TORONTO (miningweekly.com) – Small-scale gold producer Richmont Mines has increased consolidated output in the first three months ended March 31 by 25% year-on-year to 32 369 oz of gold, while simultaneously driving costs per ounce down 18% to C$806, the company announced Tuesday.
The TSX- and NYSE MKT-listed miner reported that its flagship Island Gold mine, near Wawa, Ontario, produced 26 589 oz of gold, a 147% jump from the prior-year period, and an 87% increase over the previous quarter. The improved performance was driven by higher-than-expected reconciled grades of 11.31 g/t milled and record mill throughput of 834 t/d.
Cash costs for the quarter at Island Gold were C$674/oz, a 52% decrease over the prior-year period and a 34% decrease over the prior quarter.
Revenue in the first quarter totalled a record C$52.6-million, at an average realised gold price of C$1 629/oz.
The company had about C$61-million cash in the bank at the end of the quarter.
For 2016, Richmont expected to produce between 87 000 oz and 97 000 oz of gold, with Island Gold accounting for between 62 000 oz and 67 000 oz and its Beaufor mine, in Quebec, producing the balance. All-in sustaining costs were expected to range between C$1 275/oz and C$1 390/oz for the full year.
The company's TSX-listed stock had nearly doubled since the start of the year, adding 3.08% on Wednesday to close at C$0.04 apiece.