Higher gold prices enabled
Net earnings in the three months ended March 31 totalled $846,329 (or 6 per share) on revenue of $11 million, compared with a net loss of $371,113 (2 per share) on $9.3 million in the corresponding period of 1999.
During the recent quarter, Richmont cranked out 24,100 oz. from its mines in Newfoundland and Quebec, up 9% from the year-ago period. Cash costs, on the other hand, were reduced 4.3% to US$201 per oz., and the gold sold for 8.8% more, or US$294 per oz.
Cash flow for the respective periods was $4.4 million and $1.9 million.
The Nugget Pond mine in Newfoundland continues to be the company’s star performer, having yielded 11,700 oz. in the recent quarter; this is 14% higher than in the year-ago period, though cash costs remained unchanged, at US$151 per oz.
The mine recently had its life extended by four years through the purchase of the nearby Hammerdown deposit (T.N.M., April 10/00). Hammerdown’s estimated reserves of 297,000 tons grading 0.61 oz. are to be trucked 142 km to Nugget Pond for treatment.
The Francouer mine, in Quebec, cranked out 6,000 oz. at a cash cost of US$246 per oz. This significant improvement over the year-ago period is attributable to the recent development of higher-grade ore in the 7 zone. The development work began in September, only to finish in January.
Francouer is expected to produce 24,000 oz. by year-end.
Attributable output from the Beaufor mine, also in Quebec, was 6,400 oz., or 19% higher than in the first quarter of 1999. However, cash costs rose 3.3% to US$248 per oz.
Richmont owns a 69.3% interest in
Louvem reported a net loss of $7,010 on revenue of $2.7 million for the first quarter, compared with earnings of $15,855 on $2.3 million a year earlier. Louvem’s cash flow between the two periods rose to $909,540 from $89,301.
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