Excellon Resources Inc. · TSXV:EXN
Excellon Resources — Investor Presentation (May 2014)
27 slides from Excellon Resources's investor presentation, May 2014
Slide 1: Mexico's highest grade silver producer
Mexico’s highest grade Silver producer TSX:EXN | OTC:EXLLF Investor Presentation – May 2014
Slide 2: Disclaimer
Disclaimer This document contains “forward‐looking statements” within the meaning of applicable Canadian securities legislation and applicable U.S. securities laws. Except for statements of historical fact relating to the Company, such forward‐looking statements include, without limitation, statemen
Slide 3: High grade, low cost, cash flow, growing production profile
HIGH GRADE M+I Resource of 777 g/t Ag LOW COST $11.76/Ag oz payable total cash cost (Q1 2014) CASH FLOW $17.28/Ag oz payable all-in sustaining cost (Q1 2014) SOLID MINE LIFE Quality resource remaining with open potential Increasing production through optimization GROWING PRODUCTION PROFILE Growing t
Slide 4: M&I Resource Grade vs Production Grade (Ag g/t)
Excellon Resources 900 La Platosa 800 Great Panther Topia 700 MAG/Fresnillo M&I Resource Grade (Ag g/t) Juanicipio* 600 Fresnillo 500 Fresnillo El Saucito Fresnillo 400 Primero Pan American 300 San Dimas La Colorada Endeavour 200 Guanacevi 100 0 0 100 200 300 400 500 600 700 800 900 Production Grade
Slide 5: Silver production, grade and recovery 2008-2013
88% 85% 89% 93% 93% SILVER SILVER SILVER SILVER SILVER RECOVERY RECOVERY RECOVERY RECOVERY RECOVERY 2 1,114 1,023 846 814 796 1.5 718 Ag (million oz) 1 0.5 0 2008 2009 2010 2011 2012 * 2013 Ag (g/t) * Production was disrupted by an illegal blockade of the mine site 4 www.excellonresources.com
Slide 6: 2013 Total Cash Cost per Ag Eq oz payable
$25.00 2013 Total Cash Cost / Aq Eq oz Payable $20.00 $20.23 $15.00 $16.05 $15.87 $15.67 $12.80 $10.00 $7.48 $5.00 $0.00 U.S. Silver Alexco Scorpio Great Panther Excellon SilverCrest * Information is based on public disclosure documents 5 www.excellonresources.com
Slide 7: Market capitalization, operating earnings and net income vs peers
$250 $229 $200 $150 $148 $100 $88 $73 $53 $50 $42 SVL $36 EXN $29 USA SPM GPR AUM AXR $9 $8 $0 $1 $- $(0) $(5) $(14) $(9) $(9) $(13) $(16) $(50) $(50) Market Capitalization (millions) 2013 Mine Operating Earnings (millions) $(100) ($240) 2013 Net Income (millions) *As of April 25, 2014. All figure a
Slide 8: Q1 2014 production and cost summary
Q1 2014 2013 2012 Tonnes Produced 19,202 70,490 46,495 Ag (g/t) 614 718 846 Grades Lead (%) 6.67 6.14 6.75 Zinc (%) 8.12 8.00 11.81 Ag (oz) 365,941 1,409,852 1,081,165 Metal Production Lead (Ib) 2,346,766 7,342,108 5,731,160 Zinc (Ib) 2,629,682 9,876,955 10,450,813 Ag (%) 92.7 92.6 93.4 Recoveries L
Slide 9: All-In Sustaining Cost Calculation Q1 2014
All-In Sustaining Cost Calculation Q1 2014 2013 Total Cash Costs per payable silver oz $11.76 $10.01 General and Administrative Costs (cash) $2.42 $3.08 Share-based Payments (non-cash) $0.76 $1.26 Reclamation Costs (non-cash) $0.14 $0.14 Exploration Sustaining Capital $0.67 $1.91 Capital Expenditure
Slide 10: Revenue by Metal
$60.0 Stable Revenue Contributions from Base Metals $50.0 Revenue by Metal ($ 000’s) $40.0 Silver $40.8 $30.0 Lead $29.5 $25.5 Zinc $20.0 $10.0 $6.1 $4.8 $6.5 ~$13m/y $7.4 $7.8 $7.0 $- 2011 2012 2013 25% 30% 35% 9 www.excellonresources.com
Slide 11: Excellent infrastructure, access and security
National Highway 49D To Bermejillo (4 km) & (Mexico City to US Border) Torreon International Airport (55 km) Hydro Corridor Crusher Mine Office/Warehouse/ Safety & First Aid Mine Entrance Machine Shop Dry Excellent infrastructure, access and security 10 www.excellonresources.com
Slide 12: La Platosa 2013 Mineral Resource Estimate
• 453,309 tonnes mined at 974 g/t Ag, 7.9% Pb and 9.5% Zn – 2005 to 2013 • Remaining resource at over 1 kg/t AgEq La Platosa 2013 Mineral Resource Estimate Tonnes Ag Pb Zn AgEq Ag Pb Zn AgEq Category (‘000s) (g/t) (%) (%) (g/t) (M oz) (M lb) (M lb) (oz) Measured 42 825 8.62 11.31 1,358 1.1 7.9 10.4
Slide 13: 2014 Guidance
TONNES AG PB ZN AGEQ AREA/MANTO (KT) (G/T) (%) (%) (G/T) 2014 Guidance 6A/6B 68 753 8.51 10.79 1,271 Guadalupe 18 857 9.24 12.60 1,438 1.4 – 1.6 million ounces Ag Guadalupe South 26 939 8.06 14.08 1,514 7.5 – 8.5 million lbs Pb Rodilla 83 683 7.03 10.59 1,147 9.0 – 10 million lbs Zn NE-1 158 558 7.9
Slide 14: La Platosa and major carbonate replacement deposits
Major CRDs CRDs 1 Cerro San Pedro: 151 Mt (New Gold) 2 San Martin-Sabinas: 120 Mt (Peñoles) 3 Terrazas: 87 Mt (Andromeda) 4 Santa Eulalia: 50 Mt (Peñoles) 11 5 Penasquito: 45 Mt+ (Goldcorp) 14 17 6 La Negra: 40 Mt (Aurcana) 12 7 Naica: 35 Mt (Peñoles) 3 4 8 Santa Barbara: 30 Mt+ (Peñoles) 9 Charcas:
Slide 15: High-grade mantos found on periphery of major CRD system
High-grade mantos of La Platosa are found on the periphery of a major Carbonate Replacement Deposit System La Platosa Mine Uplifted Block Dikes & Faults Veins Anomalous Alteration Ag, Pb, Zn, F Boundaries Skarn Distal Mantos up to Contact 8 km from Source Rincon del Caido Discovery Drilling Proximal
Slide 16: 2-3 km of open potential
2-3 km of open potential INTERVAL INTERVAL DDH FR. WIDTH AG LEAD ZINC AU LOCATION NO. (M) (M) (G/T) (%) (%) (G/T) 6A Manto LP996 133.98 3.18 442 9.71 10.51 - And LP998 144.26 127.73 2.04 6.68 516 551 12.64 7.79 24.02 12.60 - - Exploration horizon for new high-grade, Incl. And 127.73 132.76 2.67 1.65
Slide 17: La Platosa resource growth timeline
M&I Resource M&I Resource M&I Resource 63,400 tonnes 184,500 tonnes 637,000 tonnes @ 2,738 g/t Ag @ 1,546 g/t Ag @ 836 g/t Ag 1998 2005 2009 2012 Discovery of Platosa Commencement Miguel Auza CRD/Source style discovery high-grade mantos of production Mill acquired 55m @ 130 g/t Ag, 3% Pb, for $5M 1.
Slide 18: Rincon del Caido
RINCON DEL CAIDO • Rincon del Caido – increasing proximity to a significant CRD/Source LP1041 – 1.6 m @28 g/t Au • High-grade gold intersections demonstrate potential for gold LP1035 – 0.25 m @ 471 g/t Ag, 2.6% Pb, 0.5 g/t Au component in the ultimate deposit to be found – potentially improving prof
Slide 19: Rincon-Mantos Corridor target area
• Promising structural corridors identified • Study underway to identify vectors for future drilling • Compelling exploration play and a key prospect in the Company’s long-term growth strategy LA PLATOSA MANTOS Rincon-Mantos Corridor Target Area 7.25 metres @ 13.07 g/t Au, 55.46 metres @ 21.1 g/t Ag
Slide 20: Mineral Resources
MINERAL RESOURCES 19 www.excellonresources.com
Slide 21: Capitalizing on opportunities in volatile markets
• Acquired brand new, scalable, 650 tpd mill ($15M value) with 45% spare capacity in June 2009 • 41,000 ha of mineral rights on primary silver belt • $22M of loss carry-forwards, still creating value • Ag recovered from Platosa has increased from 70% pre-acquisition to +90% today 2006-08 2007 2008 2
Slide 22: Community involvement
Ongoing Involvement • 100% Mexican workforce of 352 employees and contractors • Engaging with local communities of Bermejillo and Mapimi • Partnering with local, state and federal governments • Sustainable community investments in health, education and social infrastructure Active Memberships 21 www
Slide 23: Share structure and trading summary
SHARE STRUCTURE TRADING SUMMARY* Issued & Outstanding: 55.0M Listed: TSX:EXN | OTC:EXLLF Options: 3.1M 90-Day Avg. Daily Volume: 38,339 RSUs: 278,507 52 Week High/Low: C$2.11-C$0.90 DSUs: 172,587 Market Cap: C$73M Fully Diluted: 58.1M Average Option Price: $2.70 MANAGEMENT & KEY SHAREHOLDERS Sprott
Slide 24: Premier producing silver asset positioned for growth
PREMIER • High grade, low cost, cash flow PRODUCING SILVER ASSET • Solid mine life remaining • Focussed on generating cash flow at low silver prices POSITIONED FOR GROWTH • Ability to capitalize on undervalued assets through IN A VOLATILE MARKET intelligent acquisitions FIRST MOVER ADVANTAGE • Signi
Slide 25: Board of Directors
Peter Crossgrove Orders of Canada and Ontario. Vice-Chair, Detour Gold; Director of Lake Executive Chairman Shore Gold. Former CEO of Placer Dome; Director of Barrick Gold; Founder of Masonite International. Former Treasurer of Care International. Thor Eaton Canadian businessman and philanthropist.
Slide 26: Management team
Brendan Cahill Former VP Corp. Dev. of Pelangio Exploration and M&A/securities lawyer (Davies Ward Phillips & Vineberg LLP). Member of the Young President and CEO Presidents’ Organization, the Law Society of Upper Canada and a board Member of the Mining Association of Canada. Rupy Dhadwar Appointed
Slide 27: Vision and investor relations contact
Our vision is to be a premier silver producer by capitalizing on generational opportunities and striving to always do better for our shareholders, employees and neighbouring communities Nisha Hasan Director, Investor Relations 416-364-1130 | info@excellonresources.com
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