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Richmont Mines (TSX:RIC,NYSEMarket:RIC) announced another solid quarter of operational results that contributed to fourth quarter production of 22,380 gold ounces and annual production of 98,031 ounces, which exceeds the increased annual production guidance of between 87,000 and 95,000 ounces that was announced on August 6.
Richmont Mines (TSX:RIC,NYSEMarket:RIC) announced another solid quarter of operational results that contributed to fourth quarter production of 22,380 gold ounces and annual production of 98,031 ounces, which exceeds the increased annual production guidance of between 87,000 and 95,000 ounces that was announced on August 6.
As quoted in the press release:
HIGHLIGHTS FOR THE FOURTH QUARTER AND 2015 INCLUDE:
- During the fourth quarter Richmont produced 22,380 ounces of gold (21,576 ounces sold), which contributed to the second best annual production level in 25 years of 98,031 gold ounces (96,895 ounces sold) in 2015 and exceeds the high end of revised guidance levels. Richmont reported fourth quarter revenues of $31.9 million and record annual revenues of $143.7 million for 2015.
- Production for the fourth quarter was underpinned by another strong quarter from the Island Gold Mine, which reported quarterly production of 14,203 ounces of gold (13,504 ounces sold). Production for the quarter was impacted by a planned 3 week shutdown of the underground mine and 2 week shutdown of the mill facility for infrastructure and power upgrades. For 2015, Island Gold reported record production of 55,040 ounces, (52,363 ounces sold) exceeding the increased annual production guidance by 16%.
- Richmont ended the quarter with a strong cash balance of approximately $61 million. Project capital investments for the quarter primarily related to a tailings dam expansion ($8.7 million) and accelerated underground development at the Island Gold Mine. Both initiatives will position Island Gold for significant production growth from 2017 to 2023 as reported in the Preliminary Economic Assessment (“PEA”) results that were issued on October 28, 2015.
Richmont Mines President and CEO, Renaud Adams, stated:
We are very encouraged to report another strong quarter and annual production that exceeds our increased guidance estimates and was the second highest in 25 years, primarily driven by record production from our cornerstone Island Gold mine. During the quarter we have reported very promising exploration results from Island Gold, both east and west of the main deposit as well as from the down plunge extension below the 1,000 metre level, which demonstrates the significant potential for sustainable, low-cost production growth that will drive increased margins and significant cash flow streams. The operational efficiencies achieved at Island Gold during the year has positioned this core operation for production growth going forward. In 2016 we will maintain our disciplined and prudent focus on advancing the Island Gold underground mine with the goal of positioning this strategic asset to be one of the most profitable underground mines in Canada.
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