Richmont Mines Announces Second Quarter 2012 Results
MONTREAL, QUEBEC -- (Marketwire) -- 08/03/12 -- Richmont Mines Inc. (TSX: RIC)(NYSE Amex: RIC)(NYSE MKT: RIC), ("Richmont" or the "Corporation") announces financial and operational results for its second quarter ended June 30, 2012. Financial results are based on International Financial Reporting Standards ("IFRS") and dollars are reported in Canadian currency, unless otherwise noted.
Highlights:
-- Q2 2012 net loss of $30.9 million, or $0.92 per share, including the
previously announced $33.2 million ($27.9 million after-tax) write-down
on the Francoeur Mine assets, versus Q2 2011 net earnings of $5.0
million, or $0.16 per share;
-- Q2 2012 operating cash flow of ($4.5) million, or ($0.13) per share,
versus Q2 2011 operating cash flow of $7.7 million, or $0.25 per share;
-- Gold sales of 14,611 ounces at an average selling price of US$1,608
(CAN$1,617) in Q2 2012, versus gold sales of 20,085 ounces at an average
selling price of US$1,476 (CAN$1,460) in the prior year;
-- 55,000 metre drill program on Wasamac in 2012 continues to yield
positive results; 35,000 metres of drilling completed on Wasamac and
optioned Globex land package as of the end of June;
-- Commercial production at Francoeur Mine achieved; 5,000 Au ounces
expected in 2012;
-- $55.5 million in cash and cash equivalents as of June 30, 2012, or $1.66
per share.
Commenting on Richmont's recent share price, Mr. Paul Carmel, President and CEO of Richmont Mines noted: "The second quarter has been a challenging one for Richmont, and our share price performance has reflected this. The overall downward trend in the stock market, particularly for gold producers, has also been an important contributing factor to our weak share price. That being said, we firmly believe that Richmont's solid fundamentals, which include our operating mines, the strength of our management team and skilled workforce, the untapped potential of several of our exploration properties and our sound financial structure, provide an excellent foundation for future growth and the creation of shareholder value."
Regarding second quarter operational performance, Mr. Carmel noted: "Richmont has a well-earned reputation for being a good operator of challenging, underground, narrow-vein gold mines. By their nature, however, these mines can see grades vary quarter-by-quarter, as higher grade and lower grade portions of the veins are mined. In 2011, Richmont was mining high grade sections of several veins at the Beaufor Mine, which resulted in above-reserve grade results. In the first six months of 2012, however, lower-grade sections were mined, which translated into higher cash costs per ounce, most notably in the second quarter. Going forward, we expect recovered grades to improve to reserve-grade levels at Beaufor, as higher grade working areas are accessed. As a result cash costs at this mine, which were uncommonly high this quarter, should normalize. While results at the Island Gold Mine met our expectations in the quarter, year-to-date production is trending lower than anticipated and, as such, we are slightly reducing our production expectations for this mine in 2012 to 40,000 to 45,000 ounces of gold, from 45,000 to 50,000 ounces previously. Our 2013 production objectives for Island Gold, however, remain unchanged at 45,000 to 50,000 ounces of gold."
He continued: "With regards to our Francoeur Mine, we announced in early July that reserve and resource estimates at this asset were lower than previously thought following information obtained from definition drilling completed over 2011 and early 2012. We are disappointed with this outcome and the resulting write-down on assets that it necessitated. This project has been a major development effort for Richmont and, in spite of the lower life-of-mine production estimate, we are pleased to announce that commercial production at the mine has begun on August 1st. We are also optimistic about our planned exploration drilling on the West Zone, which remains open at depth."
Lastly, commenting on the Corporation's exploration efforts, Mr. Carmel added: "Our planned 55,000 metre exploration program in 2012 at Wasamac continues to yield favourable results. Approximately 35,000 metres have been completed on Wasamac and the optioned adjacent Globex land package in the first six months of the year. We will continue to update the market with drill results from these efforts throughout 2012. Exploration drill results at our Island Gold Mine at depth have also revealed very good possibilities, and we will continue to explore the untapped area below this mine's existing infrastructure. We remain committed to these exploration projects, and look forward to further evaluating their potential long-term benefit for the Corporation's shareholders as 2012 progresses."
Second Quarter Results
Precious metals revenue for the second quarter of 2012 was $23.6 million, down 19% from revenues of $29.3 million in the second quarter of 2011. A total of 14,611 ounces of gold were sold at an average price of US$1,608 (CAN$1,617) per ounce in the current quarter, versus gold sales of 20,085 ounces and an average realized sales price of US$1,476 (CAN$1,460) per ounce in the same period last year. The decline in revenue in the current quarter primarily reflects the lower number of ounces sold, these effects of which were only partially offset by an 11% increase in the average realized sales price per ounce of gold in Canadian dollars.
Cost of sales, which includes operating costs, royalties and some related depreciation and depletion expenses, totalled $18.5 million in the second quarter of 2012, up 4% from $17.8 million in the comparable period last year. The average cash cost per ounce of gold sold increased notably in both US dollar and Canadian dollar terms, to US$1,091 (CAN$1,097) in the second quarter, from US$776 (CAN$768) in the comparable period of 2011. This substantial increase was mostly driven by lower recovered grades at both operating mines.
Exploration and project evaluation costs, excluding exploration tax credits, totaled $6.7 million in the current quarter, versus $5.0 million in the comparable period of 2011. The higher costs reflect the Corporation's extensive exploration drilling programs in 2012, most notably at Wasamac and Island Gold Mine. On a segmented basis, exploration costs before tax credits were approximately $3.0 million at the Island Gold Mine, $2.8 million on Wasamac and the adjacent optioned Globex land package, and $0.6 million at the Beaufor Mine, while exploration and project evaluation costs at other properties amounted to $0.3 million during the current quarter.
The Corporation recorded several one-time items that negatively impacted financial results in the second quarter. Included in these was a $1.1 million severance payment to the Corporation's recently departed CEO, and a previously announced $33.2 million ($27.9 million after-tax) write-down on assets for the Francoeur Mine. Consequently, the Corporation generated a net loss for the second quarter of 2012 of $30.9 million, or $0.92 per share, compared with net earnings of $5.0 million, or $0.16 per share, in the second quarter of 2011.
Second Quarter News
Wasamac Exploration Property
The 55,000 metre exploration drilling program on Wasamac in 2012 is progressing well. In early May the Corporation released new drill results that included 6.40 g/t Au over 52.80 metres, 2.83 g/t Au over 71.76 metres and 4.61 g/t Au over 34.94 metres in the Main Zone (all cut grades and true widths). Please see the May 8, 2012 press release entitled "Richmont intercepts 6.40 g/t Au over 52.8 metres in Wasamac Main Zone, and announces five focus areas to improve project economics" for additional details.
As previously announced, Richmont will concentrate on optimizing the Wasamac project mine design throughout 2012. In particular, an emphasis will be placed on the Main Zone, where the geometry, grade, widths and metallurgy look the most promising. Three exploration drills are currently operating on this area in an effort to better define and expand the resource base. Engineering efforts are also underway to assess the economic impact of a smaller scale operation than that outlined in the preliminary economic assessment, focused on the Main Zone only, and scalable over time to respond to economic conditions.
Francoeur Mine
In early July 2012, the Corporation announced revised Reserve and Resource estimates for the Francoeur Mine using a US$1,400 (CAN$1,400) gold price and a 3.75 g/t Au cut-off grade, versus US$800 (CAN $800) and 5.15 g/t Au cut-off grade previously. Updated Proven and Probable Reserves for this mine are now estimated to be 504,687 tonnes grading 4.78 g/t Au, for 77,580 ounces of gold, versus 615,664 tonnes grading 6.91 g/t Au, for 136,749 ounces of gold previously. Measured and Indicated Resources are now estimated to be 33,301 tonnes at 4.20 g/t Au, for 4,499 ounces of gold, versus 76,449 tonnes grading 7.54 g/t Au for 18,541 ounces of gold previously, and Inferred Resources are now estimates to be 41,240 tonnes at 4.35 g/t Au, for 5,771 ounces of gold, versus 202,250 tonnes grading 5.95 g/t Au for 38,706 ounces of gold previously. Consequently, Richmont now expects the Francoeur Mine to produce 132,000 tonnes per year, or approximately 20,000 Au ounces, versus previous guidance of 30,000 to 35,000 Au ounces per year. As a result, Richmont recorded a non-cash write down in the second quarter of 2012 of $33.2 million pre-tax ($27.9 million after-tax), related to the lower anticipated production from the Francoeur Mine.
Richmont has invested a total of $10.2 million at the Francoeur Mine in the first six months of the year. Development efforts in the current quarter included 1,236 metres of underground development and 6,860 metres of definition drilling, which brought year-to-date figures to 2,652 metres and 14,403 metres, respectively. In the second quarter of 2012, a total of 20,477 tonnes of ore from Francoeur were processed at the Camflo Mill at an average grade of 4.30 g/t Au, generating 2,832 ounces of gold. An additional 9,229 tonnes of Francoeur ore were stockpiled at the mill, and will be processed during the third quarter.
The Corporation is pleased to announce that commercial production at the Francoeur Mine has recently commenced. Richmont expects commercial production of approximately 5,000 ounces of gold from the Francoeur Mine in 2012, with annual production levels to attain approximately 20,000 ounces of gold in 2013.
Six-Month Review
Precious metals revenue totalled $51.3 million for the six-month period ended June 30, 2012, down 8% from the $55.7 million in revenue for the same period in 2011. The decrease reflects a 21% decrease in the number of ounces of gold sold, the effects of which only partially mitigated by a 17% increase in the average selling price per ounce of gold in Canadian dollars.
Cost of sales, which includes operating costs, royalties, custom milling and amortization expenses were $36.9 million for the first six months of 2012, up 8% over operating costs of $34.2 million during the same period last year, primarily due to a 20% increase in tonnage from the Beaufor Mine and higher mining costs at Island Gold Mine. The average cash cost per ounce of gold sold increased to US$1,021 (CAN$1,027) in the first six-month period, from US$758 (CAN$750) in the comparable period of 2011, with the increase driven by lower recovered grades at both the Island Gold and Beaufor mines.
Exploration and project evaluation costs, excluding exploration tax credits, were $12.0 million in the first half of 2012, compared with $7.5 million during the same period in 2011, reflecting the Corporation's extensive exploration drilling program in 2012, most notably at the Island Gold Mine and the Wasamac gold property.
The Corporation generated a net loss of $28.8 million, or $0.86 per share, in the first half of 2012, which included a one-time severance cost of $2.0 million that was paid to the Corporation's recently departed CEO, and a $33.2 million ($27.9 million after-tax) write-down on the Francoeur Mine. This compared to net earnings of $13.7 million, or $0.44 per share, for the first half of 2011, which included $3.0 million of proceeds stemming from the sale of the Valentine Lake property in the first quarter of 2011.
Solid Cash Position and Capital Structure
Cash and cash equivalents totalled $55.5 million at June 30, 2012, down 13% or $8.0 million from the December 31, 2011 year-end level of $63.5 million. As of June 30, 2012, Richmont Mines had 579 employees, working capital of $56.5 million, 33.6 million shares outstanding, no gold or currency hedging contracts and long-term liabilities of $10.2 million.
Island Gold Mine
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Three months ended Six months ended
June 30, June 30, June 30, June 30,
2012 2011 2012 2011
----------------------------------------------------------------------------
Tonnes 63,488 58,860 121,411 131,240
Head grade (g/t) 5.45 6.21 5.52 6.29
Gold recovery (%) 96.21 96.03 96.09 96.08
Recovered grade (g/t) 5.25 5.96 5.30 6.05
Ounces sold 10,711 11,283 20,689 25,516
Cash cost per ounce (US$) 895 780 897 711
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During the second quarter of 2012 a total of 63,488 tonnes of ore were processed from the Island Gold Mine at a recovered grade of 5.25 g/t Au. This represented an 8% increase from the 58,860 tonnes of ore processed in the second quarter of 2011, during which inclement weather conditions caused electrical and mechanical failures that led to an unplanned mill shut down. The cash cost per ounce increased 15% in US dollar terms and 17% in Canadian dollar terms to US$895 (CAN$900) in the current quarter, from US$780 (CAN$772) last year, primarily due to a lower average recovered grade of 5.25 g/t in the quarter, versus 5.96 g/t in the prior year and a slightly higher year-over-year cost per tonne. The Island Gold Mine sold a total of 10,711 ounces of gold at an average price of US$1,612 (CAN$1,621) in the second quarter of 2012, versus gold sales of 11,283 ounces of gold at an average price of US$1,484 (CAN$1,468) per ounce in the comparable period last year.
For the first six months of 2012, 121,411 tonnes of ore were processed at a recovered grade of 5.30 g/t, and 20,689 ounces of gold were sold at an average price of US$1,643 (CAN$1,652) per ounce. This compared to tonnage of 131,240 at a recovered grade of 6.05 g/t, and gold sales of 25,516 ounces at an average price of US$1,426 (CAN$1,410) in the comparable six month period of 2011. Both tonnage and recovered grade were down year-over-year, which translated in cash cost per ounce increasing to US$897 (CAN$902) in the first half of the year, from US$711 (CAN$704) in the year-ago period.
At this time, the Corporation is slightly modifying its 2012 production guidance for Island Gold to 40,000 to 45,000 ounces of gold, from 45,000 to 50,000 ounces previously, to reflect the production trend realized year-to-date. The Corporation expects production at this mine to return to 45,000 to 50,000 ounces of gold in 2013.
Beaufor Mine
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Three months ended Six months ended
June 30, June 30, June 30, June 30,
2012 2011 2012 2011
----------------------------------------------------------------------------
Tonnes 27,739 29,317 57,726 48,143
Head grade (g/t) 4.48 9.47 5.69 9.04
Gold recovery (%) 97.60 98.59 98.09 98.61
Recovered grade (g/t) 4.37 9.34 5.58 8.92
Ounces sold 3,900 8,802 10,352 13,803
Cash cost per ounce (US$) 1,629 772 1,269 844
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A total of 27,739 tonnes were processed from the Beaufor Mine in the second quarter of 2012, slightly below the 29,317 tonnes of ore that processed in the comparable period of 2011, which included a 7,932 tonne stockpile from the first quarter of 2011 that was processed at the Camflo Mill in early April 2011. Recovered grades decreased to 4.37 g/t in the current quarter from 9.34 g/t in the year-ago period, primarily reflecting mine sequencing and the uncommon occurrence that all three of the stopes being mined were at or near the end of their production lives and, therefore, had lower grades. This usually occurs in a staggered manner, thus mitigating the impact of lower grades. As a result of the lower grades, total cash cost per ounce increased to US$1,629 (CAN$1,638) in the current quarter, from US$772 (CAN$764) in the prior year. A total of 3,900 ounces of gold were sold in the second quarter of 2012 at an average price of US$1,598 (CAN$1,607), compared to 8,802 ounces of gold sold at an average price of US$1,466 (CAN$1,450) in the comparable period of 2011.
During the first half of 2012, 57,726 tonnes of ore were processed at a recovered grade of 5.58 g/t, and 10,352 ounces of gold were sold at an average price of US$1,648 (CAN$1,657) per ounce. In the first six months of 2011, 48,143 tonnes of ore were processed at a recovered grade of 8.92 g/t, and 13,803 ounces of gold were sold at an average price of US$1,442 (CAN$1,426) per ounce. As a result of the lower grades, total cash cost per ounce increased to US$1,269 (CAN$1,276) in the first half of the year, from US$844 (CAN$835) in the prior year.
While the Corporation continues to anticipate that extensive development will continue to be needed to access mining zones at Beaufor, recovered grades are expected to return to reserve-grade levels during the remainder of the year. Consequently, the Corporation is reiterating production guidance for this mine of 20,000 to 25,000 ounces of gold for 2012.
Camflo Mill
The Camflo Mill processed 48,256 tonnes in the second quarter of 2012, and 84,719 tonnes in the first six months of 2012, up 50% and 76%, respectively, over the prior year's levels. These figures included a total of 20,477 tonnes from the Francoeur Mine in the second quarter of 2012, versus none in the prior year, and approximately 7,300 tonnes of custom milling in the first quarter of 2012, versus none in the comparable period of 2011. The Corporation anticipates that capacity utilization rates will continue to increase as production at the Francoeur Mine is ramped up in the third quarter of 2012.
Outlook
Mr. Paul Carmel, President and CEO of Richmont Mines commented: "We expect to produce 65,000 to 75,000 ounces of gold for 2012. While our estimated production range at Island Gold has been slightly lowered to reflect year-to-date results, the onset of commercial production at the Francoeur Mine in the third quarter will add approximately 5,000 ounces to our 2012 gold production. We are dedicated to ensuring that our operations deliver on these objectives, and achieving these levels is a top priority for our management team who continue to focus on our mining plans in order to enhance efficiency and productivity at our operations. In addition, we are continuing to advance our Wasamac property, an asset that we believe has the potential to generate value for our shareholders in the future once it has been fully optimized. Lastly, we continue to evaluate potential acquisition and partnership opportunities that will enable us to grow our reserve base and increase our production profile for the future."
Paul Carmel, President and Chief Executive Officer
About Richmont Mines Inc.
Richmont Mines has produced over 1,200,000 ounces of gold from its operations in Quebec, Ontario and Newfoundland since beginning production in 1991. The Corporation currently produces gold from its Island Gold and Beaufor mines, and has recently brought the Francoeur Mine to commercial production. With extensive experience in gold exploration, development and mining, the Corporation is well positioned to cost-effectively build its Canadian reserve base through a combination of organic growth, strategic acquisitions and partnerships. 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.
Regulation 43-101 ("R 43-101")
The geological data in this news release have been reviewed by Mr. Daniel Adam, Geo., Ph.D, General Manager, Exploration and Sustainable Development, an employee of Richmont Mines Inc., and a qualified person as defined by R 43-101.
Cautionary Note to U.S. 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 R 43-101 adopted by the Canadian Securities Administrators. The requirements of R 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.
FINANCIAL STATEMENTS FOLLOW.
EXPLORATION AND PROJECT EVALUATION
============================================================================
(in thousands of Canadian dollars)
Three months ended Six months ended
June 30, June 30, June 30, June 30,
2012 2011 2012 2011
$ $ $ $
----------------------------------------------------------------------------
Exploration costs - Mines
Beaufor 589 319 929 550
Island Gold 2,984 1,649 4,999 2,085
Francoeur 73 40 203 78
----------------------------------------
3,646 2,008 6,131 2,713
----------------------------------------
Exploration costs - Other properties
Wasamac 2,827 1,983 4,931 2,723
Monique 86 855 576 1,771
Other 37 46 113 78
Project evaluation 120 75 243 172
----------------------------------------
3,070 2,959 5,863 4,744
----------------------------------------
Exploration and project evaluation
before depreciation and exploration
tax credits 6,716 4,967 11,994 7,457
Depreciation 23 37 56 73
Exploration tax credits (1,362) (1,659) (2,451) (3,291)
----------------------------------------
5,377 3,345 9,599 4,239
========================================
FINANCIAL DATA
============================================================================
Three-month period Six-month period
ended June 30, ended June 30,
CAN$ 2012 2011 2012 2011
----------------------------------------------------------------------------
Results (in thousands of $)
Precious metals revenue 23,630 29,332 51,337 55,670
Net earnings (loss) (30,866) 5,013 (28,836) 13,725
Cash flow from (used in) operating
activities (4,460) 7,740 2,369 17,242
Results per share ($)
Net earnings (loss) basic (0.92) 0.16 (0.86) 0.44
Net earnings (loss) diluted (0.92) 0.15 (0.86) 0.43
Cash flow from (used in) operating
activities (0.13) 0.25 0.07 0.55
Basic weighted average number of
common shares outstanding
(thousands) 33,532 31,543 33,353 31,408
Diluted weighted average number of
common shares outstanding
(thousands) 33,682 32,353 33,694 32,058
Average selling price of gold per
ounce 1,617 1,460 1,654 1,416
Average selling price of gold per
ounce (US$) 1,608 1,476 1,645 1,432
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============================================================================
June 30, December 31,
2012 2011
----------------------------------------------------------------------------
Financial position (in thousands of $)
Total assets 149,981 167,990
Working capital 56,477 68,711
Long-term debt 10,201 -
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SALES AND PRODUCTION DATA
============================================================================
Three-month period ended June 30,
-----------------------------------------------
Cash cost
Ounces of gold (per ounce sold)
----------------------------------------
Year Sales Production US$ CAN$
----------------------------------------------------------------------------
Island Gold Mine 2012 10,711 10,814 895 900
2011 11,283 11,267 780 772
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Beaufor Mine 2012 3,900 3,896 1,629 1,638
2011 8,802 9,488 772 764
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Total 2012 14,611 14,710 1,091 1,097
2011 20,085 20,755 776 768
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============================================================================
Six-month period ended June 30,
-----------------------------------------------
Cash cost
Ounces of gold (per ounce sold)
----------------------------------------
Year Sales Production US$ CAN$
----------------------------------------------------------------------------
Island Gold Mine 2012 20,689 20,778 897 902
2011 25,516 25,697 711 704
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Beaufor Mine 2012 10,352 10,167 1,269 1,276
2011 13,803 13,955 844 835
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Total 2012 31,041 30,945 1,021 1,027
2011 39,319 39,652 758 750
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Average exchange rate used for 2011: US$1 = CAN$0.9891
2012 estimated exchange rate: US$1 = CAN$1.0057
CONSOLIDATED INCOME STATEMENTS
===========================================================================-
(Unaudited) (in thousands of Canadian dollars)
Three months ended Six months ended
June 30, June 30, June 30, June 30,
2012 2011 2012 2011
$ $ $ $
----------------------------------------------------------------------------
CONTINUING OPERATIONS
Revenues from precious metals 23,630 29,332 51,337 55,670
Cost of sales 18,468 17,766 36,943 34,221
--------------------------------------------
GROSS PROFIT 5,162 11,566 14,394 21,449
--------------------------------------------
OTHER EXPENSES (REVENUES)
Exploration and project
evaluation 5,377 3,345 9,599 4,239
Administration 3,544 1,324 6,273 2,625
Loss (gain) on disposal of
long-term assets 59 - 59 (3,000)
Impairment loss on Francoeur
Mine 33,189 - 33,189 -
Other revenues (69) (80) (468) (171)
--------------------------------------------
42,100 4,589 48,652 3,693
--------------------------------------------
OPERATING EARNINGS (LOSS) (36,938) 6,977 (34,258) 17,756
--------------------------------------------
Financial expenses 240 31 402 63
Financial revenues (249) (172) (502) (223)
--------------------------------------------
EARNINGS (LOSS) BEFORE MINING
AND INCOME TAXES (36,929) 7,118 (34,158) 17,916
MINING AND INCOME TAXES (6,063) 2,105 (5,322) 4,191
--------------------------------------------
NET EARNINGS (LOSS) FOR THE
PERIOD (30,866) 5,013 (28,836) 13,725
============================================
EARNINGS (LOSS) PER SHARE
Basic (0.92) 0.16 (0.86) 0.44
Diluted (0.92) 0.15 (0.86) 0.43
BASIC WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING (in
thousands) 33,532 31,543 33,353 31,408
--------------------------------------------
DILUTED WEIGHTED AVERAGE NUMBER
OF COMMON SHARES OUTSTANDING
(in thousands) 33,682 32,353 33,694 32,058
--------------------------------------------
See accompanying notes to interim consolidated financial statements available on SEDAR (http://www.sedar.com/).
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
============================================================================
(in thousands of Canadian
dollars)
June 30, December 31,
2012 2011
$ $
----------------------------------------------------------------------------
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents 55,488 63,532
Shares of publicly-traded companies 450 893
Receivables and other current assets 2,973 3,063
Income and mining tax assets 916 916
Exploration tax credits receivable 9,434 13,176
Inventories 9,425 7,597
-----------------------------
78,686 89,177
RESTRICTED DEPOSITS 684 290
PROPERTY, PLANT AND EQUIPMENT 65,501 77,456
DEFERRED INCOME AND MINING TAX ASSETS 5,110 1,067
-----------------------------
TOTAL ASSETS 149,981 167,990
=============================
LIABILITIES
CURRENT LIABILITIES
Payables, accruals and provisions 12,604 12,005
Income and mining tax liabilities 9,223 8,461
Current portion of borrowings 382 -
-----------------------------
22,209 20,466
BORROWINGS 10,201 -
ASSET RETIREMENT OBLIGATIONS 6,718 6,685
DEFERRED INCOME AND MINING TAX LIABILITIES 2,409 6,705
-----------------------------
TOTAL LIABILITIES 41,537 33,856
-----------------------------
EQUITY
Share capital 107,036 104,872
Contributed surplus 8,011 6,688
Retained earnings (6,663) 22,173
Accumulated other comprehensive income 60 401
-----------------------------
TOTAL EQUITY 108,444 134,134
-----------------------------
TOTAL EQUITY AND LIABILITIES 149,981 167,990
=============================
See accompanying notes to interim consolidated financial statements available on SEDAR (www.sedar.com).
CONSOLIDATED STATEMENTS OF CASH FLOW
============================================================================
(Unaudited) (in thousands of Canadian dollars)
Three months ended Six months ended
June 30, June 30, June 30, June 30,
2012 2011 2012 2011
$ $ $ $
----------------------------------------------------------------------------
OPERATING ACTIVITIES
Net earnings (loss) for the
period (30,866) 5,013 (28,836) 13,725
Adjustments for:
Depreciation and depletion 2,487 2,378 4,909 4,818
Impairment loss on Francoeur
Mine 33,189 - 33,189 -
Taxes received (paid) (1,457) 1,527 (2,485) 1,635
Interest revenues (198) (111) (389) (224)
Interest and accretion
expenses 223 - 369 -
Share-based compensation 817 204 1,303 420
Accretion expense - asset
retirement obligations 17 31 33 63
Loss (gain) on disposal of
long-term assets 59 - 59 (3,000)
Gain on disposal of shares
of publicly-traded
companies (3) - (92) (43)
Mining and income taxes (6,063) 2,105 (5,322) 4,191
--------------------------------------------
(1,795) 11,147 2,738 21,585
Net change in non-cash working
capital items (2,665) (3,407) (369) (4,343)
--------------------------------------------
Cash flow from (used in) from
operating activities (4,460) 7,740 2,369 17,242
--------------------------------------------
INVESTING ACTIVITIES
Disposition of shares of
publicly-traded companies 3 - 194 69
Restricted deposits - - (394) -
Interest received 207 107 417 215
Property, plant and equipment
- Francoeur Mine (3,875) (5,134) (10,241) (8,953)
Property, plant and equipment
- Island Gold Mine (2,240) (1,254) (4,555) (2,588)
Property, plant and equipment
- Beaufor Mine (152) (1,014) (621) (1,921)
Property, plant and equipment
- W Zone (2,560) - (5,245) -
Property, plant and equipment
- Other (953) (156) (1,043) (249)
Disposition of property, plant
and equipment 65 - 65 3,000
--------------------------------------------
Cash used in investing
activities (9,505) (7,451) (21,423) (10,427)
--------------------------------------------
FINANCING ACTIVITIES
Issue of convertible
debentures - - 10,000 -
Issue of common shares 421 975 1,514 1,467
Interest paid (190) - (317) -
Payment of finance lease
obligations (92) - (187) -
--------------------------------------------
Cash flow from financing
activities 139 975 11,010 1,467
--------------------------------------------
Net change in cash and cash
equivalents (13,826) 1,264 (8,044) 8,282
Cash and cash equivalents,
beginning of period 69,314 47,048 63,532 40,030
--------------------------------------------
Cash and cash equivalents, end
of period 55,488 48,312 55,488 48,312
============================================
See accompanying notes to interim consolidated financial statements available on SEDAR (www.sedar.com).
Contacts:
Investor Relations:
Jennifer Aitken
Richmont Mines Inc.
514 397-1410
jaitken@richmont-mines.com
www.richmont-mines.com
