Richmont Mines Inc., a gold mining company, works to acquire, develop and exploit gold mining properties primarily in eastern Canada. The company holds primary interests in Quebec, Ontario, Newfoundland and Labrador.
The first quarter of 2010 was a solid reporting period for the company. Over 15,000 oz. of gold were sold at an average price of $US1,105. Generally, extraction costs were a bit higher than might be expected at $US830.00 but did not overly affect operating margins as the company fine tunes its operations and works to expand new programs. In this regard, the company has recently announced a 30% stock acquisition in Louvem Inc. while expanding its current drilling program at several other exploratory sites.
Although costs may need to be addressed to increase overall margins, the company has been having solid success with its cash on hand position. Operating capital stood at approximately $CA25 million with relatively few outstanding shares. Capital investments were also relatively small as the company explores and moves forward with its development program.
In a general way, Richmont Mines is an interesting company to assess. It has no long-term debt, appears to be an exceedingly frugal company in the way it approaches its activities and looks to a type of company where risk is a very definite no. This company is a rather odd beast but one that looks to be a fairly safe bet in a rather risky marketplace. Diligence is a watchword but one that could lead to profit.