Ben Kramer-Miller
Gold & precious metals, macro, research analyst, deep value

Dwindling Resources And Rising Costs Make Excellon Resources A 'Sell'

An Overview of Excellon Resources

Excellon Resources (EXLLF) is a small mining company with an emphasis on silver mining in Mexico, although it also owns some land in Canada.

The bulk of its valuation is in its flagship Platosa mine, which produces about 1.5 million ounces of silver on an annual basis. None of its other properties has NI 43-101 compliant resources or a mine plan, which means that unless you want to speculate on the company's exploration success the valuation of Excellon Resources consists of the value of its financial assets, which include the company's working capital--about $12 million--plus the value of the Platosa Mine.

The "Sell" Thesis

Excellon Resources' Platosa Project isn't very valuable. While the...

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