Richmont Mines Inc. BMO GLOBAL METALS & MINING INVESTOR PRESENTATION. February RIC: TSX AMEX

Transcription

1 Richmont Mines Inc. BMO GLOBAL METALS & MINING INVESTOR PRESENTATION February 2008

2 Safe Harbor Statement This presentation contains forward-looking statements that include risks and uncertainties. The factors that could cause actual results to differ materially from those indicated in such forward-looking statements include changes in the prevailing price of gold, the Canadian-U.S. exchange rate, grade of ore mined and unforeseen difficulties in mining operations that could affect revenues and production costs. Other factors such as uncertainties regarding government regulations could also affect the results. Other risks may be detailed from time to time in Richmont Mines Inc. s periodic reports.

3 Cautionary Note To U.S. Investors Concerning Resource Estimates The resource estimates in this presentation were prepared in accordance with National Instrument adopted by the Canadian Securities Administrators. The requirements of NI differ significantly from the requirements 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 in Canada, the SEC does not recognize them. The SEC permits U.S. mining companies, 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 the mineralization could be economically and legally extracted at the time the determination is made. United States investors should not assume that all or any portion of a measured or indicated resource will ever be converted into reserves. Further, inferred resources have a great amount of uncertainty as to their existence and whether they can be mined economically or legally, and United States investors should not assume that inferred resources exist or can be legally or economically mined, or that they will ever be upgraded to a higher category. U.S. Investors are urged to consider the disclosure in our annual report on Form 20-F, File No , which may be obtained from us or from the SEC s web site:

4 Richmont Mines Produces Gold OUNCES SOLD SELLING PRICE ounces 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 $800 $700 $600 $500 $400 $300 $200 $100 ($US) CASH COST 0 Q3 06 Q4 06 Q1 07 Q2 07 Q307* Q4 07 Ounces gold sold Cash cost per ounce Selling price * Q3 07 results affected by planned shut-down of Beaufor Mine for headframe replacement. $0

5 Richmont Mines Strong and Profitable 2007 NET INCOME 2005 NET INCOME ($1.4) million* 2006 NET INCOME $3.2 million $6.7 million $27.3 million in Cash and Cash Equiv. (at 12/31/07) * Excludes $26.0 million asset write-down.

6 Richmont Mines Inc. Richmont Mines is a gold exploration, development and mining company with producing mines in Northeast Canada. RIC: TSX (CDN $) AMEX (US $) Shares outstanding 24.1 million 24.1 million Market capitalization million $91.3 million 52 week price range $3.85 $2.20 $ $2.25 Recent price $3.85 $3.79 Average 6 mos. volume 27,781 73, % un-hedged No long-term debt Market data as of February 20, 2008.

7 Richmont Mines Expertise Profitable Gold Producer Operational expertise in underground, narrow vein gold mines Efficient and profitable underground mining Well-positioned to initiate partnerships Strong, flexible management team Operates in a safe political environment Healthy balance sheet and underlying asset value

8 Richmont Mines Properties ONTARIO Island Gold Mine Sewell Cripple Creek QUÉBEC Francœur Wasamac Camflo Mill Camflo Northwest Beaufor Mine NEWFOUNDLAND AND LABRADOR Valentine Lake COLORADO, USA Golden Wonder

9 ISLAND GOLD PROJECT

10 Island Gold Mine Location DUBREUILVILLE 519 MANITOBA HUDSON BAY N ONTARIO 17 ISLAND GOLD MINE KENORA PICKLE CROW JAMES BAY QUEBEC 5 km WAWA THUNDER BAY SUPERIOR LAKE TIMMINS km km North North of of Wawa Wawa km km South South of of Dubreuilville Dubreuilville Population Population of of Dubreuilville Dubreuilville :: 1,000 1,000 Population Population of of Wawa Wawa :: 3,800 3,800 U. S. A. 200 km MICHIGAN LAKE WAWA SUDBURY HURON LAKE ERIE LAKE TORONTO ROUYN-NORANDA MONTREAL OTTAWA ONTARIO LAKE

11 Island Gold Project Ontario, Canada Dubreuilvill e Goudreau 64 Patented 1 Licence Lochalsh 2 Patented 22 Leases 7 Licences Island 21 claims (187 units) Kremzar 18 Patented 2 Leases ISLAND GOLD MINE KREMZAR MINE 306, g/t N EDWARD MINE 176, g/t FINAN Twp 6 Km of favorable geology 6 Km of favorable geology MAGINO MINE 770, g/t Goudreau Lake Deformation Zone JACOBSON Twp 1,5 km

12 Composite Longitudinal Section Proven Proven and and Probable Probable Reserves Reserves : : 1 1 Mt g/t g/t Au; Au; 285, ,536 Ounces Ounces Measured Measured & Indicated Indicated Resources Resources : 590,200 : 590,200 t g/t g/t Au; Au; 192, ,422 Ounces Ounces Inferred Inferred Resources Resources : : 614, ,000 t g/t g/t Au; Au; 193, ,350 Ounces Ounces W Crown Pillar Portal Data Data as as of of December December 31, 31, Lochalsh Zone Island Zone Goudreau Zone E Level m Level m -600m 17.9 / 5.0 Potential Area 6.3 / / / 3.9 Diabase Dyke Level / 3.0 Potential Area 14.1 / 1.6 Potential Area DDH Intersection (True Thickness metre) (Au Cut 75 gpt)

13 Growing Reserves and Resources 300,000 Ounces 250, , , : RPA filed on November : GENIVAR filed on November 30. May 2007: GENIVAR dated on May 15. Dec GENIVAR update as of December ,000 50, May-07 Dec-07 Proven and Probable Reserves Measured and Indicated Resources Inferred Resources

14 Island Gold Potential 5 year initial mine life Long-hole stope mining Zones open at depth and laterally Good vertical and horizontal continuity Average forecasted operating cost of $105/tonne ore

15 BEAUFOR MINE

16 Beaufor Mine - Quebec Cumulative Production: 454,205 ounces Proven and Probable Reserves 75,632 ounces at 9.20 g/t Measured and Indicated Reserves 141,267 ounces at 6.34 g/t 42,000 meters of diamond drilling planned in 2008 Reserves as of December 31, 2007

17 Beaufor Mine Schematic Section Perron Shaft BE 32 Zone AU R FO FA 367 T 140 A 1025 LEVEL 1250 LEVEL LT B -600 m N FAU PERRO UL -300 m 625 LEVEL C 1500 LEVEL 1750 LEVEL D 2000 LEVEL F J K -900 m L M N P Q 150 m R2 R1 Mineralized Zone -50 m Potential area Granodiorite m R Volcanic rock S Fault

18 BEAUFOR MINE Longitudinal Section - Q Zone Hole Number PR-UG 1750 LEVEL 2500 m 2000 LEVEL Perron Shaft Bottom : 650m Central Fault 2250 m In progress / 1.2 QZV: 0.94m 100 m 2000 m Planned Tr. DK (Central Fault) Core Grade Grade Length Cut at Cut at (m) g/t Au g/t Au / 1.6 QZV: 1.09m / 2.0 QZV: 1.91m / 1.6 QZV: 1.2m 140-xx Planned / 2.1 QZV: 0.7m Pending QZV: 4.0m Grade cut at 100g/t Au / Core length (m)

19 Camflo Mill Quebec, Canada Processes ore from Beaufor and custom milling 500 Replacement cost > $30 million Tonnes (in thousands) Opportunity to form new joint ventures Beaufor East Amphi Custom milling

20 VALENTINE LAKE PROJECT

21 Valentine Lake - Acquisition of Interest Exploration commitment of $2.5 million completed by October 31, 2007 Option to acquire a 70% interest from Mountain Lake Resources 2008 Plan: Formalize joint venture agreement Develop plan for further advancement and expansion of the main zone Inferred reserves: 1.3 million 8.50 g/t 359,000 ounces

22 Golden Wonder Mine - Colorado Initial evaluation completed; Exercised option to acquire 50% interest Exploration & related expenditures of $US3.0 million by September 1, 2008 Formalize 50% Joint Venture; Commitment of $US15 million over 56 mos Plan: - Preliminary site work Q108 - Exploration expected Q208 Historic gold production 133,000 ounces at 16 ozs/ton

23 Financial Highlights

24 Revenue Growing Revenue (in millions) $39.6 $38.1 $32.9 $

25 Gross Margin Improving Gross Margin 30.6% 32.3% 17.8% 13.9%

26 Higher Earnings Net Income (Loss) (in millions) $6.7 $3.2 $0.7 -$ * * Excludes $26.0 million asset write-down.

27 Building Shareholder Value Assets (in millions) Shareholder Equity (in millions) $86.0 $61.8 $78.5 $54.7 $45.4 $56.2 $54.2 $

28 Strong Cash Position Cash and Cash Equivalents (in millions) $25.3 $27.3 No Long-Term Debt $14.7 $16.1 No Hedging Only 24.1 M shares outstanding

29 Strategies and Outlook

30 Current Priorities Advance Island Gold to Full Mill Capacity Maintain Efficiencies at Beaufor Mine N. American Acquisitions and Partnerships

31 Five-Year Goal To become a strong, profitable, intermediate North American developer and producer of gold, operating three to four mining sites each producing at least 60,000 ounces of gold per year while building at least one million ounces of gold reserves, and measurably improving our future cash flow potential.

32 Strategic Direction CREATE VALUE Expand reserve base Build pipeline of projects Rely on expertise and experience Bold moves in acquisition and exploration Rationalize and capitalize existing resources Utilize outside resources to uncover opportunities

33 Richmont Mines Inc. INVESTOR PRESENTATION February 2008