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Maison Placements sees silver lining in Excellon
Buy Excellon Resources Inc. (EXN-TSX-VEN), "a major Canadian silver player that has transitioned quickly from a silver explorer to one of Mexico's newest silver producers," said John Ing, president of Maison Placements Canada Inc. He forecasts revenue will rise from an estimated $26.6-million in 2006 to $42.5-million in 2008.
The shares of Excellon, which are rated "speculative buy," closed yesterday at $1.19, up 14 cents. The shares have a 52-week high of $1.42. The company has a market capitalization of $171.4-million. The company owns an under-explored 129-square-kilometre land package and $14-million cash, Mr. Ing said. An expansion of resources will support Excellon's decision to build their own mill to increase output, he said.
"In order to bring the mine into production, Excellon issued a $9.9-million (U.S.) debenture convertible into 1.8 million ounces of silver at $5.50 an ounce to a Swiss group," he said. "To date, Excellon has set aside over 1.1 million ounces in order to finance the sinking fund facility that matures on June 7, 2007."
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