Richmont Mines

Richmont Mines Reports Third Quarter Financial Results; Pivotal Quarter Positions Island Gold for Growth

Toronto (ots/PRNewswire) - Richmont Mines Inc. (TSX: RIC) (NYSE MKT: RIC) ("Richmont" or the "Corporation") announces operating and financial results for the three and nine months ended September 30, 2016, driven by solid results from the Island Gold Mine. The Corporation will host a conference call and webcast on Thursday, November 10, 2016, beginning at 8:30 a.m. Eastern Time (details below). (All amounts are in Canadian dollars, unless otherwise indicated.)

Third Quarter and Recent Highlights

- Company-wide production was 18,856 ounces of gold for the quarter, 
  a 20% decrease over the same quarter of 2015, primarily as the 
  result of the depletion of the Monique stockpile earlier this year 
  and the required downtime related to the scheduled 25-day mill 
  electrical upgrade at the Island Gold Mine. The Island Gold Mine 
  produced 14,031 ounces of gold in the third quarter, a 7% decrease 
  over Q3 2015, in-line with expectations as lower production was 
  anticipated due to the electrical upgrade.
- Revenues for the quarter were $31.2 million (US$23.9 million), an 
  8% decrease over Q3 2015.
- Company-wide cash costs[1] for the quarter were $1,063 per ounce 
  (US$815 per ounce), a 15% increase over Q3 2015. Cash costs for the
  Island Gold Mine were $958 per ounce (US$734 per ounce), an 8% 
  increase over Q3 2015, in-line with expectations, as lower 
  production was anticipated, as discussed above.
- Company-wide All-in-Sustaining Costs[1] ("AISC") for the quarter 
  were $1,604 per ounce (US$1,230 per ounce), a 22% increase over Q3 
  2015. AISC for the Island Gold Mine were $1,330 per ounce (US$1,019
  per ounce), a 5% increase over Q3 2015, in-line with expectations, 
  as lower production was anticipated, as described above.
- Earnings for the quarter were $0.2 million (US$0.2 million), a $3.1
  million (US$2.4 million) decrease over Q3 2015, primarily due to 
  increased exploration expense. On a per share basis, earnings for 
  the quarter were nil per share (nil in US$ per share).
- Operating cash flow (before changes in non-cash working capital[1])
  for the quarter was $5.8 million (US$4.5 million), or $0.09 per 
  share (US$0.07 per share), a decrease of $5.8 million (US$4.5 
  million) over Q3 2015 due to lower production and higher costs, as 
  described above.
- Richmont ended the quarter with a reduced cash balance of $78.9 
  million (US$60.1 million), in-line with plan due to lower 
  production and higher cash costs related to the 25-day mill 
  shutdown as well as higher capital investment requirements as 
  anticipated for the quarter.
- On September 12, 2016, the Corporation announced a positive 
  revision to its 2016 operational guidance estimates driven by 
  significantly better than expected performance from the Island Gold
  Mine in the first six months of the year.
- On October 12, 2016, the Corporation reported continued positive 
  results from delineation drilling at the Island Gold Mine located 
  within the expanded Expansion Case Preliminary Economic Assessment 
  (the "Expansion Case PEA") area as well as initial results from the
  strategic Phase 2 exploration drilling program.
- On November 1, 2016, the Corporation provided a status update on 
  the Expansion Case PEA currently underway at the Island Gold Mine 
  that will consider a potential ore mining and productivity increase
  to 1,100 tonnes per day beginning in 2018, with minimal capital 
  investment required. 

__________________________

[1]   Non-IFRS performance measure. Refer to the Non-IFRS Performance
Measures section contained in the Third Quarter Management's 
Discussion and Analysis.



"The third quarter was a pivotal quarter for Island Gold that 
positions this cornerstone asset for the next stage of its growth 
strategy. Following the successful completion of the electrical 
upgrade, the mine and mill have consistently averaged base case 
productivity of 900 tonnes per day and are well positioned to support
the 1,100 tonnes per day scenario that was outlined in the recent 
Expansion Case PEA update. Results from our near-mine drilling 
programs have been very encouraging, which could support the 
evaluation of a further expansion scenario to 1,200 tonnes per day as
we grow our resource inventory and extend mine life," stated Renaud 
Adams, CEO. He continued, "As we move into the final quarter of the 
year, we remain on track to achieve our company-wide revised guidance
and the Island Gold Mine is well positioned to meet, or exceed, 
revised guidance as production in the fourth quarter is expected to 
increase. With a strong cash position and operating cash flow profile
that is supported by a disciplined management team, Richmont is well 
positioned for continued shareholder value creation." 

Financial Highlights





Quarter ended 
Quarter ended
(in thousands of $, except per share amounts)     Sept. 30, 2016 
Sept. 30, 2015

Revenue from mining operations                            31,244 
34,107
Net earnings per share, basic                                  - 
0.06
Operating cash flow, per share                              0.05 
0.20
Adj. operating cash flow, per share[1][2]                   0.09 
0.20
Net free cash flow, per share[2]                          (0.26) 
(0.02)
Revenue from mining operations (US$)                      23,942 
26,058
Net earnings per share, basic (US$)                            - 
0.04
Operating cash flow, per share (US$)                        0.04 
0.15
Adj. operating cash flow, per share[1][2] (US$)             0.07 
0.15
Net free cash flow, per share[2] (US$)                    (0.20) 
(0.01)


Nine 
months       Nine months

ended             ended
(in thousands of $, except per share amounts)        Sept. 30, 
2016    Sept. 30, 2015

Revenue from mining operations                              
124,496           111,869
Net earnings per share, basic                                  
0.19              0.19
Operating cash flow, per share                                 
0.59              0.63
Adj. operating cash flow, per share[1][2]                      
0.64              0.56
Net free cash flow, per share[2]                             
(0.20)              0.11
Revenue from mining operations (US$)                         
94,187            88,785
Net earnings per share, basic (US$)                            
0.14              0.15
Operating cash flow, per share (US$)                           
0.44              0.50
Adj. operating cash flow, per share[1][2] (US$)                
0.48              0.45
Net free cash flow, per share[2] (US$)                       
(0.15)              0.09


[1]       Before changes in non-cash working capital.

[2]       Non-IFRS performance measure. Refer to the Non-IFRS
performance measures section contained in the Third
Quarter Management's Discussion & Analysis. 

Operational Highlights



Quarter
ended
Sept.              
30,    Quarter 
ended  
2016   Sept. 30, 
2015

Gold produced (oz)                           18,856           
23,478  
Gold sold (oz)                               17,774           
22,962       
Average cash costs per ounce ($)[1]           1,063              
926    
Average AISC per ounce ($)[1]                 1,604            
1,311    
Average realized gold price per ounce ($)     1,754            
1,482     
Average cash costs per ounce (US$)[1]           815              
707    
Average AISC per ounce (US$)[1]               1,230            
1,001  
Average realized gold price per ounce (US$)   1,344            
1,132



Nine months      Nine 
months
ended            
ended
Sept. 30, 2016   Sept. 30, 
2015

Gold produced (oz)                           74,545           
75,651
Gold sold (oz)                               74,901           
75,319
Average cash costs per ounce ($)[1]             899              
961
Average AISC per ounce ($)[1]                 1,296            
1,290
Average realized gold price per ounce ($)     1,659            
1,482
Average cash costs per ounce (US$)[1]           680              
763
Average AISC per ounce (US$)[1]                 980            
1,024
Average realized gold price per ounce (US$)   1,255            
1,176

[1]       Non-IFRS performance measure. Refer to the
Non-IFRS performance measures section contained
in the Third Quarter Management's Discussion and
Analysis. 

Island Gold Mine Highlights




Nine 
months    Nine months
Quarter ended  Quarter ended         
ended          ended
ISLAND GOLD MINE           Sept. 30, 2016 Sept. 30, 2015 Sept. 
30, 2016 Sept. 30, 2015
Gold produced (oz)                 14,031         15,076         
59,237         40,837
Gold sold (oz)                     13,673         14,233         
59,851         38,859
Cash costs per ounce
($)[1]                                958            890         
770          1,036
AISC per ounce ($)[1]               1,330          1,267         
1,025          1,416
Realized gold price per
ounce ($)                           1,756          1,485         
1,657          1,483
Cash costs per ounce
(US$)[1]                              734            680         
583            823
AISC per ounce (US$)[1]             1,019            968         
776          1,125
Realized gold price per
ounce (US$)                         1,346          1,135         
1,254          1,177
Underground tpd                    735[2]            669         
833[2]            660
Mill tonnes                        58,836         66,416        
214,666        181,785
Mill tpd                           640[2]            722         
783[2]            666
Head grade (g/t gold)                7.70           7.27         
8.91           7.20
Recoveries (%)                       96.3           97.1         
96.4           97.0
Sustaining costs ($000's)           5,090          5,371         
15,283         14,754
Project costs ($000's)             13,457          7,539         
28,390         16,389
Non-sustaining exploration
($000's)                            3,509            695         
10,903          1,735
Sustaining costs
(US$000's)                          3,900          4,103         
11,562         11,710
Project costs (US$000's)           10,312          5,760         
21,478         13,007
Non-sustaining exploration
(US$000's)                          2,689            531         
8,249          1,377


[1]       Non-IFRS performance measure. Refer to the Non-IFRS
performance measures section contained in the Third

[2]       Quarter Management's Discussion and Analysis.
Quarter and Nine months ended Sept. 30, 2016
productivity includes a 16-day underground mine 
shutdown
and a 25-day mill shutdown. 
- At the end of the quarter, the Island Gold Mine reported more than 
  5.8 years (over 2 million man hours) of operations without 
  lost-time injury.
- Production for the quarter was 14,031 ounces of gold (13,673 ounces
  sold), a 7% decrease over Q3 2015. Production achieved in the 
  quarter was in-line with expectations, which forecasted lower 
  production as part of the planned electrical upgrade. The operation
  remains on track to meet, or exceed, revised production guidance.
- Cash costs for the quarter were $958 per ounce (US$734 per ounce), 
  an 8% increase over Q3 2015. Cash costs were in-line with 
  expectations due to the lower production estimated for the quarter.
  Cash costs remain on track to meet, or exceed, revised guidance.
- AISC for the quarter were $1,330 per ounce (US$1,019 per ounce), a 
  5% increase over Q3 2015. AISC were in-line with expectations due 
  to the lower production estimated for the quarter. AISC remain on 
  track to meet, or exceed, revised guidance.
- A mine and mill electrical upgrade was successfully completed as 
  planned during the quarter. The upgrade included a 25-day mill 
  shutdown and a 16-day mine shutdown, which have been incorporated 
  into the revised annual guidance. The mine and mill upgrade could 
  support the potential production growth scenario that is being 
  considered as part of the Expanded Case PEA.
- During the quarter, the mine reported a mill head grade of 7.70 g/t
  gold, higher than anticipated, resulting from stope mining 
  activities in the first mining horizon and development in ore in 
  the lower grade extensions of the second mining horizon. During the
  fourth quarter, stope mining will begin in the eastern and western 
  extensions of the second mining horizon and development in ore will
  begin in the third mining horizon.
- During the quarter, underground mine productivity averaged 890 
  tonnes per day, excluding the 16 days of downtime related to the 
  electrical upgrade.
- During the quarter, the underground mine achieved a positive 
  reconciliation (mined vs. reserves) of 19% and 15% on grades and 
  tonnes, respectively, or 37% on ounces, as compared with the 
  December 31, 2015 Mineral Reserves.
- The percentage of higher cost development ore versus total ore 
  mined was 44% for the quarter (49% YTD), as compared to a planned 
  40%.
- Mill productivity averaged 878 tonnes per day, excluding the 25 
  days of downtime related to the electrical upgrade.
- The development of the main ramp continued and reached a vertical 
  depth of 810 metres at the end of the quarter. It is expected that 
  the ramp development will reach the bottom of the higher grade 
  third mining horizon at the 860 metre level in the first quarter of
  2017.
- A status update was recently released on the Expansion Case PEA, 
  which is currently underway that will consider a potential 
  productivity increase to 1,100 tonnes per day beginning in 2018, 
  with minimal capital investment required. A further upside scenario
  of up to 1,200 tonnes per day will also be considered as additional
  resources are included in the mine plan.
- Drilling to date in the Expansion Case PEA area demonstrates the 
  potential to grow the near-mine reserve inventory and identify 
  potential new resource blocks located within the Expansion Case PEA
  area. These ounces could extend mine life above the 1,000 metre 
  level and be incorporated into the near-term mine plan utilizing 
  current infrastructure. Initial results from the recently launched 
  18 to 24 month Phase 2 exploration program continue to show the 
  potential to increase resources laterally along strike, primarily 
  to the east, and at depth below the 1,000 metre level. 

Beaufor Mine Highlights



Nine 
months    Nine months
Quarter ended  Quarter ended         
ended          ended
BEAUFOR MINE               Sept. 30, 2016 Sept. 30, 2015 Sept. 
30, 2016 Sept. 30, 2015
Gold produced (oz)                  4,825          5,714         
14,143         20,759
Gold sold (oz)                      4,101          5,919         
13,879         21,638
Cash costs per ounce
($)[1]                              1,411            974         
1,433            974
AISC per ounce ($)[1]               1,893          1,225         
1,837          1,144
Realized gold price per
ounce ($)                           1,751          1,481         
1,674          1,476
Cash costs per ounce
(US$)[1]                            1,082            744         
1,084            773
AISC per ounce (US$)[1]             1,451            936         
1,390            908
Realized gold price per
ounce (US$)                         1,342          1,131         
1,266          1,171
Underground tpd                       282            338         
297            355
Mill tonnes                        27,426         30,437         
85,025         97,102
Head grade (g/t gold)                5.62           5.93         
5.28           6.74
Recoveries (%)                       97.3           98.6         
98.0           98.6
Sustaining costs ($000's)           1,979          1,484         
5,611          3,683
Sustaining costs
(US$000's)                          1,516          1,134         
4,245          2,923

[1]       Non-IFRS performance measure. Refer to the Non-IFRS
performance measures section contained in the Third
Quarter Management's Discussion and Analysis. 
- Production for the quarter was 4,825 ounces of gold (4,101 ounces 
  sold), a 16% decrease over Q3 2015. Production in the quarter was 
  impacted by low availability of underground mobile equipment, which
  resulted in approximately 6,000 tonnes of broken ore at 7.0 g/t 
  gold remaining in inventory and unavailable for processing. It is 
  expected that this broken ore will be processed in the fourth 
  quarter.
- As a result of the low availability of mobile equipment during the 
  quarter, the operation prioritized its efforts on waste development
  to better position stope mining operations in the higher grade Q 
  Zone in the fourth quarter.
- Cash costs for the quarter were $1,411 per ounce (US$1,082 per 
  ounce), a 45% increase over Q3 2015, mainly as a result of lower 
  production in the quarter.
- AISC for the quarter were $1,893 per ounce (US$1,451 per ounce), a 
  55% increase over Q3 2015, mainly as a result of lower production 
  and higher sustaining costs in the quarter.
- Grades and underground productivity are expected to increase in the
  fourth quarter as a greater proportion of stope mining is planned 
  from the higher grade Q Zone, which should contribute to higher 
  production and lower costs. 

Upcoming News & Events

- Phase 2 exploration update (Q1 2017)
- December 31, 2016 Mineral Reserve and Resource estimates 
  (mid-February 2017)
- 2017 Operational Outlook and Guidance (February 2017)
- Expansion Case PEA (H1 2017) 

Financial Statements and Management's Discussion and Analysis

The financial statements and related Management's Discussion and Analysis can be found on the Corporation's website at http://www.richmont-mines.com or under the Corporation's profile on http://www.sedar.com and with the Securities and Exchange Commission at http://www.sec.gov/edgar.shtml.

Webcast and Conference Call

A webcast and conference call will be held on Thursday, November 10, 2016 starting at 8:30 a.m. Eastern Time. Senior management will be on the call to discuss the results.

Conference Call Access

- International & Toronto: 1-416-764-8688

- Canada & U.S. Toll Free: 1-888-390-0546

Please ask to be placed into the Richmont Mines 2016 Third Quarter Results Conference Call.

Conference Call Live Webcast

The conference call will be broadcast live on the Internet via webcast. To access the webcast, please follow this link:

http://event.on24.com/r.htm?e=1282095&s=1&k=F4C4E0F118C1317E32F3869F267FBFF0

Archive Call Access

If you are unable to attend the conference call, a replay will be available until 08:30 a.m. Eastern Time, Thursday, November 24, 2016 by dialing the appropriate number below:




- International & Toronto:      1-416-764-8677       Passcode: 
435976#
- Canada & U.S. Toll Free:      1-888-390-0541       Passcode: 
435976# 

Archive Webcast

The webcast will be archived for 90 days. To access the archived webcast, visit the Corporation's website at http://www.richmont-mines.com or follow this link: http://event.on24.com/r.htm?e=1282095&s=1&k=F4C4E0F118C1317E32F3869F267FBFF0

About Richmont Mines Inc.

Richmont Mines currently produces gold from the Island Gold Mine in Ontario, and the Beaufor Mine in Quebec. The Corporation is also advancing development of the significant high-grade resource extension at depth of the Island Gold Mine in Ontario. With 35 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.

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", "objective" 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. Except as may be required by law or regulation, the Corporation undertakes no obligation and disclaims any responsibility to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise.

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. The forward-looking information contained herein is made as of the date of this news release.

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 requirements of National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") adopted by the Canadian Securities Administrators 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.

National Instrument 43- 101

The geological data in this news release has been reviewed by Mr. Daniel Adam, Geo., Ph.D., Vice-President, Exploration, an employee of Richmont Mines Inc., and a qualified person as defined by NI 43-101.

Renaud Adams, President and CEO, Phone: +1-416-368-0291 ext. 101; Anne Day, Vice-President, Investor Relations, Phone: +1-416-368-0291 ext. 105

 


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