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:

"The Canadian dollar has recovered some of the losses it sustained earlier in the year, but it's still at a place where companies like Richmont Mines Inc. can continue to benefit from the weakness." read more >

Christopher De Sousa, Seeking Alpha (5/22/15)
"Richmont Mines Inc. produced 25,859 oz gold in Q1/15, up 23% compared to a year earlier. . .net earnings climbed to $4.6M. . .from a loss of $1.9M last year. The company has a strong balance sheet with minimal debt. . .Richmont was just shy of its cash flow breaking even. . .we expect cash flow to pick up once Island Gold transitions into a low-cost operation, and with an increased production profile. . .Richmont is taking the necessary steps to position its gold mines for meaningful organic long-term growth through the expansion of Island Gold and Beaufor."

Jeff Wright, H.C. Wainwright & Co. (5/8/15)
"Richmont Mines Inc. announced Q1/14 results. . .the company produced 25,859 oz gold at an average cash cost and all-in sustaining cost of CA$979/oz and CA$1,255/oz, respectively. . .net earnings of CA$4.6M, or CA$0.09 per share, and exited the quarter with CA$70.7M cash. . .sufficient to carry out the development work at the Island Gold mine. . .the exploration program could not only provide access to higher-grade ore but result in an extension of the economic mine life. . .we continue to view Island Gold as the firm's flagship asset and believe the development and exploratory work completed through 2015 should provide growth going forward."

Brian Szeto, PI Financial (5/8/15)
"Richmont Mines Inc. announced its Q1/15 financial results. . .earnings per share of CA$0.08, which was slightly ahead of our estimate of CA$0.07 and consensus estimate of CA$0.06. Cash flow per share was CA$0.18 versus our estimate of CA$0.15 and consensus of CA$0.13. . .consolidated cash cost was $789/oz, compared to our estimate of $870/oz (all-in sustaining cost of $1,011/oz versus our forecast of $1,130/oz). . .we view the Q1/15 results positively as they came in ahead of expectations. . .development at Island Gold continues to progress well as the company prepares the high-grade Island Gold Deep zone for increased mining in 2016."

"Richmont Mines Inc. isn't getting the attention it deserves. The company is a small producer now, but it has a lot of growth potential at its Island Gold mine. It's in a great jurisdiction, northern Ontario. From a valuation perspective it's trading at a big discount to its potential net asset value based on currently delineated resources. It's a lot less risky than a predevelopment company because the operation is built, and we know how much it costs to mine and mill there. Richmont has an unleveraged balance sheet and net cash." read more >

Michael Gray, Macquarie Capital Markets (4/30/15)
"We continue to have high conviction that Richmont Mines Inc.'s Lower Extension zone discovery at the Island Gold mine is transformative and project that it will deliver high grades/high margins and long mine life. We reiterate our Outperform recommendation and $7 target."

More Expert Comments

Experts Commenting on This Company

Ralph Aldis, Portfolio Manager, Gold and Natural Resources – U.S. Global Investors
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
Richmont Mines Inc. Content