Richmont Mines Inc.

Richmont Mines has produced over 1.5 million ounces of gold in Canada, and currently operates the Island Gold and Beaufor mines. The Corporation is developing a high-grade million ounce Inferred resource below its producing mine in Ontario, thereby laying the foundation to become a lower-cost, long-life gold producer in a mining-friendly and safe jurisdiction. By unlocking the value of this asset, Richmont will be well-positioned to generate greater free cash flow and annual gold production, and to deliver years of high-quality growth. Richmont has over 20 years of gold production experience, a solid financial position, and less than 60 million shares outstanding.

Expert Comments:

Kevin Chiew, CIBC World Markets (10/1/15)
"On Sept. 30, Richmont Mines Inc. hosted a mine tour of its Island Gold asset in Wawa, Ontario. Overall, the asset showed well, with the execution of development objectives, including the deepening of the west and east ramps and advance of the 620m level drift, all progressing on track."

Don Blyth, Paradigm Capital (9/15/15)
"Richmont Mines Inc.'s Island Gold mine is on the cusp of beginning production from the deeper zones, which we anticipate to continue improving profit margins over the next several quarters. The company has a strong balance sheet (CA$77.9M in cash, CA$6.2M debt) funding the development required to fully access the 400–850m depths of the mine and allowing for an aggressive exploration program to test for additional mineralization, which we believe has a very high probability of success."

Brian Szeto, PI Financial (9/2/15)
"In terms of producers, we continue to favor B2Gold and Richmont Mines Inc. . .Richmont, like most Canadian producers, has benefited from a weaker Canadian dollar as well as its own superior operating performance. We highlight that the company was one of the very few in the industry that have increased their production guidance thus far in 2015."

Brent Cook, Exploration Insights (8/9/15)
"Richmont Mines Inc. extended the Island Gold main development ramp to a 700m depth and extended the 620-level drift to 478m; these development programs are aimed at accessing the higher-grade gold mineralization that is hosted in thicker veins deeper in the deposit. Therein lies the upside in the company."

Brian Szeto, PI Financial (8/6/15)
"Richmont Mines Inc. announced its Q2/15 financial results. . .earnings per share was CA$0.05, which was in-line with our estimate of CA$0.05 and consensus estimate of CA$0.06. Cash flow per share was CA$0.18 versus our estimate and consensus of CA$0.14. . .we view the Q2/15 results positively as the company has increased its production guidance for the year while lowering its cash cost estimates. Despite a heavy capital expenditures program this year. . .Richmont has still managed to increase its cash position, which demonstrates that it is able to generate positive free cash flow even in a lower gold price environment."

Jefferson Research (7/24/15)
"Richmont Mines Inc. is showing strong earnings quality, cash flow quality, and balance sheet quality, and valuation suggests a lower amount of price risk. . .during the last quarter the overall rating improved."

More Expert Comments

Experts Following This Company

Ralph Aldis, Portfolio Manager, Gold and Natural Resources – U.S. Global Investors
Don Blyth, Analyst – Paradigm Capital
Kevin Chiew, Analyst – CIBC World Markets
Brent Cook, Analyst, Geologist Exploration Insights
Christopher De Sousa Seeking Alpha
Vivien Diniz, Author Resource Investing News
Daniel Earle, Analyst - Uranium – TD Newcrest
Michael Gray, Analyst – Macquarie Capital Markets
Chris Mancini, Research Analyst – Gabelli Gold Fund
Adam Melnyk – Desjardins Securities
Raj Ray, Analyst – National Bank of Canada
Florian Siegfried, Senior Portfolio Manager – AgaNola
Ron Stewart, Analyst – Macquarie Equity Research
Brian Szeto, Analyst – PI Financial
Jeff Wright – Wolfpack Capital

The information provided above is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.
Investing Highlights
Significant long-term production upside with low risk in Ontario
Developing million-ounce gold resource below producing Island gold mine
20+ years of gold production experience in Canada