Excellon Produces First Concentrate at Mallay

Excellon hits first concentrate at Mallay, but financial impact remains unproven.

Risk flags

• ●Operational risk is elevated due to the reliance on forward-looking targets for throughput and ramp rehabilitation. The company discloses only aggregate production figures and omits daily rates, leaving uncertainty about consistency and scalability of operations.
• ●Financial risk is high because there is no disclosure of revenues, costs, or margins. Without evidence of sales contracts or payment receipts, it is unclear whether concentrate production will translate into cash flow or profitability.
• ●Execution risk surrounds the projected three-month timeline for ramp rehabilitation and the August 2026 shipment target. Delays or cost overruns in these areas could materially impact the company's ability to generate value from the Mallay mine.

Bottom line

This announcement confirms that Excellon has begun producing concentrate at Mallay and is advancing technical milestones, but provides no evidence of commercial sales, revenue, or profitability. The narrative is operationally detailed but financially opaque, with key outcomes—such as concentrate shipments and payments—remaining unproven and forward-looking. The company's focus on development and rehabilitation signals continued capital outlay without demonstrated financial return. Until Excellon discloses actual sales contracts, shipment receipts, and cost data, investors cannot assess whether operational progress will deliver shareholder value. The most important takeaway is that production has started, but the financial impact is still entirely speculative.

Announcement summary

(TSXV: EXN) Excellon Resources Inc. announced that it has achieved first concentrate production during the pre-commissioning campaign at its 100%-owned Mallay Silver-Lead-Zinc Mine in central Peru. Since commencing operations on July 2, 2026, the Mallay concentrator has processed approximately 12,000 tonnes of material, producing concentrates containing approximately 29,200 ounces of silver, 319,000 pounds of lead, and 456,000 pounds of zinc. The company is targeting a controlled rate of approximately 400 tonnes per day during the pre-commissioning period, with initial concentrate shipments expected in August 2026 and payment to be received during the quarter. Dewatering of the 400 Ramp below the 4090 Level has advanced, allowing rehabilitation to commence, which is expected to take approximately three months. Three drill rigs are active, targeting confirmation drilling at depth and near-mine exploration, with results to be reported separately. The Mallay concentrator is a conventional flotation plant with a nameplate capacity of 600 tonnes per day. The company projects continued mill pre-commissioning, shipment of initial concentrates in August 2026, and ongoing development and rehabilitation to establish access below the 4090 Level.

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