Richmont posts quarterly loss

Montreal-based Richmont Mines (RIC-T), which has operations in Quebec and Newfoundland, is feeling the pinch of low gold prices, increased cash costs and reduced production.

The company posted a loss of $142,892 (or 1 cents per share) on revenue of $9.2 million for the recent second quarter, compared with earnings of $1.4 million on revenue of $12.9 million a year earlier.

Gold production in the recent 3-month period totalled 23,000 oz. at an average cash cost of US$185 per oz., compared with 24,450 oz. at US$184 in the second quarter of 1998.

For the six months ended June 30, 1999, Richmont incurred a loss of $514,000 (3 cents per share) on revenue of $18.6 million, compared with a profit of $2.4 million (16 cents per share) on $24.8 million in the first half of 1998.

Production between the two periods fell to 45,200 from 48,700 oz., while cash costs increased to US$200 from US$184 per oz.

The Nugget Pond mine in Newfoundland turned out 12,400 oz. at US$122 per oz., up from 11,500 oz. at US$134 a year ago, whereas the Francoeur mine cranked out 5,900 oz. at US$263, down significantly from the 8,200 oz. produced at US$231 in the first half of last year.

Richmont owns almost 70% of Louvem Mines (LOV-M), which has a half-interest in the Beaufor mine.

Richmont’s Camflo mill in Malartic, Que., treated 81,500 tons of ore, down from 88,200 tons in the second quarter of 1998.