Richmont Mines Reports Quarterly Revenues of $40.6 million in Q2 2015

Richmont Mines Inc. (TSX:RIC,NYSEMKT:RIC) reported its Q2 2015 results: revenues of CAD $40.6 million, with gold production at 26,314 ounces, cash cost per ounce of $974 (US$792) and All In Sustaining Cost per ounce of $1,304 (US$1,060). Q2 2015 operating cash flow was reported at $14.7 million, or $0.25 per share, with net free cash flow of $7.4 million, or $0.13 per share.

As quoted in the press release:

Highlights:

• Record quarterly revenues of $40.6 million in Q2 2015;
• Q2 2015 gold production of 26,314 ounces; Six month 2015 gold production of 52,173 ounces;
• Q2 2015 gold sales of 27,566 ounces at an average price of $1,468 (US$1,194); Six month gold sales of 52,357 ounces at an average price of $1,482 (US$1,200);
• Q2 2015 cash cost per ounce of $974 (US$792) and All In Sustaining Cost (“AISC”) per ounce of $1,304 (US$1,060);
• Q2 2015 net earnings of $2.9 million, or $0.05 per share; Six month net earnings of $7.5 million, or $0.14 per share in 2015;
• Q2 2015 operating cash flows of $14.7 million, or $0.25 per share; Q2 2015 net free cash flow of $7.4 million, or $0.13 per share;
• New quarterly gold production record of 14,997 ounces achieved at Island Gold Mine in Q2 2015, with average mill production of 787 tonnes per day (“tpd”) driven by May and June milling levels in excess of 800 tpd;
• Island Gold project development: main ramp extended to 700 metre depth and 620 level drift lengthened to 478 metres;
  49% of 2015 sustaining costs budgeted and 34% of project-related budget invested in first half of 2015;
• Exploration drilling initiated at Island Gold in early June from 620 level to test the potential eastern down-plunge extension of the currently identified resource envelope, with first results expected in Q3 2015;
• Cash balance of $77.9 million at June 30, 2015, or $1.34 per share, working capital of $73.2 million, 58.0 million shares outstanding and long-term debt of $6.2 million;
• Annual gold production guidance for 2015 increased to 87,000 – 95,000 ounces, from 78,000 – 88,000 ounces previously, as a result of strong results realized in the first six months of the year;
• The Corporation is maintaining Canadian dollar cost guidance and is lowering US dollar cost guidance figures due to a weaker Canadian dollar:
  • Cash cost/ounce: CAN$935 – $1,035 (US$750 – $825) from CAN$935 – $1,035 (US$850 – $940);
  • AISC/ounce: CAN$1,335-$1,490 (US$1,075-$1,190) from CAN$1,335-$1,490 (US$1,215-$1,355).

Richmont Mines President and CEO, Renaud Adams, said:

“I am very pleased with the progress we are making at Island Gold. We achieved a record quarterly result in two very important metrics during the second quarter – gold production and milled tonnage – which met our immediate goal of demonstrating that the mine and mill can successfully and efficiently operate at elevated capacity limits. As a result, we are increasing our production guidance for the year by 8,000 ounces, which translates into an approximate 10% increase to our previous guided range of 78,000 – 88,000 ounces. In addition, to reflect the year-to-date and anticipated trends in the Canadian dollar – US dollar exchange rate, we are lowering our US dollar cost guidance for 2015.”

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