Richmont Mines Releases Q2 Financial Results: Posts Net Loss Of $30.9 Million

Richmont Mines Inc. (TSX:RIC) released its second quarter financial and operational results.

As quoted in the press release:

Highlights:

• Q2 2012 net loss of $30.9 million, or $0.92 per share, including the previously announced $33.2 million ($27.9 million after-tax) write-down on the Francoeur Mine assets, versus Q2 2011 net earnings of $5.0 million, or $0.16 per share;
• Q2 2012 operating cash flow of ($4.5) million, or ($0.13) per share, versus Q2 2011 operating cash flow of $7.7 million, or $0.25 per share;
• Gold sales of 14,611 ounces at an average selling price of US$1,608 (CAN$1,617) in Q2 2012, versus gold sales of 20,085 ounces at an average selling price of US$1,476 (CAN$1,460) in the prior year;
• 55,000 metre drill program on Wasamac in 2012 continues to yield positive results; 35,000 metres of drilling completed on Wasamac and optioned Globex land package as of the end of June;
• Commercial production at Francoeur Mine achieved; 5,000 Au ounces expected in 2012;
• $55.5 million in cash and cash equivalents as of June 30, 2012, or $1.66 per share.

Mr. Paul Carmel, President and CEO of Richmont Mines, commented:

The second quarter has been a challenging one for Richmont, and our share price performance has reflected this. The overall downward trend in the stock market, particularly for gold producers, has also been an important contributing factor to our weak share price. That being said, we firmly believe that Richmont’s solid fundamentals, which include our operating mines, the strength of our management team and skilled workforce, the untapped potential of several of our exploration properties and our sound financial structure, provide an excellent foundation for future growth and the creation of shareholder value.

Click here to read the full press release.