TORONTO, April 12, 2016 /PRNewswire/ --
Richmont Mines Inc. (TSX - NYSE MKT: RIC) ("Richmont" or the
"Corporation"), reports that the Island Gold Mine delivered another
record quarter of operational results that contributed to a strong
consolidated first quarter production of 32,369 gold ounces
and cash costs of $806 per ounce
(US$587 per ounce). (All amounts
are in Canadian dollars unless otherwise indicated).
Highlights for the First Quarter
include:
- During the first quarter, Island Gold produced 26,589 ounces of
gold (26,031 ounces sold), an increase of 147% over the same period
in 2015 and an 87% increase over the prior quarter. Increased
production for the quarter was positively impacted by higher than
expected reconciled grades of 11.31 g/t milled and record mill
throughput of 834 tonnes per day. Company-wide production was
32,369 ounces of gold (32,239 ounces sold), a 25%
increase over the prior year period and 45% over the prior
quarter.
- Cash costs for the quarter at Island Gold were $674 per ounce (US$491 per ounce), a 52% decrease over the prior
year period and a 34% decrease over the prior quarter. Company-wide
cash costs for the quarter were $806
per ounce (US$587 per ounce), a
decrease of 18% over the prior year period and a 22% decrease over
the prior quarter.
- First quarter revenues were a record $52.6 million at an average realized gold
price of $1,629 per ounce
(US$1,186 per ounce).
- Richmont maintained its cash balance of approximately
$61 million (US$45 million) as at the end of the quarter,
despite an $8.7 million reduction in
Accounts Payable balances during the quarter.
Production Highlights
2016
Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Guidance
Gold Produced (oz)
Island Gold 62,000-
Mine 8,974 10,764 14,997 15,076 14,203(1) 26,589 67,000
25,000-
Beaufor Mine 6,633 7,963(2) 7,082 5,714 5,652 4,615 30,000
Monique Mine 7,324 7,132 4,235 2,688 2,525 1,165(3) -
87,000-
Total Produced (oz) 22,931 25,859 26,314 23,478 22,380 32,369 97,000
(1) Fourth quarter production includes a 3 week underground mine shutdown.
(2) Production includes 1,624 ounces from the milling of slag accumulated at
the Camflo Mill.
(3) Processing of the stockpile pad at the Monique Mine was completed at the
end of January 2016.
Cash Cost Highlights
2016
Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Guidance(2)
Cash Costs (C$)(1)
Island Gold Mine $1,307 $1,414 $954 $890 $1,026 $674 $900-$960
Beaufor Mine $935 $905 $1,062 $974 $1,084 $1,398 $1,000-$1,060
Monique Mine $586 $521 $914 $1,005 $977 $1,185 -
Total Cash Costs
(C$)(1) $981 $979 $974 $926 $1,034 $806 $930-$1,000
Cash Costs
(US$)(1)
Island Gold Mine $1,151 $1,139 $776 $680 $768 $491 $660-$705
Beaufor Mine $823 $730 $864 $744 $812 $1,018 $735-$780
Monique Mine $516 $420 $743 $768 $731 $863 -
Total Cash Costs
(US$)(1) $864 $789 $792 $707 $774 $587 $680-$730
(1) Refer to the Non-GAAP measures that is contained in the Annual MD&A.
(2) 2016 guidance assumes a foreign exchange rate of 1.364 Canadian dollars to
the US dollar.
Operational Highlights
Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16
Island Gold Mine
Underground tpd 399 552 759 669 657(1) 853
Mill tpd 507 487 787 722 656(2) 834
Mill head grade
(g/t) 6.28 7.87 6.73 7.27 7.62 11.31
Recoveries (%) 95.3 97.2 96.8 97.1 96.0 96.3
Beaufor Mine
Underground tpd 327 367 360 338 306 323
Mill head grade
(g/t) 6.96 8.44(3) 6.05 5.93 6.30 4.96
Recoveries (%) 98.1 98.6 98.6 98.6 98.4 98.7
(1) Fourth quarter underground productivity includes a 3 week mine
shutdown.
(2) Fourth quarter mill productivity includes a 2 week mill shutdown.
(3) Production includes 1,624 ounces from the milling of slag accumulated
at the Camflo Mill.
"We are pleased to report another record quarter, which was
driven by higher grades and improving productivity from the Island
Gold Mine. As we continue to better understand this asset at depth,
we are increasingly confident that there remains significant
potential for expansion." stated Renaud
Adams, President and CEO. "During the quarter, we remained
diligent in our focus to strategically leverage our Canadian dollar
exposure in order to cost effectively advance our capital
allocation requirements. As a result, we preserved our cash
position quarter-over-quarter, while fully funding our strategic
capital investment requirements at Island Gold and reducing our
short term accounts payable balance. We are currently reviewing the
remaining 2016 mine plan, which includes development and stope
mining in lower-grade zones and a 3 week mill shutdown in the
second half of the year at Island Gold for a planned electrical
upgrade, as previously disclosed in the February 11, 2016 press release."
Island Gold Highlights
- Production from the Island Gold Mine was a record
26,589 ounces of gold (26,031 ounces sold), an increase
of 147% over the same period in 2015 and an 87% increase over the
prior quarter.
- Higher production for the quarter was positively impacted by
higher than expected grades of 11.31 g/t milled and record mill
throughput of 834 tonnes per day. The higher grade realized in the
quarter was primarily the result of a strategic decision to
increase the ratio of higher cost ore development in the higher
grade second mining horizon (55% versus a planned 40%) in order to
best leverage our Canadian dollar exposure, as well as a positive
grade reconciliation (mined vs. reserves) of 44%. The forward
looking 2016 mine plan continues to forecast development and stope
mining in lower-grade zones at reserve grade levels with a ratio of
higher-cost ore development reverting back to the planned 40%.
- Cash costs for the quarter were $674 per ounce (US$491 per ounce), significantly below guidance
estimates and a 52% decrease over the prior year period and a 34%
decrease over the prior quarter.
- Underground productivity for the quarter averaged
853 tonnes per day. The development of the main ramp continues
as planned reaching a vertical depth of 770 metres at quarter
end.
- Record mill throughput of 834 tonnes per day during the
quarter, with average recoveries of 96.3%. As previously disclosed,
a 3-week electrical upgrade is scheduled to be completed in
July 2016.
- Updates on the Island Gold exploration drilling program
continue to demonstrate the significant potential to grow
production and increase mine life both laterally above the 860
metre level, which could support an upgrade to 1,150 tonnes per
day, as well as the vertical extension below the 1,000 metre level.
One additional directional drill (for a total of 4 drills) has been
added to support the deep exploration program below 1,000 metre
level but also to expand the drilling program in order to test the
structure to the west of the current target between the 1,000 metre
and 1,500 metre levels. It is expected that the previously
announced exploration drilling program will be completed by
June 2016, at which time the
Corporation will review all drilling results and subsequently
provide an update on additional drilling programs planned for the
second half of the year.
Beaufor Highlights
- Production for the quarter was 4,615 ounces
(5,037 ounces sold), a 42% decrease over the prior year period
and an 18% decrease over the prior quarter, primarily as a result
of lower than expected grades mined in Zones M-MF and 12.
Production in the first quarter of 2015 included 1,624 ounces of
gold that was processed by the milling of slag at the Camflo
Mill.
- Cash costs for the quarter were $1,398 per ounce (US$1,018 per ounce), a 54% increase over the
prior year period and 29% higher than the prior quarter. Cash costs
are expected to decrease as stope mining in the Q Zone begins in
the second half of the year.
- Underground productivity at the Beaufor Mine averaged
323 tonnes per day, in-line with planned levels.
- Development of the Q Zone advanced as planned during the
quarter and the mineralized structure was reached in late
March 2016. Development in ore was
initiated before quarter end, with stope mining planned for the
second half of the year.
Monique Highlights
- Production for the quarter was 1,165 ounces
(1,171 ounces sold). A decision was made to process the
stockpile pad and a total of 16,063 tonnes at an average grade of
2.31 g/t were processed in January.
- Cash costs for the quarter were $1,185 per ounce (US$863 per ounce), including approximately
$715 per ounce (US$521 per ounce) of non-cash charges that were
incurred in 2014 but are accounted for in 2016.
Corporate Highlights
- On February 9, 2016, Richmont
announced a 187% increase in Mineral Reserves and Resources as of
December 31, 2015, including a 206% increase in Mineral
Reserves at the cornerstone Island Gold Mine to 561,700 gold ounces
(net of depletion) and a 95% increase in Mineral Reserves at the
Beaufor Mine to 63,850 gold ounces (net of depletion).
- On February 11, 2016, Richmont
announced its 2016 operational outlook, which estimates another
record year at the Island Gold Mine that includes a potential
production increase of up to 22% and a decrease in All-In
Sustaining Costs.
- On February 24, 2016, Richmont
announced the appointment of Mr. Peter
Barnes to the Corporation's Board of Directors effective
immediately. Mr. Barnes will serve as an independent member of the
Richmont Board, and will join the Audit and the HR and Compensation
Committees.
- On February 25, 2016, Richmont
provided an update on the previously announced Island Gold
exploration drilling program, which continues to demonstrate the
significant potential of the Island Gold Mine.
Upcoming News
- Exploration update (late April / early May)
- Q1 2016 Financial Results (May
12)
- Annual General Meeting of Shareholders (May 12)
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 25 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 (http://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. 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.
For more information, please contact:
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
Richmont Mines Inc.
Ticker symbol: RIC
Listings: TSX - NYSE MKT
Web Site: http://www.richmont-mines.com
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