– Richmont Mines Inc. (TSX: RIC) (NYSE: RIC) (“Richmont” or the “Corporation”) announces operating and financial results for the three months ended March 31, 2017, driven by solid results from the Island Gold Mine. The Corporation will host a conference call and webcast on Thursday, May 4, 2017, beginning at 8:30 a.m. Eastern Time (details below.) (All amounts are in Canadian dollars, unless otherwise indicated.)
First Quarter Highlights
“We started the year with a solid quarter reported from both assets, particularly at our cornerstone Island Gold Mine. The ongoing transformation of the Island Gold Mine continues to advance and we remain on schedule to release our Expansion Case Preliminary Economic Assessment (“Expansion Case PEA”) in the second quarter, which will support our overall objective of positioning the Island Gold Mine as one of the lowest cost underground gold producers in the Americas,” stated Renaud Adams, CEO. He continued, “Our focus remains on creating sustainable shareholder value through enhancing operational and cost efficiencies throughout the organization while maintaining our disciplined approach to capital allocation. Over the balance of the year, we will continue to focus on positioning the Island Gold Mine for long-term success that drives shareholder value creation, which is supported by a solid balance sheet and a disciplined management team.”
[1] Non-IFRS performance measure. Refer to the Non-IFRS Performance Measures section contained in the Q1 2017 Management’s Discussion and Analysis.
Financial Highlights
Quarter ended Quarter ended (in thousands of $, except per share amounts) March 31, 2017 March 31, 2016 Revenue from mining operations 46,462 52,634 Net earnings per share, basic 0.09 0.15 Operating cash flow, per share[1] 0.20 0.30 Operating cash flow (before non-cash changes in working capital), per share[1] 0.26 0.36 Net free cash flow, per share[1] 0.01 0.02 Revenue from mining operations (US$) 35,097 38,329 Net earnings per share, basic (US$) 0.07 0.11 Operating cash flow, per share[1] (US$) 0.15 0.22 Operating cash flow (before non-cash changes in working capital), per share[1](US$) 0.20 0.26 Net free cash flow, per share[1](US$) 0.01 0.01 [1] Non-IFRS performance measure. Refer to the Non-IFRS performance measures section contained in the Q1 2017 Management’s Discussion and Analysis.
Operational Highlights
Quarter ended Quarter ended March 31, 2017 March 31, 2016 Gold produced (oz) 29,401 32,369 Gold sold (oz) 28,528 32,239 Average cash costs per ounce ($)[1] 791 800 Average AISC per ounce ($)[1] 1,124 1,094 Average realized gold price per ounce ($) 1,624 1,629 Average cash costs per ounce (US$)[1] 598 583 Average AISC per ounce (US$)[1] 849 797 Average realized gold price per ounce (US$) 1,227 1,186 [1] Non-IFRS performance measure. Refer to the Non-IFRS performance measures section contained in the Q1 2017 Management’s Discussion and Analysis.
Island Gold Mine Highlights
Quarter ended Quarter ended Island Gold MINE March 31, 2017 March 31, 2016 Gold produced (oz) 23,772 26,589 Gold sold (oz) 22,649 26,031 Cash costs per ounce ($)[1] 668 667 AISC per ounce ($)[1] 848 848 Realized gold price per ounce ($) 1,624 1,628 Cash costs per ounce (US$)[1] 504 486 AISC per ounce (US$)[1] 640 618 Realized gold price per ounce (US$) 1,227 1,186 Underground tpd 1,019 853 Mill tonnes 83,365 75,906 Mill tpd 926 834 Head grade (g/t gold) 9.18 11.31 Recoveries (%) 96.7 96.3 Sustaining costs ($000’s) 4,072 4,713 Project costs ($000’s) 5,929 6,987 Non-sustaining exploration ($000’s) 3,762 3,770 Sustaining costs (US$000’s) 3,076 3,432 Project costs (US$000’s) 4,479 5,088 Non-sustaining exploration (US$000’s) 2,842 2,745 [1] Non-IFRS performance measure. Refer to the Non-IFRS performance measures section contained in the Q1 2017 Management’s Discussion and Analysis.
Island Gold Mine Highlights
Beaufor Mine Highlights
Quarter ended Quarter ended Beaufor MINE March 31, 2017 March 31, 2016 Gold produced (oz) 5,629 4,615 Gold sold (oz) 5,879 5,037 Cash costs per ounce ($)[1] 1,265 1,396 AISC per ounce ($)[1] 1,580 1,728 Realized gold price per ounce ($) 1,625 1,648 Cash costs per ounce (US$)[1] 956 1,017 AISC per ounce (US$)[1] 1,194 1,259 Realized gold price per ounce (US$) 1,228 1,200 Underground tpd 354 323 Mill tonnes 30,009 29,318 Head grade (g/t gold) 6.00 4.96 Recoveries (%) 97.2 98.7 Sustaining costs ($000’s) 1,854 1,674 Non-sustaining exploration costs ($000’s) 140 – Sustaining costs (US$000’s) 1,401 1,219 Non-sustaining exploration costs (US$000’s) 106 – [1] Non-IFRS performance measure. Refer to the Non-IFRS performance measures section contained in the Q1 2017 Management’s Discussion and Analysis.
Beaufor Mine Highlights
Annual and Special Meeting of Shareholders
Richmont’s annual and special meeting of shareholders will be held on Thursday, May 4, 2017 at 10:30 a.m. E.T. at the St. Andrew’s Club & Conference Centre (27th Floor, Caledonia Room) at 150 King Street West in Toronto.
Upcoming News
Financial Statements and Management’s Discussion and Analysis
The financial statements and related Management’s Discussion and Analysis can be found on the Corporation’s website at http://www.richmont-mines.com or under the Corporation’s profile on http://www.sedar.com and with the Securities and Exchange Commission at http://www.sec.gov/edgar.shtml.
2017 First Quarter Results Webcast and Conference Call
Senior management will discuss the first quarter financial results in a webcast and conference call to be held on Thursday, May 4, 2017 starting at 8:30 a.m. E.T.
Webcast access:
http://event.on24.com/r.htm?e=1405031&s=1&k=2945B7DDFBDA291E4DB85CDEFA27826D
Telephone access:
A replay will be available until May 18, 2017 by dialing 1-416-764-8677 (Toronto local and international) or 1-888-390-0541 (toll free in Canada and U.S.), using pass code 134044#. The webcast and presentation slides will be archived on the Corporation’s website at http://www.richmont-mines.com.
About Richmont Mines Inc.
Richmont Mines currently produces gold from the Island Gold Mine in Ontario, and the Beaufor Mine in Quebec. The Corporation is also advancing development of the significant high-grade resource extension at depth of the Island Gold Mine in Ontario. With 35 years of experience in gold production, exploration and development, and prudent financial management, the Corporation is well-positioned to cost-effectively build its Canadian reserve base and to successfully enter its next phase of growth.
Forward-Looking Statements
This news release contains forward-looking statements that include risks and uncertainties. When used in this news release, the words “estimate”, “project”, “anticipate”, “expect”, “intend”, “believe”, “hope”, “may”, “objective” and similar expressions, as well as “will”, “shall” and other indications of future tense, are intended to identify forward-looking statements. The forward-looking statements are based on current expectations and apply only as of the date on which they were made. Except as may be required by law or regulation, the Corporation undertakes no obligation and disclaims any responsibility to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise.
The factors that could cause actual results to differ materially from those indicated in such forward-looking statements include changes in the prevailing price of gold, the Canadian-United States exchange rate, grade of ore mined and unforeseen difficulties in mining operations that could affect revenue and production costs. Other factors such as uncertainties regarding government regulations could also affect the results. Other risks may be set out in Richmont Mines’ Annual Information Form, Annual Reports and periodic reports. The forward-looking information contained herein is made as of the date of this news release.
Cautionary note to US investors concerning resource estimates
Information in this press release is intended to comply with the requirements of the Toronto Stock Exchange and applicable Canadian securities legislation, which differ in certain respects with the rules and regulations promulgated under the United States Securities Exchange Act of 1934, as amended (“Exchange Act”), as promulgated by the SEC. The requirements of National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) adopted by the Canadian Securities Administrators differ significantly from the requirements of the United States Securities and Exchange Commission (the “SEC”).
U.S. Investors are urged to consider the disclosure in our annual report on Form 40-F, File No. 001-14598, as filed with the SEC under the Exchange Act, which may be obtained from us (without cost) or from the SEC’s web site: http://sec.gov/edgar.shtml.
National Instrument 43-101
The scientific or technical information in this news release has been reviewed by Mr. Daniel Adam, Geo., Ph.D., Vice-President, Exploration, an employee of Richmont Mines Inc., and a qualified person as defined by NI 43-101.
Contact:Renaud Adams President and CEO Phone: 416-368-0291 ext. 101
Anne Day Senior Vice-President, Investor Relations Phone: 416-368-0291 ext. 105
(Immediapress – Adnkronos
Immediapress e’ un servizio di diffusione di comunicati stampa in testo originale redatto direttamente dall’ente che lo emette. Padovanews non e’ responsabile per i contenuti dei comunicati trasmessi.)