RE:RE:When I first posted about Excellon… If you are right, which statements from Excellon's 30 Aug 2023 NR below seems to support, Excellon's Mexican properties essentially cancel out its dept/debentures. Per same NR, Excellon monetarized some of its is non core assets resulting US$2 million in working capital. That leaves Excellon with no debt, US$2 million in working capital and its core assets of Kilgore and Silver city. Excellon paid $20 million for the Kilgore in 2020, gold prices are up about 20% since then. Using the increase in gold prices alone, Kilgore's conservative present value is US$24 million. This does not include Excellon's additional exploration work, data analysis, new USFS approved drilling permits, drill results coming out this month or Kilgore's PEA value of "NPV7% AT US$275 MILLION AT US$1,800/OZ AU" which should ultimately increase Kilgore's value significantly. On Nov 2021 Cormark Securities Inc. published a Technical Report on Silver City placing a value on it of C$45 million/US$34 million(link below). Also being conservative, lets say Silver City's present value is between US$17million and US$34million. Based on this, Excellon's conservative present value with its unencumbered core assets Kilgore and Silver City and working capital and no debt is between US$43 million (US$24 million + US$17 million + US$2 million) and US$60million(US$24 million + US$ 34 million + US$2 million). With about 36 million shares outstanding, that equates to a stock price between US$1.19 and US$1.67.
Referenced statements from Excellon's 30 Aug 2023 NR
"The Company holds two mineralized properties in Mexico. The Platosa mineral concessions are located approximately five kilometres north of the town of Bermejillo and 45 kilometres north of the city of Torren. The historically mined deposit consisted of a series of high-grade carbonate-replacement deposits (CRD) occurring as mantos. The Evolucion Property covering 310 km2 covers a 17 km strike along the Fresnillo trend, hosting epithermal quartz veins proximal to the San Sebastian Mine. As the Platosa Mine was placed on care and maintenance in early Q4 2022, the Company is assessing its strategic options, including the potential sale of select properties or complete divestiture of the Mexico operations."
"the Company expects to have up to US$2 million in liquidity available through the sale of non-core assets, German VAT receivables and other non-dilutive sources of financing under review."
"Management sees greater upside potential for Kilgore in a renewed focus on exploration and the potential for mineralization growth. During the summer of 2022, Excellon embarked on a phase one drill program testing high-grade structure within the existing pit, and continuity of mineralization into the Aspen formation. The Company plans to release the remainder of assays pending by end of September". "The Company acquired Kilgore for approximately US$20 million in 2020 at a time when the average gold price was approximately US$1,600/oz.".
Silver City "Excellon will continue to assess the market for a spin-out of the project"
https://goldinvest.de/images/pdf/Excellon_SilverCity.pdf
Referenced statement from Cormark Securities 19 Nov 2021 Research Report
"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"