RENDELL-JACKMAN (HAMMERDOWN)

Junior gold producer Richmont Mines expects lower gold production this year form its main operations in Quebec. The Montreal company said Thursday it expects to produce about 60,000 ounces of gold in 2005, mainly from its Beaufor Mine in Quebec. That's down from 67,094 ounces of company production in 2004 and 92,601 in 2003. The production shortfall results from the closure of the Hammerdown Mine in Newfoundland, which produced nearly 15,000 ounces of gold before it was shut down in mid-2004.

Montreal-based Richmont Mines has reported a net loss of CAD1.1 million, or 7 cents a share, on revenue of CAD6.9 million for the first quarter, down from earnings of CAD0.2 million, or 1 cent a share, on revenue of CAD9.7million for the corresponding 2003 quarter. Gold sales for the quarter totaled 12,183 ounces, down from 17,528 ounces during the corresponding 2003 quarter. At the Beaufor Mine, the average cash cost for the 6,962 ounces of gold sold was USD334 per ounce compared with USD244 for the 11,452 ounces sold during the first quarter of 2003. At the Hammerdown Mine, the average cash cost for the 5,221 ounces of gold produced was USD323 compared with USD233 for sales of 6,076 ounces during same period in 2003.

Montreal-based Richmont Mines earned CAD1.2 million, or 7 cents a share, on revenue of CAD11.9 million for the third quarter, down from earnings of CAD4.3 million, or 28 cents, on revenue of CAD17.3 million for the corresponding 2002 quarter. Gold sales for the quarter totaled 21,520 ounces at an average selling price of USD367 an ounce, down from 34,409 ounces of gold at an average selling price of USD311 an ounce during the corresponding 2002 quarter. The average cash production cost was USD231 per ounce compared with USD141 per ounce for the same period last year, an increase attributed to the appreciation of the Canadian dollar and to the lower grades obtained at the Hammerdown and Beaufor mines.