Abcourt Reports a Profit of $236,614 for its Second Quarter

(TheNewswire)

  

Rouyn-Noranda, Québec, Canada / TheNewswire / March 15, 2019 - Abcourt Mines Inc. (TSX-V: ABI, Berlin: AML-BE and Frankfurt Stock Exchanges: AML-FF) (“Abcourt” or the “Mines Abcourt inc.) has filed, on February 28 last, its quarterly financial statements and the management’s discussion and analysis for the second quarter ended on December 31, 2018.  All amounts are in Canadian dollars unless otherwise indicated.  

 

Highlights :

 

  • - Sales of gold and silver of $6.04 M or 3,673 ounces of gold and other revenues of $942,943.

 

  • - Net profit of $236,614, or $0,00 per share compared to $784,748, or $0,00, last year.

 

  • - Available cash of $3.09 M compared to $2.53 M on June 30, 2018.

 

  • - Update of NI 43-101 resources for the Elder mine and Tagami property and update of the preliminary economic study prepared by Roche Consulting-Group in 2012.  

 

  • - The preliminary economic study prepared by Roche Consulting-Group is no longer considered current and has been superseded by the updated mineral resource estimate.  In addition, “mineral resources that are not also mineral reserves do not have demonstrated economic viability”.

 

  • - Hiring of investor relations firm in December 2018.

 

  • - Update of the Abcourt-Barvue feasibility study which is summarized as follows :

 

                Prices of metals and exchange rate used 

                         zinc          $ 1.10 $ US / lb

                        silver                $15.00$ US / lb

                        exchange rate        $ 1.00 $ US = $1.25 Can

 

  • - Proven and probable mineral reserves = 8.07 million tonnes @ 51.8 g/t silver and 2.83% zinc

  ------------------------------------------------------------- |- Cash flow before taxes |$170.0 M | |- Cash flow after taxes |$106.7 M | |- Net present value after taxes discounted at 5%| $ 41,0 M | |- Project after-tax payback discounted at 8% | 5.3 years| |-Life of mine | 13 years | -------------------------------------------------------------      

Comparative table of results for the second quarter and the six-month period

ended on December 31, 2018 and 2017

   ---------------------------------------------------------------------------------------------------------------------- |Description |3 months |6 months |3 months |6 months | | |Dec. |Dec. |Dec. |Dec.31-17 | | |31-18 |31-18 |31-17 | | |--------------------------------------------------------------------------------------------------------------------| |Tonnes treated |20,746 |51,517 |28,294 |48,226 | |--------------------------------------------------------------------------------------------------------------------| |Tonnes extracted |19,932 |45,518 |29,790 |49,281 | |--------------------------------------------------------------------------------------------------------------------| |Gold ounces sold |3,673 |6,863 |4,225 |6,509 | |--------------------------------------------------------------------------------------------------------------------| |Gold ounces produced |3,762 |7,109 |3,519 |6,274 | |--------------------------------------------------------------------------------------------------------------------| |Gold recovery |97.66% |96.90% |96.51% |96.69% | |--------------------------------------------------------------------------------------------------------------------| |Revenues from the sale of gold and silver |  |  |$6,873,133 |$10,589,947| | |$6,045,909|$11,365,342| | | |--------------------------------------------------------------------------------------------------------------------| |Price of gold sold                            $/ounce               |1,646 |1,656 |1,627 |1,627 | |--------------------------------------------------------------------------------------------------------------------| |US$/ounce |1,250 |1,258 |1,281 |1,303 | |--------------------------------------------------------------------------------------------------------------------| |Cash cost                                        $/ounce            |1,441 |1,314 |1,293 |1,388 | |--------------------------------------------------------------------------------------------------------------------| |                                     US$/ounce |1,094 |998 |1,018 |1,112 | |--------------------------------------------------------------------------------------------------------------------| |All-in sustaining costs                     $/ounce |1,727 |1,565 |1,526 |1,701 | |                                                   US$/ounce        |1,311 |1,188 |1,202 |1,362 | |                                                                  | | | | | |              | | | | | |--------------------------------------------------------------------------------------------------------------------| |  |  |  |$55,651 $ |55,651 | |Gold and silver stock ready to be sold |$217,626 |$217,626 | | | |--------------------------------------------------------------------------------------------------------------------| |Gold and silver inventory in circuit |$1,189,155|$1,189,155 |$1,290,783 $|$1,290,783 | |--------------------------------------------------------------------------------------------------------------------| |Total Inventory |$1,406,781|$1,406,781 |$1,346,434 |$1,346,434 | |--------------------------------------------------------------------------------------------------------------------| |Net profit (loss) after taxes |$236,614 |$1,207,596 |$784,748 |$510,929 | |--------------------------------------------------------------------------------------------------------------------| |Mining tax |$57,000 |$207,000 |$50,000 |$75,000 | |--------------------------------------------------------------------------------------------------------------------| |Deferred taxes |$(131,750)|$(145,500) |$(24,613) |$(35,613) | |--------------------------------------------------------------------------------------------------------------------| |Cash flow from operations |$1,137,923|$2,086,584 |$2,057,340 |$1,901,063 | |--------------------------------------------------------------------------------------------------------------------| |  |  |  |$3,346,810 |$3,346,810 | |Cash at the end |$3,085,311|$3,085,311 | | | ----------------------------------------------------------------------------------------------------------------------  

Comments:

 

Despite a few interruptions with a power shut down and some mechanical failures, the Elder mine remains profitable.  See below:

   -------------------------------------------------------------------------------- |- Tonnes treated |- decrease of 27% for the second quarter | | |- increase of 7% for the 6 month period | |------------------------------------------------------------------------------| |-Gold ounces produced |- increase of 7% for the second quarter | | |- increase of 13% for the 6 month period | |------------------------------------------------------------------------------| |- Proceeds form |- decrease of 12% for the second quarter | |sale of gold and |- increase of 7% for the 6 month period | |silver | | |------------------------------------------------------------------------------| |-Average cost of production |- increase of 11% for the second quarter | | |- decrease of 9,5% for the 6 month period| |------------------------------------------------------------------------------| |-All inclusive production cost |- Increase of 13% for the second quarter | | |- decrease of 9% for the 6 month period | |------------------------------------------------------------------------------| |-Net profit net after taxes |- decrease of 63% for the second quarter | | |- increase of 147% for the 6 month period| |------------------------------------------------------------------------------| |- Cash flow at the end of the period|-decrease of 10,5% | --------------------------------------------------------------------------------   

Non-GAAP Financial Performance Measures

 

This press release presents certain financial performance measures, total cash costs per ounce of gold produced, sustaining costs and all-in sustaining costs per ounce of gold produced which are non-International Financial Reporting Standards (IFRS) performances measures. This data may not be comparable to data presented by other gold producers. Non-GAAP financial performance measures should be considered together with other data prepared in accordance with IFRS.

 

The cash costs and all-in sustaining costs are common performance measures in the gold mining industry. The Company reports cash cost per ounce based on ounces produced. Cash cost include operating mining costs, royalties but is exclusive of amortization and depletion and sustaining capital expenditures. The all-in sustaining costs include costs of sales and sustaining capital expenditures and administrative costs but excludes amortization and depletion and accretion expenses. The Company believes that the all-in sustaining costs present a complete picture of the Company’s operating performance or its ability to generate free cash flows from its operation.

  

STRATEGY AND OUTLOOK

 

Currently, the Company is focussing on stabilizing and increasing the Elder production.  Our objective is to produce 12,500 tonnes per month of gold mineralization.

 

We wish to use the full capacity of the Sleeping Giant mill by treating custom ore, to reduce the operating cost per tonne treated.

 

For the long-term, in the gold sector, the Company has started a drilling program on the Discovery and Flordin gold properties where substantial gold mineralization is found.

  

ABOUT ABCOURT MINES INC.

 

Abcourt Mines Inc. is a gold producer and a Canadian exploration company with strategically located properties in northwestern Quebec, Canada. The Elder property has gold resources (2018) and a positive P.E.A. study (2012).  Abcourt is focusing on the exploitation of the Elder mine.

The Abcourt-Barvue property has silver–zinc reserves (2019). A feasibility study was completed in 2007 by Roche / Genivar. An update was completed in January 2019.  

In 2016, Abcourt acquired the Sleeping Giant mine and mill, located half-way between Amos and Matagami, in Abitibi, Quebec, in the territory covered by the Plan Nord of the Quebec government.  The mill has a capacity of 700 to 750 tonnes per day. A NI 43-101 resource estimate was recently filed.  Some custom milling is now being done.

To know more about Abcourt Mines Inc. (TSXV: ABI), please visit our web site at www.abcourt.com and consult our filings under Abcourt’s profile on www.sedar.com.

This press release was prepared by Mr. Renaud Hinse, Engineer and President of Abcourt Mines Inc. Mr. Hinse is a “Qualified Persons” under the terms of Regulation 43‑101.  Mr. Hinse has approved the scientific and technical disclosure.

 

FORWARD LOOKING STATEMENTS

This news release contains forward-looking statements that include risks and uncertainties. When used in this news release, the words "estimate", "project", "anticipate", "expect", "intend", "believe", "hope", "may" and similar expressions, as well as "will", "shall" and other indications of future tense, are intended to identify forward-looking statements. The forward-looking statements are based on current expectations and apply only as of the date on which they are made. Except as may be required by law, the Corporation undertakes no obligation and disclaims any responsibility to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise.

 

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-United States 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 set out in Abcourt’ annual and periodic reports. The forward-looking information contained herein is made as of the date of this news release.

  

For more information, please contact:

  --------------------------------------------------------------------------- | Renaud Hinse, President and CEO|   Dany Cenac Robert, Investor Relations| | T : 819 768-2857   450 446-5511|   Reseau ProMarket Inc., | | F : 819 768-5475   450 446-3550|   T:(514) 722-2276 x456 | | Email:[email protected] |   [email protected]| ---------------------------------------------------------------------------   

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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