Richmont Mines Earns $101.1 Million Revenue for Full Year 2012

Richmont Mines Inc. (TSX:RIC,NYSEMKT:RIC) reported its Q4 and fiscal year results ending in December 31, 2012: full year 2012 revenue of $101.1 million with a Q4 2012 revenue of $24.9 million; $54.3 million in working capital and $59.8 million of cash and cash equivalents at December 31, 2012; and significant exploration and project development investment of $35 million planned for Island Gold Deep.

Highlights:

• Full year 2012 revenue of $101.1 million; net loss from continuing operations of ($3.0) million or ($0.08) per share. Including the loss from a discontinued operation, the 2012 net loss was ($45.0) million, or ($1.28) per share. In 2011, revenue was $118.2 million and net earnings were $25.9 million, or $0.81 per share;
• Q4 2012 revenue of $24.9 million; net loss from continuing operations of ($2.6) million, or ($0.07) per share. Including the loss from a discontinued operation, Q4 2012 net loss was ($16.5) million, or ($0.42) per share. Q4 2011 net earnings were $6.1 million, or $0.19 per share;
• Excluding production from the discontinued Francoeur Mine operation, 60,741 ounces of gold were sold in 2012, compared to gold sales of 76,143 ounces in 2011. The discontinued Francoeur Mine generated gold sales of 5,202 ounces in 2012;
• $54.3 million in working capital and $59.8 million of cash and cash equivalents at December 31, 2012;
• Promising exploration results obtained at depth at Island Gold Mine; Significant exploration and project development investment of $35 million planned for this area (“Island Gold Deep”) in 2013;
• Richmont expects to release a maiden resource estimate in Q1 2013 for Island Gold Deep, the area below the existing infrastructure and established reserve and resource base of the mine.

Richmont Mines President and CEO Paul Carmel said:

2012 was a challenging year for Richmont, during which some difficult, but necessary, decisions were made. Going forward, management will continue to strive to improve the performance of our current operations as well as the quality of Richmont’s overall asset base, and accordingly projects which show promise for lower costs and a longer mine life will likely get the lion’s share of capital allocation. We believe that one such project is our Island Gold Mine, where exploration drilling over the past several years has established an interesting mineralized zone below the existing infrastructure of this mine. To this end, a significant budget was approved for 2013 to accelerate the access to and definition of this exciting new discovery.

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