Richmont Mines Inc. PDAC Conference March Martin Rivard President and Chief Executive Officer. RIC: AMEX/TSX

Transcription

1 Richmont Mines Inc. PDAC Conference March 2009 Martin Rivard President and Chief Executive Officer RIC: AMEX/TSX

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 revenue 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 Inc. Richmont Mines is a gold exploration, development and mining company with producing mines in Northeast Canada. RIC: TSX (CDN $) NYSE-A (US $) Shares outstanding 26.1 million 26.1 million Market capitalization $83.0 million $64.99 million 52 week price range $4.20 $1.21 $4.18 $0.95 Recent price $3.18 $2.49 Average 3 mos. volume 66,105 66,822 Two operating mines: Island Gold and Beaufor Available cash at 12/31/2008: $26.0 million No long-term debt No hedging contracts Market data as of February 23, 2009.

5 Richmont Mines Produces Gold RIC is a gold exploration, development and mining company with producing mines in Canada. 75,000 $1,000 ounces 50,000 25,000 $500 ($US) No hedging contracts $0 Ounces gold sold Cash cost per ounce Selling price

6 Richmont Mines: Resource Reserve and Summary Resource Summary Ounces (in thousands) Increasing Resource Base Proven and Probable Reserves Measured and Indicated Resources Inferred Resources

7 Richmont Mines: Strong Cash Flow 2005 Cash Flow from Operations ($4.0) million 2006 Cash Flow from Operations $2.4 million 2007 Cash Flow from Operations $6.0 million 2008 Cash Flow from Operations $12.7 million Approx. $26.0 million in Cash and Cash Equiv. (at 12/31/08)

8 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

9 Richmont Mines Properties ONTARIO Island Gold Mine Sewell Cripple Creek QUÉBEC Francœur Wasamac Camflo Mill Camflo Northwest Beaufor Mine

10 ISLAND GOLD MINE

11 Island Gold Mine: Summary 5-year initial mine life 38,037 ounces of gold sold in 2008 Long-hole stope mining 15,000 $1,000 Zones open at depth and laterally ounces 10,000 $800 $600 ($US) Good vertical and horizontal continuity 5,000 $400 $200 Excellent regional exploration potential Commercial production started October 1, % owned - acquired Patricia Mining Dec Q108 Q208 Q308 Q408 Ounces gold sold Cash cost per ounce Selling price 2009 production forecast: 45,000 to 50,000 ounces $0

12 Island Gold: Composite Longitudinal Section Proven Proven and and Probable Probable Reserves Reserves : : Mt g/t g/t Au; Au; 289, ,069 Ounces Ounces Measured Measured & Indicated Indicated Resources Resources : 422,197 : 422,197 t g/t g/t Au; Au; 146, ,254 Ounces Ounces Inferred Inferred Resources Resources : : 676, ,608 t g/t g/t Au; Au; 193, ,350 Ounces Ounces W Data Data as as of of December December 31, 31, E Portal Lochalsh Zone Island Zone Goudreau Zone Crown Pillar Level m Level m 17.9 / 5.0 Potential Area 15.0 / 3.9 Level / / 1.6 Potential Area -600m 6.3 / / 1.8 Diabase Dyke Potential Area DDH Intersection (True Thickness metre) (Au Cut 75 gpt)

13 Island Gold: Solid Reserves and Resources 300 (In thousands of ounces) : GENIVAR filed on November May 2007: GENIVAR dated on May Dec GENIVAR update as of December 31 Ounces Dec GENIVAR update as of December 31 26,000 metres of diamond drilling planned in May-07 Dec-07 Dec-08 Proven and Probable Reserves Measured and Indicated Resources Inferred Resources

14 BEAUFOR MINE

15 Beaufor Mine: Summary Cumulative Production: Over 500,000 ounces since 1996 Proven and Probable Reserves 69,792 ounces at 8.89 g/t ounces 10,000 5,000 32,908 ounces of gold sold in 2008 $1,200 $1,000 $800 $600 $400 $200 ($US) Measured and Indicated Resources 148,000 ounces at 6.24 g/t 45,000 metres of diamond drilling planned in Q108 Q208 Q308 Q408 Ounces gold sold Cash cost per ounce Selling price 2009 Plan: 25,000 to 30,000 ounces of production and sustain exploration activity $0

16 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 150 m R2 R1 Q Mineralized Zone -50 m Potential area Granodiorite R m S Volcanic rock Fault

17 Camflo Mill Quebec, Canada Processes ore from Beaufor and custom milling 500 Tonnes (in thousands) Replacement cost > $30 million F Beaufor East Amphi Custom milling

18 OTHER MAJOR PROJECTS Valentine Lake X Wasamac Francoeur X Golden Wonder

19 Golden Wonder & Valentine Lake Projects October 2008: Golden Wonder option terminated due to lack of continuity of an economically viable ore zone below current infrastructures February 2009: Granted Mountain Lake 5-year option to acquire Richmont s 70% interest for 2.5 million shares and $3 million in cash and/or shares Costs were expensed as incurred Inferred: 359,000 ounces Future Projects Initially partner to reduce risk Underground mining expertise Abandoned mines or existing exploration data

20 Francoeur Mine Longitudinal Section FRANCOEUR MINE MINE Production: Production: M T at at g/t g/tau Au ounces ounces SHAFT 6 SHAFT 7 Zone 1-300m West Zone Zone 2 LEVEL m LEVEL m Indicated Resources: tonnes tonnes at at g/t g/t Au Au (PRE (PRE--NI NI ) -101) Resources Potential Areas Mined Areas 150 meters m RIC: AMEX/TSX

21 Cripple Creek Located in Timmins, Ontario

22 Financial Highlights RIC: AMEX/TSX

23 Revenue Growth 75,000 70,591 Driven by increased gold sales at higher average prices 50,000 32,889 38,071 Ounces of gold sold increased 54% in , per ounce gold price increased 25%

24 Exploration & Project Evaluation Spending 12,000 8,000 10,547 Over 70,000 metres of drilling planned for 2009 at Island Gold and Beaufor 4,000 2,080 3,288 Total reserves and resources increased 6% at the end of

25 Profitable with Strong Cash Flow 13,000 12, included $7.4 million gain on sale of East Amphi 6,500 6,671 5,999 3,194 2,429 1, Net Income Cash flow

26 Strategies and Outlook RIC: AMEX/TSX

27 Current Priorities Sustain exploration and production activities at Island Gold and Beaufor Assess Other Properties: Francoeur Cripple Creek N. American Acquisitions and Partnerships

28 Strategic Goal Profitable, intermediate North American developer and producer of gold Operational expertise in underground, narrow vein gold mines 180, ,000 ounces of production annually Three to four facilities producing at least 60,000 ounces Well-positioned to initiate partnerships Build one million ounces of gold reserves Strong, flexible management team Improve future cash flow Operates in a safe political environment

29 Richmont Mines Inc. Q & A RIC: AMEX/TSX

30 Richmont Mines Inc. SUPPLEMENTAL INFORMATION RIC: AMEX/TSX

31 Solid Financial Performance Results (in millions, CAN$) Q Q Revenue $22.9 $10.3 $70.6 $38.1 Operating costs (incl. royalties) $13.0 $6.5 $44.8 $24.8 Gross margin 42.5% 36.6% 36.5% 35.0% Exploration costs $2.4 $1.3 $10.5 $3.3 Other expenses $5.3 $3.5 $13.8 $3.3 Net income (loss) $2.0 ($1.0) $1.6 $6.7 Earnings (loss) per share $0.09 ($0.03) $0.07 $0.28 Cash flow from (used in) ops. $7.4 ($0.7) $12.1 $6.0 Increased gold sales at a higher average price Improved gross margin percentage Higher exploration spending 2007 included $7.4 million East Amphi gain * Includes $7.4 million gain on sale of East Amphi property in June 2007

32 Richmont Mines: Resource Summary Category TABLE OF RESERVES AND RESOURCES 1 Tonnes (000) December 31, 2008 Grade (g/t Au) Ounces (000) Tonnes (000) December 31, 2007 Grade (g/t Au) Ounces (000) Proven and probable reserves 2 1, , Measured and indicated resources 2, , Inferred resources , Includes Valentine Lake. In February 2009, Richmont granted Mountain Lake an option to purchase its 70% interest in the project based on a price of US$7.85/oz and an exchange rate of 1.00; 2007, a price of US$650 and an exchange rate of 1.00