GOLD: Revenues up, costs down for Richmont Mines

MONTREAL – Richmont Mines has amassed 2014 gold sales of 94,503 oz, a 49% jump from the year before. Cash costs were US$866 per oz, 15% below 2013 levels.

Revenue last year was up 47% to $132.2 million, compared to $90.2 million in 2013. At $8.2 million, net earnings from continuing operations were a welcome improvement from a net loss of $90.2 million in the same category in 2013. Cash flow in 2014 was $27.3 million, an almost seven-fold increase from $3.5 million in 2013.

With a strong treasury thanks to a recent financing, Richmont plans to develop additional ore sources at depth in the Island Gold mine. The company has pegged $27.6 million for the development work and a further $20.7 million for sustaining capital. This year an access ramp will be driven to at least 750 metres below surface, and a secondary ramp will be driven to a depth of 570 metres in preparation to being mining the deeper portion of the deposit in 2016.

Richmont offered 2015 guidance of 78,000 to 88,000 oz of gold at a cash cost of C$935 to C$1,035 per oz.

More information about the planned work at the Island Gold mine is available at Richmont-Mines.com.