17 06 19 macquarie marketing - montreal
Post on 22-Jan-2018
2.336 Views
Preview:
TRANSCRIPT
POSITIONINGFOR
SUSTAINABLEGROWTH
Corporate PresentationMontréal Marketing
June 19, 2017
TSX - NYSE : RIC
2RIC: TSX NYSE
2
RICHMONT MINESFORWARD-LOOKING STATEMENTS
Safe Harbor Statement & Cautionary Note to U.S. Investors Concerning Resources EstimatesThis presentation contains forward-looking statements that include risks and uncertainties. When used in this presentation, the words“estimate”, “projects”, “anticipate”, “expects”, “intend”, “believe”, “hope”, “may”, and similar expressions, as well as “will”, “shall”, and otherindications of future tense, are intended to identify forward-looking statements. The forward-looking statements are based on current expectationsand apply only as of the date on which they were made. Except as required by law or regulation, Richmont Mines Inc. (“Richmont” or the“Corporation”) undertakes no obligation and disclaims any responsibility to publicly update or revise any forward-looking statements ofinformation, whether as a result of new information, future events or otherwise. The factors that could cause actual results to differ materiallyfrom those indicated in such forward-looking statements include the ability to ramp up productivity to 1,100 tonnes per day in a timely manner, theability to achieve the enhanced production levels expected, the ability to realize further expansion scenarios, any increases in capital anddevelopment or infrastructure costs, changes in the prevailing price of gold, the Canadian-U.S. exchange rate, grade of ore mined andunforeseen difficulties in mining operations that could affect revenue and production costs. Other factors such as uncertainties regardinggovernment regulations could also affect the results. Other risks may be detailed from time to time in Richmont’s Annual InformationForm and other public disclosure.
The resource estimates in this presentation were prepared in accordance with National Instrument 43-101 Standards of Disclosure of MineralProjects (“NI 43-101”) adopted by the Canadian Securities Administrators. The requirements of NI 43-101 differ significantly from therequirements of the United States Securities and Exchange Commission (the “SEC”). In this presentation, we use the terms “Measured”,“Indicated” and “Inferred” Resources. Although these terms are recognized and required to be used in Canada, the SEC does notrecognize them. The SEC permits U.S. mining corporations, in their filings with the SEC, to disclose only those mineral deposits that constitute“Reserves”. Under United States standards, mineralization may not be classified as a Reserve unless the determination has been made that themineralization could be economically and legally extracted at the time the determination is made. United States investors should not assumethat all or any portion of a Measured or Indicated Resource will ever be converted into “Reserves”. Furthermore. “Inferred Resources” havea great amount of uncertainty as to their existence and whether they can be mined economically or legally, and United States investors shouldnot assume that “Inferred Resources” exist or can be legally or economically mined, or that they will ever be upgraded to a more certain category.
An NI 43-101 Technical Report for the Island Gold Mine Expansion Case Preliminary Economic Assessment (“PEA”) will be filed within 45 daysfollowing the press release dated May 29, 2017.
For additional information regarding the Mineral Reserves and Resources referred to in this presentation, please refer to the press release datedJan. 31, 2017 reporting Richmont’s Mineral Reserve and Resource estimates as of Dec. 31. 2016.
U.S. Investors are urged to consider the disclosure in our annual report on Form 40-F. File No. 001-14598, which may be obtained from us orfrom the SEC’s web site: http://sec.gov/edgar.shtml.
(All amounts are in Canadian dollars. unless otherwise indicated.)
3RIC: TSX NYSE
3
Long-term value
Quality asset base in CanadaGrowingproduction profileSignificant exploration potential
Capital discipline & shareholder returns
Lowshares outstandingDecreasingcost structureMaximizing per share valuation
Cash focus
Strong Balance sheetFavourableCAD$ exposureGrowingcash flow streams
ESTABLISHED CANADIAN GOLD PRODUCERPOSITIONING FOR SUSTAINABLE GROWTH
ontario
4RIC: TSX NYSE
4
Strong cash position supports fully funded strategic organic growth plan
Analyst CoverageBMO Capital Markets Brian Quast
Canaccord Genuity Rahul Paul
CIBC Jeff Killeen
Cormark Securities Richard Gray
Haywood Securities Kerry Smith
Laurentian Bank Securities Ryan Hanley
Macquarie Capital Markets Michael Gray
National Bank Financial Raj Ray
Paradigm Capital Don Blyth
PI Financial Brian Szeto
Scotia Capital Ovais Habib
TD Securities Daniel Earle
CAPITAL STRUCTURE AND COVERAGEPOSITIONING FOR SUSTAINABLE GROWTH
TSX-NYSE: RIC Share Capital (at June 7, 2017)
Issued & Outstanding Shares 63.7M
Fully Diluted 66.5M
Market Capital $623M
CASH(1)
C$75.2M(US$56.5M)(3)
DEBT(1,2)
C$10.4M(US$7.8M)(3)
(1) As of Mar. 31, 2017.(2) Comprised mainly of mobile equipment capital leases.(3) Calculated using a C$:US$ exchange rate of 1.33
All amounts are in Canadian dollarsunless otherwise indicated.
5RIC: TSX NYSE
5
RICHMONT MINES2016 SCORECARD
Focused on achieving high quality,low cost growth.
ANNUAL HIGHLIGHTSBest in class safety performance
Record gold production
Record revenues
Increased reserves and resources
Strong cash position
104,050record ounces produced
$0.20 earnings per share
$169 M record annual revenues $75 M
cash at year end
Achieved all 2016 positively revised company-wide targets
(US$960)AISC(1) per ounce
(US$685)cash costs(1) per ounce
$908 $1,272
(1) Cash costs and all-in sustaining costs (“AISC”) are non-IFRS measures. Refer to the Non-IFRS performance measures containedin the 2016 MD&A.
6RIC: TSX NYSE
6
ISLAND GOLD MINE2016 SCORECARD
POSITIONED FOR GROWTHExceeded production and cost guidanceIncreased reserves at higher gradesIncreased inferred resources at higher grades and low discovery costsExpansion Case PEA to 1,100 tpd Fully funded and fully permitted
(US$745)AISC(1) per ounce
83,323record ounces produced
$14.8 Minvestment in exploration
Fully funded organic growth plan
In 2016, the Island Gold Mine exceeded expectations on every performance metric.
2013 2014 2015 2016 2017E PEAAvg
Production (k oz) Cash Costs (US$/oz)
Increasing productionand declining costs $988
(US$587)cash costs(1) per ounce
$779
(1) Refer to the Non-IFRS performance measures contained in the 2016 MD&A.(2) 2017 Guidance assumes high end of production and low end cash cost range, with an exchange rate of 1.30 Canadian to U.S. dollars.
Refer to press release dated February 2, 2017.
(3) PEA average cash costs based on Spot Gold price of US$1,260/oz.
(1,2,3)
7
0
100
200
300
400
500
600
700
800
2012 2013 2014 2015 2016
Min
eral
Res
erve
s (0
00’s
oun
ces)
Monique Beaufor Island Gold
Gold oz.752,200
Island Gold Mine reserve growth of +300% since 2014
Gold oz.44,920
ISLAND GOLD MINERESERVE & RESOURCE(1) GROWTH
Exploration results support potential for resource growth New high-grade mineralization identified by recent exploration drilling
~800 m east of main Island Gold deposit Hole GD-640-05: 20.6 g/t gold over 11.3 m (core length)
Reserve growth potential in the higher grade fourth mining horizon Early results from delineation drilling completed within Expansion Case PEA area demonstrate
significant potential to further expand reserves at higher than current average grades.
(1) Refer to the detailed mineral reserve and mineral resource tables in the appendix section of this presentation.
2016 Reserves
752,200 oz (net of depletion) with 11%increase in grade to 9.17 g/t
2016 Resources
Inferred: 30% increase to 995,700 oz(net of conversion) with 20% increase in grade to 10.18 g/t
New resource blocks laterally to the east and at depth below 1,000 metres
Low discovery cost of ~$35/oz
8RIC: TSX NYSE
8
2017 GUIDANCE Island Gold Mine Beaufor Mine Company-wide
Gold Production (ounces) 87,000 - 93,000 23,000 - 27,000 110,000 - 120,000
Cost Estimates
C$/ozCash Costs (1) $715 - $765 $1,265 - $1,320 $835 - $885Corporate G&A - - $105 - $110All-in Sustaining Costs (1) $945 - $995 $1,540 - $1,590 $1,180 - $1,235
US$/ozCash Costs (1)(2) $550 - $590 $975 - $1,015 $640 - $680Corporate G&A (2) - - $80 - $85All-in Sustaining Costs (1)(2) $725 - $765 $1,185 - $1,225 $905 - $950Capital Investment Estimates
C$(M)Sustaining Capital $19 - $22 $6 - $7 $25 - $29Expansion Capital (3) $33 - $35 - $33 - $35Exploration & Project Evaluation $14 - $16 $2 - $3 $16 - $19
US$(M)Sustaining Capital(2) $15 - $17 $5 - $6 $19 - $22Expansion Capital(2)(3) $25 - $27 - $25 - $27Exploration & Project Evaluation (2) $11 - $12 $1 - $2 $12 - $14
(1) Refer to the Non-IFRS Performance Measures in the 2016 MD&A.(2) Assuming an exchange rate of 1.30 Canadian dollars to 1.0 US dollar.(3) Expansion capital estimates for 2017 relate exclusively to the Island Gold Mine and are discretionary in nature. Ongoing deployment of project capital
at the Island Gold Mine is contingent upon the receipt of a confirmatory Preliminary Economic Assessment (“PEA”) for 1,100 tonnes per day and aminimum sustaining gold price of C$1,550 per ounce. Expansion capital is exclusive of capital requirements related to a mill expansion in 2018 ascontemplated in the PEA.
RICHMONT TARGETS2017 PRODUCTION AND COST GUIDANCE
9RIC: TSX NYSE
9
146% PRODUCTION INCREASE SINCE 2013 Production and CostsQ1 2017Results
2017Guidance
Gold production (oz) 23,772 87,000-93,000
Cash costs/oz (C$)(1) $668 $715-$765
AISC per oz. (C$)(1) $848 $945-$995
Cash costs/oz (US$)(1,2) $504 $550-$590
AISC per oz. (US$)(1,2) $640 $725-$765
Capital and Exploration ($M)Q1 2017Results
2017Guidance
Sustaining Capital (C$) $4.1 $19-$22
Project/Expansion Capital (C$) $5.9 $33-$35
Exploration (C$) $3.8 $14-$16
Sustaining Capital (US$)(2) $3.1 $15-$17
Project/Expansion Capital (US$)(2) $4.5 $25-$27
Exploration (US$)(2) $2.8 $11-$12
Increasing Production2017E: up to 12% higher YoYQ1’17: record mine & mill
rates achieved
Declining Cash Costs2017E: up to 8% lower YoYQ1’17: 19% lower QoQ
ISLAND GOLD MINECANADIAN HIGH GRADE UNDERGROUND MINE
Growth opportunities1,100 tpd Expansion Case PEA released
Increasing reservesat higher grades
Exploration potentiallaterally and at depth
Mineral Reserves and Resources(3)
(December 31, 2016)Grade
(g/t)Gold
ounces
Proven & Probable Reserves 9.17 752,200
Measured & Indicated Resources 5.94 91,450
Inferred Resources 10.18 995,700
(1) Refer to the Non-IFRS performance measures contained in the MD&A for the corresponding reporting period.(2) 2017 guidance assumes an exchange rate of 1.30 Canadian to US dollars.(3) Refer to full 2016 Reserve and Resource information at the end of this presentation.
10RIC: TSX NYSE
10
ISLAND GOLD MINEEXPANSION CASE PEA – A DISCIPLINED APPROACH
First step in a disciplined multi-phased strategy
Use of current infrastructure; minimal incremental expansion capital
Only approximately 24% of Inferred Resources were incorporated
+750k ounces Inferred Resources available for further growth
Maximizing productivity while maintaining a minimum mine life of 8 years
Low cost, quality operation that generates strong cash flow streams
Additional cost reduction and productivity enhancement initiatives not captured
Recent delineation/exploration success not captured
The objective of the PEA was to consider the most cost and capital effective strategyto mine the portion of the mineral resources that is located within the main area ofinterest over four mining horizons, to a maximum depth of 1,000 metres belowsurface, using the current mine infrastructure.
11
ISLAND GOLD MINEPEA HIGHLIGHTS
Expansion Case PEA Summary (1,100 tpd)(C$:US$ exchange rate of 1.35:1) C$ Gold Price US$ Gold Price
Spot Gold Downside Case Spot Gold Downside Case
$1,700/oz $1,550/oz US$1,260/oz US$1,150/oz
Avg annual production (koz): 2019-2024(1) 125 125 125 125
Avg annual production (koz): 2017-2024 115 115 115 115
Avg operating unit cost ($/t)(2,5) 191 189 141 140
Cash Costs ($/oz)(2,3,5) 652 646 483 479
AISC ($/oz)(2,3,5) 837 832 620 616
Sustaining capital ($M) 168 168 124 124
Project capital ($M)(4) 68 68 50 50
AIC ($/oz)(2,3,4,5) 910 906 674 671
Cumulative Net Cash Flow ($M)(6,7) 749 615 555 456
Pre-tax NPV5%(7) 580 473 430 350
After-tax NPV5%(7) 452 379 335 281(1) Excluding the 2017 and 2018 ramp-up period.(2) The Expansion Case PEA assumes a gold price of $1,700 (US$1,260) and $1,550 (US$1,150) per ounce and a C$:US$ exchange rate of 1.35.(3) Refer to the Non-IFRS performance measures section contained in the Q1 2017 MD&A.(4) Project capital includes incremental expansion capital of $28.2 million and accelerated mine development/infrastructure capital of $40 million. (5) Including royalties.(6) Net cash flow is pre-tax cash flow after all operating costs, project and sustaining capital.(7) All calculations assume the Dec. 31, 2016 cut-off grade and do not incorporate any adjustments related to different gold price assumptions.
12RIC: TSX NYSE
12
Third Mining Horizon P&P 984,000 11.71 370,460Inferred 63,000 8.25 16,710
GOUDREAULOCHALSH ISLAND EXT1 EXT2
- 500 m
340 m Level
190 m Level
W E
Crown pillar
Surface
EXPANSION CASE PEA AREA
1000 m Level
635 m Level
740 m Level
860 m Level
Second Mining HorizonP&P 490,000 8.82 138,950
Fourth Mining Horizon P&P 309,000 8.74 86,830Inferred 472,000 15.22 230,970
- 1.000 m
LegendProven Reserves
Probable Reserves
Measured & Indicated Resources
Inferred Resources
Ramps and Actual
Development
Mined Out
Planned Development
Resources in table only include Island - Lower C Zone. Extension1 - Lower C Zone. and Extension 2 - Lower E1E Zone
200 m
860 m LevelPlannedExploration Drift
( Mineral Reserves and Resources as of December 31. 2016)
First Mining Horizon
Tonnes Grade (g/t) Ounces
P&P 427,000 5.86 80,450
1
2
3
4
Upper Mine Reserves Ounces Considered in the
PEA
Tonnes Grade (g/t) Ounces
P&P 341,000 6.89 75,500
740 m LevelExplo. & Delineation Drift
Total diluted and recovered mineralized material considered in the PEA mining plan: 3.1MT @ 9.68 g/t = 964 koz gold
Approx. 24% of the inferred resources were used in the PEA All resources outside the main area were excluded in the PEA
620m LevelPlannedExploration Drift
EXPANSION CASE PEAMINERAL RESOURCES & RESERVES USED IN 2017 PEA STUDY
Note: Mineral Resources presented are exclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
13
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Was
te to
Ore
Rat
io
Tota
l Ton
nes
Min
ed
Total Tonnes Mined & Waste to Ore Ratio
Total stoping ore (tonnes) Total development ore (tonnes)
Total waste development (t) Ratio: Waste/Ore
MINE PLAN 1,100 TPDTOTAL TONNES MINED
2015 2016
Historical Expansion Case PEA
14
FINANCIAL ANALYSISCURRENCY AND GOLD PRICE SENSITIVITIES
Pre-tax Net Cash Flow(1,2) ($M) SensitivityUS$ Gold Price
C$:U
S$
1,000 1,100 1,200 1,300 1,400
1.00 123 212 302 391 481
1.10 212 311 409 507 606
1.20 302 409 516 623 731
1.30 391 507 623 740 856
1.35 436 556 677 798 918
1.40 481 606 731 856 981
1.45 525 655 784 914 1 043
1.50 570 704 838 972 1 106
1.60 659 802 945 1 088 1 231
PEA mine plan generates positive pre-tax net cash flow even at a gold price of US$1,000 per ounce and a C$ to US$ exchange rate at parity
(1) Net cash flow is pre-tax cash flow after all operating costs, project and sustaining capital.(2) All calculations assume the Dec.31, 2016 cut-off grade and do not incorporate any adjustments related to different gold price assumptions.
15RIC: TSX NYSE
15
NEXT STEPSADDITIONAL GROWTH OPPORTUNITIES
Immediate Operational enhancements
► Ongoing implementation of enhanced operational efficiencies► Cost reduction initiatives► Supply chain optimization
Short-Term Exploration andDelineation Program
► Increase resource inventory to the east and at depth to a minimum of 2M oz of total resources, including 1M oz of reserves
Mid-Term Phase 2 Expansion< 5 years
► Additional mine infrastructure (ex. shaft) could allow increased mining rates as new mining zones outside the PEA area (both laterally and at depth) are incorporated in the PEA
► +2M oz of resources – further production growth profile over 10+ year mine life
Mid to Long-Term
Unlocking the Full Potential of the Island Gold Deposit
► Increased resource inventory of the vertical extension at depth (+2 km)
► Increased resource inventory along strike; +7 km east and west
► Transforming Island Gold into a multi-million ounce deposit
Long-Term Potential Full Land Package
► Resource growth potential regionally outside the current deposit area
► <15% of the main structure has been drilled to a depth of 1,000 m
16RIC: TSX NYSE
16
620 m Level PlannedExplo. & Delineation Drift
860 m Level PlannedExplo. & Delineation Drift
GOUDREAULOCHALSH ISLAND EXT1 EXT2
- 500 m
- 1.500 m
W E
340 m Level
190 m Level
740 m LevelExplo. & Delineation Drift
- 1.000 m
200 m
2017-2018 DEEP EXPLORATION DRILLING
Proven Reserves
Probable Reserves
Indicated Resources
Inferred Resources
Inferred Resources
(B. D. G. G1 Zones)
Ramps and Actual Development
Mined Out
Planned Development
Legend
**** Mineral Reserves and Resources as of December 31. 2016)
GD-630-0125.37/3.85
GD-620-0119.74/1.4
NEW DISCOVERYGD-640-05
20.57/11.3 c.l.
**** Drillhole IntersectionAu (cut 70 g/t) / true thickness (metres)c.l. Core length (metres)
Target
Target
Target
Extension of existing resource blocks + new potential areas
NEXT STEPSSHORT-TERM OBJECTIVE: +2 M OZ (net of depletion) TOTAL RESOURCES
2017-2018 SURFACE/ UNDERGROUNDEXPLORATION DRILLING
17RIC: TSX NYSE
17
340 m Level
- 500 m
340-588-093.62/2.10
340-588-1110.10/3.0
340-588-1210.24/3.0
340-588-1333.60/2.0
340-588-1410.60/2.0
340-588-1511.44/4.36
GD-640-047.38/3.27
340-588-185.69/2.3
340-588-174.98/3.0
EXPANSION CASE PEA AREA
620 m Level PlannedExplo. & DelineationDrift
860 m Level PlannedExplo. & Delineation Drift
- 1000 m
GD-640-0520.57/11.3 c.l.
340-576-028.50/2.0
340-576-015.17/2.0
340-586-091.73/2.0
340-586-088.38/2.0
340-579-012.69/2.57
340-586-067.63/2.68
340-586-073.16/2.0
340-588-0814.96/2.0
GD-640-05-110.16/5.74 c.l.
GD-620-0119.74/1.4
GD-630-0125.37/3.85
GD-640-05-1
Cross section looking W
GD-640-05-116.10/8.33 c.l.
GD-640-05
GD-640-023.66/5.34
GD-640-010.08/4.24
Cross section looking W
EASTERN LATERALDRILLING
ISLAND GOLD MINEEastern Lateral Exploration andInfill Drilling
Proven Reserves (2016/12/31)
Probable Reserves (2016/12/31)
Indicated Resources (2016/12/31)
Inferred Resources (2016/12/31)
Ramp and Actual Development
Mined Out
Planned Development
Intersection not included in Dec. 2016 Reserves & Resources update
340-588-160.93/2.0
100 m
> 30
8.0 to 30.0
4.0 to 8.0
< 4.0
Drillhole IntersectionAu (cut 70 g/t) / true thickness (metres)c.l. Core length (metres)
18RIC: TSX NYSE
18
15,5
00 m
E
15,0
00 m
E
Dyke
MH5-1A9.27/5.93
MH4-44.10/3.09
MH5-25.08/4.40
MH4-54.63/2.51
MH2A-74.72/4.80
- 1,500 m
- 1,000 m
100 m
EXPANSION CASE PEA AREA
860 m Level PlannedExplo. & Delineation Drift
MH2A-9B2.66/5.89
MH84.60/2.24
MH5-30.95/3.81
MH60.91/9.44
Drillhole IntersectionAu (cut 225 g/t)
Drillhole IntersectionAu (cut 70 g/t)
Potential Extension
MH1-1024.54/3.76
MH2A-810.37/9.17
MH2A-106.16/11.58
DEEP DIRECTIONAL DRILLING
ISLAND GOLD MINEDeep Directional Exploration andInfill Drilling
Proven Reserves (2016/12/31)
Probable Reserves (2016/12/31)
Indicated Resources (2016/12/31)
Inferred Resources (2016/12/31)
Ramp and Actual Development
Mined Out
Planned Development
> 30
8.0 to 30.0
4.0 to 8.0
< 4.0
Drillhole IntersectionAu cut g/t / true thickness (metres)
Intersection not included in Dec. 2016 Reserves & Resources update
19RIC: TSX NYSE
19
14,5
00 m
E
15,0
00 m
E
Dyke
- 1,000 m
100 m
EXPANSION CASE PEA AREA
860 m Level PlannedExplo. & Delineation
Drift
740-477-4038.62/2.24
740-465-1523.29/3.51
740-465-0338.66/3.68
740-465-0485.33/3.52
740-465-0843.05/5.13
740-477-3060.15/3.29
740-477-4324.21/4.33
820-520-1330.20/3.62
820-520-0853.64/6.53
820-512-0460.16/8.79
820-520-0152.67/3.28
800-511-0123.36/4.72
740-477-3332.47/6.57
740-465-2024.56/3.85
740-483-2134.13/3.53
740-483-2226.37/3.46
740-465-1696.97/5.08
740-465-2350.84/2.03
635 m Level
740 m Level
DRILLING IN PEA
ISLAND GOLD MINEHighlights Expansion Case PEADelineation & Exploration Drilling
Proven Reserves (2016/12/31)
Probable Reserves (2016/12/31)
Indicated Resources (2016/12/31)
Inferred Resources (2016/12/31)
Ramp and Actual Development
Mined Out
Planned Development
> 30
8.0 to 30.0
4.0 to 8.0
< 4.0
Drillhole IntersectionAu (cut 225 g/t) / true thickness (metres)
Intersection not included in Dec. 2016 Reserves & Resources update
20
Mill
Maskinongelake
CLINE MINE63,000 oz Au0.3 MT @ 6.5 g/t Au
KREMZAR MINE47,000 oz Au0.6 MT @ 4.8 g/t Au
ISLAND GOLD MINE
East Extension
West Extension Drilling target500 m
- 1,000 m
- 500 m
- 1,500 m
MAGINO ISLAND GOLD EDWARDS CLINE
Rich
mon
tRich
mon
t
Argo
naut
Strik
e M
iner
als
New gold zone intersections (Au Cut 70 g/t at Lateral East Zone or 225 g/t for Lower C Zone)Au g/t / true thickness (metres)
Clin
e M
inin
g Co
rp.
KZ-16-0156.93/1.10 c.l.
KZ-16-029.71/8.00 c.l.
MH1-1024.54/3.76
MH2A-106.16/11.58
MH5-1A9.27/5.93
340-588-1333.60/2.0
340-576-028.50/2.0
MAGINO Open Pit Project
GD-640-047.38/3.27
GD-640-0520.57/11.3 c.l.
GD-640-05-116.10/8.33 c.l.
Producing Gold Mine
Closed Gold Mine
Gold Showing
Major Fault
Mafic VolcanicIntermediate VolcanicDiabaseIron FormationWebb LakeStock-Granodiorite
EDWARDS MINE144,000 oz Au0.5 MT @ 11.0 g/t Au
Kremzar Cross Section
Drilling target
Kremzar Cross Section
GEOLOGY AND EXPLORATIONREGIONAL EXPLORATION: FINDING THE NEXT MINE
1,768 m: Macassa Mine (Kirkland Lake)
2,200 m: Hoyle Pond Mine (Goldcorp)
1,524 m: Golden Giant Mine (Barrick)
21RIC: TSX NYSE
21
1) Includes 1,165 ounces produced from the Monique Mine in January 2016.
2) Refer to the Non-IFRS performance measures contained in the MD&A for the corresponding reporting period.
3) Includes cash costs from the Beaufor and Monique mines.
4) An exchange rate of 1.30 Canadian dollars to 1.0 US dollar was used for 2017 guidance. Q1 2017 figures are calculated using an exchange rate of 1.3238.
5) Refer to full 2016 Reserve and Resource information at the end of this presentation.
BEAUFOR MINE & CAMFLO MILLCANADIAN ASSETS IN QUEBEC
H2 2017 Increases in:• Underground tpd• Gold production• Grade
2017 PlanContinue to increase mining in higher-grade Q zone
Camflo Mill1,200 tpd capacity provides toll milling opportunities
Q1 2017Results
2017Guidance
Gold production (oz) 5,629 23,000 - 27,000
Cash costs/oz (C$)(2) $1,265 $1,265 - $1,320
AISC per oz. (C$)(2) $1,580 $1,540 - $1,590Cash costs/oz (US$)(2,4) $956 $975 - $1,015AISC per oz. (US$)(2,4) $1,194 $1,185 - $1,225
Capital and ExplorationQ1 2017 Results
2017Guidance
Sustaining Capital (C$M) $1.8 $6-7Sustaining Capital (US$M) $1.4 $5-6
2016 Reserves and Resources(5) Grade g/t Gold OuncesProven & Probable Reserves 6.86 44,920Measured & Indicated Resources 7.37 83,700Inferred Resources 6.44 7,500
22RIC: TSX NYSE
22
Long-term value
Quality asset base in CanadaGrowingproduction profileSignificant exploration potential
Capital discipline & shareholder returns
Lowshares outstandingDecreasingcost structureMaximizing per share valuation
Cash focus
Strong Balance sheetFavourableCAD$ exposureGrowingcash flow streams
ESTABLISHED CANADIAN GOLD PRODUCERPOSITIONING FOR SUSTAINABLE GROWTH
ontario
www.richmont-mines.com
APPENDIX
24RIC: TSX NYSE
24
MÉLISSA TARDIFLLB
Lawyer and Corporate Secretary
RICHMONT MINESMANAGEMENT TEAM
RENAUD ADAMSP. ENGPresident andChief Executive Officer
STEVE BURLETONCFA, MBA
Vice-President,Business Development
ROB CHAUSSECPA, CA
Chief Financial Officer
CHRISTIAN BOURCIERP. ENGVice-President,Operations
NICOLE VEILLEUXCPA, CAVice-PresidentFinance
ANNE DAYMBA, ICD.DSenior Vice-President,Investor Relations
DANIEL ADAMGEO PHDVice-PresidentExploration
25RIC: TSX NYSE
25
RENÉ MARIONP. ENG
Chairman of the Board and Chair of the Technical and Corporate Responsibility Committee
MICHAEL PESNERCA
Director and Chairof the Audit Committee
RENAUD ADAMSP. ENG
Director, President andChief Executive Officer
PETER BARNESCA
Director and Chair of the Human Resources and Compensation Committee
ELAINE ELLINGHAMP. Geo., MBA
Director and Chair of the Governance and Nominating Committee
RICHMONT MINESBOARD OF DIRECTORS
26RIC: TSX NYSE
26
1. Mineral Resources presented are exclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.2. Refer to NI 43-101 Technical Report for the Island Gold Mine dated March 20, 2017.3. In 2016, based on a gold price of CAN$1,500/oz; in 2015, based on a gold price of US$1,080/oz and an exchange rate of CAN$1.2037 = US$1.00.4. Monique Mineral Resources are located underground directly below the open-pit.5. Underground Mineral Resources established as of December 31, 2012.6. The Francoeur Mine closed in November 2012 and was sold in 2016.
Richmont Mines Mineral Reserve andResource1 Estimates
December 31, 2016 December 31, 2015Tonnes Grade Gold
OuncesTonnes Grade Gold
Ounces(metric) (g/t Au) (metric) (g/t Au)ISLAND GOLD MINE2
Proven Reserves3 573,000 8.68 159,800 363,500 7.53 87,900Probable Reserves3 1,978,000 9.31 592,400 1,752,000 8.41 473,800Total Proven & Probable Reserves3 2,551,000 9.17 752,200 2,115,500 8.26 561,700Measured Resources 33,500 4.94 5,350 7,500 5.80 1,350Indicated Resources 445,500 6.01 86,100 341,000 6.42 70,350Total Measured & Indicated Resources 479,000 5.94 91,450 348,500 6.40 71,700Total Inferred Resources 3,042,000 10.18 995,700 2,815,000 8.49 768,050BEAUFOR MINEProven Reserves3 32,000 6.77 7,010 35,600 7.31 8,350Probable Reserves3 171,500 6.87 37,910 266,500 6.48 55,500Total Proven and Probable Reserves3 203,500 6.86 44,920 302,100 6.57 63,850Measured Resources 53,000 6.27 10,700 109,000 5.32 18,600Indicated Resources 300,000 7.57 73,000 734,000 6.50 153,300Total Measured & Indicated Resources 353,000 7.37 83,700 843,000 6.34 171,900Total Inferred Resources 36,000 6.44 7,500 135,000 6.44 28,000MONIQUE MINE4
Indicated Resources 107,500 4.88 16,850 107,500 4.88 16,850WASAMAC GOLD PROPERTY5
Measured Resources 3,124,500 2.75 276,550 3,124,500 2.75 276,550Indicated Resources 12,127,000 2.89 1,125,700 12,127,000 2.89 1,125,700Total Measured & Indicated Resources 15,251,500 2.86 1,402,250 15,251,500 2.86 1,402,250Total Inferred Resources 18,759,000 2.66 1,605,400 18,759,000 2.66 1,605,400FRANCOEUR GOLD PROPERTY6
Measured Resources - - - 40,000 5.89 7,600Indicated Resources - - - 280,000 6.55 59,000Total Measured & Indicated Resources - - - 320,000 6.47 66,600Total Inferred Resources - - - 18,000 7.17 4,150TOTAL RESERVES AND RESOURCESProven & Probable Reserves 2,754,500 9.00 797,120 2,417,600 8.05 625,550Measured & Indicated Resources 16,191,000 3.06 1,594,250 16,870,500 3.19 1,729,300Inferred Resources 21,837,000 3.72 2,608,600 21,727,000 3.44 2,405,600
RICHMONT MINESMINERAL RESERVES AND RESOURCES
27RIC: TSX NYSE
27
Firm Name % O/S Shares Held CityVan Eck Associates Corporation 11.04 7,034,751 New YorkRenaissance Technologies LLC 5.59 3,563,900 New YorkRBC Global Asset Management Inc. 5.27 3,356,966 TorontoMontrusco Bolton Investments Inc. 4.07 2,590,527 MontrealConnor, Clark & Lunn Investment Management Ltd. 4.00 2,550,000 Vancouver1832 Asset Management L.P. 3.87 2,466,900 TorontoSentry Investments Inc. 3.48 2,215,950 TorontoBMO Asset Management Inc. 3.42 2,176,800 TorontoOppenheimerFunds, Inc. 3.18 2,027,000 New YorkCIBC Asset Management Inc. 2.04 1,302,030 MontrealSprott Asset Management LP 1.96 1,249,647 TorontoMackenzie Financial Corporation 1.92 1,222,900 TorontoTocqueville Asset Management LP 1.85 1,177,500 New YorkEterna Investment Management Inc. 1.73 1,100,000 Quebec CityManulife Asset Management Limited 1.57 1,000,000 TorontoFidelity Management & Research Company 1.38 876,343 BostonBlackRock Asset Management Canada Limited 1.37 875,000 TorontoDimensional Fund Advisors, L.P. 1.29 825,000 AustinZPR Investment Management Inc. 1.28 815,520 Orange CityGabelli Funds, LLC 1.23 785,000 RyeBlackRock Institutional Trust Company, N.A. 1.18 750,000 San FranciscoGWL Investment Management Ltd. 1.16 736,337 WinnipegFonds de Solidarité FTQ 1.13 721,700 MontrealO'Shaughnessy Asset Management, LLC 1.02 650,579 StamfordIntact Investment Management Inc. 0.99 629,000 Toronto
As of June 5, 2017. Source: Nasdaq IR Insight
RICHMONT MINESTOP INSTITUTIONAL SHAREHOLDERS
28RIC: TSX NYSE
28
New capping 225 g/t Au
Assays Island C Lower
ISLAND GOLD MINENEW CAPPING/ISLAND C LOWER ZONE July 6, 2016
29RIC: TSX NYSE
29
New capping 225 g/t Au
Assays Island C LowerLog Normal Probability Plot
ISLAND GOLD MINENEW CAPPING/ISLAND C LOWER ZONE December 31, 2016
30RIC: TSX NYSE
30
ISLAND GOLD MINEWESTERN LATERAL EXPLORATION
31RIC: TSX NYSE
31
(1) Refer to full 2015 Reserve and Resource information at the end of this presentation
Resources TonnesGrade
(g/t Au)Gold
Ounces
Measured Resources 3,124,500 2.75 276,550
Indicated Resources 12,127,000 2.89 1,125,700
Inferred Resources 18,759,000 2.66 1,605,400
Base case parameters: Gold price per ounce of US$1,300 or C$1,350 using a C$:US$ exchange rate of 1.04.
March 2012 PEA SummaryMine life (years) 14Daily mine production (tpd) 6,000
Total Production (Koz) 1,750
Average annual gold production (Koz) 140
Average cash operating cost (C$/t) 46
Average cash operating cost (C$/oz) 716
Total Capital (C$M) 680
NPV5% (C$M) 71
IRR(5%) (%) 7
• IRR of 14% at C$1,650/oz. gold • (current 60-day avg. of ~C$1,660/oz)
• Potential to improve base case economics
• Potential technical and operational enhancements
Abitibi gold mining district
15km west of Rouyn-Noranda, Quebec
100% owned, no royalties
Close proximity to existing infrastructure
Significant exploration potential
NI 43-101 PEA released in March 2012
WASAMACADVANCED DEVELOPMENT PROJECT
32RIC: TSX NYSE
32
RICHMONT MINES ASSETSVALD’OR AREA – EXPLORATION PROPERTIES
PROPERTY OPTION AGREEMENTS Monique: Probe Metals JV: potential 60% earn-in with $2.0M in exploration over 4 years
Chimo: Chalice Gold JV: potential 70% earn-in with $3.1M in exploration over 4 years, with a total option payment of C$ 200,000; 1% NSR to Richmont on claims with no existing royalty
33RIC: TSX NYSE
33
RICHMONT MINES ASSETSTIMMINS AREA / EXPLORATION PROPERTIES
34RIC: TSX NYSE
34
Our vision is to become a leading intermediate gold producer focused on the
Americas generating superior per share valuation. We are committed to a “SustainableBusiness Model” and a strategy of long-term growth, and will fully utilize theCorporation’s strong balance sheet, assets, cash flow, capital structure and theextensive experience of the Corporations’ Board of Directors and Management Team tobuild the next leading Canadian based intermediate gold company.
Our strategy in the short term, will focus on becoming a leading junior gold
producer by maintaining at all times a superior per share position on operational & financial metrics while maintaining a sustainable and risk adverse approach under a“Sustainable Business Model”.
We are guided by our core corporate values to achieve long term value for all of
our stakeholders. By cultivating a culture of responsible performance, we are focusedon operating in a sustainable manner while holding ourselves accountable to all of ourstakeholders.
RICHMONT MINESOUR VISION AND STRATEGY
35RIC: TSX NYSE
35
RICHMONT MINESOUR VALUES
36RIC: TSX NYSE
36
We believe in developing Richmont based on the principles of sustainability,in order to deliver sustainable andsuperior value for all stakeholderswith low risk exposureto precious metals.
Human ResourcesMaking work life sustainable through
employee health & safety and wellness programs, improved supervisory & operational
planning/implementation practices and skills through training programs. Develop potential
leadership abilities through leadership program. Promote Life in Balance; family, work and
personal development.
Sustainable
SustainableCommunity DevelopmentLeadership and consulting skills for promoting comprehensive change
toward sustainability in communities and developing world-class relationships
with Aboriginal communities.
SustainableProcess Improvement
Reducing inefficiency and waste through quality & performance management by implementation of “Lean” methods and balanced score card approach. Advanced knowledge and experience with energy efficiency,sustainable waste systems & construction/ building practices.
SustainableGrowth Principles
Developing sustainable exploration, development, operational and financial practices in order to deliver superior per share value, mitigation/management of risk exposure and discipline approach toward preserving best-in-class balance sheet and capital structure.
RICHMONT MINESSUSTAINABLE BUSINESS MODEL
www.richmont-mines.com
top related