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Richmont Mines Inc. (TSX:RIC) released its third quarter financial and operating results for 2014. Highlights included the addition of Renaud Adams as president and CEO, effective November 15 2014, consolidation of ownership of the Island Gold Mine, strong cash flows for the quarter and an increase in the company’s 2014 gold production guidance.
As quoted in the press release:
Revenues increased 62% year-over-year in the third quarter of 2014 to $34.2 million, from $21.2 million in the third quarter of 2013, driven primarily by the 60% increase in the number of gold ounces sold. Revenues also benefited from the weaker Canadian dollar exchange rate in the current period, which resulted in a 1% increase in the average Canadian dollar selling price in the current period. A total of 24,635 ounces of gold were sold at an average price of $1,386 (US$1,273) per ounce in the current quarter, versus gold sales of 15,438 ounces and an average realized price of $1,367 (US$1,321) per ounce in the comparable period last year. The 60% increase in the number of gold ounces sold in the third quarter reflects a 40% increase in the number of gold ounces sold at the Island Gold Mine, primarily attributable to improved grades, and the addition of production from the open-pit Monique Mine in the quarter. This was partially offset by lower gold sales from the Beaufor Mine due to lower tonnage and grade, both of which were driven by the higher proportion of long-hole stope production which generally results in slightly lower tonnage.
Richmont interim president and CEO, Elaine Ellingham, said:
Our operations continued their strong momentum this quarter, and we are very pleased to report that our operating team continued to deliver robust revenues and operational cash flows within the current gold price environment. These results reflect our team’s continued focus on operational improvements, which resulted in us exceeding our targets. As a result, we have increased our guidance for 2014 gold production, for a second time, to a revised level of 85,000 to 90,000 ounces.
Click here to read the Richmont Mines Inc. (TSX:RIC) press release
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