Richmont Mines produces 26,659 oz Au at Island in Q3
RICHMONT MINES Inc. has released solid third quarter results from the Island gold mine with record quarterly production of 26,659 ounces of gold, at low cash costs of $666 ($532 (U.S.)) per ounce. For the nine-month period, the Island gold mine produced 76,541 ounces of gold at peer-leading cash costs of $637 ($487 (U.S.)) per ounce, positioning this cornerstone asset to beat annual guidance.
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 to 93,000 ounces.
Cash costs for the quarter were $666 ($532 (U.S.)) per ounce and $637 ($487 (U.S.)) 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 to $765 ($550 (U.S.) to $590 (U.S.)) per ounce.
Cash balance at the end of the quarter was $90.1-million ($72.2-million (U.S.) ), a slight decrease of $5.8-million ($4.6-million (U.S.)) 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 Sept. 11, 2017, Richmont announced that it had entered into a definitive agreement with Alamos Gold 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, Nov. 23, 2017.
On Oct. 2, 2017, Richmont completed the sale of Richmont’s Quebec-based assets to Monarques Gold Corp., 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-lead ing cash cost s, 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 chief executive officer. 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.”
• Third quarter financial results (Nov. 8);
• Richmont shareholder meeting (Nov. 16);
• Closing of the Richmont/Alamos Transaction (Nov. 23). About Richmont Mines Inc.
Richmont Mines 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 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 enter its next phase of growth. National Instrument 43-101 The scientific or technical information in this news release has been reviewed by Dr. Daniel Adam, Geo, PhD, vice-president, exploration, an em ployee of Richmon t, and a qualified person as defined by NI 43-101.
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Renaud Adams, Peter Derek Barnes, Elaine Ellingham, Rene Luis Joseph Marion, Michael S Pesner
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