7. Richmont Mines (RIC - Get Report) engages in the acquisition, exploration, operation, financing and development of mineral properties. The company currently produces gold from its Island Gold and Beaufor mines, and expects to launch production at its Francoeur Mine by mid-2011, augmenting total annual production to 100,000 ounces of gold. The company will report its first quarter 2011 results on May 13.
Globex Mining recently announced an option agreement with Richmont Mines, under which Richmont can earn 100% interest in five of Globex's claims adjoining its Wasamac property in Beauchastel Township. Richmont has agreed to the following option terms and conditions; upon signing, $500,000 in cash and $1 million in exploration over an 18-month period; an additional $500,000 in cash and $1 million in exploration expenses within the following 18 months; at 36 months, an additional $2 million in cash and the issuance of 500,000 Richmont shares to Globexafter; and an additional $1 million as exploration expenses within the following 18 months.
Of the four analysts covering the stock, 75% recommend a buy, while the remaining rate a hold. The stock has no sell ratings. On average, analysts foresee 22.8% upside to $9.97 from current levels. The stock has gained 91% in the last one year.