RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:New president, CEO July 28, 2022 !!DaytonGuy.
Companies go bankrupt when their liabilities exceed their assets which is just the opposite for Excellon which has many times more proven asses than liabilities even counting the San Pedro lawsuit judgement as a legitimate liability which Excellon has denied. If and when Excellon is forced to pay that judgement, which every day that passes becomes more unlikely, it can do it by selling and/or spinning off any of any of its assets(unlocking the value of our assets as Excellon puts it), Kilgore for example, and using part of the estimated US$32+ million capital* generated to do it and have about US$10 million left to fund exploration activities on its other properties. Excellon would still own all its Mexican properties and do anything with it that business sense. It would still own the Oakley property which it optioned out to and getting payments from Centerra Gold. It would also still own Silver City options and exploration rights that has a recent estimated value of C$45 million per a Cormark securities research paper link below. If or when the San Pedro lawsuit is proven not legitimate and/or not applicable to Excellon, Excellon would have an additional US$23 million to spend on a much larger exploration plan and other projects to increase shareholder value that may include a stock buy back program.
*Kilgore had an estimated value of US$32 million back in 2020 when the price of gold was US$1,592/oz. With gold prices higher, an approved drilling plan that can be start now and the identification of much higher grade material, its current value should be considerably higher
| 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 |
"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 highgrade silver mines on an epithermal silver belt that has never seen modern exploration for precious metals".