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kipp440

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kipp440

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Re: None

Friday, 01/12/2007 1:55:41 PM

Friday, January 12, 2007 1:55:41 PM

Post# of 585
My pick in honor of Bobwins is EXN.v/EXLLF.pk. Excellon

I am giving Bob full credit and listing his original post as part of my DD.

Yahoo Finance Info:
http://finance.yahoo.com/q?s=EXN.V

This presentation is a must. Excellon may find the "Mother Lode"! http://www.excellonresources.com/pdf/CPPTDec18AGM.pdf



Posted by: Bobwins
In reply to: None Date:1/11/2007 1:08:25 AM
Post #of 62532

I think I found one. EXN.v/EXLLF.pk. Excellon looks to be a value play in the metals arena. This is a silver/lead/zinc mine with excellent high grade ore. They earn an impressive $1000+/tonne in revs and have fairly low operating cost.

In Q3, they earned 7.6 million or C$.05eps. The shares are selling for C$1.06. If they can continue that pace, they are selling for a 5 p/e. Typically silver producers get a much higher p/e ratio than that. In fact, there aren't that many profitable silver producers.


http://www.stockhouse.com/news/news.asp?newsid=4852275&tick=EXN

EXN.v is still increasing production. They are still experimenting with the mill processing to maximize recovery. In addition, EXN.v still feels they are producing less ore than their goals. Their goal is 20,000 tonnes/day. During Q3 they produced 15,988 but only shipped 11,536 tonnes. They have an inventory of ore that they hope to reduce during 2007 as they perfect the milling process.

EXN.v has been increasing production rapidly and so the comps are going to be easy for the next several qtrs.

EXN.v is cashflow positive and has $14million in cash.

What's the catch? EXN.v began mining in 2005 with a test mine that didn't have much in reserves. EXN knew this but wanted to get into production to generate cashflow that would finance aggressive exploration on this large property to increase reserves. So far, they have increased reserves to 2 years of full scale production. After the end of Q3, they discovered additional reserves but they haven't been reviewed and added to official reserves yet.

EXN.v also has a debt that is due to be paid in June 2007. Prior to production, they borrowed 9.9 million. The debt is secured by a silver debenture. EXN is sending 50% of their silver production to a custodian. They need to deposit 1,800,000 oz of silver by 6/7/07. At that time the debenture holders can choose to get paid in silver or cash. The silver was valued at $5.50/oz so they will take the silver. Once the debenture is paid off, expenses will drop by about $600K per qtr.

I think this is a stock that is going to double/triple once EXN.v repeats their production and earnings for several qtrs and pays off the silver debenture. Imagine how fast the cash will build up when they have 100% of their silver production each qtr.

They are producing silver,lead and zinc which are in demand and short supply. They are increasing production and the prices for all three metals is likely to be higher in 2007.

158 million shares fully diluted. Bobwins

http://www.excellonresources.com/


If the Commodities Boom is Over, I am just a Gold Bug headed for the Windshield of LIFE


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