Richmont, Louvem earnings rise

Paced by higher gold prices, Richmont Mines (RIC-T) wrapped up its second straight profitable quarter at the end of September.

The company made just under $4.3 million (or 28 per share) on revenue of $17.3 million, compared with year-ago earnings of $3.3 million (22 a share) on $11.6 million. Cash flow from operations climbed about $1.5 million to more than $6.5 million.

For the first nine months of the year, Richmont’s earnings piled up to $7.7 million (50 per share), a significant turnaround from the year-ago net loss of $2.4 million (16 per share). Revenue between the two periods nearly doubled to $38.2 million.

During the quarter, the Beaufor mine in Quebec churned out 21,126 ounces of gold. Quarterly gold sales totalled 21,406 oz. produced at a cash cost of US$140 per oz. Mining resumed in January at Beaufor following a temporary closure to allow for geotechnical studies. Since January, the mine has poured a total of 40,271 oz. at US$154 per oz.

Richmont acquired Aurizon Mines‘ (ARZ-T) half-interest in Beaufor last summer. The rest of Beaufor is owned by Richmont’s 63%-owned subsidiary, Louvem Mines (LOV-V).

The Hammerdown mine in Newfoundland chipped in 13,477 oz. Sales totalled 13,003 oz. produced at US$145 apiece.

Richmont says it is on pace to produce a record 100,000 oz. in all of 2002. During the first three quarters of 2002, the company gold sales tally to 76,533 oz. produced at US$154 per oz., up from 50,232 oz. at a cash cost of US$180 per oz. at the same time last year.

At the end of September, Richmont had $26.9 million in working capital and an unused line of credit totalling $5 million.

For its part, Louvem rang up earnings of $2.6 million (10 per share) on revenue of $5.45 million, compared with a year-ago net loss of $293,839, (a penny per share) on revenue of $337. Cash flow from operations was just less than $2. 8 million, better than the $440,379 consumed the previous year.

Nine-month earnings were $3,744,988 (14 per share) on $10.2 million, up from a $1.3 million loss (5 a share) on $30,785. Cash flow soared to $4.4 million from negative $1.5 million. The turnaround reflects the resumption of operations at Beaufor.

Richmont shares were a quarter higher at $4.90 in afternoon trade in Toronto on Oct. 25; Louvem shares were fetching 50, plus a dime in Vancouver.