Richmont’s sales slide

With revenues grinding down to a mere $863,306 during the first three months of 2001, junior Richmont Mines (RIC-T) has posted a loss of $348,427 or 2 per share.

Still, that’s better than the $1.2-million (8-per-share) loss it recorded in the year-ago period. Revenue during the 2001 first quarter was $5.3 million.

This drop in revenue is attributed to a slide in first-quarter gold sales, which fell to 1,750 oz. gold from 13,007 oz. gold. The company notes that it no longer processes ore during winter at its Nugget Pond mill on the Baie Verte Peninsula or its Camflo mill in northwestern Quebec, as operating costs are to high.

During the recent quarter, operations ate up $7.4 million dollars, which compares miserably with the $38,331 generated the previous year. The company says the resumption of activities at the Nugget Pond and Camflo will significantly improve during the second quarter and that its 2002 production target remains 100,000 ounces. Processing resumed at the Nugget Pond mill in March. A total of 23,400 tons of ore were mined at Hammerdown gold mine in Nfld., and produced 1,977 oz. of gold. The average selling price of gold was US$295 per ounce, up from US$263 per ounce during the first quarter of 2001.

Richmont has a 69.3% stake in Louvem Mines (LOV-M). Louvem had no precious metals sales during the first quarter. Revenues were $1,128 compared with $3,133, for the same period in 2001. The company suffered a net loss of $287,571, (a penny per share). Cash flow consumed by operations amounted to $1.4 million. Louvem has a 50% stake in the Beaufor mine in northwestern Quebec. The mine resumed operations in January and by the end of March had mined 42,000 tons of ore, which was transported to the Camflo Mill where it will be processed along with the production of the second quarter. Ore processing resumed at the Camflo in mid-April. Richmont acquired Aurizon Mines‘ (ARZ-T) half-interest in the mine last summer.