Richmont Announces 2016 Operational Outlook

TORONTO, February 11, 2016 /PRNewswire/ --

Guidance for another Record Year at Island Gold, with a Potential 22% Increase in Production and a Decrease in All-in-Sustaining Costs

Richmont Mines Inc. (TSX - NYSE MKT: RIC) ("Richmont" or the "Corporation"), announces 2016 estimates that include a potential increase in production of up to 22% from the cornerstone Island Gold mine that is expected to drive a decrease in All-in Sustaining Costs ("AISC"). (All amounts are in Canadian dollars unless otherwise indicated).

2016 Consolidated Operational Estimates 

In 2016, company-wide production includes another year of production growth from the cornerstone Island Gold Mine and another solid year of consistent production from the Beaufor Mine. Consolidated annual production is expected to be consistent with 2015 as increased production from Island Gold is expected to fully offset the production decrease related to the 2015 closure of the Monique Mine. Company-wide cash costs and AISC are expected to be largely in-line with the prior year's guidance estimates.

Material assumptions include: an average gold price of CAD$1,500 per ounce (US$1,100 per ounce); and a foreign exchange rate of 1.394 Canadian dollars to the US dollar. Note: 2015 Cash cost and AISC results are expected to be released on February 22, 2016. 

   
                                                                          2016 Consolidated
    Operational Estimates             Island Gold            Beaufor           Estimates


    Gold Ounces Produced             62,000-67,000        25,000-30,000       87,000-97,000
    Cash Costs per Ounce
    (CAD$)(1)                            $900-$960        $1,000-$1,060         $930-$1,000
    Sustaining Capital per Ounce (CAD$)  $260-$290            $230-$270           $250-$280
    Corporate G&A per Ounce (CAD$)               -                    -            $95-$110
    All-in Sustaining Costs per Ounce
    (CAD$)(1)                        $1,160-$1,250        $1,230-$1,330       $1,275-$1,390
    Cash Costs per Ounce (US$)(1)        $660-$705            $735-$780           $680-$730
    Sustaining Capital per Ounce (US$)   $190-$215            $170-$195           $185-$205
    Corporate G&A per Ounce (US$)                -                    -             $70-$80
    All-in Sustaining Costs per Ounce
    (US$)(1)                             $850-$920            $905-$975         $935-$1,015

    (1) Cash costs and AISC are non-GAAP measures. Refer to the Non-GAAP performance
        measures section in the Third Quarter MD&A.