Telson Mining sees its FY2020 sales surge 30% to C$44.4M as mining output ramps up at Campo Morado in Mexico

Telson Mining Corporation (CVE:TSN) (OTCMKTS:SOHFF) (FRA:TSGN) reported a 30% year-over-year increase its fiscal 2020 revenue to C$44.4 million as the company’s Campo Morado mine production in Mexico increased at an average rate quarter over quarter of about 50%. Results were also boosted by a nearly 2% average month-over-month rise in zinc prices as well as a more than 4% month-over-month increase in the price of silver during the year. The company also recorded a net loss for the year that narrowed by 60% from 2019, as its general expenses in 2020, excluding impairment charges, fell by about 17% as a result of ongoing cost reduction initiatives. READ: Telson Mining is on track to become Mexico’s next high-grade gold miner Telson Mining noted it mined 343,141 tonnes of ore in 2020 grading 4.50% zinc, 1.04% lead, 119 grams per tonne (g/t) silver and 1.03 g/t gold, producing 28,031 tonnes of zinc concentrate and 5,794 tonnes of lead concentrate. It added that about 27,864 tonnes of zinc and 5,926 tonnes of lead concentrates were sold during the year with an average grade of 46% and 22%, respectively. Campo Morado is an operating polymetallic base metal mine with mining and milling equipment currently producing at an average of 2,150 tonnes per day and is estimated to be Mexico's sixth largest zinc producer. As well, Telson announced it has received the initial US$2 million from the total US$5 million silver stream agreement with Empress Royalty Corp for its Tahuehueto project in Mexico. The stream is part of a US$25 million full financing solution being provided by Empress, Accendo Banco and Endeavour Financial, which included an US$8 million equity private placement that closed on March 30. The Tahuehueto mining project is a 7,500-hectare property located in northwestern Mexico’s Durango State, which is currently under construction, having advanced to about 70% completion and is waiting for final funding to finish construction of the processing plant and related assets to produce gold, silver, lead and zinc in concentrates within its own on-site mineral processing facility, with a designed capacity of at least 1,000 tonnes per day. The company is targeting completion of construction during 2021, six to eight months after securing final funding.   Contact Sean at sean@proactiveinvestors.com