RE:RE:RE:RE:RE:RE:RE:RE:Operations And Exploration Update My Simple fix to Excellon's problems. Sell Kilgore for around US$39 million which is its estimated current value based on information supplied in article below. Excellon would use this money for exploration on all its other properties and pay off all its debt. Excellon would then suspend Platosa mining operations until silver prices are high enough and/or costs are low enough to generate a profit and significant cash flow. That leaves Excellon with all its Mexican properties and resources, Oakley, Silver City(recently valued at $45million see article below) and around US$40 million cash on hand. What do you think Excellon's stock price would be then? My guess it would be north of Excellon's 2016 high of US$8.50 and it could be there soon after this deal was done. Now add the possibility of a large discovery at Silver city for example. Could that take Excellon's stock price to all time highs(current high US$46)? Now add on the predicted much higher silver prices and you get the picture. This brings up the question; At what point does Excellon no longer need or want any of its Mexican properties? Food for thought.
From Otis Gold Acquisition Seeking Alpha article 2 March 2020 link below:
"we can conclude that the enterprise value per ounce should have come in at half of the median paid, which was $63.79/oz from 2016 through to 2019". Otis gold property estimated value at the time was US$63.79/0z /2 or US$31.90/oz. With its 1.1 million ozs, this equates to a US$35 million value at the time of article. With the increase of gold prices of 13% from 2 March 2020.
Otis Gold present value is estimated at US$39.55 million.
From Silver City On Display Cormark Securities article 19 November 2021 link below:
"First-Mover Advantage in Germany Warrants Silver City Valuation We ascribe a nominal value of $45.0 MM to the Silver City project. While there are no resources at the project yet, we believe this is a reasonable value given the exploration potential of the asset. If Silver City were in a standalone company, we are confident the market value would be at least $45.0 MM. Excellon continues to be a first mover on silver exploration in Saxony, with an unparalleled ground position covering historical high grade silver mines on an epithermal silver belt that has never seen modern exploration for precious metals. • Maintaining Buy Rating"
| MORNING NOTE FRIDAY, NOVEMBER 19, 2021 Richard Gray, CFA (416) 943-6407, rgray@cormark.com Brandon Smith, CFA, Associate (416) 943-4224, bsmith@cormark.com Company Description: Excellon Resources is a silver producer engaged in the operation of the 100%-owned Platosa mine in Mexico goldinvest.de |
https://seekingalpha.com/article/4328712-gold-juniors-index-how-otis-gold-acquisition-stacks-up-against-prior-takeovers | | Excellon Resources acquired Otis Gold last week, representing the first takeover in the junior mining space for 2020. seekingalpha.com |