Vancouver, British Columbia--(Newsfile Corp. - May 28, 2021) - Telson Mining Corporation (TSXV: TSN) (OTC Pink: SOHFF) (FSE: TSGN) ("Telson" or the "Company") is pleased to announce the three months ended March 31, 2021 ("Q1 2021") management prepared financial results reflecting a $5.25 million operating profit, which reflects steady quarter over quarter improved operating results over the last year of operations at the Company's Campo Morado Mine. All financial information included in this release are reported in Canadian dollars, unless otherwise stated.
Q1 2021 Financial Highlights
Mine quarterly operating profit substantially increased to $5.25M compared to a $0.26M loss during Q4 2020.
Gross Revenue increased to $21.2M compared to $19.0M during Q4 2020.
C1 Cash Cost improved to US$0.72/lb Zn, 43% improvement compared to US $1.28/lb Zn in Q4 2020.
All-In Sustaining Costs reduced 35% to US $0.90/lb Zn, compared to US $1.39/lb Zn in Q4 2020.
Basic Earnings per share was positive $0.02 per share compared to a loss of $0.06 per share in Q4 2020.
Q1 2021 Operational Highlights
Total ore processed increased to 174,382 tonnes compared to 168,310 tonnes in Q4 2020.
Zinc concentrate production increased to 11,013 tonnes compared to 9,974 tonnes in Q4 2020.
Average realized zinc price per tonne increased to US$2,687 per tonne compared to US$2,360 per tonne in Q4 2020.
Zn recoveries improved to 74% compared to 69% in Q4 2020.
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The increased operating profit was a result of significantly decreased C1 Cash Costs and All in Sustaining Costs which are a result of management implemented efficiencies in operations and costs reductions at the mine.
"I am pleased to see that all the hard work is paying off" stated Omar Garcia Abrego, the Company's CFO "Campo Morado operating figures have improved significantly over the last year, this along with cost reduction initiatives and increased metal prices have resulted in strong results reported for Q1 2021. Overall, the Company is now well positioned to have a very successful year with funding secured for the completion of Tahuehueto's mine construction and the pending restructure of the Company's debt which in my opinion, all provide the foundation to continue delivering strong results to our shareholders".
This news release should be read in conjunction with Telson's Management's Discussion and Analysis and the Unaudited Condensed interim Consolidated Financial Statements for the three months ended March 31, 2021 and 2020, which are available at www.telsonmining.com and filed on SEDAR.
* Non-GAAP Performance Measures
The Company has included certain non-GAAP performance measures in this press release. These non-GAAP performance measures do not have any standardized meaning. Accordingly, these performance measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Refer to the Non-GAAP Measures section of Telson's Management Discussion and Analysis for an explanation and reconciliation of these measures.
C1 Cash Costs per pound of payable zinc for the Campo Morado Mine operation are estimated by adding the total cost to produce concentrate (mining, milling, site general and administration), adding the cost of transporting concentrate to the point of sale, adding the cost of smelter treatment and refining charges, subtracting the by-product credits estimated from sales of lead, silver, gold and dividing by the pounds of payable zinc. By-product credits are calculated using the realized weighted average metal price, during the year.
All-in sustaining costs ("AISC"). The Company believes that AISC more fully defines the total costs associated with producing zinc. The Company calculates all-in sustaining costs as the sum of total cash costs (as described above), corporate general and administrative expense (net of stock-based compensation), reclamation cost accretion and amortization and sustaining capital, all divided by the zinc pounds produced to arrive at a per pound figure.
About Telson Mining Corporation
Telson Mining Corporation is a Canadian based mining company with two 100% owned Mexican gold, silver, and base metal mining projects.
Campo Morado is an operating polymetallic base metal mine with mining and milling equipment currently producing at an average of 2,100 tonnes per day and is currently estimated to be Mexico's 6th largest zinc producer.
Telson's Tahuehueto mining project located in north-western Durango State, Mexico is a gold mine currently under construction and advanced to an estimated 60% of completion. The Company recently announced a US$25 million syndicated funding package, and subsequently closed a US$ 8 million equity private placement and executed a silver streaming funding agreement with Empress Royalty to receive an initial US$2million 1st tranche funding advance resulting in US $10 million of the syndicated funding package being available to immediately fund construction efforts at Tahuehueto and provide working capital. Upon closing of the last US $12 million portion of the funding package triggering the 2nd tranche US$3 million from Empress Royalty, Telson will have full funding available to finish construction of its 1,000 tonne per day processing facility and related mine infrastructure to initiate production of gold, silver, lead, and zinc in concentrates at Tahuehueto. The Company is targeting to start pre-production by the end of 2021 and ramping up to full production capacity during Q1 2022.
Visit: www.telsonmining.com
On Behalf of the Board of Directors
(signed) "Ralph Shearing"
Ralph Shearing, P. Geol, President and Director
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