Richmont Mines (RIC-T), the junior miner’s junior miner, posted a profit for 2004, but it was much diminished from the profit the company made in 2003 with production down almost 30% year-on-year.
Richmont made $733,000, or 5 per share, on revenues of $39.6 million in 2004, out of production of 67,000 oz. gold from its Beaufor and Hammerdown mines. In 2003, Richmont made $5 million (32 per share) on revenues of $50.3 million. Production that year was 92,600 oz.
The chief difference was the closure of Hammerdown, near Springdale, Nfld., which closed in the second quarter of the year. Hammerdown produced 16,600 oz. before closing.
Production at Richmont’s 50%-owned Beaufor mine in northwestern Quebec was steady at 52,100 oz., against 54,800 oz. in 2003.
Balancing the diminished production was an increase in the price Richmont realized for its gold. It received an average US$410 per oz. in 2004, against US$370 in 2003. Richmont’s cash costs increased to US$294 per oz. from US$240.
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