Richmont Mines

Richmont Mines Reports Strong Second Quarter Financial Results; On Track to Meet or Exceed Guidance Estimates

Toronto (ots/PRNewswire) - Richmont Mines Inc. (TSX: RIC) (NYSE MKT: RIC) ("Richmont" or the "Corporation") announces operating and financial results for the three and six months ended June 30, 2016, driven by solid results from the Island Gold Mine. The Corporation will host a conference call and webcast on Monday, August 8, 2016, beginning at 8:30 a.m. Eastern Time (details below). (All amounts are in Canadian dollars, unless otherwise indicated.)

Second Quarter Highlights

- Company-wide production was 23,320 ounces for the quarter, an 11% 
  decrease over Q2 2015, primarily due to the depletion of the 
  Monique stockpile earlier this year. The Island Gold Mine produced 
  18,617 ounces of gold in the second quarter, a 24% increase over Q2
  2015, driven by record underground and mill productivity of 911 
  tonnes per day and 878 tonnes per day, respectively, as well as a 
  positive reconciliation (mined vs. reserves) of 19%.
- Gold sold during the quarter was 24,888 ounces, a decrease of 10% 
  over Q2 2015, at an average realized price of $1,628 (US$1,263) per
  ounce.
- Revenues for the quarter were $40.6 million (US$31.5 million), 
  consistent with Q2 2015.
- Company-wide cash costs[1] for the quarter were $903 per ounce 
  (US$701 per ounce), a decrease of 7% over Q2 2015 and below current
  guidance estimates. Cash costs for the Island Gold Mine were $766 
  per ounce (US$595 per ounce), a 20% decrease over Q2 2015 and 
  significantly below current guidance estimates.
- Company-wide All-in-Sustaining Costs[1] ("AISC") for the quarter 
  were $1,330 per ounce (US$1,032 per ounce), in-line with Q2 2015 
  and within current guidance estimates. AISC for the Island Gold 
  Mine were $1,038 per ounce (US$806 per ounce), a 21% decrease over 
  Q2 2015 and significantly below current guidance estimates.
- Earnings were $2.7 million, 8% lower than Q2 2015, or $0.04 per 
  share (US$2.1 million, or US$0.03 per share).
- Operating cash flow (after changes in non-cash working capital) of 
  $14.9 million (US$11.5 million), or $0.25 per share (US$0.19 per 
  share), both in-line with Q2 2015.
- Richmont ended the quarter with an increased cash balance of $95.5 
  million (US$73.4 million), which includes net proceeds of $29.1 
  million (US$22.7 million) related to a bought-deal prospectus 
  financing completed on June 7, 2016 and $3.0 million of net free 
  cash flow[1].
- Based on the success of the Phase 1 exploration program at the 
  Island Gold Mine, the Corporation launched an aggressive 18 to 24 
  month Phase 2 drilling program of up to 142,000 metres, with an 
  estimated 39,000 metres to be completed in the second half of 2016.
- Based on the strong operational and cost performance in the first 
  six months of the year, Richmont expects to meet, or exceed, the 
  high end of production guidance and the low end of cash cost and 
  AISC guidance. The Corporation will determine whether a revision to
  2016 guidance estimates is warranted following the completion of a 
  scheduled 3-week electrical upgrade at the Island Gold mill and the
  commencement of stope mining in the Q Zone of the Beaufor Mine, 
  both expected in August. It is anticipated that any update to 
  guidance estimates would be released by mid-September. 

[1] Non-IFRS performance measure. Refer to the Non-IFRS Performance Measures section contained in the Second Quarter Management's Discussion and Analysis.

"Positive grade and tonne reconciliations, as well as record mining and milling productivities at the Island Gold Mine have driven better than expected production and cost performance in the first half of the year. For the remainder of the year, we expect Island Gold to continue its strong performance as well as see improved performance from the Beaufor Mine as stope mining from the higher grade Q Zone commences." stated Renaud Adams, CEO. He continued, "Our solid cash position and cash flow generation is expected to fully fund both our accelerated development activities and the Phase 2 exploration program that are currently underway at the Island Gold Mine, both of which could position this core asset for significant production growth and mine life extension."

Financial Highlights

   

Six months    Six months
    (in thousands of $, except per Quarter
ended Quarter ended         ended         ended
    share amounts)   
June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015

Revenue from mining operations        40,618        40,552        
93,252        77,762
    Net earnings per share, basic           0.04
0.05          0.19          0.14
    Operating cash flow, 
per share          0.25          0.25          0.54          0.43

Adj. operating cash flow, per
    share(1)(2)                        
0.19          0.18          0.55          0.36
    Net free cash 
flow, per
    share(2)                                0.05          
0.13          0.07          0.13
    Revenue from mining operations

(US$)                                 31,521        32,977        
70,104        62,945
    Net earnings per share, basic
    (US$)     
0.03          0.04          0.14        
0.11
    Operating cash flow, per share
    (US$)                   
0.19          0.21          0.41          0.35

Adj. operating cash flow, per
    share(1)(2) (US$)                  
0.15          0.15          0.41          0.29
    Net free cash 
flow, per
    share(2) (US$)                          0.04          
0.10          0.05          0.11
 

(1) Before changes in non-cash working capital.

(2) Non-IFRS performance measure. Refer to the Non-IFRS performance measures section contained in the Second Quarter Management's Discussion & Analysis.

Operational Highlights

   

Six months    Six months
                                   Quarter
ended Quarter ended         ended         ended

June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015

Gold produced (oz)                    23,320        26,314        
55,689        52,173
    Gold sold (oz)                        24,888
27,566        57,127        52,357
    Average cash costs per 
ounce
    ($)(1)                                   903           974 
848           976
    Average AISC per ounce
    ($)(1)     
1,330         1,304         1,200         
1,281
    Average realized gold price
    per ounce ($)              
1,628         1,468         1,629         1,482

Average cash costs per ounce
    (US$)(1)                            
701           792           637           790
    Average AISC 
per ounce
    (US$)(1)                               1,032         
1,060           902         1,037
    Average realized gold price

per ounce (US$)                        1,263         1,194         
1,225         1,200
 

(1) Non-IFRS performance measure. Refer to the Non-IFRS performance measures section contained in the Second Quarter Management's Discussion and Analysis.

Island Gold Mine Highlights

   

Six months    Six months
                                   Quarter
ended Quarter ended         ended         ended
    ISLAND GOLD MINE 
June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015

Gold produced (oz)                    18,617        14,997        
45,206        25,761
    Gold sold (oz)                        20,147
15,703        46,178        24,626
    Cash costs per ounce 
($)(1)              766           954           714         1,120

AISC per ounce ($)(1)                  1,038         1,307           
935         1,501
    Realized gold price per ounce
    ($)          
1,627         1,470         1,627         
1,482
    Cash costs per ounce
    (US$)(1)                          
595           776           537           906
    AISC per 
ounce (US$)(1)                  806         1,063           703      
1,214
    Realized gold price per ounce
    (US$)                  
1,263         1,195         1,223         1,200

Underground tpd                          911           759           
882           656
    Mill tonnes                           79,924   
71,584       155,830       115,369
    Mill tpd                  
878           787           856           637
    Head 
grade (g/t gold)                   7.51          6.73          9.36  
7.16
    Recoveries (%)                          96.5         
96.8          96.4          97.0
    Sustaining costs ($000's)       
5,480         5,555        10,193         9,383
    Project 
costs ($000's)                 7,946         4,546        14,933     
8,853
    Non-sustaining exploration
    ($000's)                 
3,624           605         7,394         1,040

Sustaining costs (US$000's)            4,253         4,517         
7,663         7,595
    Project costs (US$000's)               6,166 
3,697        11,226         7,166
    Non-sustaining 
exploration
    (US$000's)                             2,812         
492         5,559           842
 

(1) Non-IFRS performance measure. Refer to the Non-IFRS performance measures section contained in the second quarter Management's Discussion and Analysis.

- At the end of the quarter, the Island Gold Mine reported more than 
  5.5 years (over 2 million man hours) of operations without 
  lost-time injury.
- The Island Gold Mine produced 18,617 ounces of gold (20,147 ounces 
  sold), an increase of 24% over the same period in 2015. As 
  previously disclosed, the mine plan for the quarter was focused in 
  lower-grade areas of the mine where ore development activities 
  primarily occurred in the lower grade extensions of the second 
  mining horizon. Overall, the operation reported a higher than 
  planned mined grade of 7.51 g/t. The forward looking 2016 mine plan
  continues to forecast development and stope mining at grades of 
  between 7.0 and 7.5 g/t gold, using the December 2015 resource 
  model capped at 95 g/t gold.
- Underground productivity averaged a record 911 tonnes per day and 
  mill processing averaged record productivity of 878 tonnes per day.
  The higher underground productivity and grade realized in the 
  quarter were primarily the result of a positive reconciliation 
  (mined vs. reserves) of 19%, comprised of 8% on tonnes and 10% on 
  grade. As compared to Q1 2016, there was a negative impact on mined
  grades as a result of mining wider zones as compared to reserves. 
  It is expected that over the coming quarters drilling patterns will
  continue to be evaluated to best optimize grade and tonnage 
  profiles.
- The percentage of higher cost development ore versus total ore 
  tonnes mined was 48% for the quarter, as compared to a planned 40%.
  It is expected that during the second half of the year the 
  percentage of development ore mined will decrease to planned levels
  of 40% as stope mining commences in the second mining horizon.
- Cash costs for the quarter were $766 per ounce (US$595 per ounce), 
  significantly below guidance estimates and a 20% decrease over the 
  Q2 2015.
- AISC per ounce decreased to $1,038 (US$806), a decrease of 21% over
  Q2 2015. AISC for the quarter included $5.4 million of sustaining 
  capital, comprised of $2.0 million of underground development 
  costs, $0.8 million in electrical upgrades, $0.8 million of 
  delineation drilling, $0.3 million for capital lease payments and 
  $1.5 million on other assets.
- As previously disclosed, a 3-week mill electrical upgrade was 
  launched in late July and remains on track for completion in 
  mid-August.
- During the quarter, the Corporation spent $7.9 million in 
  non-sustaining project costs related to the accelerated development
  of the deeper resources, which included advancing both the main 
  access ramp ($2.6 million) and the east ramp ($2.0 million), fixed 
  assets ($2.6 million), and exploration & delineation development 
  drift on level 740 ($0.7 million).
- The recent final update on the Phase 1 exploration drilling program
  demonstrated the potential to grow production and increase mine 
  life both laterally above the 860 metre level, as well as in the 
  vertical extension below the 1,000 metre level. Exploration 
  drilling costs of $3.6 million (approximately 16,800 metres) were 
  incurred in the quarter, completing the Phase 1 drilling program. 
  The success of the Phase 1 program supported the launch of an 
  aggressive 18 to 24 month Phase 2 exploration program of up to 
  142,000 metres of drilling. 

Beaufor Mine Highlights

   

Six months    Six months
                                   Quarter
ended Quarter ended         ended         ended
    BEAUFOR MINE     
June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015

Gold produced (oz)                     4,703         7,082        
9,318        15,045
    Gold sold (oz)                         4,741 
6,888         9,778        15,719
    Cash costs per ounce 
($)(1)            1,486         1,062         1,441           973

AISC per ounce ($)(1)                  1,899         1,259         
1,812         1,113
    Realized gold price per ounce
    ($)        
1,635         1,455         1,642         
1,474
    Cash costs per ounce
    (US$)(1)                          
1,154           864         1,083           788
    AISC per 
ounce (US$)(1)                1,475         1,024         1,362      
901
    Realized gold price per ounce
    (US$)                  
1,269         1,183         1,234         1,193

Underground tpd                          286           360           
304           364
    Mill tonnes                           28,281   
36,914        57,599        66,665
    Head grade (g/t gold)     
5.27          6.05          5.11          7.12

Recoveries (%)                          98.1          98.6          
98.4          98.6
    Sustaining costs ($000's)              1,958  
1,358         3,632         2,198
    Sustaining costs 
(US$000's)            1,519         1,104         2,730         1,779 

(1) Non-IFRS performance measure. Refer to the Non-IFRS performance measures section contained in the second quarter Management's Discussion and Analysis.

- At the end of the quarter, the Beaufor Mine reported 2.5 years of 
  operations without lost-time injury.
- Production for the quarter was 4,703 ounces (4,741 ounces sold), a 
  34% decrease over Q2 2015, primarily as a result of lower than 
  expected tonnes and grades mined in secondary Zones M-MF and 12.
- Development of the higher-grade Q Zone advanced during the quarter 
  with stope mining planned for the third quarter, which should 
  contribute to increased grade and ounces produced in the second 
  half of the year.
- Cash costs for the quarter were $1,486 per ounce (US$1,154 per 
  ounce), a 40% increase over Q2 2015. Cash costs are expected to 
  decrease as stope mining in the higher grade Q Zone begins in the 
  third quarter.
- AISC per ounce for the second quarter were $1,899 (US$1,475), a 51%
  increase over Q2 2015. Sustaining costs for the quarter were $2.0 
  million, which included $1.0 million for capitalized underground 
  mine development, $0.4 million for expensed exploration costs and 
  $0.6 million of other sustaining costs. AISC are expected to 
  decrease as higher grades stope mining in the new Q Zone begins in 
  the second half of the year.
- Underground productivity at the Beaufor Mine averaged 286 tonnes 
  per day, modestly lower than planned levels. 

Second Quarter and Recent Corporate Highlights

- On June 7, 2016, Richmont announced the completion of a bought-deal
  prospectus offering (the "Offering"). Pursuant to the Offering, the
  Corporation issued 2,990,000 common shares at a price of $10.40 per
  common share for gross proceeds of approximately $31 million that 
  included 390,000 common shares issued pursuant to the exercise in 
  full of the underwriter's over-allotment option.
- Effective Friday, June 17, 2016 Richmont was added to the S&P/TSX 
  Global Mining Index and the S&P/TSX Global Gold Index. 

Upcoming News & Events

- Phase 2 exploration update (September 2016)
- Potential guidance update (mid-September)
- Updated Preliminary Economic Assessment and Technical Session (Q4 
  2016) 

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 Company's profile on http://www.sedar.com and with the Securities and Exchange Commission at http://www.sec.gov/edgar.shtml.

Webcast and Conference Call

A webcast and conference call will be held on Monday, August 8, 2016 starting at 8:30 a.m. Eastern Time. Senior management will be on the call to discuss the results.

Conference Call Access

- International & Toronto: 1-416-764-8688
- Canada & U.S. Toll Free: 1-888-390-0546 

Please ask to be placed into the Richmont Mines 2016 Second Quarter Results Conference Call.

Conference Call Live Webcast

The conference call will be broadcast live on the Internet via webcast. To access the webcast, please follow this link: http://event.on24.com/r.htm?e=1221836&s=1&k=4BF022AEDB00EC80C28A6E55008FCE7C

Archive Call Access

If you are unable to attend the conference call, a replay will be available until 08:00 a.m. Eastern Time, Monday, August 15, 2016 by dialing the appropriate number below:

- International & Toronto: 1-416-764-8677 Passcode: 882550#
- Canada & U.S. Toll Free: 1-888-390-0541 Passcode: 882550# 

Archive Webcast

The webcast will be archived for 90 days. To access the archived webcast, visit the Corporation's website at http://www.richmont-mines.com or follow this link: http://event.on24.com/r.htm?e=1221836&s=1&k=4BF022AEDB00EC80C28A6E55008FCE7C

About Richmont Mines Inc.

Richmont Mines has produced over 1.6 million ounces of gold from its operations in Quebec, Ontario and Newfoundland since beginning production. The Corporation 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" 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, 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 Reserve and Resource estimates in this press release were prepared in accordance with Regulation 43-101 adopted by the Canadian Securities Administrators. The requirements of Regulation 43-101 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 20-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.

Regulation 43-101

The geological data 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 Regulation 43-101.

Renaud Adams, President and CEO, Phone: +1-416-368-0291 ext. 101; Anne Day, Vice-President, Investor Relations, Phone: +1-416-368-0291 ext. 105

 
Original-Content von: Richmont Mines, übermittelt durch news aktuell

Weitere Meldungen: Richmont Mines

Das könnte Sie auch interessieren: