Richmont Mines Reports Fourth Quarter and Full Year 2013 Results
MONTREAL, QUEBEC--(Marketwired - Feb 20, 2014) - Richmont Mines
Inc. (TSX:RIC)(NYSEMKT:RIC), ("Richmont" or the "Corporation"),
announces its fourth quarter and fiscal year results for the period
ended December 31, 2013. Financial results are based on
International Financial Reporting Standards ("IFRS") and dollars
are reported in Canadian currency, unless otherwise noted.
Highlights:
- Q4 2013 revenues of $27.8 million; net loss from continuing
operations of ($28.7) million, or ($0.72) per share; Q4 2012
revenues were $24.9 million, and the net loss from continuing
operations was ($2.6) million, or ($0.07) per share;
- Q4 2013 net loss from continuing operations includes the
following charges totalling $23.1 million, or $0.58 per share: a
non-cash write-down of the W Zone Mine assets following a reduction
of its reserve base, a write-down of deferred income and mining tax
assets, a write-off of financing costs following the termination of
a debt-financing agreement and severance charges (for details
please refer to Table 1 on page 4);
- 2013 revenues of $90.2 million, from the sale of 63,443 gold
ounces at an average price of CAN$1,419 (US$1,378) per ounce. 2012
revenues were $101.7 million, from the sale of 60,741 ounces of
gold at an average price of CAN$1,665 (US$1,666) per ounce;
- 2013 net loss from continuing operations of ($33.2) million or
($0.84) per share, compared to the 2012 net loss from continuing
operations of ($3.0) million, or ($0.08) per share; The 2013 net
loss was ($34.3) million, or ($0.87) per share, versus the 2012 net
loss of ($45.0) million, or ($1.28) per share;
- Continued promising results obtained at depth at Island Gold
Mine; new Indicated resource of 169,000 gold ounces and expanded
Inferred resource of 955,000 gold ounces established at January 21,
2014 (on a 100% basis, please refer to Note 5 of the Reserve &
Resource estimates table on page 12); Focus in 2014 on defining and
upgrading existing resource base;
- Balance sheet: cash balance at December 31, 2013 of $17.6
million, working capital of $14.0 million, and long-term debt of
$5.2 million;
- 2014 production forecast of 70,000 to 80,000 ounces of
gold.
Mr. Paul Carmel, President and CEO of Richmont Mines commented:
"During the fourth quarter we announced a significant milestone for
the Corporation. With the new resource additions to Island Gold
Deep, the Island Gold Mine has now exceeded our one-million ounce
target, setting the groundwork for what we believe will be a
low-cost, long life mine. The Corporation's task is to incorporate
Island Gold Deep into the Island Gold Mine plan and to optimize the
overall asset to its full potential. Managing our capital resources
is key to this process and one of our priorities in 2014. Revenues
from our mines are an important component to our financing plan and
in this regard, our W Zone Mine has been a disappointment. A
re-interpretation of the geology following exposure from mining,
combined with 2013 production, has led to a lower than expected
reserve base and ultimately a non-cash write-down of the
asset."
Q4 2013 Results
Revenues for the fourth quarter of 2013 were $27.8 million,
compared to $24.9 million in the comparable period of last year.
The year-over-year increase reflects higher gold ounce sales at the
Island Gold and Beaufor mines, and the addition of commercial
production from the Monique and W Zone mines in the quarter, which
were partially offset by the 21% decrease in the average price of
gold sold in Canadian dollars year-over-year. In the fourth quarter
of 2013, 20,918 ounces of gold were sold at an average price of
CAN$1,328 (US$1,265), versus gold sales of 14,810 ounces at an
average price of CAN$1,679 (US$1,694) in the fourth quarter of
2012.
Richmont generated a net loss from continuing operations of
($28.7) million, or ($0.72) per share, in the fourth quarter of
2013, versus a net loss from continuing operations of ($2.6)
million, or ($0.07) per share, in the comparable period of 2012.
This decrease was driven primarily by the following charges
totalling $23.1 million, or $0.58 per share, namely a non-cash
write-down on the W Zone Mine assets, a write-off of deferred
income and mining tax assets, a write-off of financing costs
following the termination of a debt financing agreement and
severance payments. Please see Table 1 for details. The
year-over-year decrease similarly reflected a significantly lower
average realized gold sales price combined with a 14% increase in
average production cost per ounce, the effects of which were only
partially offset by a notable 41% increase in the number of gold
ounces sold. The increase in production cost per ounce was
attributable to higher cost year-over-year at Island Gold, the
beginning of commercial production at both Monique and W Zone and
the reduction of reserves at the W Zone Mine, which materially
increased the resulting depreciation cost per ounce in the fourth
quarter. Richmont generated a net loss of ($29.1) million, or
($0.73) per share, in the fourth quarter of 2013, versus a net loss
of ($16.5) million, or ($0.42) per share, in the comparable period
of 2012, which included the write-down related to the discontinued
Francoeur Mine operations.
Cost of sales totalled $31.0 million in the fourth quarter of
2013, an increase of 61% from $19.3 million in the year-ago period,
primarily reflecting an 83% increase in processed tonnage
year-over-year, and high depreciation costs at the W Zone Mine.
While the average total production cost per ounce increased by 14%
year-over-year, mostly as a result of higher depreciation expense,
the average cash cost per ounce of gold sold increased by a
marginal 4% in Canadian dollars, and was slightly lower in US
dollars. The average cash cost per ounce of gold sold totalled
CAN$1,156 (US$1,102) in the fourth quarter of 2013 versus CAN$1,116
(US$1,126) in the year-ago period, as the impact of lower grades at
the Island Gold Mine combined with lower ramp-up grades at the
Monique and W Zone mines were counterbalanced by significantly
improved grades at the Beaufor Mine.
The Corporation spent $0.9 million on exploration and project
evaluation efforts in the fourth quarter of 2013, primarily at the
Island Gold Deep project, versus $6.3 million in the year-ago
period. This decrease primarily reflects exploration and project
evaluation costs incurred at the Wasamac property in the fourth
quarter last year, versus none in the current period. The
Corporation applied $0.1 million on exploration tax credits in the
current quarter, versus $0.4 million in the comparable period of
last year.
2013 Annual Results
Revenues for the 12 months ended December 31, 2013 totalled
$90.2 million, compared to last year's $101.7 million. This
decrease was attributable to the 15% decrease in the average price
of gold sold during the period, the effects of which were only
partially mitigated by the 4% increase in the number of ounces
sold. For the year, 63,443 ounces of gold were sold at an average
price of CAN$1,419 (US$1,378), versus gold sales of 60,741 ounces
in 2012 at an average price of CAN$1,665 (US$1,666).
Cost of sales totalled $85.8 million in 2013, up from $73.8
million in the year-ago period. The increase reflects the addition
of 74,803 tonnes following the onset of commercial production at
the Monique and W Zone mines on October 1, 2013, high depreciation
costs at the W Zone Mine, a 7% increase in tonnage from the Beaufor
Mine, and a slightly higher cost per tonne at the Island Gold Mine.
The average cash cost per ounce of gold sold increased to CAN$1,128
(US$1,095) for 2013 from CAN$1,044 (US$1,044) in 2012, as higher
costs at the Island Gold Mine and high costs at the Monique and W
Zone mines in their initial ramp up stage, were only partially
offset by lower year-over-year costs at the Beaufor Mine.
Exploration and project evaluation costs totalled $7.9 million
in 2013, well below the 2012 level of $20.3 million, as the
Corporation focused exploration efforts at the Island Gold Deep
project, where costs were capitalized in 2013, versus in 2012 when
the Corporation completed an extensive exploration and project
evaluation program at the Wasamac Gold Project. The Corporation
applied $1.0 million on exploration tax credits in 2013, versus
$3.5 million in 2012.
Richmont generated a net loss from continuing operations of
($33.2) million, or ($0.84) per share, in 2013, versus a net loss
from continuing operations of ($3.0) million, or ($0.08) per share,
in 2012. The variance year-over-year reflects charges totalling
$22.8 million, or $0.58 per share, specifically a non-cash
write-down of the W Zone Mine assets, a write-off of deferred
income and mining tax assets, a write-off of financing costs
following the termination of a debt-financing agreement and
severance charges. Please see Table 1 for details. The annual
variance in results also reflects a 15% decrease in the average
realized gold price in Canadian dollars, an 11% increase in the
average production cost per ounce stemming partly from the onset of
commercial production at the Monique and W Zone mines in the fourth
quarter of the year, as well as higher costs at Island Gold, the
effects of which were only partially mitigated by a 4% increase in
the number of gold ounces sold. In 2013, Richmont generated a net
loss of ($34.3) million, or ($0.87) per share, versus a net loss of
($45.0) million, or ($1.28) per share, in 2012.
Non-IFRS Financial Performance Measures
Adjusted net earnings and adjusted net earnings per share do not
have any standardized definition under IFRS. Management uses these
performance measures to assess the operating performance of the
Corporation without the effects of unusual items because they
affect the comparability of the financial results and could
potentially distort the evaluation of its business performance.
Non-IFRS measures are presented in Table 1.
The fourth quarter 2013 and full year 2013 adjusted net losses
exclude the charges related to the discontinued Francoeur Mine
operations and the charges noted in Table 1 below, and the 2012
adjusted net loss excludes charges from the discontinued Francoeur
Mine operation and severance compensation paid to the Corporation's
ex-President and CEO. Excluding the charges in all periods,
Richmont generated an adjusted net loss of ($5.6) million, or
($0.14) per share, in the fourth quarter of 2013, compared with an
adjusted net loss of ($2.6) million, or ($0.07) per share, in the
comparable period of 2012. On a full year basis, Richmont generated
an adjusted net loss of ($10.3) million, or ($0.26) per share, in
2013, compared with an adjusted net loss of ($1.5) million, or
($0.04) per share, in 2012. Details of these specific charges are
presented in Table 1.
| TABLE 1 FOURTH QUARTER AND FULL YEAR CHARGES RELATED TO
SPECIFIC ITEMS |
|
|
(in thousands of $, except per share amounts) |
Three months ended |
|
Fiscal year ended |
|
|
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
|
|
|
|
|
|
|
|
|
| Net
loss |
(29,075 |
) |
(16,495 |
) |
(34,260 |
) |
(45,015 |
) |
|
Charge related to discontinued operation |
389 |
|
13,854 |
|
1,098 |
|
42,038 |
|
| Net
loss from continuing operations |
(28,686 |
) |
(2,641 |
) |
(33,162 |
) |
(2,977 |
) |
|
|
|
|
|
|
|
|
|
| Other
adjustments, net of taxes: |
|
|
|
|
|
|
|
|
|
Write-off of Deferred Income & Mining Tax assets |
8,079 |
|
- |
|
7,484 |
|
- |
|
|
Write-down of W Zone Mine assets |
13,472 |
|
- |
|
13,472 |
|
- |
|
|
Write-off of financing costs related to Macquarie financing |
1,165 |
|
- |
|
1,165 |
|
- |
|
|
Charges related to employee severance payments |
339 |
|
- |
|
700 |
|
1,456 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted net loss from continuing operations |
(5,631 |
) |
(2,641 |
) |
(10,341 |
) |
(1,521 |
) |
|
|
|
|
|
|
|
|
|
| Basic
weighted average number of shares outstanding
(thousands) |
39,596 |
|
39,562 |
|
39,594 |
|
35,055 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted net loss from continuing operations - per share |
(0.14 |
) |
(0.07 |
) |
(0.26 |
) |
(0.04 |
) |
Financial Position
At December 31, 2013, cash and cash equivalents were $17.6
million, compared with $21.2 million at September 30, 2013 and
$59.8 million at December 31, 2012. At December 31, 2013, Richmont
Mines had working capital of $14.0 million, minimal long-term debt
of $5.2 million, and 39.6 million shares outstanding.
Operational Highlights
Island Gold Mine
|
|
Three months ended |
Fiscal year ended |
|
|
December 31, |
December 31, |
December 31, |
December 31, |
|
|
2013 |
2012 |
2013 |
2012 |
|
|
|
|
|
|
Tonnes |
75,137 |
69,253 |
244,631 |
246,743 |
| Head
grade (g/t) |
4.96 |
5.23 |
4.65 |
5.45 |
| Gold
recovery (%) |
96.58 |
97.11 |
96.09 |
96.45 |
|
Recovered grade (g/t) |
4.79 |
5.08 |
4.46 |
5.25 |
|
Ounces sold |
11,565 |
11,309 |
35,113 |
41,686 |
|
Cash cost per ounce (US$) |
901 |
885 |
1,092 |
884 |
The Island Gold Mine processed 75,137 tonnes of ore in the
fourth quarter of 2013 at an average grade of 4.96 g/t, compared to
fourth quarter 2012 results of 69,253 tonnes of ore at an average
grade of 5.23 g/t. Fourth quarter gold sales from this mine
increased slightly to 11,565 ounces at an average price of
CAN$1,331 (US$1,268) per ounce in 2013, versus gold sales of 11,309
ounces at an average price of CAN$1,680 (US$1,695) per ounce in the
comparable period of 2012. Cash costs at Island Gold increased to
CAN$946 (US$901) from CAN$878 (US$885) in the fourth quarter of
2012, primarily a reflection of the lower recovered grade in the
current period, but decreased notably from third quarter 2013 cash
costs of CAN$1,237 (US$1,191), as mining migrated to higher grade
areas of the mine.
For the 12 months ended December 31, 2013, 244,631 tonnes of ore
were processed at an average grade of 4.65 g/t, and 35,113 ounces
of gold were sold at an average price of CAN$1,434 (US$1,392) per
ounce. This compared to 2012 results, in which 246,743 tonnes of
ore were processed at an average grade of 5.45 g/t, and 41,686
ounces of gold were sold at an average price of CAN$1,665
(US$1,666) per ounce. The year-over-year change reflected a slight
1% decrease in tonnage and a 15% decline in recovered grades. Cash
costs at Island Gold increased year-over-year to CAN$1,124
(US$1,092) from CAN$884 (US$884) in 2012, with the increase being
driven primarily by a lower recovered grade and a higher cost per
tonne due to higher surface, administrative and milling costs
year-over-year, which was mainly attributable to mechanical
problems at the mill during the second quarter of 2013 that
necessitated the short-term rental of equipment from an outside
supplier.
As of December 31, 2013, total Proven and Probable reserves at
the Island Gold Mine were 143,506 gold ounces, compared to Proven
and Probable reserves of 141,456 gold ounces at the end of December
2012. This reserve level reflects 19,971 metres of definition
drilling, which resulted in the replacement of the mine's 2013
production of 35,113 ounces of gold.
The combined estimated Measured and Indicated resources of
Island Gold Mine and Island Gold Deep totalled 233,330 ounces of
gold at December 31, 2013, consisting of 168,897 ounces of gold
within Island Gold Deep, and 64,433 ounces of gold within the
Island Gold Mine. Measured and Indicated resources within the
Island Gold Mine infrastructure decreased from the December 31,
2012 level of 110,958 gold ounces, reflecting that some resources
were successfully reclassified as reserves.
Estimated Inferred resources on a consolidated basis were
1,037,327 ounces of gold at the end of 2013, with Island Gold Deep
contributing 954,583 ounces of gold, and the Island Gold Mine
providing 82,744 ounces of gold. This compared to Inferred
resources of 563,886 ounces of gold at the end of 2012, consisting
of 508,142 ounces in Island Gold Deep and 55,744 gold ounces within
the Island Gold Mine.
While Richmont will continue to seek to expand the reserve and
resource base of the upper portion of Island Gold, the emphasis
during 2014 will largely be on further delineating the identified
zones, particularly within Island Gold Deep. To this end, the
Corporation is planning 6,000 metres of definition drilling and
3,000 metres of exploration drilling within the Island Gold Mine,
and 17,000 metres of definition drilling and 8,000 metres of
exploration drilling within Island Gold Deep during 2014.
Richmont is targeting 2014 annual production of approximately
35,000 to 40,000 ounces of gold at the Island Gold Mine.
Beaufor Mine
|
|
Three months ended |
Fiscal year ended |
|
|
December 31, |
December 31, |
December 31, |
December 31, |
|
|
2013 |
2012 |
2013 |
2012 |
|
|
|
|
|
|
Tonnes |
25,219 |
26,479 |
124,569 |
116,675 |
| Head
grade (g/t) |
5.15 |
4.22 |
5.88 |
5.19 |
| Gold
recovery (%) |
97.05 |
97.38 |
97.75 |
97.80 |
|
Recovered grade (g/t) |
5.00 |
4.11 |
5.75 |
5.08 |
|
Ounces sold |
4,051 |
3,501 |
23,028 |
19,055 |
|
Cash cost of production per ounce (US$) |
1,423 |
1,900 |
1,051 |
1,394 |
A total of 25,219 tonnes of ore were processed from the Beaufor
Mine at an average grade of 5.15 g/t in the fourth quarter of 2013.
This compared to 26,479 tonnes of ore processed from the Beaufor
Mine at an average grade of 4.22 g/t in the fourth quarter of 2012.
Fourth quarter gold sales from this mine were 4,051 ounces in 2013
at an average realized price of CAN$1,319 (US$1,257) per ounce, an
improvement in terms of ounces over gold sales of 3,501 ounces at
an average realized price of CAN$1,675 (US$1,690) per ounce in the
year-ago period. Cash costs at this mine decreased to CAN$1,494
(US$1,423) in the fourth quarter of 2013, versus CAN$1,884
(US$1,900) in the comparable period last year, with the decrease
primarily driven by the higher mined grades.
For 2013, a total of 124,569 tonnes of ore were processed from
the Beaufor Mine at an average grade of 5.88 g/t, and 23,028 ounces
of gold were sold at an average price of CAN$1,417 (US$1,376). This
compared to tonnage of 116,675 at an average grade of 5.19 g/t, and
gold sales of 19,055 ounces at an average price of CAN$1,665
(US$1,666) in 2012. Cash costs at the Beaufor Mine for the 12
months of 2013 decreased to CAN$1,082 (US$1,051) from CAN$1,393
(US$1,394) last year, reflecting a lower cost per tonne and the
improved grade.
Proven and Probable reserves at the Beaufor Mine decreased to
31,133 gold ounces at December 31, 2013, from 39,114 gold ounces at
December 31, 2012, as definition drilling completed during the year
did not completely replace the 23,028 ounces of gold production
from the mine during the year.
Measured and Indicated resources at the Beaufor Mine decreased
slightly to 155,439 ounces of gold at the end of December 2013
versus 160,263 ounces of gold at the end of 2012, while Inferred
resources remain essentially unchanged at 188,679 ounces of gold
versus 187,274 ounces at December 31, 2012. Existing resources are
mostly below the existing infrastructure of the mine, and Richmont
continues to evaluate the future potential of this area.
The Corporation is planning 10,000 metres of definition drilling
and 21,500 metres of exploration drilling at the Beaufor Mine in
2014, and is targeting annual production of approximately 18,000 to
20,000 ounces of gold for the year.
Monique Mine
|
|
Three months ended |
Fiscal year ended |
|
|
December 31, |
December 31, |
December 31, |
December 31, |
|
|
2013 |
2012 |
2013 |
2012 |
|
|
|
|
|
|
Tonnes |
51,541 |
- |
51,541 |
- |
| Head
grade (g/t) |
1.90 |
- |
1.90 |
- |
| Gold
recovery (%) |
94.35 |
- |
94.35 |
- |
|
Recovered grade (g/t) |
1.80 |
- |
1.80 |
- |
|
Ounces sold |
2,976 |
- |
2,976 |
- |
|
Cash cost per ounce (US$) |
1,230 |
- |
1,230 |
- |
Following the commencement of commercial production on October
1, 2013, a total of 51,541 tonnes of ore were processed from the
Monique Mine during the fourth quarter of the year. The processed
ore had an average grade of 1.90 g/t, and generated gold sales of
2,976 ounces at an average price of CAN$1,328 (US$1,265) per ounce.
Cash costs at Monique were CAN$1,290 (US$1,230), primarily a
reflection of high cash costs in the first month of commercial
operation as production was ramped up. Cash costs at this mine were
in line with anticipated levels in the following two months of the
quarter, and are expected to remain at these lower levels in
2014.
At December 31, 2013 the Monique Mine had Proven and Probable
reserves of 30,702 gold ounces, and additional Indicated resources
of 16,858 ounces of gold. This compared to Indicated resources of
55,112 ounces of gold and Inferred resources of 362 gold ounces at
the end of December 2012.
Richmont expects the contractor to finish mining the Monique
open-pit in the third quarter of 2014. Stockpiled ore from the
mine, however, will continue to be batch processed at the
Corporation's Camflo Mill through the first half of 2015. Richmont
is targeting annual production of approximately 13,000 to 16,000
ounces of gold from Monique in 2014.
W Zone Mine
|
|
Three months ended |
Fiscal year ended |
|
|
December 31, |
December 31, |
December 31, |
December 31, |
|
|
2013 |
2012 |
2013 |
2012 |
|
|
|
|
|
|
Tonnes |
23,262 |
- |
23,262 |
- |
| Head
grade (g/t) |
3.25 |
- |
3.25 |
- |
| Gold
recovery (%) |
95.65 |
- |
95.65 |
- |
|
Recovered grade (g/t) |
3.11 |
- |
3.11 |
- |
|
Ounces sold |
2,326 |
- |
2,326 |
- |
|
Cash cost per ounce (US$) |
1,373 |
- |
1,373 |
- |
A total of 23,262 tonnes of ore were processed from the W Zone
Mine over the three month period following the onset of commercial
production on October 1, 2013. With an average grade of 3.25 g/t
during the period, fourth quarter gold sales from this mine were
2,326 ounces at an average price of CAN$1,328 (US$1,265) per ounce,
below the Corporation's forecasted 3,000 ounces as a result of
lower than forecasted realized grades and gold recovery rate. Cash
costs at the W Zone were CAN$1,441 (US$1,373), primarily a
reflection of the low recovered grade.
Proven and Probable reserves at the W Zone Mine decreased to
12,832 gold ounces at a grade of 5.68 g/t at December 31, 2013,
from 30,680 gold ounces at a grade of 7.21 g/t at December 31,
2012. Contributing to this decrease were the commercial and
pre-production ounces generated during the year, as well as a
re-interpretation of the geology following exposure from mining.
Subsequent to these results, approximately 9,600 ounces were
reclassified as Measured and Indicated Resources at the end of
2013, versus as Reserves at the end of 2012. Estimated Measured and
Indicated Resources at December 31, 2013 increased to 33,051 gold
ounces, from 23,377 gold ounces at the end of December 2012.
As a result of the reduction in the W Zone Mine's reserve base,
and the resulting impact on expected future production from this
operation, the Corporation has taken a $13.5 million, or $0.34 per
share, non-cash write down on the asset base. The reduction in the
reserve base also caused the W Zone Mine depreciation expense to be
much higher than anticipated in the fourth quarter of 2013.
Following the write-down, the depreciation rate per ounce will be
significantly reduced in 2014.
The Corporation is planning 2,000 metres of definition drilling
at the W Zone Mine/Zone 350 in 2014, and is targeting annual
production of approximately 4,000 ounces of gold for the year from
the already developed economical part of the ore body. Operations
at the W Zone will be suspended following this production, which is
currently estimated to be completed by the end of the second
quarter of 2014.
Camflo Mill
The Camflo Mill processed a total of 106,806 tonnes during the
fourth quarter of 2013, compared to 50,230 tonnes in the comparable
period of 2012 that included 23,592 tonnes from the discontinued
Francoeur Mine operation. For the full year, a total of 317,038
tonnes were processed at the Camflo Mill, up notably from the
185,511 tonnes processed at the Camflo Mill in 2012 that included
62,204 tonnes from the discontinued Francoeur Mine operation,
versus 9,542 tonnes in 2013. This increase was a result of both
Monique and W Zone coming into commercial production in 2013 as
well as a 7% increase in tonnage from Beaufor.
Island Gold Deep Update and Recent News
Island Gold Deep
resources increased to 169,000 ounces of Indicated and 955,000
ounces of Inferred
On January 28, 2014, the Corporation announced a significant
increase in Indicated and Inferred gold resources at its Island
Gold Deep Deposit located at its Island Gold Mine in Ontario.
Previously reported Inferred resources containing 771,000 ounces of
gold were upgraded and expanded to Indicated resources of 456,000
tonnes at an average grade of 11.52 g/t for 169,000 ounces of gold,
and Inferred resources of 3,200,000 tonnes at an average grade of
9.29 g/t for 955,000 ounces of gold. The increase continues to
indicate that Island Gold Deep has the potential to be developed
into an important high-grade and long life contributor to
Richmont's Island Gold Mine. The zones remain open both along
strike and to depth where the potential for adding additional
high-grade gold resources is believed to be high. Please see the
January 28, 2014 press release for additional details.
The development of Island Gold Deep advanced well in 2013, with
an additional 850 linear metres of ramp development completed
during the year. As of December 31, 2013, the ramp had reached a
vertical depth of 574 metres, and is expected to reach an
approximate depth of 610 metres by the end of the second quarter of
2014, and 635 metres by the end of 2014. The Corporation continues
to advance and develop the project through internally-generated
cash flow.
2013 News
Agreement Signed with
Argonaut Gold Extends Western Boundary Island Gold Deep by 585
Metres
In mid-October, Richmont Mines announced that it had signed a
land and mining rights agreement with Argonaut Gold Inc., owner of
the Magino Gold Project that is adjacent to the Corporation's
Island Gold Mine. With this Agreement, Richmont will secure mining
rights below a depth of 400 metres on several claims to the south
of the Island Gold Deep Project, and will acquire a claim which
will extend the western boundary of its Island Gold Deep Project by
a distance of 585 metres towards the west. In exchange, Argonaut
will receive exploration and mining rights from surface to a
maximum depth of 400 metres on certain Richmont claims that border
the Magino Gold Project. Under the terms of the Agreement, Richmont
will receive a net payment of CAN$2.0 million in cash from Argonaut
upon completion of the land transactions, which is expected to take
place by the end of the first quarter of 2014. Please see the
October 16, 2013 press release for additional details.
Macquarie Senior
Secured Facility
On December 20, 2013 Richmont announced that it had decided to
terminate, with no cancellation costs, the Senior Secured Credit
Facility (the "Facility") for up to US$50.0 million secured in
mid-June and subsequently closed in August 2013, with Macquarie
Bank Limited ("Macquarie"). At the onset of discussions with
Macquarie in March 2013, financing the development of Island Gold
Deep partly through debt was deemed a good business decision, and
the hedging of a minimal amount of production ounces to lock in
attractive margins was deemed to be a prudent approach given the
higher gold price. Following the approximate $400/ounce decrease in
the gold price, however, management believed that it was in the
best interest of Richmont and its shareholders to terminate the
Facility, with the objective of developing Island Gold Deep through
internally-generated cash flow from the Corporation's producing
mines. Please see the related December 20, 2013, August 23, 2013,
and June 17, 2013 press releases for additional details.
Changes to Richmont's
Board of Directors Announced in 2013
Richmont announced several changes to its Board of Directors in
2013. Specifically, Mr. Réjean Houle stepped down to focus on his
dual roles as an Ambassador for the Montreal Canadiens Hockey Club
Inc., and as President of The Montreal Canadiens Alumni
Association, and Mr. Ebe Scherkus resigned for personal reasons.
Subsequent to these announcements, industry veterans Mr. René
Marion and Dr. James W. Gill joined Richmont's Board of Directors.
Please see the Corporation's November 7, 2013 third quarter
earnings press release, and the December 10, 2013 press release for
additional details.
Management Changes
Announced in 2013
Mr. Rosaire Emond, Eng., was appointed to the position of
Vice-President and Chief Operating Officer, following the
retirement of Richmont's previous Chief Operating Officer, Mr.
Christian Pichette. In addition, the Corporation announced that Mr.
Jean Bastien, Eng., MBA, had been appointed to the position of Mine
Manager of the Island Gold Mine, and Mr. Raynald Vincent, Eng.
M.G.P., had been appointed to the position of Chief Geologist for
the Island Gold Mine. Please see the November 7, 2013 third quarter
earnings press release, and the December 10, 2013 press release for
additional details.
2014 Corporate Exploration and Definition Drilling Plan and
Budget
Richmont plans to spend approximately $3.8 million completing
roughly 32,500 metres of exploration drilling during 2014. The
Corporation will also incur total capital expenditures of
approximately $18.1 million, with the majority focused on the
development of Island Gold and Island Gold Deep. An additional
35,000 metres of definition drilling is planned in 2014, which the
Corporation will expense and include in the cash costs of each
operation. Please see Table 2 below for a breakdown on a
property-by-property basis.
| TABLE 2 2014 CAPITAL EXPENDITURES AND EXPLORATION &
DEFINITION DRILLING PLAN |
|
|
Capital Expenditure (millions CAN$) |
|
|
Exploration drilling (metres) |
Definition drilling (metres) |
| Mines
and properties |
|
|
Mines
and properties |
|
|
|
Island Gold/Island Gold Deep |
16.3 |
|
Island Gold/Island Gold Deep |
11,000 |
23,000 |
|
Beaufor Mine |
0.7 |
|
Beaufor Mine |
21,500 |
10,000 |
| Other
Properties |
1.1 |
|
W
Zone/350 Zone |
- |
2,000 |
|
|
|
|
Total metres |
32,500 |
35,000 |
|
Total CAPEX Budget |
18.1 |
|
Total Exploration Budget(millions CAN$) |
3.8 |
|
Outlook
Mr. Carmel concluded: "As a junior gold producer, Richmont is
now in the relatively rare position of having discovered a
sizeable, high grade deposit from which to profitably grow into the
next tier of gold producer. The challenge is now to finance its
development all the while maintaining the financial integrity and
sound capital structure that Richmont has long enjoyed. Helping our
cause is the fact that Island Gold Deep is not a stand-alone,
greenfields project, but an extension at depth of our existing
Island Gold Mine operation that we have been operating for 7 years.
To this end, we have the flexibility of adjusting our development
timetable in a manner commensurate with the Corporation's financial
capabilities and within the overall context of the gold sector.
With a gold production forecast of 70,000 to 80,000 ounces, 2014 is
expected to be an important production year for Richmont. Ensuring
that our mines deliver on budget will be a key focus for us and an
important component for the advancement of Island Gold Deep."
Paul Carmel, President and Chief Executive Officer
| TABLE 3 RESERVE AND RESOURCE ESTIMATES(1) |
|
|
December 31, 2013 |
December 31, 2012 |
|
|
Tonnes |
Grade |
Ounces |
Tonnes |
Grade |
Ounces |
|
|
(metric) |
(g/t Au) |
contained |
(metric) |
(g/t Au) |
contained |
|
|
|
|
|
|
|
|
|
Island Gold Mine |
|
|
|
|
|
|
|
Proven Reserves(2) |
251,572 |
5.95 |
48,086 |
428,958 |
5.42 |
74,807 |
|
Probable Reserves(2) |
481,775 |
6.16 |
95,419 |
356,263 |
5.82 |
66,649 |
|
Measured Resources |
28,087 |
5.57 |
5,031 |
28,531 |
5.58 |
5,115 |
|
Indicated Resources |
255,600 |
7.23 |
59,402 |
474,379 |
6.94 |
105,843 |
|
Inferred Resources |
362,858 |
7.09 |
82,744 |
279,569 |
6.20 |
55,744 |
|
|
|
|
|
|
|
|
|
Island Gold Deep(5) |
|
|
|
|
|
|
|
Indicated Resources |
456,013 |
11.52 |
168,897 |
- |
- |
- |
|
Inferred Resources |
3,196,114 |
9.29 |
954,583 |
1,473,658 |
10.73 |
508,142 |
|
|
|
|
|
|
|
|
|
Beaufor Mine |
|
|
|
|
|
|
|
Proven Reserves(2) |
39,086 |
6.32 |
7,940 |
73,725 |
5.87 |
13,906 |
|
Probable Reserves(2) |
103,213 |
6.99 |
23,193 |
122,420 |
6.40 |
25,208 |
|
Measured Resources |
93,341 |
5.39 |
16,165 |
89,562 |
5.46 |
15,788 |
|
Indicated Resources |
671,803 |
6.45 |
139,274 |
684,718 |
6.57 |
144,475 |
|
Inferred Resources |
904,249 |
6.49 |
188,679 |
901,568 |
6.46 |
187,274 |
|
|
|
|
|
|
|
|
|
Monique Mine(3) |
|
|
|
|
|
|
|
Proven Reserves(2) |
14,742 |
1.42 |
673 |
- |
- |
- |
|
Probable Reserves(2) |
401,118 |
2.33 |
30,029 |
- |
- |
- |
|
Indicated Resources |
107,531 |
4.88 |
16,858 |
728,164 |
2.35 |
55,112 |
|
Inferred Resources |
- |
- |
- |
11,605 |
0.97 |
362 |
|
|
|
|
|
|
|
|
|
W Zone Mine |
|
|
|
|
|
|
|
Proven Reserves(2) |
42,940 |
4.84 |
6,676 |
- |
- |
- |
|
Probable Reserves(2) |
27,267 |
7.02 |
6,156 |
132,251 |
7.21 |
30,680 |
|
Measured Resources |
14,293 |
6.20 |
2,850 |
- |
- |
- |
|
Indicated Resources |
131,638 |
7.13 |
30,201 |
107,511 |
6.76 |
23,377 |
|
Inferred Resources |
2,186 |
7.55 |
531 |
5,589 |
7.95 |
1,429 |
|
|
|
|
|
|
|
|
|
Wasamac Gold Property |
|
|
|
|
|
|
|
Measured Resources |
3,124,480 |
2.75 |
276,536 |
3,124,480 |
2.75 |
276,536 |
|
Indicated Resources |
12,127,049 |
2.89 |
1,125,727 |
12,127,049 |
2.89 |
1,125,727 |
|
Inferred Resources |
18,758,786 |
2.66 |
1,605,388 |
18,758,786 |
2.66 |
1,605,388 |
|
|
|
|
|
|
|
|
|
Francoeur Gold Property(4) |
|
|
|
|
|
|
|
Proven Reserves |
- |
- |
- |
8,439 |
4.52 |
1,226 |
|
Measured Resources |
39,947 |
5.89 |
7,570 |
39,947 |
5.89 |
7,570 |
|
Indicated Resources |
280,119 |
6.55 |
59,017 |
280,119 |
6.55 |
59,017 |
|
Inferred Resources |
17,949 |
7.17 |
4,135 |
17,949 |
7.17 |
4,135 |
|
|
|
|
|
|
|
|
|
TOTAL GOLD(5) |
|
|
|
|
|
|
|
Proven + Probable Reserves |
1,361,713 |
4.98 |
218,172 |
1,122,056 |
5.89 |
212,476 |
|
Measured + Indicated Resources |
17,329,901 |
3.42 |
1,907,528 |
17,684,460 |
3.20 |
1,818,560 |
|
Inferred Resources |
23,242,142 |
3.80 |
2,836,060 |
21,448,724 |
3.43 |
2,362,474 |
|
(1) |
Resources presented are exclusive of
reserves. |
|
(2) |
In 2013, based on a gold price of
US$1,225/oz and an exchange rate of CAN$1.06 = US$1.00 (in 2012, a
price of US$1,450/oz and an exchange rate of CAN$1.00 = US$1.00
were used). |
|
(3) |
For 2012, open pit resources established as
of December 31, 2011, using a gold price of US$1,200/oz and an
exchange rate of 1.00. For 2013, open pit reserves and underground
resources established as of December 31, 2013. |
|
(4) |
Francoeur Mine closed in November 2012.
Resources as at December 31, 2012 were estimated using a price of
US$1,450/oz and an exchange rate of CAN$1.00 = US$1.00. |
|
(5) |
Represents 100% of resources at Island Gold
Deep. The Corporation estimates that approximately 90% of the
Indicated resource and 56% of the Inferred resource (61% on a
consolidated basis) of Island Gold Deep lie within three claims,
for which Richmont owns 69%, and a third party owns 31%. |
About Richmont Mines Inc.
Richmont Mines has produced over 1,430,000 ounces of gold from
its operations in Quebec, Ontario and Newfoundland since beginning
production in 1991. The Corporation currently produces gold from
the Island Gold Mine in Ontario, and the Beaufor Mine, Monique Mine
and the W Zone Mine in Quebec. The Corporation is also advancing
the Island Gold Deep project beneath the Island Gold Mine in
Ontario. With over 20 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. Richmont routinely posts news and other important
information on its website (www.richmont-mines.com).
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.
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.
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 ("R 43-101")
The Mineral reserve and resource estimations as of December 31,
2013 and December 31, 2012 were performed by qualified persons as
defined by Regulation 43-101 and were supervised by Mr. Daniel
Adam, Geo., Ph.D., Vice-President, Exploration, an employee of
Richmont Mines Inc. Please refer to the SEDAR website
(www.sedar.com) for full reports and additional corporate
documentation.
The reserve and resource estimations of Beaufor, Island Gold and
W Zone mines were prepared using a gold price of US$1,225
(CAN$1,300) per ounce for 2013 and US$1,450 (CAN$1,450) per ounce
for 2012.
The resource estimation of the Francoeur Mine was established at
the end of 2012 using a gold price of US$1,450 (CAN$1,450) per
ounce, and was prepared by qualified persons as defined by
Regulation 43-101 and was supervised by Mr. Daniel Adam, Geo.,
Ph.D., Vice-President, Exploration, an employee of Richmont Mines
Inc.
The resource estimate of the Wasamac property was established at
the end of 2012 using a gold price of US$1,450 (CAN$1,450) per
ounce. It was performed 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.
The Monique Mine reserve and resource estimate as of December
31, 2013 was established using a gold price of US$1,225 (CAN$1,300)
per ounce and was performed 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. A 43-101
technical report was completed for the first reserve estimation of
this property on July 1st, 2013, and was filed on SEDAR on
September 13, 2013.
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EXPLORATION AND PROJECT EVALUATION
|
(in thousands of Canadian dollars) |
|
|
Three months ended |
|
Fiscal year ended |
|
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
|
$ |
|
$ |
|
$ |
|
$ |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
|
| Exploration costs - Mines |
|
|
|
|
|
|
|
|
|
Island Gold |
512 |
|
3,285 |
|
4,532 |
|
10,969 |
|
|
Beaufor |
308 |
|
278 |
|
1,929 |
|
1,432 |
|
|
|
|
|
|
|
|
|
|
|
820 |
|
3,563 |
|
6,461 |
|
12,401 |
|
|
|
|
|
|
|
|
|
|
| Exploration costs - Other properties |
|
|
|
|
|
|
|
|
|
Wasamac |
92 |
|
2,603 |
|
1,102 |
|
9,477 |
|
|
Monique |
2 |
|
14 |
|
221 |
|
744 |
|
|
Other |
42 |
|
140 |
|
347 |
|
459 |
|
|
Project evaluation |
46 |
|
221 |
|
474 |
|
511 |
|
|
|
|
|
|
|
|
|
|
| Exploration and project evaluation before depreciation
and exploration tax credits |
1,002 |
|
6,541 |
|
8,605 |
|
23,592 |
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
23 |
|
83 |
|
229 |
|
200 |
|
|
Exploration tax credits |
(96 |
) |
(352 |
) |
(959 |
) |
(3,527 |
) |
|
|
|
|
|
|
|
|
|
|
929 |
|
6,272 |
|
7,875 |
|
20,265 |
|
FINANCIAL DATA
|
|
Three months ended |
|
Fiscal year ended |
|
|
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
CAN$ |
2013 |
|
2012 |
|
2013 |
|
2012 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
|
|
Results (in thousands of $) |
|
|
|
|
|
|
|
|
|
Revenues |
27,828 |
|
24,928 |
|
90,213 |
|
101,718 |
|
|
Net loss from continuing operations |
(28,686 |
) |
(2,641 |
) |
(33,162 |
) |
(2,977 |
) |
|
Loss from discontinued operation |
(389 |
) |
(13,854 |
) |
(1,098 |
) |
(42,038 |
) |
|
Net loss |
(29,075 |
) |
(16,495 |
) |
(34,260 |
) |
(45,015 |
) |
|
Adjusted net loss(1) |
(5,631 |
) |
(2,641 |
) |
(10,341 |
) |
(1,521 |
) |
|
Cash flows from operating activities |
8,160 |
|
104 |
|
3,456 |
|
7,656 |
|
|
|
|
|
|
|
|
|
|
|
|
Results per share ($) |
|
|
|
|
|
|
|
|
|
Basic net loss from continuing operations |
(0.72 |
) |
(0.07 |
) |
(0.84 |
) |
(0.08 |
) |
|
Loss from discontinued operation |
(0.01 |
) |
(0.35 |
) |
(0.03 |
) |
(1.20 |
) |
|
Basic net loss |
(0.73 |
) |
(0.42 |
) |
(0.87 |
) |
(1.28 |
) |
|
Basic adjusted net earnings(1) |
(0.14 |
) |
(0.07 |
) |
(0.26 |
) |
(0.04 |
) |
|
Diluted net loss from continuing operations |
(0.72 |
) |
(0.07 |
) |
(0.84 |
) |
(0.08 |
) |
|
Diluted net loss |
(0.73 |
) |
(0.42 |
) |
(0.87 |
) |
(1.28 |
) |
|
Cash flows from operating activities |
0.21 |
|
- |
|
0.09 |
|
0.22 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average number of common shares outstanding
(thousands) |
39,596 |
|
39,562 |
|
39,594 |
|
35,055 |
|
|
Diluted weighted average number of common shares outstanding
(thousands) |
39,596 |
|
39,562 |
|
39,594 |
|
35,207 |
|
|
|
|
|
|
|
|
|
|
|
|
Average selling price of gold per ounce |
1,328 |
|
1,679 |
|
1,419 |
|
1,665 |
|
|
Average selling price of gold per ounce (US$) |
1,265 |
|
1,694 |
|
1,378 |
|
1,666 |
|
|
(1) |
The adjusted net loss is a financial
performance measure with no standard definition under IFRS. In
2013, adjusted net loss excludes the $13,472 impairment loss on W
Zone Mine's assets, the $1,098 net loss from discontinued
operation, the $7,484 write-off of deferred income and mining tax
assets, the $1,165 write-off of financing costs and the $700
charges of severance payments. In 2012, adjusted net loss excludes
the $49,066 ($42,038 after-tax) charges related to the closure of
the Francoeur Mine and the payment of $1,986 ($1,456 after-tax) of
severance compensation to the Corporation's ex-President and
CEO. |
|
|
|
|
December 31, 2013 |
December 31, 2012 |
|
|
(Unaudited) |
(Audited) |
|
Financial position (in thousands of $) |
|
|
|
Total assets |
123,328 |
148,244 |
|
Working capital |
13,952 |
54,296 |
|
Long-term debt |
5,196 |
702 |
SALES AND PRODUCTION DATA
|
|
Three-month period ended December 31 |
|
|
|
Ounces of gold |
Cash cost |
|
|
|
|
|
(per ounce sold) |
|
|
Year |
Sales |
Production |
US$ |
CAN$ |
|
Island Gold Mine |
2013 |
11,565 |
11,587 |
901 |
946 |
|
|
2012 |
11,309 |
11,625 |
885 |
878 |
|
Beaufor Mine |
2013 |
4,051 |
3,631 |
1,423 |
1,494 |
|
|
2012 |
3,501 |
3,519 |
1,900 |
1,884 |
|
W Zone Mine |
2013 |
2,326 |
2,324 |
1,373 |
1,441 |
|
|
2012 |
- |
- |
- |
- |
|
Monique Mine |
2013 |
2,976 |
4,521 |
1,230 |
1,290 |
|
|
2012 |
- |
- |
- |
- |
|
Total - Continuing operations |
2013 |
20,918 |
22,063 |
1,102 |
1,156 |
|
|
2012 |
14,810 |
15,144 |
1,126 |
1,116 |
|
Francoeur Mine - Discontinued operation |
2013 |
- |
- |
- |
- |
|
|
2012 |
3,401 |
3,295 |
2,161 |
2,142 |
| Note: |
Average exchange rate used for Q4-2013: US$1
= CAN$1.0494 |
|
Average exchange rate used for Q4-2012: US$1
= CAN$0.9913 |
|
|
|
|
|
|
Fiscal year ended December 31 |
|
|
|
Ounces of gold |
Cash cost |
|
|
|
|
|
(per ounce sold) |
|
|
Year |
Sales |
Production |
US$ |
CAN$ |
|
Island Gold Mine |
2013 |
35,113 |
34,691 |
1,092 |
1,124 |
|
|
2012 |
41,686 |
41,952 |
884 |
884 |
|
Beaufor Mine |
2013 |
23,028 |
23,076 |
1,051 |
1,082 |
|
|
2012 |
19,055 |
18,878 |
1,394 |
1,393 |
|
W Zone Mine |
2013 |
2,326 |
2,324 |
1,373 |
1,441 |
|
|
2012 |
- |
- |
- |
- |
|
Monique Mine |
2013 |
2,976 |
4,521 |
1,230 |
1,290 |
|
|
2012 |
- |
- |
- |
- |
|
Total - Continuing operations |
2013 |
63,443 |
64,612 |
1,095 |
1,128 |
|
|
2012 |
60,741 |
60,830 |
1,044 |
1,044 |
|
Francoeur Mine - Discontinued operation |
2013 |
1,299 |
1,211 |
1,350 |
1,390 |
|
|
2012 |
5,202 |
4,382 |
1,959 |
1,958 |
| Note: |
Average exchange rate used for 2013: US$1 =
CAN$1.0299 |
|
Average exchange rate used for 2012: US$1 =
CAN$0.9996 |
CONSOLIDATED INCOME STATEMENTS
|
(in thousands of Canadian dollars) |
|
|
Three months ended |
|
Fiscal year ended |
|
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
|
$ |
|
$ |
|
$ |
|
$ |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
|
| CONTINUING OPERATIONS |
|
|
|
|
|
|
|
|
|
Revenues |
27,828 |
|
24,928 |
|
90,213 |
|
101,718 |
|
|
Cost of sales |
31,008 |
|
19,283 |
|
85,832 |
|
73,798 |
|
|
|
|
|
|
|
|
|
|
| GROSS PROFIT (LOSS) |
(3,180 |
) |
5,645 |
|
4,381 |
|
27,920 |
|
|
|
|
|
|
|
|
|
|
| OTHER EXPENSES (REVENUES) |
|
|
|
|
|
|
|
|
|
Exploration and project evaluation |
929 |
|
6,272 |
|
7,875 |
|
20,265 |
|
|
Administration |
2,016 |
|
2,123 |
|
7,514 |
|
10,270 |
|
|
Loss (gain) on disposal of long-term assets |
(13 |
) |
150 |
|
105 |
|
198 |
|
|
Impairment loss on W Zone Mine |
13,472 |
|
- |
|
13,472 |
|
- |
|
|
Other revenues |
(101 |
) |
(4 |
) |
(154 |
) |
(28 |
) |
|
|
|
|
|
|
|
|
|
|
16,303 |
|
8,541 |
|
28,812 |
|
30,705 |
|
|
|
|
|
|
|
|
|
|
| OPERATING LOSS |
(19,483 |
) |
(2,896 |
) |
(24,431 |
) |
(2,785 |
) |
|
|
|
|
|
|
|
|
|
| Financial expenses |
1,189 |
|
24 |
|
1,263 |
|
656 |
|
| Financial revenues |
(83 |
) |
(216 |
) |
(526 |
) |
(837 |
) |
|
|
|
|
|
|
|
|
|
| LOSS BEFORE MINING AND INCOME TAXES |
(20,589 |
) |
(2,704 |
) |
(25,168 |
) |
(2,604 |
) |
|
|
|
|
|
|
|
|
|
| MINING AND INCOME TAXES |
8,097 |
|
(63 |
) |
7,994 |
|
373 |
|
|
|
|
|
|
|
|
|
|
| NET LOSS FROM CONTINUING OPERATIONS |
(28,686 |
) |
(2,641 |
) |
(33,162 |
) |
(2,977 |
) |
|
|
|
|
|
|
|
|
|
| NET LOSS FROM DISCONTINUED OPERATION |
(389 |
) |
(13,854 |
) |
(1,098 |
) |
(42,038 |
) |
|
|
|
|
|
|
|
|
|
| NET LOSS |
(29,075 |
) |
(16,495 |
) |
(34,260 |
) |
(45,015 |
) |
|
|
|
|
|
|
|
|
|
| LOSS PER SHARE |
|
|
|
|
|
|
|
|
|
Basic loss per share |
|
|
|
|
|
|
|
|
|
|
Loss
from continuing operations |
(0.72 |
) |
(0.07 |
) |
(0.84 |
) |
(0.08 |
) |
|
|
Loss
from discontinued operation |
(0.01 |
) |
(0.35 |
) |
(0.03 |
) |
(1.20 |
) |
|
|
|
|
|
|
|
|
|
|
Basic net loss |
(0.73 |
) |
(0.42 |
) |
(0.87 |
) |
(1.28 |
) |
|
|
|
|
|
|
|
|
|
|
|
Diluted loss per share |
|
|
|
|
|
|
|
|
|
|
Loss
from continuing operations |
(0.72 |
) |
(0.07 |
) |
(0.84 |
) |
(0.08 |
) |
|
|
Loss
from discontinued operation |
(0.01 |
) |
(0.35 |
) |
(0.03 |
) |
(1.20 |
) |
|
|
|
|
|
|
|
|
|
|
|
Diluted net loss |
(0.73 |
) |
(0.42 |
) |
(0.87 |
) |
(1.28 |
) |
|
|
|
|
|
|
|
|
|
| BASIC WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING |
|
|
|
|
|
|
|
|
|
(in thousands) |
39,596 |
|
39,562 |
|
39,594 |
|
35,055 |
|
|
|
|
|
|
|
|
|
|
| DILUTED WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING |
|
|
|
|
|
|
|
|
|
(in thousands) |
39,596 |
|
39,562 |
|
39,594 |
|
35,207 |
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
(in thousands of Canadian dollars) |
|
|
December 31, |
|
December 31, |
|
|
2013 |
|
2012 |
|
|
$ |
|
$ |
|
|
(Unaudited) |
|
(Audited) |
|
| ASSETS |
|
|
|
|
|
|
|
|
|
| CURRENT ASSETS |
|
|
|
|
|
Cash
and cash equivalents |
17,551 |
|
59,810 |
|
|
Shares of publicly-traded companies |
- |
|
30 |
|
|
Receivables |
3,008 |
|
2,921 |
|
|
Income and mining tax assets |
925 |
|
916 |
|
|
Exploration tax credits receivable |
5,670 |
|
3,485 |
|
|
Inventories |
9,075 |
|
7,764 |
|
|
|
|
|
|
|
36,229 |
|
74,926 |
|
|
|
|
|
|
| RESTRICTED DEPOSITS |
3,421 |
|
684 |
|
|
|
|
|
|
| PROPERTY, PLANT AND EQUIPMENT |
83,678 |
|
65,150 |
|
|
|
|
|
|
| DEFERRED INCOME AND MINING TAX ASSETS |
- |
|
7,484 |
|
|
|
|
|
|
| TOTAL ASSETS |
123,328 |
|
148,244 |
|
|
|
|
|
|
| LIABILITIES |
|
|
|
|
|
|
|
|
|
| CURRENT LIABILITIES |
|
|
|
|
|
Payables, accruals and provisions |
19,897 |
|
17,356 |
|
|
Income and mining taxes payable |
1,225 |
|
1,972 |
|
|
Current portion of long-term debt |
825 |
|
932 |
|
|
Current portion of asset retirement obligations |
330 |
|
370 |
|
|
|
|
|
|
|
22,277 |
|
20,630 |
|
|
|
|
|
|
| LONG-TERM DEBT |
5,196 |
|
702 |
|
|
|
|
|
|
| ASSET RETIREMENT OBLIGATIONS |
7,603 |
|
6,375 |
|
|
|
|
|
|
| DEFERRED INCOME AND MINING TAX LIABILITIES |
1,899 |
|
2,174 |
|
|
|
|
|
|
| TOTAL LIABILITIES |
36,975 |
|
29,881 |
|
|
|
|
|
|
| EQUITY |
|
|
|
|
|
Share
capital |
132,202 |
|
132,113 |
|
|
Contributed surplus |
11,253 |
|
9,062 |
|
|
Deficit |
(57,102 |
) |
(22,842 |
) |
|
Accumulated other comprehensive income |
- |
|
30 |
|
|
|
|
|
|
| TOTAL EQUITY |
86,353 |
|
118,363 |
|
|
|
|
|
|
| TOTAL LIABILITIES AND EQUITY |
123,328 |
|
148,244 |
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in thousands of Canadian dollars) |
|
|
Three months ended |
|
Fiscal year ended |
|
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
|
$ |
|
$ |
|
$ |
|
$ |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
|
| OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
Net loss for the period |
(29,075 |
) |
(16,495 |
) |
(34,260 |
) |
(45,015 |
) |
|
Adjustments for: |
|
|
|
|
|
|
|
|
|
|
Depreciation and depletion |
6,889 |
|
3,032 |
|
14,674 |
|
10,771 |
|
|
|
Impairment loss on W Zone Mine's assets |
13,472 |
|
- |
|
13,472 |
|
- |
|
|
|
Impairment loss on Francoeur Mine's assets |
- |
|
7,972 |
|
- |
|
41,161 |
|
|
|
Adjustment to estimated recoverable value of remaining Francoeur
Mine's assets |
- |
|
- |
|
867 |
|
- |
|
|
|
Non-cash expenses related to discontinued operation |
- |
|
4,571 |
|
- |
|
4,571 |
|
|
|
Taxes
received (paid) |
(37 |
) |
- |
|
(1,541 |
) |
(3,626 |
) |
|
|
Interest revenues |
(62 |
) |
(177 |
) |
(409 |
) |
(718 |
) |
|
|
Interest and accretion expenses on long-term debt |
44 |
|
10 |
|
66 |
|
596 |
|
|
|
Share-based compensation |
717 |
|
1,581 |
|
2,521 |
|
3,601 |
|
|
|
Share-based compensation settled in cash |
(725 |
) |
- |
|
(725 |
) |
- |
|
|
|
Financing expenses |
1,165 |
|
- |
|
1,165 |
|
- |
|
|
|
Accretion expense - asset retirement obligations |
23 |
|
16 |
|
81 |
|
66 |
|
|
|
Loss
on disposal of long-term assets |
93 |
|
150 |
|
193 |
|
205 |
|
|
|
Gain
on disposal of shares of publicly-traded companies |
- |
|
- |
|
(12 |
) |
(90 |
) |
|
|
Mining and income taxes |
8,097 |
|
(1,776 |
) |
7,994 |
|
(6,655 |
) |
|
|
|
|
|
|
|
|
|
|
601 |
|
(1,116 |
) |
4,086 |
|
4,867 |
|
|
|
|
|
|
|
|
|
|
|
Net change in non-cash working capital items |
7,559 |
|
1,220 |
|
(630 |
) |
2,789 |
|
|
|
|
|
|
|
|
|
|
| Cash flows from operating activities |
8,160 |
|
104 |
|
3,456 |
|
7,656 |
|
|
|
|
|
|
|
|
|
|
| INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
Disposition of shares of publicly-traded companies |
- |
|
- |
|
12 |
|
582 |
|
|
Restricted deposits |
- |
|
- |
|
(2,737 |
) |
(394 |
) |
|
Interest received |
55 |
|
164 |
|
420 |
|
736 |
|
|
Property, plant and equipment - Island Gold Mine |
(2,525 |
) |
(2,510 |
) |
(12,480 |
) |
(8,364 |
) |
|
Property, plant and equipment - Island Gold Deep
Project |
(5,760 |
) |
- |
|
(15,290 |
) |
- |
|
|
Property, plant and equipment - Beaufor Mine |
(587 |
) |
(187 |
) |
(980 |
) |
(1,192 |
) |
|
Property, plant and equipment - W Zone Mine |
(761 |
) |
(1,979 |
) |
(3,779 |
) |
(9,911 |
) |
|
Property, plant and equipment - Monique Mine |
(1,776 |
) |
- |
|
(8,358 |
) |
- |
|
|
Property, plant and equipment - Francoeur Mine |
- |
|
(1,075 |
) |
- |
|
(15,458 |
) |
|
Property, plant and equipment - Other |
(431 |
) |
(627 |
) |
(1,001 |
) |
(2,929 |
) |
|
Disposition of property, plant and equipment |
715 |
|
- |
|
869 |
|
105 |
|
|
|
|
|
|
|
|
|
|
| Cash flows used in investing activities |
(11,070 |
) |
(6,214 |
) |
(43,324 |
) |
(36,825 |
) |
|
|
|
|
|
|
|
|
|
| FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
Financing expenses |
(72 |
) |
- |
|
(727 |
) |
- |
|
|
Issue of convertible debentures |
- |
|
- |
|
- |
|
10,000 |
|
|
Retirement of convertible debentures |
- |
|
- |
|
- |
|
(10,000 |
) |
|
Issue of common shares |
- |
|
7 |
|
62 |
|
27,502 |
|
|
Common shares issue costs |
- |
|
(6 |
) |
- |
|
(914 |
) |
|
Interest paid |
(44 |
) |
(9 |
) |
(66 |
) |
(508 |
) |
|
Payment of finance leases obligations |
(603 |
) |
(225 |
) |
(1,660 |
) |
(633 |
) |
|
|
|
|
|
|
|
|
|
| Cash flows from (used in) financing activities |
(719 |
) |
(233 |
) |
(2,391 |
) |
25,447 |
|
|
|
|
|
|
|
|
|
|
| Net change in cash and cash equivalents |
(3,629 |
) |
(6,343 |
) |
(42,259 |
) |
(3,722 |
) |
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents, beginning of period |
21,180 |
|
66,153 |
|
59,810 |
|
63,532 |
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents, end of period |
17,551 |
|
59,810 |
|
17,551 |
|
59,810 |
|
|
|
|
|
|
|
|
|
|
Investor Relations:Jennifer AitkenRICHMONT MINES INC.514
397-1410 ext. 101jaitken@richmont-mines.com
Richmont Mines, Inc. (NYSE:RIC)
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Richmont Mines, Inc. (NYSE:RIC)
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From Apr 2023 to Apr 2024
