|
MONTREAL, QUEBEC--(Marketwired - Feb 19, 2015) -
Richmont Mines Inc. (
RIC.TO
)(NYSE MKT:RIC) ("Richmont" or the "Corporation"), announces its
fourth quarter and fiscal year results for the period ended
December 31, 2014. Financial results are based on International
Financial Reporting Standards ("IFRS") and dollars are reported
in Canadian currency, unless otherwise noted.
Highlights:
- Full year 2014 gold sales of 94,503 ounces a significant
49% increase over 2013 levels, with annual cash cost per ounce
of CAN$956 (US$866) 15% below 2013 levels; Q4 2014 gold sales
of 21,666 ounces up 4% over prior year period with cash cost
per ounce down 15% to CAN$981 (US$864);
- 2014 revenues up 47% to $132.2 million; net earnings from
continuing operations of $8.2 million, or $0.18 per share;
notably above 2013 revenues of $90.2 million, net loss from
continuing operations of ($33.2) million, or ($0.84) per share;
- 2014 operating cash flow up 689% to $27.3 million, or $0.60
per share, compared to 2013 operating cash flow of $3.5
million, or $0.09 per share;
- Q4 2014 revenues of $29.6 million; net earnings from
continuing operations of $1.0 million, or $0.02 per share; Q4
2013 revenues were $27.8 million, and the net loss from
continuing operations was ($28.7) million, or ($0.72) per
share;
- Balance sheet: cash balance at December 31, 2014 of $35.3
million, working capital of $34.8 million, and minimal
long-term debt of $5.7 million; Cash balance of $67.5 million
as of February 11, 2015, following closing of financing;
- 2014 production successfully replaced: total Proven &
Probable Reserves of 217,950 gold ounces grading 6.43 g/t as at
December 31, 2014, versus 218,150 gold ounces grading 4.98 g/t
at the end of 2013;
- Island Gold Mine increases Proven and Probable Mineral
Reserves 28% net of 2014 mining depletion;
- Transformational development plans at Island Gold announced
for 2015 to position the mine for future growth by unlocking
the value of the Resource extension at depth: $27.6 million of
accelerated project and exploration costs planned in addition
to forecasted sustaining capital expenditures of $20.7 million;
- New Island Gold Mine step-out exploration drill hole at
depth reaffirms significant potential for expansion of the
deposit along strike and at depth;
- 2015 production forecast of 78,000 to 88,000 ounces of gold
at a cash cost of CAN$935 - CAN$1,035.
Mr. Renaud Adams, President and CEO of Richmont Mines
commented: "I am very pleased to be able to report that our
operations exceeded production expectations in 2014, with annual
gold sales that were the second highest production level in
Richmont's 30+ year history. Our mines also improved their
overall efficiency, which is a testament to the capability,
execution and dedication of our team, and provides Richmont with
a strong financial foundation to reposition our Island Gold Mine
into a longer-life, higher-grade gold asset with the ability to
increase both production and cash flow levels.
Richmont's operational focus in 2014 was on delivering
profitable gold production. Our Island Gold Mine in Ontario met
this objective, generating 45% of Richmont's annual consolidated
gold sales at a cash cost per ounce that was 13% below 2013
levels. Our Quebec assets also delivered solid operational
results in 2014. The Beaufor Mine maintained a strong performance
momentum throughout the year, generating a notable 16% increase
in processed grade and 13% decrease in cash cost per ounce of
gold sold, and the Monique open-pit mine exceeding annual
production expectations. With mining operations now finished at
Monique, our focus in Quebec for 2015 remains squarely on
generating net free cash flow from our Beaufor Mine during the
year.
While 2014 was a year of preparation and transition, 2015 will
be one of action and repositioning. The proceeds from our
recently completed financing gives us the financial flexibility
to leverage our strong cash position to execute our accelerated
development plans that will reposition and unlock the significant
value of our Island Gold Mine. We are holding ourselves
accountable to our shareholders, employees and our other
stakeholders to continue to execute our accelerated work plans on
schedule, and to continue to do so, maintaining Richmont's long
history of prudent financial management."
Mr. Adams concluded "On a personal note, I am very pleased to
have been given the opportunity to take the helm of Richmont at
such an important inflection point. Island Gold provides Richmont
with the strongest organic growth profile in the Corporation's
history, as it is an excellent asset with the potential to
deliver long-term production growth from a mining-friendly and
safe jurisdiction for many years to come. To unlock this value we
have embarked on what will be a transformational year, and I look
forward to working closely with our dedicated team as we continue
to create long-term value for our shareholders."
Q4 2014 Results
Revenues for the fourth quarter of 2014 were $29.6 million,
compared to $27.8 million in the comparable period of 2013. The
year-over-year increase reflects strong results from the Quebec
assets, with higher gold ounce sales at the Beaufor and Monique
mines, and a 2% increase in the average realized gold price in
Canadian dollars. Partially offsetting these, were lower gold
ounce sales at the Island Gold Mine that stemmed from lower
processed tonnage in the period as a result of fewer available
mining faces following reduced levels of development in the first
half of the year. This trend will improve following the
initiation of accelerated short-term development work in the
fourth quarter of 2014. This work is expected to reposition the
mine with greater accessible ore inventory in the near-term, and
efforts will be further reinforced by the $9.3 million of
sustaining capital expenditures planned for Island Gold in 2015.
In the fourth quarter of 2014, 21,666 ounces of gold were sold at
an average price of CAN$1,361 (US$1,198), versus gold sales of
20,918 ounces at an average price of CAN$1,328 (US$1,265) in the
fourth quarter of 2013.
Richmont generated net earnings of $1.0 million, or $0.02 per
share, in the fourth quarter of 2014, versus a net loss from
continuing operations of ($28.7) million, or ($0.72) per share,
in the fourth quarter of 2013. The improved results reflect lower
cost of sales in the current period that was driven by improved
tonnage and recovered grades at the Quebec assets resulting in
lower cash costs per ounce sold. The year-over-year improvement
in net earnings similarly reflects charges in the same period of
2013 totalling $22.7 million, or $0.57 per share, that included a
non-cash write-down on the W Zone Mine assets, a write-off of
deferred income and mining tax assets, and a write-off of
financing costs following the termination of a debt financing
agreement. The year-over-year improved financial results
similarly reflect a higher average realized gold sales price
combined with a 4% increase in the number of gold ounces
sold.
Cost of sales totalled $25.1 million in the fourth quarter of
2014, a 19% decrease from $31.0 million in the same period of
2013, largely attributable to the 15% decrease in the average
cash cost per ounce of gold sold in the current period together
with a 12% decrease in processed tonnage year-over-year. The
improvement similarly reflects high depreciation costs at the W
Zone operation in the year-ago period following a reduction in
the Reserves at the mine. The average cash cost per ounce of gold
sold totalled CAN$981 (US$864) in the fourth quarter of 2014
versus CAN$1,156 (US$1,102) in the year-ago period, as lower
year-over-year costs at the Beaufor and Monique mines offset the
higher Island Gold Mine cash cost anticipated with the onset of
the Corporation's accelerated development work at the mine.
The Corporation spent $2.5 million on exploration and project
evaluation efforts in the fourth quarter of 2014, versus $0.9
million in the same period of 2013. This increase primarily
reflects higher exploration and project evaluation costs of the
deeper Q Zone incurred at the Beaufor Mine property in the
current quarter. These increases were partially offset by
slightly lower costs incurred at the Island Gold Mine as activity
focus was shifted from exploration to accelerated development in
the period, as well as lower project evaluation expenses at the
Wasamac Gold Property year-over-year. In the fourth quarter of
2014, the Corporation made a $1.2 million adjustment to the
exploration tax credits of previous years. In the fourth quarter
of 2013, the Corporation applied $0.1 million of tax credits.
Financial Position
At December 31, 2014, the cash balance was $35.3 million,
compared with $37.9 million of cash at September 30, 2014, and
$17.6 million at December 31, 2013. At December 31, 2014,
Richmont Mines had working capital of $34.8 million, long-term
debt of $5.7 million, and 48.3 million shares outstanding. The
Corporation had a cash balance of $67.5 million as of February
11, 2015, following the successful closure of the bought
financing deal that was announced in mid-January 2015.
Recent News
Mr. Renaud Adams
Appointed President and CEO of Richmont
In mid-October Richmont announced the appointment of Mr.
Renaud Adams to the position of President and Chief Executive
Officer effective November 15, 2014. Mr. Adams has 20 years of
mining experience, and most recently served as President and
Chief Operating Officer at Primero Mining Corp. In prior roles,
Mr. Adams served as Senior Vice-President, Americas Operations,
at IAMGOLD Corporation, and held various senior positions with
Cambior Inc. and Breakwater Resources Ltd. Mr. Adams holds a
Bachelor of Engineering degree in Mining and Mineral Processing
from Laval University. Please see the October 17, 2014 and
November 17, 2014 press releases for additional details.
Favourable Island Gold
Step-Out Exploration Results Announced
In September 2014, the Corporation announced that it would
conduct a limited deep exploration drilling program to test part
of the down plunge projection of the Island Gold deposit to the
east, the first results of which were published on January 8,
2015. Highlights included results from hole GD-14-01C that had
been drilled from surface. This hole intersected 19.87 g/t Au
over a true width of 3.93 metres at a depth of -1,200 metres, at
approximately -250 metres down plunge from the limits of the
currently defined Resources, and reinforced the potential to grow
the deposit both laterally and at depth. The second hole that was
drilled from surface intersected two small mineralized zones at a
depth of about -900 metres, the best one returned 2.43 g/t of
gold over a true width of 1.5 metres. Exploration drilling in
this area will continue from underground.
Richmont also announced a significant exploration program for
Island Gold Mine in 2015, to test the eastern extension of the
deposit at depths and targeted areas closer to surface, with the
objective of increasing the number of ounces per vertical metre
down to a depth of -1,000 metres, which would favourably impact
development cost per ounce.
Island Gold Mine
Transformational Development Plans and 2015 Corporate Guidance
Announced
At the end of September 2014, the Corporation announced that
Manroc had been hired to take over ramp development work to
accelerate access to the deeper extension of the mine. This
contracted development included extending the ramp to a depth of
660 metres by the end of 2014, and to a depth of 735 metres by
the end of the contract in the second half of 2015. Concurrent
with ramp development, Manroc was contracted to complete a drift
on the -620 metre level of the mine to facilitate
exploration/definition drilling. As of the end of 2014, the main
ramp had achieved a vertical depth of -660 metres, as planned,
and approximately 150 metres of the lateral drift on the -620
metre level was completed, with one drill bay already being used
for definition drilling purposes.
In mid-January 2015 the Corporation provided 2015 forecasted
production guidance of 78,000 - 88,000 ounces at a cash cost of
CAN$935 - CAN$1,035 (US$850 - US$940), as well as additional
transformational development plans for the Resource extension at
the Island Gold Mine in Ontario. Specifically, 2015 development
plans at Island Gold include extending the main access ramp to a
minimum depth of 750 metres and the secondary eastern ramp to a
minimum depth of -570 metres, and completing the in process 600
metre long exploration/definition drift to the east on the -620
metre level of the mine. Additional plans include 61,000 metres
of exploration drilling to test the potential to extend the
Resource to the east, as well as in some areas slightly to the
west and closer to surface, 59,000 metres of definition and
delineation drilling to upgrade the Inferred Resources between
500 and 1,000 metres of depth in preparation for mining in 2016,
and mining and milling studies to evaluate mining and milling
requirements under various possible growth scenarios. Please
refer to the January 15, 2015 press release for full details.
Bought-Deal Financing
Announced
On January 20, 2015 the Corporation announced that it had
entered into an agreement with Macquarie Capital Markets Canada
Ltd. as lead underwriter, on behalf of a syndicate of
underwriters, for the issuance of 7.5 million common shares of
the Corporation, on a bought-deal basis, at a price of CAN$4.00
per share for gross proceeds of CAN$30 million. The underwriters
were also granted an over-allotment option to purchase up to an
additional 1.125 million common shares. On January 21, 2015,
Richmont announced that it had agreed to increase the size of its
previously announced bought deal offering by 1.0 million shares,
to 8.5 million shares in total, for gross proceeds of CAN$34
million. Including the entire over-allotment option, total gross
proceeds would increase to CAN$38.5 million. Richmont plans to
apply the net proceeds in their entirety toward accelerating the
transformational development of the higher-grade Resource
extension at its Island Gold Mine in Ontario currently underway.
The bought deal financing was completed through a syndicate of
underwriters lead by Macquarie Capital Markets Canada Ltd. and
included CIBC World Markets Inc., National Bank Financial Inc.,
BMO Capital Markets, TD Securities Inc., and PI Financial Corp.
in its syndicate of underwriters. Richmont received strategic
advisory services from Red Cloud Mining Capital Inc. Please refer
to the January 20 and January 21 2015 press releases for
additional information.
Bought-Deal Financing
Closed
On February 11, 2015 the Corporation announced that it had
closed the previously announced bought-deal financing, subsequent
to which a total of 9.625 million shares were issued, including
the entire over-allotment option, at a price of CAN$4.00,
generating gross proceeds of CAN$38.5 million. As of February 11,
2015, the Corporation had 57.9 million shares outstanding, and a
cash balance of $67.5 million.
2014 Annual Results
Revenues for the 12 months ended December 31, 2014 totalled
$132.2 million, a 47% increase over annual revenues of $90.2
million in 2013. This improvement was attributable to the 49%
increase in the number of gold ounces sold during the current
period, partially offset by the minimal 2% decrease in the
average price of gold sold in Canadian dollars over the 12 month
period. For the year 2014, a total of 94,503 ounces of gold were
sold at an average price of CAN$1,396 (US$1,264), versus gold
sales of 63,443 ounces in 2013 at an average price of CAN$1,419
(US$1,378).
Cost of sales totalled $111.9 million in 2014, up from $85.8
million in the year-ago period. The increase reflects 12 months
of production from the Monique Mine in 2014, versus only 3 months
in 2013, and higher cost per tonne at the Island Gold Mine
stemming from slightly lower annual tonnage, increased levels of
development, and costs associated with the short-term rental of
equipment during the replacement of the primary crushing at the
mill. The average cash cost per ounce of gold sold decreased 15%
to CAN$956 (US$866) for 2014 from CAN$1,128 (US$1,095) in 2013,
driven by improvements realized at all three of the Corporation's
operating mines primarily as a result of improved grades, and
subsequent gold ounce sales.
Exploration and project evaluation costs totalled $3.8 million
in 2014, well below the 2013 level of $7.9 million, driven
primarily by lower levels at the Island Gold Mine as work focus
was shifted from exploration to development that will enable an
expanded exploration program in 2015, and lower exploration and
project evaluation costs at the Wasamac Gold Property. In 2014,
the Corporation made a $1.2 million adjustment to exploration tax
credits of previous years and applied $0.7 million of tax
credits. In 2013, the Corporation applied $1.0 million of tax
credits. Richmont invested $23.1 million in its assets in 2014,
compared to capital expenditures of $41.9 million in 2013. The
decrease reflects lower development costs at the Monique Mine
after it began commercial production in the fourth quarter of
2013, lower investments in the W Zone subsequent to the second
quarter decision to cease operations, and lower annual
investments at the Island Gold Mine.
Richmont generated net earnings from continuing operations of
$8.2 million, or $0.18 per share, in 2014 which was reduced by
$1.3 million, or $0.03 per share, of severance costs paid to the
Corporation's previous senior management. In 2013, Richmont
generated a net loss from continuing operations of ($33.2)
million, or ($0.84) per share, which includes charges totalling
$22.1 million, or $0.56 per share, stemming from a non-cash
write-down of the W Zone Mine assets, a write-off of deferred
income and mining tax assets, and a write-off of financing costs
following the termination of a debt-financing agreement. The
improved results in 2014 similarly reflect a lower average
production cost per ounce that was driven by improved realized
grades in the Corporation's three operating mines, as well as a
49% increase in the number of gold ounces sold.
Operational Highlights
Island Gold Mine
|
Three months ended
|
Fiscal year ended
|
|
December 31,
|
December 31, |
December 31,
|
December 31, |
|
2014
|
2013 |
2014
|
2013 |
|
|
|
|
|
Gold Poured
|
|
|
|
|
Tonnes |
48,283
|
75,181 |
232,730
|
242,593 |
Head grade
(g/t)
|
6.12
|
4.96 |
5.84
|
4.63 |
Gold recovery
(%)
|
95.15
|
96.58 |
96.26
|
96.09 |
Recovered grade
(g/t)
|
5.82
|
4.79 |
5.62
|
4.45 |
Ounces poured |
9,052
|
11,587 |
42,042
|
34,691 |
|
|
|
|
|
Gold Sold
|
|
|
|
|
Tonnes |
48,375
|
75,137 |
233,202
|
244,631 |
Head grade
(g/t)
|
6.12
|
4.96 |
5.83
|
4.65 |
Gold recovery
(%)
|
95.15
|
96.58 |
96.26
|
96.09 |
Recovered grade
(g/t)
|
5.82
|
4.79 |
5.61
|
4.46 |
Ounces sold |
9,052
|
11,565 |
42,078
|
35,113 |
Cash cost per ounce
(CAN$)
|
1,307
|
946 |
982
|
1,124 |
Cash cost per ounce
(US$)
|
1,151
|
901 |
889
|
1,092 |
The Island Gold Mine generated processed tonnage of 48,375
tonnes in the fourth quarter of 2014 at an average grade of 6.12
g/t, compared to fourth quarter 2013 results of 75,137 tonnes of
ore at an average grade of 4.96 g/t. The decrease in the
processed tonnage levels in the current period reflected that
there were fewer available mining faces due to the lower levels
of development in the first half of the year. Following the
commencement of accelerated development in the last quarter of
2014 this trend is improving, and will continue to be further
reinforced by the $9.3 million of sustaining capital expenditures
planned for Island Gold in 2015. As a result of the lower tonnage
levels, fourth quarter 2014 gold sales from this mine decreased
to 9,052 ounces at an average price of CAN$1,354 (US$1,192) per
ounce, versus gold sales of 11,565 ounces at an average price of
CAN$1,331 (US$1,268) per ounce in the comparable period of 2013.
Consequently, cash costs at Island Gold increased to CAN$1,307
(US$1,151) from CAN$946 (US$901) in the fourth quarter of 2013, a
reflection of the lower processed tonnage as well as the
previously announced additional costs associated with the rental
of temporary primary crushing equipment in the quarter.
For the 12 months ended December 31, 2014, 233,202 tonnes of
ore were processed at an average grade of 5.83 g/t, and 42,078
ounces of gold were sold at an average price of CAN$1,398
(US$1,266) per ounce. This compared to 2013 results, in which
244,631 tonnes of ore were processed at an average grade of 4.65
g/t, and 35,113 ounces of gold were sold at an average price of
CAN$1,434 (US$1,392) per ounce. The higher year-over-year gold
sales change reflect a 25% improvement in grade, partially offset
by a slight 5% decrease in processed tonnage. Cash costs at
Island Gold decreased year-over-year to CAN$982 (US$889) from
CAN$1,124 (US$1,092) in 2013, with the improvement being driven
by the higher recovered grade. This was partially offset by a
higher mining cost per tonne year-over-year, which stemmed from a
greater amount of development work and a lower amount of
processed tonnage year-over-year, as well as the short-term
rental of crushing equipment from an outside supplier.
The focus at Island Gold for 2015 will be to position the mine
for future growth. Specifically, efforts will centre on defining
and delineating the current Resource base below -400 metres via
44,500 metres of delineation drilling and 14,500 metres of
definition drilling, testing the eastern and western potential of
the current Resource base and several targeted areas closer to
surface with 61,000 metres of exploration drilling, completing
mining and milling studies in preparation for future growth, and
making targeted investments in assets and equipment at the
mine-site. Please refer to the January 15, 2015 press release for
full details regarding the Corporation's 2015 accelerated
development plans for the Island Gold Mine.
Richmont is targeting 2015 production of approximately 45,000
to 50,000 ounces of gold at the Island Gold Mine.
ISLAND GOLD MINE - MINERAL RESERVE AND RESOURCE
ESTIMATES
1
|
|
December 31, 2014
|
December 31, 2013 |
|
Tonnes
|
Grade
|
Ounces
|
Tonnes |
Grade |
Ounces |
|
(metric)
|
(g/t Au)
|
contained
|
(metric) |
(g/t Au) |
contained |
|
|
|
|
|
|
|
Total Proven & Probable Reserves
2 |
895,000
|
6.39
|
183,750
|
733,000 |
6.09 |
143,500 |
Total Measured & Indicated Resources |
733,500
|
9.29
|
219,050
|
739,500 |
9.81 |
233,350 |
Inferred Resources |
3,547,500
|
8.79
|
1,002,750
|
3,559,000 |
9.07 |
1,037,350 |
1 |
Mineral Resources presented are exclusive of Mineral
Reserves. Please refer to the detailed Reserve &
Resource table on page 12 for details. Mineral Resources
that are not Mineral Reserves do not have demonstrated
economic viability. |
2 |
In 2014, based on a gold price of US$1,200/oz and an
exchange rate of CAN$1.0833 = US$1.00 (in 2013, a gold
price of US$1,225/oz and an exchange rate of CAN$1.06 =
US$1.00 were used). |
Proven and Probable Reserves at Island Gold were increased by
28%, net of 2014 mining depletion. As of December 31, 2014, total
Proven and Probable Reserves at the Island Gold Mine were 183,750
gold ounces, of which 51%, or 93,750 ounces, are located in zones
below -400 metres. This compared to Proven and Probable Reserves
of 143,500 gold ounces at the end of December 2013. The updated
Reserve estimate reflects the 16,897 metres of definition
drilling and 17,702 metres of delineation drilling completed
during the year, which successfully replaced Reserves that were
mined during the year.
The estimated Measured and Indicated Resources of Island Gold
Mine totalled 219,050 ounces of gold at December 31, 2014, which
includes 154,200 ounces of gold within the lower extension below
-400 metres. Measured and Indicated Resources within the Island
Gold Mine infrastructure decreased from the December 31, 2013
level of 233,350 gold ounces, reflecting that some Resources were
successfully reclassified as Reserves. Measured and Indicated
Resources are exclusive of Reserves.
Estimated Inferred Resources were 1,002,750 ounces of gold at
the end of 2014, with the extension below -400 metres
encompassing 919,950 of these ounces. This compares to Inferred
Resources of 1,037,350 ounces of gold at the end of 2013, which
included 954,600 ounces in the deeper extension of the mine.
Gold grades of the Mineral Resources are slightly lower
compared to 2013. This reflects some changes made in the kriging
parameters used in the deeper extension estimation as well as a
decreased of the gold assay capping levels for some of the lower
parallel zones. Capping was reduced from 95 to 70 g/t Au for the
B Zone and from 40 to 31 g/t Au for the D, D1 and E1E zones
following a new statistical review.
The Corporation hired RPA, an independent consultant, to
conduct a review of the estimated Mineral Resources for the zones
below a vertical depth of -400 metres at the Island Gold Mine.
RPA concluded that the estimate is reasonable, has been
adequately prepared using standard industry practices, and
conforms to the Canadian Institute of Mining, Metallurgy and
Petroleum (CIM) Definition Standards for Mineral Resources and
Mineral Reserves (CIM definitions) as incorporated into National
Instrument 43-101 (NI 43-101).
A portion of the C Zone Resource, located between the -535
metres and -675 metres levels, have been successfully transferred
into Reserves following definition drilling and development that
were completed in 2014. A study comparing the Resources as of
December 31, 2013 and the Resources/Reserves and mined material
as of December 31, 2014 for this specific area was completed,
with the results showing good reconciliation. Specifically, at
the end of 2013, 286,000 tonnes at a grade of 8.3 g/t were
estimated for this area. This compared very favourably to the
294,000 tonnes at a grade of 8.67 g/t at the end of 2014, with
all material (including mined material) reported as a Resource
with no recovery or dilution take into account. This result is
for a small portion of the C Zone and, consequently, should not
be extrapolated to the entire C Zone area.
Beaufor Mine
|
Three months ended
|
Fiscal year ended
|
|
December 31,
|
December 31, |
December 31,
|
December 31, |
|
2014
|
2013 |
2014
|
2013 |
|
|
|
|
|
Gold Poured
|
|
|
|
|
Tonnes |
30,247
|
23,085 |
115,573
|
124,570 |
Head grade
(g/t)
|
6.93
|
5.04 |
6.86
|
5.89 |
Gold recovery
(%)
|
98.38
|
97.05 |
97.91
|
97.75 |
Recovered grade
(g/t)
|
6.82
|
4.89 |
6.72
|
5.76 |
Ounces poured |
6,633
|
3,631 |
24,959
|
23,076 |
|
|
|
|
|
Gold Sold
|
|
|
|
|
Tonnes |
27,065
|
25,219 |
111,474
|
124,569 |
Head grade
(g/t)
|
6.82
|
5.15 |
6.84
|
5.88 |
Gold recovery
(%)
|
98.38
|
97.05 |
97.91
|
97.75 |
Recovered grade
(g/t)
|
6.71
|
5.00 |
6.70
|
5.75 |
Ounces sold |
5,839
|
4,051 |
24,006
|
23,028 |
Cash cost of production per ounce
(CAN$)
|
935
|
1,494 |
946
|
1,082 |
Cash cost of production per ounce
(US$)
|
823
|
1,423 |
856
|
1,051 |
The Beaufor Mine continued its strong performance momentum
into the fourth quarter of 2014, generating year-over-year
increases of 7% and 32% in processed tonnage levels and average
head grade, respectively, which were driven by more selective
mining and tonnage originating from the M Zone of the mine. A
total of 27,065 tonnes of ore were processed from the Beaufor
Mine at an average grade of 6.82 g/t in the fourth quarter of
2014, compared to processed tonnage of 25,219 tonnes at an
average grade of 5.15 g/t in the fourth quarter of 2013. Combined
with a stronger gold recovery rate, these improvements drove gold
sales of 5,839 ounces in the current period at an average
realized price of CAN$1,367 (US$1,204) per ounce, compared with
fourth quarter 2013 gold sales of 4,051 ounces at an average
realized price of CAN$1,319 (US$1,257) per ounce. Resulting cash
costs at this mine decreased 37% to CAN$935 (US$823) in the
fourth quarter of 2014, from CAN$1,494 (US$1,423) in the
comparable period last year.
For 2014, a total of 111,474 tonnes of ore were processed from
the Beaufor Mine at an average grade of 6.84 g/t, and 24,006
ounces of gold were sold at an average price of CAN$1,399
(US$1,267). This compared to tonnage of 124,569 at an average
grade of 5.88 g/t, and gold sales of 23,028 ounces at an average
price of CAN$1,417 (US$1,376) in 2013. Cash costs at the Beaufor
Mine for the 12 months of 2014 decreased 13% to CAN$946 (US$856)
from CAN$1,082 (US$1,051) last year, driven by the improved grade
resulting from a more selective mining approach.
2015 production from the Quebec assets, which includes the
Beaufor and Monique mines is expected to be approximately 33,000
to 37,000 ounces of gold.
BEAUFOR MINE - MINERAL RESERVE AND RESOURCE
ESTIMATES
1
|
|
December 31, 2014
|
December 31, 2013 |
|
Tonnes
|
Grade
|
Ounces
|
Tonnes |
Grade |
Ounces |
|
(metric)
|
(g/t Au)
|
contained
|
(metric) |
(g/t Au) |
contained |
|
|
|
|
|
|
|
Proven & Probable Reserves
2 |
144,500
|
7.06
|
32,750
|
212,500 |
6.43 |
43,950 |
Measured & Indicated Resources |
917,000
|
6.44
|
189,850
|
911,000 |
6.44 |
188,500 |
Inferred Resources |
743,000
|
6.51
|
155,600
|
906,000 |
6.50 |
189,200 |
1 |
Mineral Resources presented are exclusive of Mineral
Reserves. Mineral Reserves and Resources of the W Zone and
350 Zone are included as at Dec. 31, 2014 and Dec. 31,
2013. Please refer to the detailed Reserve & Resource
table on page 12 for details. Mineral Resources that are
not Mineral Reserves do not have demonstrated economic
viability. |
2 |
In 2014, based on a gold price of US$1,200/oz and an
exchange rate of CAN$1.0833 = US$1.00 (in 2013, a gold
price of US$1,225/oz and an exchange rate of CAN$1.06 =
US$1.00 were used). |
Proven and Probable Reserves at the Beaufor Mine property,
which include estimated Reserves located within the W Zone and
350 Zone, decreased to 32,750 gold ounces at December 31, 2014,
from 43,950 gold ounces at December 31, 2013, as 12,801 metres of
definition drilling on the Beaufor Mine property in 2014 was
insufficient to replace mined Reserves during the year. More than
half of the Proven and Probable Reserves are contained in two
zones, namely the M-M1 Zone with 48,000 tonnes at a grade of 7.32
g/t for 11,400 ounces and the 350 Zone with 28,000 tonnes at a
grade of 7.34 g/t for 6,650 ounces.
Measured and Indicated Resources at the Beaufor Mine property,
including those of the W Zone and 350 Zone, were essentially
unchanged at 189,850 ounces of gold at the end of December 2014
versus 188,500 ounces of gold at the end of 2013, while Inferred
Resources decreased to 155,600 ounces of gold versus 189,200
ounces at December 31, 2013 mainly as a result of a change in the
estimation parameters for the Q Zone, which contains Inferred
Resource with 240,000 tonnes at a grade of 6.96 g/t for 53,700
ounces.
Monique Mine
|
Three months ended
|
Fiscal year ended
|
|
December 31,
|
December 31, |
December 31,
|
December 31, |
|
2014
|
2013 |
2014
|
2013 |
|
|
|
|
|
Gold Poured
|
|
|
|
|
Tonnes |
95,768
|
68,301 |
280,420
|
68,301 |
Head grade
(g/t)
|
2.78
|
2.18 |
2.69
|
2.18 |
Gold recovery
(%)
|
95.41
|
94.35 |
96.03
|
94.35 |
Recovered grade
(g/t)
|
2.65
|
2.06 |
2.59
|
2.06 |
Ounces poured |
8,169
|
4,521 |
23,307
|
4,521 |
|
|
|
|
|
Gold Sold
|
|
|
|
|
Tonnes |
77,874
|
51,541 |
279,884
|
51,541 |
Head grade
(g/t)
|
2.84
|
1.90 |
2.72
|
1.90 |
Gold recovery
(%)
|
95.41
|
94.35 |
96.03
|
94.35 |
Recovered grade
(g/t)
|
2.71
|
1.80 |
2.61
|
1.80 |
Ounces sold |
6,775
|
2,976 |
23,490
|
2,976 |
Cash cost per ounce
(CAN$)
|
586
|
1,290 |
910
|
1,290 |
Cash cost per ounce
(US$)
|
516
|
1,230 |
824
|
1,230 |
A total of 77,874 tonnes were processed from the open-pit
Monique Mine at an average grade of 2.84 g/t in the fourth
quarter of 2014. This compared to the 51,541 tonnes processed at
an average grade of 1.90 g/t processed in the same period in 2013
following the commencement of commercial production on October 1,
2013. Gold sales from this mine totaled 6,775 ounces at an
average price of CAN$1,366 (US$1,203) during the fourth quarter
of 2014, versus gold sales of 2,976 ounces at an average price of
CAN$1,328 (US$1,265) per ounce in the comparable period of 2013.
Fourth quarter cash costs at Monique decreased significantly to
CAN$586 (US$516) in 2014, from CAN$1,290 (US$1,230) in the same
period in 2013, primarily a reflection of high cash costs in the
2013 period during which production was ramping up in the first
months of commercial operation.
During the 12 months of 2014 a total of 279,884 tonnes of ore
were processed at an average grade of 2.72 g/t from the Monique
Mine, versus processed tonnage of 51,541 tonnes at an average
grade of 1.90 g/t in 2013, which included only 3 months of
commercial production. Annual gold sales from this mine totaled
23,490 ounces at an average price of CAN$1,387 (US$1,256) in the
12 months of 2014, versus gold sales of 2,976 ounces at an
average price of CAN$1,328 (US$1,265) per ounce in the three
months of commercial production in 2013. Annual cash costs of
CAN$910 (US$824) reflect a full year of production, and compared
to cash costs of CAN$1,290 (US$1,230) in the year-ago period,
which included the first three months of commercial
operation.
Mining activities at the Monique open-pit were completed in
the last week of January 2015. Along with the ore that was
generated in the first month of 2015, the on-site stockpile of
over 158,000 tonnes of ore at 1.81 g/t as at the end of December
2014 will continue to be batch processed at the Corporation's
Camflo Mill through to the third quarter of 2015.
W Zone Mine
|
Three months ended
|
Fiscal year ended
|
|
December 31,
|
December 31, |
December 31,
|
December 31, |
|
2014
|
2013 |
2014
|
2013 |
|
|
|
|
|
Gold Poured
|
|
|
|
|
Tonnes |
-
|
23,185 |
36,789
|
23,185 |
Head grade
(g/t)
|
-
|
3.26 |
4.25
|
3.26 |
Gold recovery
(%)
|
-
|
95.65 |
97.45
|
95.65 |
Recovered grade
(g/t)
|
-
|
3.12 |
4.14
|
3.12 |
Ounces poured |
-
|
2,324 |
4,900
|
2,324 |
|
|
|
|
|
Gold Sold
|
|
|
|
|
Tonnes |
-
|
23,262 |
37,055
|
23,262 |
Head grade
(g/t)
|
-
|
3.25 |
4.25
|
3.25 |
Gold recovery
(%)
|
-
|
95.65 |
97.45
|
95.65 |
Recovered grade
(g/t)
|
-
|
3.11 |
4.14
|
3.11 |
Ounces sold |
-
|
2,326 |
4,929
|
2,326 |
Cash cost per ounce
(CAN$)
|
-
|
1,441 |
992
|
1,441 |
Cash cost per ounce
(US$)
|
-
|
1,373 |
899
|
1,373 |
A total of 37,055 tonnes of ore were processed at an average
grade of 4.25 g/t from the W Zone on the Beaufor Mine property in
2014. Annual gold sales from this mine were 4,929 ounces at an
average price of CAN$1,405 (US$1,272) per ounce. This compared to
23,262 tonnes at an average grade of 3.25 g/t, and gold sales of
2,326 ounces at an average price of CAN$1,328 (US$1,265) in the
year-ago period. Cash costs at the operation were CAN$992
(US$899) in 2014, versus CAN$1,441 (US$1,373) in 2013, a result
of the cessation of development related costs when operations
were ceased in the second quarter of 2014. Following the end of
mining at the W Zone in the second quarter of 2014, assets from
the operation were transferred to the Corporation's Beaufor Mine
and Island Gold Mine.
Camflo Mill
The Camflo Mill processed a total of 115,694 tonnes during the
fourth quarter of 2014, versus 106,806 tonnes in the comparable
period of 2013. For the full year, a total of 435,371 tonnes were
processed at the Camflo Mill, up 37% from the 317,038 tonnes
processed in 2013. This increase was attributable to the
contribution of a full year of commercial production from the
Monique Mine in 2014, versus only three months in the prior year.
The Corporation expects to continue operating the Camflo Mill at
full capacity through the third quarter of 2015, after which
utilization rates are expected to decrease to approximately 30%
when only ore from the Beaufor Mine will continue to be processed
once the Monique stockpile has been milled. The Corporation will
pursue and evaluate opportunities to fill the future unused
capacity at the mill.
Renaud Adams, President and Chief Executive Officer
RICHMONT MINES - MINERAL RESERVE AND RESOURCE
ESTIMATES
1
|
|
December 31, 2014
|
|
December 31, 2013 |
|
Tonnes
|
Grade
|
|
Ounces
|
|
Tonnes |
|
Grade |
|
Ounces |
|
(metric)
|
(g/t Au)
|
|
contained
|
|
(metric) |
|
(g/t Au) |
|
contained |
|
|
|
|
|
|
|
|
|
|
|
Island Gold Mine
|
|
|
|
|
|
|
|
|
|
|
Proven Reserves
2 |
173,000 |
6.25 |
|
34,700 |
|
251,500 |
|
5.95 |
|
48,100 |
Proven Reserves
2
(below -400 m) |
86,000 |
6.57 |
|
18,150 |
|
- |
|
- |
|
- |
Probable Reserves
2 |
290,500 |
5.91 |
|
55,300 |
|
393,000 |
|
6.04 |
|
76,350 |
Probable Reserves
2
(below -400 m) |
345,500 |
6.81 |
|
75,600 |
|
88,500 |
|
6.70 |
|
19,050 |
|
|
|
|
|
|
|
|
|
|
|
Total Proven & Probable Reserves
2 |
895,000
|
6.39
|
|
183,750
|
|
733,000 |
|
6.09 |
|
143,500 |
|
|
|
|
|
|
|
|
|
|
|
Measured Resources |
26,000 |
5.30 |
|
4,400 |
|
28,000 |
|
5.57 |
|
5,050 |
Indicated Resources |
269,500 |
6.98 |
|
60,450 |
|
255,500 |
|
7.23 |
|
59,400 |
Indicated Resources
3
(below -400 m) |
438,000 |
10.95 |
|
154,200 |
|
456,000 |
|
11.52 |
|
168,900 |
|
|
|
|
|
|
|
|
|
|
|
Total Measured & Indicated Resources |
733,500
|
9.29
|
|
219,050
|
|
739,500 |
|
9.81 |
|
233,350 |
|
|
|
|
|
|
|
|
|
|
|
Inferred Resources |
369,500 |
6.97 |
|
82,800 |
|
363,000 |
|
7.09 |
|
82,750 |
Inferred Resources
3
(below -400 m) |
3,178,000 |
9.00 |
|
919,950 |
|
3,196,000 |
|
9.29 |
|
954,600 |
|
|
|
|
|
|
|
|
|
|
|
Total Inferred Resources |
3,547,500
|
8.79
|
|
1,002,750
|
|
3,559,000 |
|
9.07 |
|
1,037,350 |
|
|
|
|
|
|
|
|
|
|
|
Beaufor Mine
4 |
|
|
|
|
|
|
|
|
|
|
Proven Reserves
2 |
53,000 |
7.13 |
|
12,100 |
|
82,000 |
|
5.54 |
|
14,600 |
Probable Reserves
2 |
91,500 |
7.02 |
|
20,650 |
|
130,500 |
|
7.00 |
|
29,350 |
|
|
|
|
|
|
|
|
|
|
|
Total Proven and Probable Reserves |
144,500
|
7.06
|
|
32,750
|
|
212,500 |
|
6.43 |
|
43,950 |
|
|
|
|
|
|
|
|
|
|
|
Measured Resources |
111,500 |
5.30 |
|
19,000 |
|
107,500 |
|
5.50 |
|
19,000 |
Indicated Resources |
805,500 |
6.60 |
|
170,850 |
|
803,500 |
|
6.56 |
|
169,500 |
|
|
|
|
|
|
|
|
|
|
|
Total Measured & Indicated Resources |
917,000
|
6.44
|
|
189,850
|
|
911,000 |
|
6.44 |
|
188,500 |
|
|
|
|
|
|
|
|
|
|
|
Inferred Resources |
743,000
|
6.51
|
|
155,600
|
|
906,000 |
|
6.50 |
|
189,200 |
|
|
|
|
|
|
|
|
|
|
|
Monique Mine
5 |
|
|
|
|
|
|
|
|
|
|
Proven Reserves
2 |
- |
- |
|
- |
|
14,500 |
|
1.42 |
|
650 |
Probable Reserves
2 |
14,500 |
3.16 |
|
1,450 |
|
401,000 |
|
2.33 |
|
30,050 |
|
|
|
|
|
|
|
|
|
|
|
Total Proven & Probable Reserves
2 |
14,500
|
3.16
|
|
1,450
|
|
416,000 |
|
2.30 |
|
30,700 |
|
|
|
|
|
|
|
|
|
|
|
Indicated Resources |
107,500
|
4.88
|
|
16,850
|
|
107,500 |
|
4.88 |
|
16,850 |
|
|
|
|
|
|
|
|
|
|
|
Wasamac Gold Property
6 |
|
|
|
|
|
|
|
|
|
|
Measured Resources |
3,124,500 |
2.75 |
|
276,550 |
|
3,124,500 |
|
2.75 |
|
276,550 |
Indicated Resources |
12,127,000 |
2.89 |
|
1,125,700 |
|
12,127,000 |
|
2.89 |
|
1,125,700 |
|
|
|
|
|
|
|
|
|
|
|
Total Measured & Indicated Resources |
15,251,500
|
2.86
|
|
1,402,250
|
|
15,251,500 |
|
2.86 |
|
1,402,250 |
|
|
|
|
|
|
|
|
|
|
|
Inferred Resources |
18,759,000
|
2.66
|
|
1,605,400
|
|
18,759,000 |
|
2.66 |
|
1,605,400 |
|
|
|
|
|
|
|
|
|
|
|
Francoeur Gold Property
6
,
7 |
|
|
|
|
|
|
|
|
|
|
Measured Resources |
40,000 |
5.89 |
|
7,600 |
|
40,000 |
|
5.89 |
|
7,600 |
Indicated Resources |
280,000 |
6.55 |
|
59,000 |
|
280,000 |
|
6.55 |
|
59,000 |
|
|
|
|
|
|
|
|
|
|
|
Total Measured & Indicated Resources |
320,000
|
6.47
|
|
66,600
|
|
320,000 |
|
6.47 |
|
66,600 |
|
|
|
|
|
|
|
|
|
|
|
Inferred Resources |
18,000
|
7.17
|
|
4,150
|
|
18,000 |
|
7.17 |
|
4,150 |
|
|
|
|
|
|
|
|
|
|
|
TOTAL GOLD
|
|
|
|
|
|
|
|
|
|
|
Proven + Probable Reserves |
1,054,000
|
6.43
|
|
217,950
|
|
1,361,500 |
|
4.98 |
|
218,150 |
Measured + Indicated Resources |
17,329,500
|
3.40
|
|
1,894,600
|
|
17,329,500 |
|
3.42 |
|
1,907,550 |
Inferred Resources |
23,067,500
|
3.73
|
|
2,767,900
|
|
23,242,000 |
|
3.80 |
|
2,836,100 |
1 |
Mineral Resources presented are exclusive of Mineral
Reserves. Mineral Resources that are not Mineral Reserves
do not have demonstrated economic viability. |
2 |
In
2014, based on a gold price of US$1,200/oz and an exchange
rate of CAN$1.0833 = US$1.00 (in 2013, a price of
US$1,225/oz and an exchange rate of CAN$1.06 = US$1.00 were
used). |
3 |
Underground Resources established for the C Zone and six
other lateral zones below a vertical depth of -400
metres. |
4 |
W
Zone and 350 Zone Mineral Reserves and Mineral Resources
are included with the Beaufor Mine as at December 31, 2014
and 2013. |
5 |
Monique Mineral Reserves are open-pit, and Mineral
Resources are located underground directly below the
open-pit. |
6 |
Underground Mineral Resources established as of December
31, 2012. |
7 |
Francoeur Mine closed in November 2012. |
About Richmont Mines Inc.
Richmont Mines has produced over 1.5 million ounces of gold
from its operations in Quebec, Ontario and Newfoundland since
beginning production. The Corporation currently produces gold
from the Island Gold Mine in Ontario, and the Beaufor and Monique
Mines in Quebec. The Corporation is also advancing development of
the extension at depth of the Island Gold Mine in Ontario. With
over 23 years of experience in gold production, exploration and
development, and prudent financial management, the Corporation is
well-positioned to cost-effectively build its Canadian reserve
base and to successfully enter its next phase of growth. Richmont
routinely posts news and other important information on its
website (
www.richmont-mines.com
).
Forward-Looking Statements
This news release contains forward-looking statements that
include risks and uncertainties. When used in this news release,
the words "estimate", "project", "anticipate", "expect",
"intend", "believe", "hope", "may" and similar expressions, as
well as "will", "shall" and other indications of future tense,
are intended to identify forward-looking statements. The
forward-looking statements are based on current expectations and
apply only as of the date on which they were made.
The factors that could cause actual results to differ
materially from those indicated in such forward-looking
statements include changes in the prevailing price of gold, the
Canadian-United States exchange rate, grade of ore mined and
unforeseen difficulties in mining operations that could affect
revenue and production costs. Other factors such as uncertainties
regarding government regulations could also affect the results.
Other risks may be set out in Richmont Mines' Annual Information
Form, Annual Reports and periodic reports.
Cautionary note to US investors concerning resource
estimates
Information in this press release is intended to comply with
the requirements of the Toronto Stock Exchange and applicable
Canadian securities legislation, which differ in certain respects
with the rules and regulations promulgated under the United
States Securities Exchange Act of 1934, as amended ("Exchange
Act"), as promulgated by the SEC. The Reserve and Resource
estimates in this press release were prepared in accordance with
Regulation 43-101 adopted by the Canadian Securities
Administrators. The requirements of Regulation 43-101 differ
significantly from the requirements of the United States
Securities and Exchange Commission (the "SEC").
U.S. Investors are urged to consider the disclosure in our
annual report on Form 20-F, File No. 001-14598, as filed with the
SEC under the Exchange Act, which may be obtained from us
(without cost) or from the SEC's web site:
http://sec.gov/edgar.shtml
.
Regulation 43-101
The Mineral Reserve and Resource estimations as of December
31, 2014 and December 31, 2013 were performed by qualified
persons as defined by Regulation 43-101 and were supervised by
Mr. Daniel Adam, Geo., Ph.D., Vice-President, Exploration, an
employee of Richmont Mines Inc. Please refer to the SEDAR website
(
www.sedar.com
) for full reports and additional corporate documentation.
A 43-101 technical report was completed for the Island Gold
Mine as of December 31, 2013, and was filed on SEDAR on March 31,
2014.
The Reserve and Resource estimations of Beaufor, Island Gold
and Monique mines were prepared using a gold price of US$1,200
(CAN$1,300) per ounce for 2014 and US$1,225 (CAN$1,300) per ounce
for 2013.
The resource estimation of the Francoeur Mine was established
at the end of 2012 using a gold price of US$1,450 (CAN$1,450) per
ounce, and was prepared by qualified persons as defined by
Regulation 43-101 and was supervised by Mr. Daniel Adam, Geo.,
Ph.D., Vice-President, Exploration, an employee of Richmont Mines
Inc.
The resource estimate of the Wasamac property was established
at the end of 2012 using a gold price of US$1,450 (CAN$1,450) per
ounce. It was performed by Mr. Daniel Adam, Geo., Ph.D.,
Vice-President, Exploration, an employee of Richmont Mines Inc.,
and a qualified person as defined by Regulation 43-101.
The Monique Mine Reserve and Resource estimate as of December
31, 2013 was established using a gold price of US$1,225
(CAN$1,300) per ounce and was performed by Mr. Daniel Adam, Geo.,
Ph.D., Vice-President, Exploration, an employee of Richmont Mines
Inc., and a qualified person as defined by Regulation 43-101. A
43-101 technical report was completed for the first Reserve
estimation of this property on July 1
st
, 2013, and was filed on SEDAR on September 13, 2013.
FINANCIAL STATEMENTS FOLLOW.
EXPLORATION AND PROJECT EVALUATION
|
|
(in thousands of Canadian dollars) |
|
|
Three months ended
|
|
Fiscal year ended
|
|
|
December 31,
|
December 31, |
|
December 31,
|
December 31, |
|
|
2014
|
2013 |
|
2014
|
2013 |
|
|
$
|
$ |
|
$
|
$ |
|
|
|
|
|
|
|
|
Exploration costs - Mines |
|
|
|
|
|
|
|
Island Gold |
442
|
512 |
|
771
|
4,532 |
|
|
Beaufor |
606
|
308 |
|
1,733
|
1,929 |
|
|
|
|
|
|
|
|
|
1,048
|
820 |
|
2,504
|
6,461 |
|
|
|
|
|
|
|
|
Exploration costs - Other properties |
|
|
|
|
|
|
|
Wasamac |
20
|
92 |
|
169
|
1,102 |
|
|
Monique |
-
|
2 |
|
2
|
221 |
|
|
Other |
114
|
42 |
|
154
|
347 |
|
|
Project evaluation |
94
|
46 |
|
357
|
474 |
|
|
|
|
|
|
|
|
Exploration and project evaluation before |
|
|
|
|
|
|
depreciation and exploration tax credits |
1,276
|
1,002 |
|
3,186
|
8,605 |
|
|
|
|
|
|
|
|
|
Depreciation |
13
|
23 |
|
71
|
229 |
|
|
Exploration tax credits |
1,242
|
(96 |
) |
515
|
(959 |
) |
|
|
|
|
|
|
|
|
2,531
|
929 |
|
3,772
|
7,875 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL DATA
null
|
Three months ended
|
|
Fiscal year ended
|
|
|
December 31,
|
December 31, |
|
December 31,
|
December 31, |
|
CAN$ |
2014
|
2013 |
|
2014
|
2013 |
|
|
|
|
|
|
|
|
Results (in thousands of $)
|
|
|
|
|
|
|
Revenues |
29,562
|
27,828 |
|
132,196
|
90,213 |
|
Net earnings (loss) from continuing operations |
1,040
|
(28,686 |
) |
8,182
|
(33,162 |
) |
Net loss from discontinued operation |
-
|
(389 |
) |
-
|
(1,098 |
) |
Net earnings (loss) |
1,040
| (29,075 |
) |
8,182 |
(34,260 |
) |
Adjusted net earnings (loss)1 |
1,040 |
(5,970 |
) |
8,182 |
(11,041 |
) |
Cash flows from operating activities |
3,058 |
8,160 |
|
27,279 |
3,456 |
|
|
|
|
|
|
|
|
Results per share ($) |
|
|
|
|
|
|
Basic earnings (loss) from continuing operations |
0.02 |
(0.72 |
) |
0.18 |
(0.84 |
) |
Basic loss from discontinued operation |
- |
(0.01 |
) |
- |
(0.03 |
) |
Basic net earnings (loss) |
0.02 |
(0.73 |
) |
0.18 |
(0.87 |
) |
Basic adjusted net earnings1 |
0.02 |
(0.15 |
) |
0.18 |
(0.28 |
) |
Diluted earnings (loss) from continuing operations |
0.02 |
(0.72 |
) |
0.18 |
(0.84 |
) |
Diluted net earnings (loss) |
0.02 |
(0.73 |
) |
0.18 |
(0.87 |
) |
Cash flows from operating activities |
0.06 |
0.21 |
|
0.60 |
0.09 |
|
|
|
|
|
|
|
|
Basic weighted average number of common shares outstanding (thousands) |
47,993 |
39,596 |
|
45,261 |
39,594 |
|
Diluted weighted average number of common shares outstanding (thousands) |
48,805 |
39,596 |
|
45,700 |
39,594 |
|
|
|
|
|
|
|
|
Average selling price of gold per ounce |
1,361 |
1,328 |
|
1,396 |
1,419 |
|
Average selling price of gold per ounce (US$) |
1,198 |
1,265 |
|
1,264 |
1,378 |
|
1 |
The adjusted net loss is a financial performance measure with no standard definition under IFRS. In 2013, adjusted net loss excludes the $13,472 impairment loss on W Zone Mine's assets, the $1,098 net loss from discontinued operation, the $7,484 write-off of deferred income and mining tax assets and the $1,165 write-off of financing costs. |
|
|
|
|
|
|
|
December 31, 2014 |
December 31, 2013 |
|
|
|
Financial position (in thousands of $) |
|
|
Total assets |
148,771 |
123,328 |
Working capital |
34,837 |
13,952 |
Long-term debt |
5,724 |
5,196 |
|
|
|
|
|
|
|
|
|
SALES AND PRODUCTION DATA |
|
Three-month period ended December 31 |
|
|
Ounces of gold |
Cash cost |
|
|
|
|
(per ounce sold) |
|
Year |
Sales |
Production |
US$ |
CAN$ |
Island Gold Mine |
2014 |
9,052 |
9,052 |
1,151 |
1,307 |
|
2013 |
11,565 |
11,587 |
901 |
946 |
Beaufor Mine |
2014 |
5,839 |
6,633 |
823 |
935 |
|
2013 |
4,051 |
3,631 |
1,423 |
1,494 |
W Zone Mine |
2014 |
- |
- |
- |
- |
|
2013 |
2,326 |
2,324 |
1,373 |
1,441 |
Monique Mine |
2014 |
6,775 |
8,169 |
516 |
586 |
|
2013 |
2,976 |
4,521 |
1,230 |
1,290 |
Total - Continuing operations |
2014 |
21,666 |
23,854 |
864 |
981 |
|
2013 |
20,918 |
22,063 |
1,102 |
1,156 |
Francoeur Mine - Discontinued operation |
2014 |
- |
- |
- |
- |
|
2013 |
- |
- |
- |
- |
Note: |
Average exchange rate used for Q4-2014: US$1 = CAN$1.1356 |
|
Average exchange rate used for Q4-2013: US$1 = CAN$1.0494 |
|
|
|
|
|
|
|
Fiscal year ended December 31 |
|
|
Ounces of gold |
Cash cost |
|
|
|
|
(per ounce sold) |
|
Year |
Sales |
Production |
US$ |
CAN$ |
Island Gold Mine |
2014 |
42,078 |
42,042 |
889 |
982 |
|
2013 |
35,113 |
34,691 |
1,092 |
1,124 |
Beaufor Mine |
2014 |
24,006 |
24,959 |
856 |
946 |
|
2013 |
23,028 |
23,076 |
1,051 |
1,082 |
W Zone Mine |
2014 |
4,929 |
4,900 |
899 |
992 |
|
2013 |
2,326 |
2,324 |
1,373 |
1,441 |
Monique Mine |
2014 |
23,490 |
23,307 |
824 |
910 |
|
2013 |
2,976 |
4,521 |
1,230 |
1,290 |
Total - Continuing operations |
2014 |
94,503 |
95,208 |
866 |
956 |
|
2013 |
63,443 |
64,612 |
1,095 |
1,128 |
Francoeur Mine - Discontinued operation |
2014 |
- |
- |
- |
- |
|
2013 |
1,299 |
1,211 |
1,350 |
1,390 |
Note: |
Average exchange rate used for 2014: US$1 = CAN$1.1045 |
|
Average exchange rate used for 2013: US$1 = CAN$1.0299 |
|
|
|
|
|
|
CONSOLIDATED INCOME STATEMENTS |
|
(in thousands of Canadian dollars) |
|
|
Three months ended |
|
Fiscal year ended |
|
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
2014 |
|
2013 |
|
2014 |
|
2013 |
|
|
$ |
|
$ |
|
$ |
|
$ |
|
|
|
|
|
|
|
|
|
|
CONTINUING OPERATIONS |
|
|
|
|
|
|
|
|
|
Revenues |
29,562 |
|
27,828 |
|
132,196 |
|
90,213 |
|
|
Cost of sales |
25,103 |
|
31,008 |
|
111,898 |
|
85,832 |
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT (LOSS) |
4,459 |
|
(3,180 |
) |
20,298 |
|
4,381 |
|
|
|
|
|
|
|
|
|
|
OTHER EXPENSES (REVENUES) |
|
|
|
|
|
|
|
|
|
Exploration and project evaluation |
2,531 |
|
929 |
|
3,772 |
|
7,875 |
|
|
Administration |
1,945 |
|
2,016 |
|
7,627 |
|
7,514 |
|
|
Loss (gain) on disposal of long-term assets |
388 |
|
(13 |
) |
639 |
|
105 |
|
|
Impairment loss on W Zone Mine |
- |
|
13,472 |
|
- |
|
13,472 |
|
|
Other revenues |
(66 |
) |
(101 |
) |
(102 |
) |
(154 |
) |
|
|
|
|
|
|
|
|
|
|
4,798 |
|
16,303 |
|
11,936 |
|
28,812 |
|
|
|
|
|
|
|
|
|
|
OPERATING EARNINGS (LOSS) |
(339 |
) |
(19,483 |
) |
8,362 |
|
(24,431 |
) |
|
|
|
|
|
|
|
|
|
Financial expenses |
28 |
|
1,189 |
|
111 |
|
1,263 |
|
Financial revenues |
(131 |
) |
(83 |
) |
(436 |
) |
(526 |
) |
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) BEFORE MINING AND INCOME TAXES |
(236 |
) |
(20,589 |
) |
8,687 |
|
(25,168 |
) |
|
|
|
|
|
|
|
|
|
MINING AND INCOME TAXES |
(1,276 |
) |
8,097 |
|
505 |
|
7,994 |
|
|
|
|
|
|
|
|
|
|
NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS |
1,040 |
|
(28,686 |
) |
8,182 |
|
(33,162 |
) |
|
|
|
|
|
|
|
|
|
NET LOSS FROM DISCONTINUED OPERATION |
- |
|
(389 |
) |
- |
|
(1,098 |
) |
|
|
|
|
|
|
|
|
|
NET EARNINGS (LOSS) |
1,040 |
|
(29,075 |
) |
8,182 |
|
(34,260 |
) |
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) PER SHARE |
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share |
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from continuing operations |
0.02 |
|
(0.72 |
) |
0.18 |
|
(0.84 |
) |
|
|
Loss from discontinued operation |
- |
|
(0.01 |
) |
- |
|
(0.03 |
) |
|
|
|
|
|
|
|
|
|
|
Basic net earnings (loss) |
0.02 |
|
(0.73 |
) |
0.18 |
|
(0.87 |
) |
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share |
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from continuing operations |
0.02 |
|
(0.72 |
) |
0.18 |
|
(0.84 |
) |
|
|
Loss from discontinued operation |
- |
|
(0.01 |
) |
- |
|
(0.03 |
) |
|
|
|
|
|
|
|
|
|
Diluted net earnings (loss) |
0.02 |
|
(0.73 |
) |
0.18 |
|
(0.87 |
) |
|
|
|
|
|
|
|
|
|
BASIC WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING (in thousands) |
47,993 |
|
39,596 |
|
45,261 |
|
39,594 |
|
|
|
|
|
|
|
|
|
|
DILUTED WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING (in thousands) |
48,805 |
|
39,596 |
|
45,700 |
|
39,594 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
(in thousands of Canadian dollars) |
|
|
December 31, |
|
December 31, |
|
|
2014 |
|
2013 |
|
|
$ |
|
$ |
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
Cash |
35,273 |
|
17,551 |
|
|
Guaranteed investment certificate, 0.9%, maturing in February 2015 |
474 |
|
- |
|
|
Receivables |
3,139 |
|
3,008 |
|
|
Income and mining tax assets |
1,558 |
|
925 |
|
|
Exploration tax credits receivable |
5,300 |
|
5,670 |
|
|
Inventories |
13,814 |
|
9,075 |
|
|
|
|
|
|
|
59,558 |
|
36,229 |
|
|
|
|
|
|
RESTRICTED DEPOSITS |
1,016 |
|
3,421 |
|
|
|
|
|
|
PROPERTY, PLANT AND EQUIPMENT |
88,197 |
|
83,678 |
|
|
|
|
|
|
TOTAL ASSETS |
148,771 |
|
123,328 |
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
Payables, accruals and provisions |
19,487 |
|
19,897 |
|
|
Income and mining taxes payable |
3,241 |
|
1,225 |
|
|
Current portion of long-term debt |
1,799 |
|
825 |
|
|
Current portion of asset retirement obligations |
194 |
|
330 |
|
|
|
|
|
|
|
24,721 |
|
22,277 |
|
|
|
|
|
|
LONG-TERM DEBT |
5,724 |
|
5,196 |
|
|
|
|
|
|
ASSET RETIREMENT OBLIGATIONS |
8,043 |
|
7,603 |
|
|
|
|
|
|
DEFERRED INCOME AND MINING TAX LIABILITIES |
2,326 |
|
1,899 |
|
|
|
|
|
|
TOTAL LIABILITIES |
40,814 |
|
36,975 |
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
Share capital |
144,535 |
|
132,202 |
|
|
Contributed surplus |
12,342 |
|
11,253 |
|
|
Deficit |
(48,920 |
) |
(57,102 |
) |
|
|
|
|
|
TOTAL EQUITY |
107,957 |
|
86,353 |
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY |
148,771 |
|
123,328 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
(in thousands of Canadian dollars) |
|
|
Three months ended |
|
Fiscal year ended |
|
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
2014 |
|
2013 |
|
2014 |
|
2013 |
|
|
$ |
|
$ |
|
$ |
|
$ |
|
|
|
|
|
|
|
|
|
|
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
Net earnings (loss) |
1,040 |
|
(29,075 |
) |
8,182 |
|
(34,260 |
) |
|
Adjustments for: |
|
|
|
|
|
|
|
|
|
|
Depreciation and depletion |
3,899 |
|
6,889 |
|
21,808 |
|
14,674 |
|
|
|
Impairment loss on W Zone Mine's assets |
- |
|
13,472 |
|
- |
|
13,472 |
|
|
|
Adjustment to estimated recoverable value of remaining Francoeur Mine's assets |
- |
|
- |
|
- |
|
867 |
|
|
|
Income and mining taxes received (paid) |
5 |
|
(37 |
) |
1,304 |
|
(1,541 |
) |
|
|
Interest revenues |
(118 |
) |
(62 |
) |
(409 |
) |
(409 |
) |
|
|
Interest and accretion expenses on long-term debt |
37 |
|
44 |
|
161 |
|
66 |
|
|
|
Share-based compensation |
601 |
|
717 |
|
2,008 |
|
2,521 |
|
|
|
Share-based compensation settled in cash |
(60 |
) |
(725 |
) |
(60 |
) |
(725 |
) |
|
|
Adjustment to closure allowance |
(60 |
) |
- |
|
(60 |
) |
- |
|
|
|
Financing expenses |
- |
|
1,165 |
|
- |
|
1,165 |
|
|
|
Accretion expense - asset retirement obligations |
28 |
|
23 |
|
111 |
|
81 |
|
|
|
Loss on disposal of long-term assets |
387 |
|
93 |
|
639 |
|
193 |
|
|
|
Gain on disposal of shares of publicly-traded companies |
- |
|
- |
|
- |
|
(12 |
) |
|
|
Mining and income taxes |
(1,276 |
) |
8,097 |
|
505 |
|
7,994 |
|
|
|
|
|
|
|
|
|
|
|
4,483 |
|
601 |
|
34,189 |
|
4,086 |
|
|
|
|
|
|
|
|
|
|
|
Net change in non-cash working capital items |
(1,425 |
) |
7,559 |
|
(6,910 |
) |
(630 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from operating activities |
3,058 |
|
8,160 |
|
27,279 |
|
3,456 |
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
Disposition of shares of publicly-traded companies |
- |
|
- |
|
- |
|
12 |
|
|
Interest received |
109 |
|
55 |
|
390 |
|
420 |
|
|
Restricted deposits |
8 |
|
- |
|
(704 |
) |
(2,737 |
) |
|
Guaranteed investment certificate |
- |
|
- |
|
2,650 |
|
- |
|
|
Property, plant and equipment - Island Gold Mine |
(4,141 |
) |
(8,285 |
) |
(20,168 |
) |
(27,770 |
) |
|
Property, plant and equipment - Beaufor Mine |
(49 |
) |
(587 |
) |
(1,623 |
) |
(980 |
) |
|
Property, plant and equipment - W Zone Mine |
- |
|
(761 |
) |
(234 |
) |
(3,779 |
) |
|
Property, plant and equipment - Monique Mine |
- |
|
(1,776 |
) |
(21 |
) |
(8,358 |
) |
|
Property, plant and equipment - Other |
(262 |
) |
(431 |
) |
(1,006 |
) |
(1,001 |
) |
|
Disposition of property, plant and equipment |
40 |
|
715 |
|
390 |
|
869 |
|
|
|
|
|
|
|
|
|
|
Cash flows used in investing activities |
(4,295 |
) |
(11,070 |
) |
(20,326 |
) |
(43,324 |
) |
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
Payments of asset retirement obligations |
(19 |
) |
- |
|
(74 |
) |
- |
|
|
Issue of common shares |
721 |
|
- |
|
12,762 |
|
62 |
|
|
Common shares issue costs |
- |
|
- |
|
(934 |
) |
- |
|
|
Interest paid |
(36 |
) |
(44 |
) |
(160 |
) |
(66 |
) |
|
Long term debt |
(1,859 |
) |
- |
|
- |
|
- |
|
|
Financing expenses |
- |
|
(72 |
) |
- |
|
(727 |
) |
|
Payment of finance leases obligations |
(194 |
) |
(603 |
) |
(825 |
) |
(1,660 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from (used in) financing activities |
(1,387 |
) |
(719 |
) |
10,769 |
|
(2,391 |
) |
|
|
|
|
|
|
|
|
|
Net change in cash |
(2,624 |
) |
(3,629 |
) |
17,722 |
|
(42,259 |
) |
|
|
|
|
|
|
|
|
|
Cash, beginning of period |
37,897 |
|
21,180 |
|
17,551 |
|
59,810 |
|
|
|
|
|
|
|
|
|
|
Cash, end of period |
35,273 |
|
17,551 |
|
35,273 |
|
17,551 |
|
|
|
|
|
|
|
|
|
|
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