Richmont Mines Inc. (TSX:RIC,NYSE MKT:RIC) reported strong second quarter 2014 gold production of 29,091 ounces, a 107 percent increase year over year, and six month gold production of 48,171 ounces, a 73 percent increase above last year’s levels. Given these results, Richmont will increase its 2014 production guidance to 75,000 to 85,000 ounces of gold from a previous 70,000 to 80,000 ounces. The cash balance of over $32 million as of June 30, 2014 represents a substantial increase over Richmont’s March 31 cash balance of $13.5 million.
As quoted in the press release:
Gold production during the second quarter at the Island Gold Mine of 11,784 ounces represents a 58% increase over the same quarter last year. The mill achieved a record monthly production rate in May of 25,000 tonnes milled, achieving its rated capacity of approximately 800 tonnes per day. Increased second quarter production at Island Gold resulted from improved mine scheduling, leading to better availability of muck to the mill, together with decreased mill downtime attributed to higher truck availability, to a large extent as a result of the four new trucks purchased last year. While no significant mill shut downs are scheduled in the second half of the year, third quarter results may be modestly impacted due to the commissioning of the newly installed cone crusher.
Richmont Interim President and CEO, Elaine Ellingham, said:
We are very pleased with the strong performance of our operations during the second quarter of 2014, with gold production and sales exceeding our plans for the period. With 60% of our 2014 forecast realized in the first six months of the year, we are comfortable increasing guidance for the 2014 production profile to 75,000 to 85,000 ounces.