This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
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.
During the first quarter 2011, the company reported earnings of $8.7 million, or 28 cents per share, compared to $1.8 million, or 7 cents per share, in the year-ago quarter. Revenue soared 32.4% to $26.4 million from $20 million in the first quarter of 2010. Moreover, gold sales stood at 19,234 ounces at an average selling price of $1,389 versus gold sales of 15,841 ounces at an average selling price of $1,116 in the prior year's quarter.
At the end of March 2011, cash and cash equivalents totaled $47 million, up 18% from the Dec. 31, 2010 level of $40 million. While this includes $3 million obtained from the sale of the Valentine Lake property, the company achieved this despite a capital expenditure of $8.6 million and exploration and project evaluation investments made during the quarter.
The company announced a significant increase in the estimated resource base for the Wasamac property during the first quarter of 2011 and plans to complete an additional 35,000 meters of drilling on the Wasamac property in 2011, with the objective of expanding overall resources and defining the parameters for completing a scoping study by the end of 2011.
Of the three analysts covering the stock, 67% recommend a buy and the remaining rate a hold. The stock has no sell ratings. On average, analysts foresee 48.6% upside to $9.73 from current levels.