More gold at lower costs, is the simple explanation behind Richmont Mines’ (RIC-T) stellar performance in the first quarter of 1998.
The Rouyn-Noranda, Que.-based gold miner earned $961,975 (or 6cents per share) on revenue of $12 million in the quarter ended March 31, compared with a loss of $539,172 (4cents per share) on $3.5 million in the corresponding quarter of 1997. Quarterly cash flow rose to a record $4.9 million (32cents per share), compared with $1.3 million (9cents per share) in first-quarter 1997.
Richmont owns two operating gold mines outright — Francoeur, near Rouyn-Noranda, Que., and Nugget Pond, near Baie Verte, Nfld. — and holds a 69.3% stake in Louvem Mines (lov-t), half-owner of the Beaufor mine near Val d’Or, Que. Gold from the three operations attributable to Richmont totalled 24,300 oz. during the quarter at a cash cost of US$192 per oz. gold, compared with year-ago production (from Francoeur only) of 5,300 oz. at US$321 per oz.
* Francoeur — Production of 40,000 tons grading 0.21 oz. gold per ton over the first three months of 1998 yielded 8,000 oz. gold at a cash cost of $230 per oz.
* Nugget Pond — A total of 33,100 tons grading 0.35 oz. gold was put through the mill, yielding 11,300 oz. at US$146 per oz.
* Beaufor — Louvem’s half-interest in the mine contributed 5,000 oz. of the yellow metal to Richmont’s first quarter, at US$232 per oz.
Richmont President Jean-Guy Rivard says the overall results testify to Richmont’s success at cutting costs. The company holds hedging contracts for 36,000 oz. gold at an average price of US$373 per oz. for the last nine months of 1998.
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