Canadian mining company Excellon Resources has generated approximately €3.95 million in initial concentrate sales revenue from its restarted Mallay silver-lead-zinc mine in Peru, marking the project’s first commercial milestone under an existing offtake agreement with Swiss commodities trader Glencore.
The initial production came from three pre-commissioning processing campaigns that treated 19,884 tonnes of material and recovered approximately 52,860 ounces of silver in concentrate.
Reported processing recoveries reached approximately 84% for silver, 84% for lead and 81% for zinc. Excellon is now progressing towards higher operating rates, targeting full mill capacity of 600 tonnes per day by mid-2027.
Processing Campaigns Establish Initial Production Performance
The three campaigns form part of Mallay’s wider commissioning and operational ramp-up programme. Although the first concentrate sales have generated operating revenue, the mine has not yet achieved steady-state commercial production.
The initial results provide operating data on throughput and metal recovery as Excellon works towards increasing mill utilisation and establishing consistent production. The transition from campaign-based processing to sustained operations will be important for demonstrating whether the mine can maintain its targeted capacity once commissioning activities are completed.
Glencore Offtake Provides Concentrate Marketing Route
The concentrate sales were conducted under an existing offtake agreement with Glencore, providing Mallay with an established commercial route for its silver, lead and zinc products during the restart phase.
The agreement creates a direct commercial connection with one of Switzerland’s largest commodity trading groups. The final physical destination of the concentrate has not been established as European.
Glencore’s involvement should therefore be distinguished from a confirmed supply arrangement with an EU refinery or smelter. Concentrate trading and distribution can involve different regional markets depending on treatment charges, transportation costs and available smelting capacity.
Silver, Lead and Zinc Exposure to Industrial Markets
Mallay’s three metals are important to several industrial supply chains, including those serving European manufacturers.
Zinc is widely used in galvanised steel for construction, automotive manufacturing and renewable energy infrastructure. Lead remains an important material for batteries and other industrial applications, while silver is increasingly associated with photovoltaic manufacturing and electronics. The operation therefore supplies metals traded in international markets that European industry depends on, although the current offtake agreement does not establish a dedicated physical supply route to Europe.
Streaming Amendments Remain Subject to Approval
Excellon has also agreed amendments to its existing metal-streaming obligations. These changes remain conditional on exchange approval and other closing requirements.
The revised streaming arrangements are separate from the approximately €3.95 million in concentrate revenue already received. The latter represents cash generated through actual product sales, whereas the amendments have not yet completed the required approval process.
The initial revenue provides working capital and demonstrates that Mallay has begun commercialising its concentrate following the restart. However, sustained operating performance will depend on maintaining throughput, recoveries and mine production as the commissioning phase progresses. The next operational milestones include increasing mill utilisation, advancing towards the planned 600 tonnes per day capacity and establishing consistent production under the Glencore offtake arrangement.
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