Richmont Mines Inc. (TSX:RIC,NYSE MKT:RIC) announced its financial and operating results for the second quarter of 2014. Notably, Richmont recorded a 119 percent improvement in revenues relative to Q2 of 2013.
As quoted in the press release:
Revenues for the second quarter of 2014 were $39.0 million, a 119% improvement over revenues of $17.8 million in the second quarter of 2013, predominantly due to a twofold increase in the number of gold ounces sold. A total of 27,790 ounces of gold were sold at an average price of $1,399 (US$1,283) per ounce in the current quarter, versus gold sales of 12,826 ounces and an average realized sales price of $1,389 (US$1,358) per ounce in the comparable period last year. The 117% increase in ounce gold sales during the quarter reflect a 78% and 19% increase in the number of gold ounces sold at the Island Gold Mine and the Beaufor Mine, respectively, primarily attributable to improved grades and higher tonnage levels from both mines, and the addition of open-pit Monique Mine and near surface W Zone production in the quarter.
Richmont Mines interim president and CEO, Elaine Ellingham, said:
We are very pleased to report that we achieved record quarterly revenues and operational cash flows. Our operational team more than doubled gold sales in Q2 compared with Q2 in the prior year, and successfully reduced our average cash operating costs to $849 (US$779) per ounce from $1,015 (US$992). In spite of the lackluster gold price environment, this performance translated into record revenues and record operational cash flows for the Corporation, which is a testament to the team’s hard work and dedication. With 60% of our 2014 forecasted production realized in the first six months of the year, we are pleased to have recently increased our 2014 gold production guidance to 75,000 to 85,000 ounces from 70,000 to 80,000 ounces previously, and we remain intently focused on continuing to manage our operational efficiency and productivity going forward. The continued development of our cornerstone Island Gold asset in Ontario remains the priority for Richmont and, to this end, our healthy cash position will support our initiatives to build shareholder value through the development of this 1 million ounce gold resource extending below our Island Gold Mine.