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UNITED STATES
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE
13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of |
May, 2008 |
Commission File Number | 0-28816 |
Richmont Mines Inc. |
(Translation of registrant's name into English) |
110, avenue Principale, Rouyn-Noranda (Quebec) J9X 4P2 |
(Address of principal executive offices) |
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F Q Form 40-F £
Indicate by check mark if the registrant is submitting the
Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): £
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of
a Form 6-K if submitted solely to provide an attached annual report to security
holders.
Indicate by check mark if the registrant is submitting the
Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): £
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of
a Form 6-K if submitted to furnish a report or other document that the
registrant foreign private issuer must furnish and make public under the laws of
the jurisdiction in which the registrant is incorporated, domiciled or legally
organized (the registrant's "home country"), or under the rules of the home
country exchange on which the registrant's securities are traded, as long as the
report or other document is not a press release, is not required to be and has
not been distributed to the registrant's security holders, and, if discussing a
material event, has already been the subject of a Form 6-K submission or other
Commission filing on EDGAR.
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes £ No
QIf "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ________________.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Richmont Mines Inc. | |||
(Registrant) | |||
Date: |
May 9, 2008 | By |
Nicole Veilleux (signed) |
(Signature)* |
|||
Nicole Veilleux |
|||
* Print the name and title under the signature of the signing officer. |
Financial Director |
SEC 1815 (11-02) |
Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. |
EXHIBITS
Exhibit | Description of Exhibit |
99.1 | News Release dated May 9, 2008 |
NEWS |
Richmont Mines Inc., 1 Place-Ville-Marie, Suite 2130, Montreal, QC H3B 2C6 Canada
IMMEDIATE RELEASE
RICHMONT MINES REPORTS 46% INCREASE IN REVENUE IN THE FIRST QUARTER OF 2008
MONTREAL, Quebec, Canada, May 9, 2008 - Richmont Mines Inc. (RIC: AMEX-TSX), a gold exploration, development and production company with operations in Canada, today announced financial and operational results for its first quarter ended March 31, 2008. Financial results are based on Canadian GAAP and dollars are reported in Canadian currency, unless otherwise noted.
Revenue for the first quarter of 2008 was $15.0 million, a 46% increase compared with $10.2 million in the first quarter of 2007. In the 2008 quarter, 14,995 ounces of gold were sold at an average price of US$947 (CAN$947) per ounce, compared with 12,403 ounces of gold sold in the same period the prior year at an average price of US$717 (CAN$771) per ounce. Total precious metals revenue was up $4.6 million, or 48%, to $14.2 million in the first quarter of 2008 compared with $9.6 million in the first quarter of 2007. Sales from the Island Gold Mine, which commenced production during the fourth quarter of 2007, more than offset the loss of gold sales from the East Amphi Mine, which was closed in mid-2007.
Operating costs, including royalties, for the first quarter of 2008 were $10.4 million, a 46% increase compared with $7.2 million in the same period the prior year reflecting increased production and higher operating costs. The cash cost per ounce of gold sold increased 30% to US$697 in the first quarter compared with US$537 in the first quarter of 2007. Relatively high cash costs of US$809 were incurred at the Island Gold Mine as production has not yet reached projected levels, while costs at the Beaufor Mine increased slightly to US$599 from US$587 in the first quarter of 2007.
Exploration and project evaluation costs increased $0.8 million to $1.1 million in the first quarter of 2008 compared with $0.3 million in the same period of 2007. Higher exploration and project evaluation expenses reflect the Companys efforts to grow its reserves. Approximately $0.5 million in exploration costs were incurred at the Beaufor Mine and about $0.5 million at the Golden Wonder project, which is located in the historic precious metal rich Colorado Mineral Belt.
Net earnings for the first quarter of 2008 were $0.4 million, or $0.02 per share, compared with net earnings of $0.3 million, or $0.01 per share, in the first quarter of 2007.
Richmont Mines Reports 46% Increase in Revenue in the First Quarter of 2008
May 9, 2008
Page 2 of 8
At March 31, 2008, cash and cash equivalents were $30.0 million, a $2.7 million increase from $27.3 million at December 31, 2007. During the quarter, $0.5 million was invested in the development of the Island Gold Mine and $0.3 million was invested in property, plant and equipment. Richmont Mines has no long-term debt obligations and has working capital of $35.3 million.
Island Gold Mine1
During the first quarter of 2008, 31,688 tonnes of ore from the Island Gold Mine were processed at an average recovered grade of 6.86 g/t, and 6,992 ounces of gold were sold at an average price of US$937 (CAN$937) per ounce. Although the average recovered grade has improved 6.4% compared with the grade of 6.45 g/t experienced in the fourth quarter of 2007, the mines initial quarter in commercial production, ore output from production stopes was lower than forecasted due to lower productivity from the long-hole contractor and delays in stope sequencing which adversely impacted results and contributed to a high cash cost of US$809 during the quarter. Major improvements were made to address these issues and better results are expected in the second quarter.
Mr. Martin Rivard, President and CEO of Richmont Mines, commented: Although we made progress at Island Gold during the quarter, production is still below target. Our biggest challenge is finding mining personnel at a time when the industry is experiencing a shortage of experienced miners. We are revising work schedules and increasing recruiting efforts to meet our production target. A mining contractor was also retained to advance underground development allowing us to refocus our resources to production activities.
Beaufor Mine
During the first quarter of 2008, 30,697 tonnes of ore from the Beaufor Mine were processed at an average recovered grade of 8.11 g/t, and 8,003 ounces of gold were sold at an average price of US$955 (CAN$955) per ounce. In the same quarter the prior year, 29,700 tonnes of ore were processed at an average recovered grade of 6.50 g/t, and 6,211 ounces of gold were sold at an average price of US$726 (CAN$780) per ounce. Despite a higher grade, the average cash cost per ounce increased in 2008 due to maintenance costs at the Camflo Mill which only processed ore from the Beaufor Mine during the quarter and to a higher Canadian dollar compared with 2007. The cash cost of production in the first quarter of 2008 was US$599 per ounce sold, up slightly from US$587 in the first quarter of 2007.
Golden Wonder Project
Site preparation at the Golden Wonder Project, where the Company is exercising its option to acquire a 50% joint venture interest, began at the end of the first quarter of 2008. Preliminary exploration drilling and underground development work is expected to begin during the second quarter.
1 Richmont Mines reports 100% of the consolidated results of the Island Gold Mine, in compliance with AcG-15, which stipulates that a holder of variable interests must consolidate the accounts if it intends to assume the majority of the expected losses and/or receive the majority of the residual returns of the variable interest entity (VIE). Richmont Mines holds a 55% stake in the unincorporated joint venture, and as its share of the earnings and/or losses will differ from the percentage that it owns, the Company is therefore considered the primary beneficiary of the VIE.
Richmont Mines Reports 46% Increase in Revenue in the First Quarter of 2008
May 9, 2008
Page 3 of 8
Annual and Special General Meeting
Richmont MinesAnnual and Special General Meeting will be held on Tuesday, May 13, 2008 in Rooms II and III of the Conference Center of the Sun Life Building, 1155 Metcalfe Street, 7th floor, Montreal, Quebec, at 9:00 a.m. (local time). The presentation will also be available on Richmont Mines Website.
Outlook
Mr. Rivard concluded, Improved results in the first quarter provide us with an excellent start to 2008. Higher gold sales at higher prices combined with improved operational discipline enabled us to increase operating leverage, even as we maintain our exploration activity. We continue to build our cash reserves giving us the flexible balance sheet needed to support our exploration activity and we expect to see significant progress at our different properties in 2008, providing us with a project pipeline for the future.
Martin Rivard
President and Chief Executive Officer
About Richmont Mines Inc.
Richmont Mines produces gold from its operations in Canada and has extensive experience in gold exploration, development and mining. Since it began production in 1991, the Company has produced more than one million ounces of gold from its holdings in Quebec, Ontario and Newfoundland. Richmont Mines strategy is to cost effectively develop its mining assets, exploit mineralized reserves on properties owned and acquired, or develop partnerships to expand its reserve base.
More information on Richmont Mines can be found on its website at: www.richmont-mines.com.
Richmont Mines Reports 46% Increase in Revenue in the First Quarter of 2008
May 9, 2008
Page 4 of 8
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. Richmont Mines undertakes no obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.
Cautionary Note to U.S. Investors Concerning Resource Estimates
The resource estimate in this news release is prepared in accordance with Regulation 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). In this news release, we use the terms measured, indicated and inferred resources. Although these terms are recognized and required in Canada, the SEC does not recognize them. The SEC permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that constitute reserves. Under United States standards, mineralization may not be classified as a reserve unless the determination has been made that the mineralization could be economically and legally extracted at the time the determination is made. United States investors should not assume that all or any portion of a measured or indicated resource wi ll ever be converted into reserves. Further, inferred resources have a great amount of uncertainty as to their existence and whether they can be mined economically or legally, and United States investors should not assume that inferred resources exist or can be legally or economically mined, or that they will ever be upgraded to a higher category.
For more information, please contact Investor Relations:
James Culligan | Ticker symbol: RIC |
Investor Relations | Listings: TSX Amex |
Kei Advisors LLC | Web Site: www.richmont-mines.com |
Phone: 716 843-3874 | |
E-mail: jculligan@keiadvisors.com | |
FINANCIAL STATEMENTS FOLLOW. |
Richmont Mines Reports 46% Increase in Revenue in the First Quarter of 2008
May 9, 2008
Page 5 of 8
FINANCIAL DATA
|
|
Three-month period | |
|
|
ended March 31, | |
|
CAN$ |
2008 |
2007 |
|
|
|
|
Results (in thousands of $) |
|
|
|
Revenue |
|
14,961 |
10,237 |
Net earnings |
|
406 |
326 |
Cash flow from operations |
|
3,181 |
4,002 |
|
|
|
|
Results per share ($) |
|
|
|
Net earnings basic and diluted |
|
0.02 |
0.01 |
|
|
|
|
Basic weighted average number of common shares outstanding (thousands) |
|
24,053 |
24,242 |
|
|
|
|
Average selling price of gold per ounce |
|
US$947 |
US$717 |
|
March 31, 2008 |
December 31, 2007 |
|
|
|
Financial position (in thousands of $) |
|
|
Total assets |
87,501 |
85,976 |
Working capital |
35,336 |
33,970 |
Long-term debt |
- |
- |
SALES AND PRODUCTION DATA
|
Three-month period ended March 31, | |||
|
|
Ounces of gold |
Cash cost | |
|
Year |
Sales |
Production |
(per ounce sold) |
Island Gold Mine |
2008 |
6,992 |
8,008 |
US$809 |
|
2007 |
- |
- |
- |
Beaufor Mine |
2008 |
8,003 |
10,385 |
US$599 |
|
2007 |
6,211 |
8,642 |
US$587 |
East Amphi Mine |
2008 |
- |
- |
- |
|
2007 |
6,192 |
5,239 |
US$487 |
Total |
2008 |
14,995 |
18,393 |
US$697 |
|
2007 |
12,403 |
13,881 |
US$537 |
Average exchange rate used for 2007: US$1 = CAN$1.0748
2008 estimated exchange rate: US$1 = CAN$1.0000
Richmont Mines Reports 46% Increase in Revenue in the First Quarter of 2008
May 9, 2008
Page 6 of 8
CONSOLIDATED STATEMENTS OF EARNINGS
|
(in thousands of Canadian dollars) | ||
(Unaudited) |
Three months ended | ||
|
March 31, |
March 31, | |
|
2008 |
2007 | |
|
$ |
$ | |
|
|
| |
REVENUE |
|
| |
|
Precious metals |
14,194 |
9,566 |
|
Other |
767 |
671 |
|
|
| |
|
14,961 |
10,237 | |
|
|
| |
EXPENSES |
|
| |
|
Operating costs |
10,097 |
7,065 |
|
Royalties |
347 |
93 |
|
Administration |
827 |
803 |
|
Exploration and project evaluation |
1,081 |
301 |
|
Accretion expense - asset retirement obligations |
43 |
44 |
|
Depreciation and depletion |
1,205 |
1,631 |
|
Loss (gain) on disposal of mining assets |
20 |
(94) |
|
|
| |
|
13,620 |
9,843 | |
|
|
| |
EARNINGS BEFORE OTHER ITEMS |
1,341 |
394 | |
|
|
| |
MINING AND INCOME TAXES |
723 |
186 | |
|
|
| |
|
618 |
208 | |
|
|
| |
MINORITY INTEREST |
212 |
(118) | |
|
|
| |
NET EARNINGS |
406 |
326 | |
|
|
| |
NET EARNINGS PER SHARE |
|
| |
|
Basic and diluted |
0.02 |
0.01 |
|
|
| |
BASIC WEIGHTED AVERAGE NUMBER OF |
|
| |
|
COMMON SHARES OUTSTANDING (thousands) |
24,053 |
24,242 |
See accompanying notes to consolidated financial statements available on SEDAR.
Richmont Mines Reports 46% Increase in Revenue in the First Quarter of 2008
May 9, 2008
Page 7 of 8
CONSOLIDATED BALANCE SHEETS
|
(in thousands of Canadian dollars) | ||
|
March 31, |
December 31, | |
|
2008 |
2007 | |
|
$ |
$ | |
|
(Unaudited) |
(Audited) | |
|
|
| |
ASSETS |
|
| |
|
|
| |
CURRENT ASSETS |
|
| |
|
Cash and cash equivalents |
30,015 |
27,291 |
|
Short-term investments |
931 |
1,826 |
|
Accounts receivable |
3,003 |
2,859 |
|
Mining and income taxes receivable |
1,393 |
1,677 |
|
Inventories |
6,324 |
5,438 |
|
|
| |
|
41,666 |
39,091 | |
|
|
| |
ADVANCE TO A MINORITY PARTNER |
1,500 |
1,875 | |
|
|
| |
PROPERTY, PLANT AND EQUIPMENT |
44,335 |
45,010 | |
|
|
| |
|
87,501 |
85,976 | |
LIABILITIES |
|
|
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
Accounts payable and accrued charges |
5,997 |
5,005 |
|
Mining and income taxes payable |
333 |
116 |
|
|
|
|
|
6,330 |
5,121 |
|
|
|
|
|
ASSET RETIREMENT OBLIGATIONS |
3,401 |
3,358 |
|
|
|
|
|
MINORITY INTERESTS |
14,450 |
14,238 |
|
|
|
|
|
FUTURE MINING AND INCOME TAXES |
1,272 |
1,446 |
|
|
|
|
|
|
25,453 |
24,163 |
|
|
|
|
|
SHAREHOLDERS EQUITY |
|
|
|
|
|
|
|
|
Capital stock |
61,014 |
61,016 |
|
Contributed surplus |
5,226 |
5,092 |
|
Deficit |
(4,253) |
(4,647) |
|
Accumulated other comprehensive income |
61 |
352 |
|
|
|
|
|
62,048 |
61,813 |
|
|
|
|
|
|
87,501 |
85,976 |
See accompanying notes to consolidated financial statements available on SEDAR.
Richmont Mines Reports 46% Increase in Revenue in the First Quarter of 2008
May 9, 2008
Page 8 of 8
CONSOLIDATED STATEMENTS OF CASH FLOW
|
(in thousands of Canadian dollars) | |||
(Unaudited) |
Three months ended | |||
|
March 31, |
March 31, | ||
|
2008 |
2007 | ||
|
$ |
$ | ||
|
|
| ||
CASH FLOW FROM OPERATING ACTIVITIES |
|
| ||
|
Net earnings |
406 |
326 | |
|
Adjustments for: |
|
| |
|
|
Depreciation and depletion |
1,205 |
1,631 |
|
|
Stock-based compensation |
141 |
123 |
|
|
Accretion expense - asset retirement obligations |
43 |
44 |
|
|
Loss (gain) on disposal of mining assets |
20 |
(70) |
|
|
Minority interests |
212 |
(118) |
|
|
Future mining and income taxes |
(174) |
(247) |
|
|
| ||
|
1,853 |
1,689 | ||
|
|
| ||
|
Net change in non-cash working capital items |
1,328 |
2,313 | |
|
|
| ||
|
3,181 |
4,002 | ||
|
|
| ||
CASH FLOW USED IN INVESTING ACTIVITIES |
|
| ||
|
Disposal of mining assets |
14 |
157 | |
|
Property, plant and equipment - Island Gold |
(475) |
(1,976) | |
|
Property, plant and equipment - Beaufor Mine |
(80) |
- | |
|
Other property, plant and equipment |
(270) |
(78) | |
|
Cash received from an advance to a minority partner |
375 |
- | |
|
|
| ||
|
(436) |
(1,897) | ||
|
|
| ||
CASH FLOW FROM (USED IN) FINANCING ACTIVITIES |
|
| ||
|
Issue of common shares |
19 |
178 | |
|
Redemption of common shares |
(40) |
(86) | |
|
Contribution from a minority partner |
- |
135 | |
|
|
| ||
|
(21) |
227 | ||
|
|
| ||
|
|
| ||
Net increase in cash and cash equivalents |
2,724 |
2,332 | ||
|
|
| ||
Cash and cash equivalents, beginning of period |
27,291 |
16,126 | ||
|
|
| ||
Cash and cash equivalents, end of period |
30,015 |
18,458 |
See accompanying notes to consolidated financial statements available on SEDAR.
30