Richmont Mines Reports 2014 Revenues Up by 47%

Richmont Mines Inc. (TSX:RIC,NYSEMKT:RIC) reported Q4 and fiscal year results: 2014 revenues were up by 47%, operating cash flow up 689%, with a cash balance as of February 11, 2015, of $67.5 million.

As quoted in the press release:

Highlights:

• Full year 2014 gold sales of 94,503 ounces a significant 49% increase over 2013 levels, with annual cash cost per ounce of CAN$956 (US$866) 15% below 2013 levels; Q4 2014 gold sales of 21,666 ounces up 4% over prior year period with cash cost per ounce down 15% to CAN$981 (US$864);
• 2014 revenues up 47% to $132.2 million; net earnings from continuing operations of $8.2 million, or $0.18 per share; notably above 2013 revenues of $90.2 million, net loss from continuing operations of ($33.2) million, or ($0.84) per share;
• 2014 operating cash flow up 689% to $27.3 million, or $0.60 per share, compared to 2013 operating cash flow of $3.5 million, or $0.09 per share;
• Q4 2014 revenues of $29.6 million; net earnings from continuing operations of $1.0 million, or $0.02 per share; Q4 2013 revenues were $27.8 million, and the net loss from continuing operations was ($28.7) million, or ($0.72) per share;
• Balance sheet: cash balance at December 31, 2014 of $35.3 million, working capital of $34.8 million, and minimal long-term debt of $5.7 million; Cash balance of $67.5 million as of February 11, 2015, following closing of financing;
• 2014 production successfully replaced: total Proven & Probable Reserves of 217,950 gold ounces grading 6.43 g/t as at December 31, 2014, versus 218,150 gold ounces grading 4.98 g/t at the end of 2013;
• Island Gold Mine increases Proven and Probable Mineral Reserves 28% net of 2014 mining depletion;
• Transformational development plans at Island Gold announced for 2015 to position the mine for future growth by unlocking the value of the Resource extension at depth: $27.6 million of accelerated project and exploration costs planned in addition to forecasted sustaining capital expenditures of $20.7 million;
• New Island Gold Mine step-out exploration drill hole at depth reaffirms significant potential for expansion of the deposit along strike and at depth;
• 2015 production forecast of 78,000 to 88,000 ounces of gold at a cash cost of CAN$935 – CAN$1,035.

Richmont Mines President and CEO, Renaud Adams, said:

I am very pleased to be able to report that our operations exceeded production expectations in 2014, with annual gold sales that were the second highest production level in Richmont’s 30+ year history. Our mines also improved their overall efficiency, which is a testament to the capability, execution and dedication of our team, and provides Richmont with a strong financial foundation to reposition our Island Gold Mine into a longer-life, higher-grade gold asset with the ability to increase both production and cash flow levels.

Click here to read the Richmont Mines Inc. (TSX:RIC,NYSEMKT:RIC) press release
Click here to see the Richmont Mines Inc. (TSX:RIC,NYSEMKT:RIC) profile.