TORONTO, October 12, 2017 /PRNewswire/ --
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.
Renaud Adams
President and CEO
Phone: 416-368-0291 ext. 101
Anne Day
Senior Vice-President, Investor Relations
Phone: 416-368-0291 ext. 105