Richmont Mines Inc. (TSX:RIC,NYSEMKT:RIC) provided first quarter financial results for the period ended March 31, 2014. Highlights include a 26% increase in revenue, a 19% decrease in average cash cost per ounce at the Island Gold Mine and 22% at the Beaufor Mine.

As quoted in the press release:

Highlights:

  • Improved first quarter gold sales of 20,412 ounces, on target with 2014 production guidance of 70,000 – 80,000 ounces of gold;
  • Strong year-over-year improvement: Revenues increased 26%, while average
  • cash cost per ounce decreased by 19% at the Island Gold Mine and 22% at the Beaufor Mine;
  • Q1 2014 operating cash flows of $2.4 million, or $0.06 per share, on revenues of $29.5 million, versus Q1 2013 operating cash flows of ($6.8) million, or ($0.17) per share, on revenues of $23.4 million;
  • Island Gold Deep ramp extended to a 610 metre vertical depth; Chip sampling results from 92 metres of development within upper portion of Deep C Zone averaged 12.73 g/t of gold over 2.92 metres (grade should be seen as indicative, as capping value needs to be confirmed); definition drilling confirms prior exploration data;
  • Balance sheet: cash balance at March 31, 2014 of $13.5 million, working capital of $11.2 million, and long-term debt of $5.1 million;
  • Bought deal common share financing completed in April 2014, generating gross proceeds of $11.67 million, cash balance at April 30, 2014 of approximately $23.5 million.

Richmont Mines President and CEO, Paul Carmel, said:

We are very pleased to see the Island Gold production and costs back on track after a difficult 2013. Teams at all of our operations continue to strive to reach our objectives and to make 2014 an operational success. The Island Gold Deep resource continues to come into its own as the long-life, low cost asset that we are expecting it to be. We recently drifted into the deposit on the 560 metre level and for the first time exposed the Deep C Zone over 92 metres and attained excellent grades and continuity. Ramp and level development will continue throughout the year and we expect to extract our first long-hole stope in the second half of the year, giving us further important geotechnical information ahead of converting resources to reserves at Island Gold Deep. Lastly, the recently announced bought deal financing gives us additional working capital flexibility to face a volatile and uncertain gold price environment while continuing to advance Island Gold Deep through internally generated cash flows.

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