– Richmont Mines Inc. (TSX: RIC) (NYSE: RIC) (‘Richmont’ or the ‘Corporation’) announces operating and financial results for the three and six months ended June 30, 2017, driven by solid results from the Island Gold Mine. The Corporation will host a conference call and webcast on Thursday, August 3, 2017, beginning at 8:30 a.m. Eastern Time (details below.) (All amounts are in Canadian dollars, unless otherwise indicated.)
Second Quarter Highlights
“The positive results for the quarter were supported by another consecutive quarter of solid production and record low cash costs reported from our cornerstone Island Gold Mine. This strong operational and cost performance drove robust cash flow streams even during a period of accelerated investment in our strategic expansion and exploration programs at Island Gold,” stated Renaud Adams, CEO. He continued, “Company-wide, our focus remains on creating sustainable shareholder value by driving ongoing operational and cost efficiencies throughout the organization and maintaining our disciplined approach to capital allocation. Over the balance of the year, we will continue to focus on further unlocking the potential of the Island Gold Mine as we position the operation to be one of the lowest cost producers in the Americas.”
Financial Highlights Quarter ended Quarter ended Six-Months ended Six-Months ended (in thousands of $, except per share amounts) June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Revenue from mining operations 59,278 40,618 105,740 93,252 Net earnings per share, basic 0.17 0.04 0.25 0.19 Operating cash flow, per share[(1)] 0.48 0.25 0.68 0.54 Operating cash flow (before non-cash changes in working capital), per share[(1)] 0.39 0.19 0.65 0.55 Net free cash flow, per share[(1)] 0.30 0.05 0.31 0.07 Revenue from mining operations (US$) 44,073 31,521 79,236 70,104 Net earnings per share, basic (US$) 0.12 0.03 0.19 0.14 Operating cash flow, per share[(1)] (US$) 0.36 0.19 0.51 0.41 Operating cash flow (before non-cash changes in working capital), per share[(1)] (US$) 0.29 0.15 0.49 0.41 Net free cash flow, per share[(1)] (US$) 0.22 0.04 0.23 0.05 [(1)] Non-IFRS performance measure. Refer to the Non-IFRS performance measures section contained in the Q2 2017 Management’s Discussion and Analysis.
Operational Highlights Quarter ended Quarter ended Six-Months ended Six-Months ended June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Gold produced (oz) 31,249 23,320 60,650 55,689 Gold sold (oz) 35,040 24,888 63,568 57,127 Average cash costs per ounce ($)[(1)] 725 895 754 841 Average AISC per ounce ($)[(1)] 957 1,322 1,031 1,193 Average realized gold price per ounce ($) 1,688 1,628 1,659 1,629 Average cash costs per ounce (US$)[(1)] 539 695 565 632 Average AISC per ounce (US$)[(1)] 711 1,026 773 897 Average realized gold price per ounce (US$) 1,255 1,263 1,243 1,225 [(1)] Non-IFRS performance measure. Refer to the Non-IFRS performance measures section contained in the Q2 2017 Management’s Discussion and Analysis.
Island Gold Mine Highlights Quarter ended Quarter ended Six-Months ended Six-Months ended ISLAND GOLD MINE June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Gold produced (oz) 26,110 18,617 49,882 45,206 Gold sold (oz) 29,534 20,147 52,183 46,178 Cash costs per ounce ($)[(1)] 580 757 618 706 AISC per ounce ($)[(1)] 677 1,029 751 927 Realized gold price per ounce ($) 1,686 1,627 1,659 1,627 Cash costs per ounce (US$)[(1)] 431 588 463 531 AISC per ounce (US$)[(1)] 503 799 563 697 Realized gold price per ounce (US$) 1,254 1,263 1,243 1,223 Underground tpd 1,148 911 1,084 882 Mill tonnes 85,578 79,924 168,943 155,830 Mill tpd 940 878 933 856 Head grade (g/t gold) 9.73 7.51 9.46 9.36 Recoveries (%) 97.6 96.5 97.1 96.4 Sustaining costs ($000’s) 2,877 5,480 6,949 10,193 Project costs ($000’s) 5,970 7,946 11,899 14,933 Non-sustaining exploration ($000’s) 4,889 3,624 8,651 7,394 Sustaining costs (US$000’s) 2,139 4,253 5,207 7,663 Project costs (US$000’s) 4,439 6,166 8,916 11,226 Non-sustaining exploration (US$000’s) 3,635 2,812 6,483 5,559 [(1)] Non-IFRS performance measure. Refer to the Non-IFRS performance measures section contained in the Q2 2017 Management’s Discussion and Analysis.
Island Gold Mine Highlights
Beaufor Mine Highlights Quarter ended Quarter ended Six-Months ended Six-Months ended BEAUFOR MINE June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 Gold produced (oz) 5,139 4,703 10,768 9,318 Gold sold (oz) 5,506 4,741 11,385 9,778 Cash costs per ounce ($)[(1)] 1,502 1,484 1,380 1,439 AISC per ounce ($)[(1)] 1,791 1,897 1,682 1,810 Realized gold price per ounce ($) 1,697 1,635 1,660 1,642 Cash costs per ounce (US$)[(1)] 1,117 1,152 1,034 1,082 AISC per ounce (US$)[(1)] 1,332 1,473 1,260 1,361 Realized gold price per ounce (US$) 1,262 1,269 1,244 1,234 Underground tpd 339 286 346 304 Mill tonnes 31,414 28,281 61,423 57,599 Head grade (g/t gold) 5.21 5.27 5.60 5.11 Recoveries (%) 97.7 98.1 97.4 98.4 Sustaining costs ($000’s) 1,596 1,958 3,450 3,632 Non-sustaining exploration costs ($000’s) 214 – 354 – Sustaining costs (US$000’s) 1,187 1,519 2,585 2,730 Non-sustaining exploration costs (US$000’s) 158 – 265 – [(1)] Non-IFRS performance measure. Refer to the Non-IFRS performance measures section contained in the Q2 2017 Management’s Discussion and Analysis.
Beaufor Mine Highlights
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 Second Quarter Results Webcast and Conference Call
Senior management will discuss second quarter financial results during a conference call and webcast scheduled on Thursday, August 3, 2017 at 8:30 a.m. E.T.
Webcast access
http://event.on24.com/r.htm?e=1464043&s=1&k=2332374CD8C93FEF484C8DE7AA03A11F
Telephone access
A replay will be available until August 17, 2017 by dialling +1-416-764-8677 (Toronto local and international) or 1 888 390-0541 (toll free in Canada and U.S.), using pass code 269710#. The webcast and presentation slides will be archived on the Corporation’s website at http://www.richmont-mines.com.
Non-International Financial Reporting Standards (“IFRS”) Performance Measures “Cash cost per ounce”, “All-in Sustaining Costs”, “net free cash flow” and “operating cash flow” are non-IFRS performance measures, and may not be comparable to similar measures presented by other companies. The Corporation believes that, in addition to conventional measures prepared in accordance with IFRS, the Corporation and certain investors use this information to evaluate the Corporation’s performance. Accordingly, these 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 IFRS. For full disclosure and reconciliation of these measures, refer to the Non-IFRS Performance Measures section contained in the Q2 2017 Management’s Discussion and Analysis.
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 more than 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 United States Securities and Exchange Commission (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 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.
__________________________________[1]Non-IFRS performance measure. Refer to the Non-IFRS Performance Measures contained in the Q2 2017 Management’s Discussion and Analysis.
Media contacts:Renaud Adams President and CEO Phone: 416-368-0291 ext. 101Anne Day Senior Vice-President, Investor Relations Phone: 416-368-0291 ext. 105
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