Richmont Mines Announces Q4 and Full Year 2013 Results

Richmont Mines Inc. (TSX:RIC,NYSEMKT:RIC) released its fourth quarter and fiscal year results for the period ended December 31, 2013. Highlights include: Q4 2013 revenues of $27.8 million, cash balance at December 31, 2013 of $17.6 million, working capital of $14.0 million, and long-term debt of $5.2 million; and a 2014 production forecast of 70,000 to 80,000 ounces of gold.

As quoted in the press release:

Highlights:

  • Q4 2013 revenues of $27.8 million; net loss from continuing operations of ($28.7) million, or ($0.72) per share; Q4 2012 revenues were $24.9 million, and the net loss from continuing operations was ($2.6) million, or ($0.07) per share;
  • Q4 2013 net loss from continuing operations includes the following charges totalling $23.1 million, or $0.58 per share: a non-cash write-down of the W Zone Mine assets following a reduction of its reservebase, a write-down of deferred income and mining tax assets, a write-off of financing costs following the termination of a debt-financing agreement and severance charges (for details please refer to Table 1 on page 4);
  • 2013 revenues of $90.2 million, from the sale of 63,443 gold ounces at an average price of CAN$1,419 (US$1,378) per ounce. 2012 revenues were $101.7 million, from the sale of 60,741 ounces of gold at an average price of CAN$1,665 (US$1,666) per ounce;
  • 2013 net loss from continuing operations of ($33.2) million or ($0.84) per share, compared to the 2012 net loss from continuing operations of ($3.0) million, or ($0.08) per share; The 2013 net loss was ($34.3) million, or ($0.87) per share, versus the 2012 net loss of ($45.0) million, or ($1.28) per share;
  • Continued promising results obtained at depth at Island Gold Mine; new Indicated resource of 169,000 gold ounces and expanded Inferred resource of 955,000 gold ounces established at January 21, 2014 (on a 100% basis, please refer to Note 5 of the Reserve & Resource estimates table on page 12); Focus in 2014 on defining and upgrading existing resource base;
  • Balance sheet: cash balance at December 31, 2013 of $17.6 million, working capital of $14.0 million, and long-term debt of $5.2 million;
  • 2014 production forecast of 70,000 to 80,000 ounces of gold.

Richmont Mines President and CEO, Paul Carmel, said:

During the fourth quarter we announced a significant milestone for the Corporation. With the new resource additions to Island Gold Deep, the Island Gold Mine has now exceeded our one-million ounce target, setting the groundwork for what we believe will be a low-cost, long life mine. The Corporation’s task is to incorporate Island Gold Deep into the Island Gold Mine plan and to optimize the overall asset to its full potential. Managing our capital resources is key to this process and one of our priorities in 2014. Revenues from our mines are an important component to our financing plan and in this regard, our W Zone Mine has been a disappointment. A re-interpretation of the geology following exposure from mining, combined with 2013 production, has led to a lower than expected reserve base and ultimately a non-cash write-down of the asset.

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