Richmont posts modest quarterly loss

Low gold prices are taking their toll on Richmont Mines (RIC-T), a Montreal-based gold miner with operations in Quebec and Newfoundland.

The company posted a loss of $517,685 (or 3 cents per share) on revenue of $9.3 million for the first three months of this year, compared with earnings of $961,975 on revenue of $11.9 million a year earlier.

Production in the first quarter totalled 22,100 oz. gold at an average cash cost of US$215 per oz., compared with 24,300 oz. at US$183 per oz. a year ago.

The bulk of the yellow metal came from Richmont’s Nugget Pond mine in Newfoundland, which churned out 10,300 oz. at US$155 per oz. in the latest quarter, down slightly from the 11,300 oz. produced a year earlier at a cost of US$145 per oz.

The Francoeur mine, in Quebec’s Abitibi camp, produced 6,400 oz. at US$286 per oz., down considerably from the 8,000 oz. produced at US$217 per oz. a year earlier. While grades slipped to 0.17 oz. from 0.21 oz. during this period, Richmont notes it has an important development program under way at zone 7, discovered last year. It contains about 500,000 tons grading 0.2 oz., which will become available when the program is completed at year-end.

Richmont owns almost 70% of Louvem Mines (LOV-M), which in turn owns 50% of the Beaufor gold mine near Val d’Or, Que. This operation added 5,400 oz. gold at a cash cost of US$246 to Richmont’s first-quarter results. Louvem stayed in the black during the latest quarter, posting net earnings of $14,636, down from $142,934 a year earlier.