Richmont boasts record production

Thanks to record gold production and reduced cash costs, Richmont Mines (RIC-T) has enjoyed yet another strong quarter.

For the three months ended Sept. 30, 1998, gold production reached a record high of 25,300 oz. at a cash cost of US$177 per oz., compared with 22,500 oz. at US$215 per oz. in the corresponding period last year.

Earnings between the two periods rose to $1.4 million (or 9 cents per share) on revenue of $12.1 million from $1 million (7 cents per share) on $11.6 million, whereas operating cash flow climbed to $3.9 million (25 cents per share) from $3.5 million (23 cents per share).

At its wholly owned Nugget Pond mine on Newfoundland’s Baie Verte Peninsula, Richmont mined 36,300 tons grading 0.31 oz. gold per ton, resulting in 11,200 oz. at a cash cost of US$140 per oz. By comparison, in the third quarter of 1997, the company mined 30,600 tons grading 0.4 oz. gold, representing 11,800 oz. at a cash cost of US$133 per oz.

The wholly owned Francoeur mine near Rouyn-Noranda, Que., produced 40,200 tons grading 0.2 oz. gold, compared with 33,300 tons at 0.18 oz. gold a year ago. Gold production totalled 7,700 oz. at a cash cost of US$221 per oz., up from year-ago levels of 5,800 oz. at US$292 per oz.

Richmont’s 69.3%-owned subsidiary, Louvem Mines (LOV-M) holds a half-interest in the Beaufor mine, northeast of Val d’Or, Que., with the remainder held by operator Aurizon Mines (ARZ-T). The operation produced 6,400 oz. gold attributable to Louvem in the recent third quarter at a cash cost of US$186 per oz., compared with 4,900 oz. at US$317 per oz. a year ago.

Richmont’s Camflo mill in Malartic, Que., treated 90,500 tons of ore, up from 86,400 tons in the third quarter of 1997.

During the first nine months of 1998, Richmont’s revenue soared to $36.9 million, compared with $26.6 million in the corresponding period last year. Earnings between the two 9-month periods increased by 156%, to $3.8 million (24 cents per share) from $1.5 million (10 cents per share). Gold production rose to 74,000 oz. at a cash cost of US$182 per oz. from 49,300 oz. at US$217 per oz.

As of Sept. 30, Richmont’s long-term debt had fallen to $4.6 million from $11 million a year ago, while cash and equivalents had increased to $16.5 million from $9.9 million.