Richmont Mines Reports Record Q1 Gold Production

Richmont Mines Inc. (TSX:RIC,NYSEMKT:RIC) released its results for the first quarter of 2016, commenting that production came in at 32,369 ounces of gold. That’s a new record for the company’s Island gold mine.
Other Q1 2016 highlights include:

• During the first quarter, Island Gold produced 26,589 ounces of gold (26,031 ounces sold), an increase of 147% over the same period in 2015 and an 87% increase over the prior quarter. Increased production for the quarter was positively impacted by higher than expected reconciled grades of 11.31 g/t milled and record mill throughput of 834 tonnes per day. Company-wide production was 32,369 ounces of gold (32,239 ounces sold), a 25% increase over the prior year period and 45% over the prior quarter.
• Cash costs for the quarter at Island Gold were $674 per ounce (US$491 per ounce), a 52% decrease over the prior year period and a 34% decrease over the prior quarter. Company-wide cash costs for the quarter were $806 per ounce (US$587per ounce), a decrease of 18% over the prior year period and a 22% decrease over the prior quarter.
• First quarter revenues were a record $52.6 million at an average realized gold price of $1,629 per ounce (US$1,186 per ounce).
• Richmont maintained its cash balance of approximately $61 million (US$45 million) as at the end of the quarter, despite an$8.7 million reduction in Accounts Payable balances during the quarter.

Renaud Adams, president and CEO of Richmont, commented:

We are pleased to report another record quarter, which was driven by higher grades and improving productivity from the Island Gold Mine. As we continue to better understand this asset at depth, we are increasingly confident that there remains significant potential for expansion. During the quarter, we remained diligent in our focus to strategically leverage our Canadian dollar exposure in order to cost effectively advance our capital allocation requirements. As a result, we preserved our cash position quarter-over-quarter, while fully funding our strategic capital investment requirements at Island Gold and reducing our short term accounts payable balance. We are currently reviewing the remaining 2016 mine plan, which includes development and stope mining in lower-grade zones and a 3 week mill shutdown in the second half of the year at Island Gold for a planned electrical upgrade, as previously disclosed in the February 11, 2016 press release.

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