-starting exploration efforts in 2014.
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Disclosure: The author holds a long position in Excellon Resources. Please see our disclaimer for current positions.
