TORONTO, Oct. 12, 2017 /CNW Telbec/ - Richmont Mines Inc.
(TSX: RIC) (NYSE: RIC) ("Richmont" or the "Corporation"),
reports solid third quarter results from the Island Gold Mine with
record quarterly production of 26,659 ounces of gold, at low
cash costs1 of $666
(US$532) per ounce. For the
nine-month period, the Island Gold Mine produced 76,541 ounces of
gold at peer-leading cash costs of $637 (US$487) per
ounce, positioning this cornerstone asset to beat annual guidance.
(All amounts are in Canadian dollars unless otherwise
indicated.)
THIRD QUARTER HIGHLIGHTS – ISLAND GOLD MINE
- The Island Gold Mine reported record production of 26,659
ounces of gold (22,666 ounces sold) for the quarter and 76,541
ounces of gold (74,849 ounces sold) for the nine-month period.
Production in the quarter was positively impacted by higher than
planned grade of 10.04 grams per tonne. The Island Gold Mine is now
well positioned to exceed the high-end of annual production
guidance of 87,000-93,000 ounces.
- Cash costs for the quarter were $666 (US$532) per
ounce and $637 (US$487) per ounce for the nine-month period. The
Island Gold Mine remains on-track to beat the low end of annual
cash cost guidance of $715-$765
(US$550-$590) per ounce.
- Cash balance at the end of the quarter was $90.1 (US$72.2)
million, a slight decrease of $5.8 (US$4.6)
million over the second quarter. As a result of timing, the
finished goods inventory at the end of the quarter consisted of
approximately 2,000 gold ounces. These ounces were sold in the
fourth quarter.
- On September 11, 2017, Richmont
announced that it had entered into a definitive agreement with
Alamos Gold ("Alamos") whereby Alamos will acquire all of the
issued and outstanding shares of Richmont pursuant to a plan of
arrangement. The transaction is expected to close on, or about,
November 23, 2017.
- On October 2, 2017, Richmont
completed the sale of Richmont's Quebec based assets to Monarques Gold
Corporation, which includes the Beaufor Mine, the Camflo Mill and
the Wasamac development project as well as all other mineral
claims, mining leases and mining concessions located in the
province of Quebec.
"The Island Gold Mine has delivered another record quarter of
production at peer leading cash costs, which positions the
operation to beat annual guidance for the third consecutive year.
During the nine-month period this high quality asset continued to
outperform the recently released Preliminary Economic Assessment on
all key metrics including tonnes mined and milled, grades and unit
operating costs, all of which will support a significant free cash
flow stream," commented Renaud
Adams, President and CEO. He continued, "During the quarter,
we announced a pivotal transaction with Alamos that is consistent
with our commitment to create significant shareholder value. Our
shareholders will maintain exposure to the ongoing potential of the
Island Gold Mine and benefit from having meaningful ownership in a
diversified intermediate producer with a proven and experienced
management team."
1 Refer to the Non-IFRS Performance Measures
disclosure presented at the end of this press release.
Upcoming News
- Q3 Financial Results (Nov.
8)
- Richmont Shareholder Meeting (Nov.
16)
- Closing of the Richmont / Alamos Transaction (Nov. 23)
Non-International Financial Reporting Standards ("IFRS")
Performance Measures
In this press release, the term "cash
costs per ounce" is used, which is a non-IFRS performance measure,
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, it is 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. "Cash costs per ounce" is a common
performance measure in the gold mining industry, but does not have
any standardized definition. The Corporation reports cash cost per
ounce based on ounces sold. Cash costs include mine site operating
costs, administration, royalties and by-product credits but are
exclusive of depreciation, accretion expense, interest on capital
leases, capital expenditures and exploration and project evaluation
costs. Refer to the Corporation's 2017 and 2016 MD&A for a
reconciliation of cash costs to cost of sales.
About Richmont Mines Inc.
Richmont Mines currently
produces gold from the Island Gold Mine in Ontario and is also advancing development of
the significant high-grade resource extension to the east and at
depth. 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's 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, and a
qualified person as defined by NI 43-101.
SOURCE Richmont Mines