TSX–NYSE MKT: RIC
POSITIONING FOR SUSTAINABLE GROWTH
North American Marketing
November 5, 2015
www.richmont-mines.com 2
FORWARD LOOKING STATEMENTS
Safe Harbor Statement & Cautionary Note to U.S. Investors Concerning
R...
www.richmont-mines.com 3
RICHMONT MINES OVERVIEW
Quality Asset Base in Canada
Growing Production Profile
Decreasing Cost S...
www.richmont-mines.com 4
CAPITAL STRUCTURE
Capital Structure(1)
Issued & Outstanding Shares 58.1M
Options 4.2M
Fully Dilut...
www.richmont-mines.com 5
SOLID PERFORMANCE AND ORGANIC GROWTH
Q3
2015
9-months
2015
2015
Guidance
Gold produced (oz) 23,47...
www.richmont-mines.com 6
ISLAND GOLD MINE OVERVIEW
High-grade underground mine in Canada
Expansion opportunity to grow pro...
www.richmont-mines.com 7
Growing Production and
Decreasing Costs
Mining and Milling Ramp-up
ISLAND GOLD: ON TRACK FOR RECO...
www.richmont-mines.com 8
Underground Mine Productivity Mill Productivity
ISLAND GOLD: POSITIONING FOR GROWTH
0.0
1.0
2.0
3...
www.richmont-mines.com 9
Development Ore vs. Unit Costs
$1,088
$1,447
1000
1100
1200
1300
1400
1500
1600
1700
1800
As of N...
www.richmont-mines.com 10
ISLAND GOLD: PEA OVERVIEW
• Potential for increased production and lower AISC
0
200
400
600
800
...
www.richmont-mines.com 11
ISLAND GOLD MINE: PEA BASE CASE (800TPD)
Developing deeper resource to create substantial long-t...
www.richmont-mines.com 12
ISLAND GOLD MINE: PEA BASE CASE (800TPD)
www.richmont-mines.com 13
ISLAND GOLD MINE: PLANNED NEAR-MINE
EXPLORATION DRILLING
www.richmont-mines.com 14
ISLAND GOLD MINE: 2015 PLANNED REGIONAL
EXPLORATION DRILLING
www.richmont-mines.com 15
BEAUFOR MINE OVERVIEW
Q3
2015
9-months
2015
Gold Production (oz) 5,714 20,759
Gold Sold (oz) 5,9...
www.richmont-mines.com 16
MONIQUE MINE & CAMFLO MILL OVERVIEW
Camflo Mill
Monique Mine
Q3
2015
9-months
2015
Gold Producti...
www.richmont-mines.com 17
0
50
100
150
200
250
300
LSG RIC KGI KDX WDO CRJ
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
WDO ...
www.richmont-mines.com 18
WELL POSITIONED FOR SUSTAINABLE GROWTH
Significant Exploration Potential
Strong Balance Sheet
Fa...
www.richmont-mines.com 19
APPENDIX
www.richmont-mines.com 20
RICHMONT MINES: MANAGEMENT TEAM
RENAUD ADAMS
President and
Chief Executive Officer
NICOLE VEILLE...
www.richmont-mines.com 21
RICHMONT MINES: BOARD OF DIRECTORS
GREG CHAMANDY
Executive Chairman
of the Board
RENAUD ADAMS
Di...
www.richmont-mines.com 22
49,196
oz
(1) Resources are exclusive of Reserves, and do not have demonstrated economic viabili...
www.richmont-mines.com 23
2015 GUIDANCE
Gold ounces produced (oz) 2015 Guidance
Island Gold Mine 45,000-50,000
Beaufor Min...
www.richmont-mines.com 24
ISLAND GOLD MINE: C ZONE - METAL FACTOR
(GRADE X WIDTH)
www.richmont-mines.com 25
OUR VISION and STRATEGY
Our vision is to become a leading intermediate gold producer focused on
...
www.richmont-mines.com 26
OUR VALUES
At the heart of this is a commitment to
responsibility, integrity and accountability
...
www.richmont-mines.com 27
SUSTAINABLE BUSINESS MODEL
We believe in developing Richmont based
on the principles of sustaina...
of 27

NA Marketing Presentation

POSITIONING FOR SUSTAINABLE GROWTH North American Marketing November5, 2015
Published on: Mar 3, 2016
Published in: Business      
Source: www.slideshare.net


Transcripts - NA Marketing Presentation

  • 1. TSX–NYSE MKT: RIC POSITIONING FOR SUSTAINABLE GROWTH North American Marketing November 5, 2015
  • 2. www.richmont-mines.com 2 FORWARD LOOKING STATEMENTS Safe Harbor Statement & Cautionary Note to U.S. Investors Concerning Resource Estimates 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 and annual notice. The resource estimates in this presentation were prepared in accordance with NI 43-101 adopted by the Canadian Securities Administrators. The requirements of NI 43-101 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 to be used in Canada, the SEC does not recognize them. The SEC permits U.S. mining corporations, 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”. Furthermore, “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 more certain category. U.S. Investors are urged to consider the disclosure in our annual report on Form 20-F, File No. 001-14598, which may be obtained from us or from the SEC’s web site: http://sec.gov/edgar.shtml. (All amounts are in Canadian dollars, unless otherwise indicated.)
  • 3. www.richmont-mines.com 3 RICHMONT MINES OVERVIEW Quality Asset Base in Canada Growing Production Profile Decreasing Cost Structure Growing Cash Flow Streams Significant Exploration Potential Strong Balance Sheet Favourable Canadian Dollar Exposure Low Shares Outstanding (58M)
  • 4. www.richmont-mines.com 4 CAPITAL STRUCTURE Capital Structure(1) Issued & Outstanding Shares 58.1M Options 4.2M Fully Diluted 62.5M Cash(1) C$76.5 Total Debt(1)(2) C$6M Ticker RIC:TSX–NYSE Market Capital C$231M (1) As of Sept. 30, 2015 (2) Long-term debt is comprised of capital lease obligations $76.5M CASH $6M DEBT Analyst Coverage CIBC Kevin Chiew Macquarie Capital Markets Michael Gray National Bank Financial Adam Melnyk PI Financial Brian Szeto TD Securities Daniel Earle Paradigm Capital Don Blyth RIC (as of Nov. 2, 2015) TSX C$ NYSE MKT US$ Closing price $4.10 $3.17 52-week range $2.17-$4.55 $1.91-$3.68 Market Cap (M’s) $231M $184M 3-month daily trading avg. 81,089 134,538
  • 5. www.richmont-mines.com 5 SOLID PERFORMANCE AND ORGANIC GROWTH Q3 2015 9-months 2015 2015 Guidance Gold produced (oz) 23,478 75,651 87,000-95,000 Gold sold (oz) 22,962 75,319 Cash cost per oz. (CAN$)(1) $926 $961 $935-$1,035 AISC (CAN$)(1) $1,311 $1,290 $1,335-$1,490 Cash cost per oz. (US$)(1) $707 $763 $750-$825 AISC (US$)(1) $1,001 $1,024 $1,075-$1,190 (1) Refer to the Non-GAAP performance measures contained in the Q3 MD&A. - 200 400 600 800 1,000 1,200 - 20,000 40,000 60,000 80,000 100,000 120,000 FY-15 FY-16 FY-17 FY-18 Cashcostsperoz.(CAD$) GoldProduction(oz) Source: ThomsonOne Consensus Data Production (oz) Cash Costs (CAD$/oz) Growing Production - Decreasing Cash Costs 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 FY-15 FY-16 FY-17 FY-18 CashFlowpershare(C$) Source: ThomsonOne Consensus Data OCF/PS Growing Cash Flow Streams
  • 6. www.richmont-mines.com 6 ISLAND GOLD MINE OVERVIEW High-grade underground mine in Canada Expansion opportunity to grow production Growing production and declining cost structure Potential to expand reserve and resource base Exploration potential laterally and at depth Q3 2015 9-months 2015 2015 Guidance Gold Production (oz) 15,076 40,837 45,000-50,000 Gold Sold (oz) 14,233 38,859 Cash costs/oz (C$)(1) $890 $1,036 $935-$1,035 AISC (C$)(1) $1,267 $1,416 $1,350-$1,495 Cash costs/oz (US$)(1) $680 $823 $748-$828 AISC (US$) (1) $968 $1,125 $1,080-$1,196 Reserves (oz)(2) 183,750 Gold Grade (g/t) 6.39 M&I Resources (oz) 219,050 Gold Grade (g/t) 9.29 (1) Refer to the Non-GAAP performance measures contained in the Q3 MD&A. (2) Refer to full 2014 Reserve and Resource information at the end of this presentation
  • 7. www.richmont-mines.com 7 Growing Production and Decreasing Costs Mining and Milling Ramp-up ISLAND GOLD: ON TRACK FOR RECORD 2015 0 500 1,000 1,500 2,000 2,500 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 Q4 14 Q1 15 Q2 15 Q3 15 Canadian$perounce OuncesProduced Gold Production Cash Costs AISC 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 0 100 200 300 400 500 600 700 800 900 Q4 14 Q1 15 Q2 15 Q3 15 g/t Tonnesperday Underground tpd Mill tpd Head grade (g/t) Island Gold Q3 2015 9-months 2015 2015 Guidance Gold produced (oz) 15,076 40,837 45,000-50,000 Gold sold (oz) 14,233 38,859 Cash cost per ounce (CAN$)(1) $890 $1,036 $935-$1,035 AISC (CAN$)(1) $1,267 $1,416 $1,350-$1,495 Cash cost per ounce (US$)(1) $680 $823 $748-$828 AISC (US$)(1) $968 $1,125 $1,080-$1,196 (1) Refer to the Non-GAAP performance measures contained in the Q3 MD&A.
  • 8. www.richmont-mines.com 8 Underground Mine Productivity Mill Productivity ISLAND GOLD: POSITIONING FOR GROWTH 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 0 100 200 300 400 500 600 700 800 900 Q4 14 Q1 15 Q2 15 Q3 15 PEA Base Case Gramspertonne Tonnesperday Underground tpd Head grade (g/t) 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 0 100 200 300 400 500 600 700 800 900 Q4 14 Q1 15 Q2 15 Q3 15 PEA Base Case Recoveries(%) TonnesperDay Mill tpd Recoveries (%) Island Gold Q3 2015 9-months 2015 Underground tpd 669 660 Mill tonnes 66,416 181,785 Mill tpd 722 666 Head grade (g/t) 7.27 7.20 Recoveries (%) 97.12 97.01 Sustaining Costs ($000’S) 5,371 14,754 Project and non-sustaining exploration costs ($000’s) 8,234 18,124
  • 9. www.richmont-mines.com 9 Development Ore vs. Unit Costs $1,088 $1,447 1000 1100 1200 1300 1400 1500 1600 1700 1800 As of Nov. 6, 2015 USD Gold CAD Gold ISLAND GOLD: OPTIMIZING UNIT COSTS $44 SG&A (20%) 2015 YTD Unit Cost Allocation $139 MINING (62%) $32 MILLING (14%) $8 ROYALTIES (4%) Strong Leverage to Canadian Dollar 95% of Cash Outflows in CAD$ 70% 65% 60% 55% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% Q1 2015 (70%) Q4 2014 (50%) Q3 2015 $114/tonne (46%) Q3 2014 (43%) Q2 2015 (39%) PEA (2017-2022) $74/tonne 0 50 100 150 200 250 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% UnitMiningCAD$perTonne PercentDevelopmentOre Development Ore Unit Mining Costs
  • 10. www.richmont-mines.com 10 ISLAND GOLD: PEA OVERVIEW • Potential for increased production and lower AISC 0 200 400 600 800 1000 1200 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Permitted Capacity Permitted Capacity 900tpd Base Case 800tpd • Phased approach with Phase 1 (800 tpd) • Mining from a depth of 450 to 860 metres over three long-hole mining horizons • Excludes resources above the 450 metre level, isolated resource blocks and parallel zones • Avg. production of approx. 78,000 gold ounces per year from 2017 to 2022 at $552/oz cash costs • Potential Expansion Case to 1,150 tpd in H1 2017 PEA Summary 2017-2022 Tonnes Milled (Mt) 1.7 Head Grade (g/t) 8.67 Mine life excl. transition period (years) 6 Daily mine production (tpd) 801 Gold recovery (%) 96.5 Production (Koz) 464.6 Average annual gold production (Koz) 78 Total operating cost ($M) 256 Average cash operating cost ($/t) 148 Average cash operating cost ($/oz) 552 Transition Period Project Capital 2015-2016 ($M) 62 Sustaining Capital ($M) (2017-2022) 40.5 Mill Expansion Opportunity Expanded Case: 1,150tpd
  • 11. www.richmont-mines.com 11 ISLAND GOLD MINE: PEA BASE CASE (800TPD) Developing deeper resource to create substantial long-term growth.
  • 12. www.richmont-mines.com 12 ISLAND GOLD MINE: PEA BASE CASE (800TPD)
  • 13. www.richmont-mines.com 13 ISLAND GOLD MINE: PLANNED NEAR-MINE EXPLORATION DRILLING
  • 14. www.richmont-mines.com 14 ISLAND GOLD MINE: 2015 PLANNED REGIONAL EXPLORATION DRILLING
  • 15. www.richmont-mines.com 15 BEAUFOR MINE OVERVIEW Q3 2015 9-months 2015 Gold Production (oz) 5,714 20,759 Gold Sold (oz) 5,919 21,638 Cash costs/oz (C$)(1) $974 $974 AISC (C$) $1,225 $1,144 Cash costs/oz (US$)(1) $744 $773 AISC (US$) $936 $908 Reserves (oz)(2) 32,750 Gold Grade (g/t) 7.06 M&I Resources (oz) 189,850 Gold Grade (g/t) 6.44 (1) Refer to the Non-GAAP performance measures contained in the Q3 MD&A. (2) Refer to full 2014 Reserve and Resource information at the end of this presentation Development of the Q Zone extends mine life Target of reaching the mineralized structure by early 2016 28,000m of exploration drilling and 8,000m of definition drilling year to date
  • 16. www.richmont-mines.com 16 MONIQUE MINE & CAMFLO MILL OVERVIEW Camflo Mill Monique Mine Q3 2015 9-months 2015 Gold Production (oz) 2,688 14,055 Gold Sold (oz) 2,810 14,822 Cash costs/oz (C$)(1) $1,005 $745 AISC (C$)(1) $1,020 $762 Cash costs/oz (US$)(1) $768 $592 AISC (US$)(1) $779 $605 (1) Refer to the Non-GAAP performance measures contained in the Q3 MD&A. Milling of the lower-grade cash-flow accretive stockpiled ore during Q3 Processing of the lower grade stockpile will be completed by the end of 2015 Cash margin on processing stockpiled ore of approx. $746 per ounce in Q3 Toll milling opportunities at the 1,200 tpd Camflo Mill
  • 17. www.richmont-mines.com 17 0 50 100 150 200 250 300 LSG RIC KGI KDX WDO CRJ 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 WDO KGI CRJ LSG KDX RIC 0.00 1.00 2.00 3.00 4.00 5.00 6.00 WDO CRJ RIC KGI LSG KDX -30% -20% -10% 0% 10% 20% 30% 40% RIC KDX CRJ WDO KGI LSG RELATIVE VALUATION UPSIDE 2015 P/CF 2016 P/CF Net cash/mkt cap Ev/oz (Resources) Source: Bloomberg
  • 18. www.richmont-mines.com 18 WELL POSITIONED FOR SUSTAINABLE GROWTH Significant Exploration Potential Strong Balance Sheet Favourable Canadian Dollar Exposure Low Shares Outstanding (58M) - 200 400 600 800 1,000 1,200 - 20,000 40,000 60,000 80,000 100,000 120,000 FY-15 FY-16 FY-17 FY-18 Cashcostsperoz.(CAD$) GoldProduction(oz) Source: ThomsonOne Consensus Data Production (oz) Cash Costs (CAD$/oz) Growing Production - Decreasing Cash Costs 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 FY-15 FY-16 FY-17 FY-18 CashFlowpershare(C$) Source: ThomsonOne Consensus Data OCF/PS Growing Cash Flow Streams Quality Asset Base in Canada Growing Production Profile Decreasing Cost Structure Growing Cash Flow Streams
  • 19. www.richmont-mines.com 19 APPENDIX
  • 20. www.richmont-mines.com 20 RICHMONT MINES: MANAGEMENT TEAM RENAUD ADAMS President and Chief Executive Officer NICOLE VEILLEUX Vice-President Finance STEVE BURLETON Vice-President, Business Development DANIEL ADAM Vice-President Exploration GEO PHD CPA, CA CFA, MBA ANNE DAY Vice-President, Investor Relations MBA MAXIME GRONDIN Director, Human Resources and Health & Safety MIGUEL MENDOZA Director, Business Performance Management and Infrastructure JEAN BASTIEN Island Gold Mine General Manager MARC-ANDRÉ LAVERGNE Beaufor and Monique Division General Manager BSC ISE P. ENG, MBA P. ENGCIRC P. ENG Legal Counsel & Corporate Secretary MÉLISSA TARDIF
  • 21. www.richmont-mines.com 21 RICHMONT MINES: BOARD OF DIRECTORS GREG CHAMANDY Executive Chairman of the Board RENAUD ADAMS Director, President and Chief Executive Officer ELAINE ELLINGHAM Lead Director MICHAEL PESNER Director and Chairman of the Audit Committee RENÉ MARION Director P. Geo., MBA CA P. ENGP. ENG Co-Founder and Former CEO of Gildan Activewear Previously TSX, IAMGOLD, Campbell Resources, Rio Algom President of Hermitage Canada Finance, previously KPMG Former CEO AuRico GoldCEO of Richmont Mines
  • 22. www.richmont-mines.com 22 49,196 oz (1) Resources are exclusive of Reserves, and do not have demonstrated economic viability at this time. (2) Established on December 31/14, using a gold price of US$1,200/oz and an exchange rate of CAN $1.0833=US$1.00. In 2013, a price of US$1,225/oz and an exchange rate of CAN$1.06=US$1.00 were used. (3) Underground Resources established for the C Zone and six other lateral zones below a vertical depth of -400 metres. As of Dec. 31, 2014 As of Dec. 31, 2013 Richmont Mines Inc. Mineral Reserves and Resources 1 Tonnes (metric) Grade (g/t Au) Au ozs contained Tonnes (metric) Grade (g/t Au) Au ozs contained Island Gold P & P Reserves 2 (above -400 m) 463,500 6.04 90,000 644,500 6.01 124,450 P & P Reserves 2,3 (below -400 m) 431,500 6.76 93,750 88,500 6.70 19,050 Total P & P Reserves 2 895,000 6.39 183,750 733,000 6.09 143,500 M & I Resources (above -400 m) 295,500 6.83 64,850 283,500 7.07 64,450 Indicated Resources 3 (below -400 m) 438,000 10.95 154,200 456,000 11.52 168,900 Total M & I Resources 733,500 9.29 219,050 739,500 9.81 233,350 Inferred Resources (above -400 m) 369,500 6.97 82,800 363,000 7.09 82,750 Inferred Resources 3 (below -400 m) 3,178,000 9.00 919,950 3,196,000 9.29 954,600 Total Inferred Resources 3,547,500 8.79 1,002,750 3,559,000 9.07 1,037,350 Beaufor 4 P & P Reserves 2 144,500 7.06 32,750 212,500 6.43 43,950 M & I Resources 917,000 6.44 189,850 911,000 6.44 188,500 Inferred Resources 743,000 6.51 155,600 906,000 6.50 189,200 Monique 5 P & P Reserves2 14,500 3.16 1,450 416,000 2.30 30,700 Indicated Resources 107,500 4.88 16,850 107,500 4.88 16,850 Francoeur 6 M & I Resources 320,000 6.47 66,600 320,000 6.47 66,600 Inferred Resources 18,000 7.17 4,150 18,000 7.17 4,150 Wasamac 7 M & I Resources 15,251,500 2.86 1,402,250 15,251,500 2.86 1,402,250 Inferred Resources 18,759,000 2.66 1,605,400 18,759,000 2.66 1,605,400 Total Gold P & P Reserves 1,054,000 6.43 217,950 1,361,500 4.98 218,150 M & I Resources 17,329,500 3.40 1,894,600 17,329,500 3.42 1,907,550 Inferred Resources 23,067,500 3.73 2,767,900 23,242,000 3.80 2,836,100 MINERAL RESERVES AND RESOURCES (4) W Zone and 350 Zone Reserves and Resources are included with the Beaufor Mine as at December 31, 2014.. (5) Monique Reserves are open-pit, and Resources are located underground directly below the open-pit. (6) Underground Resources established as of December 31, 2012. (7) Francoeur Mine closed in November 2012.
  • 23. www.richmont-mines.com 23 2015 GUIDANCE Gold ounces produced (oz) 2015 Guidance Island Gold Mine 45,000-50,000 Beaufor Mine & Monique Mine 42,000-45,000 Total ounces produced (oz) 87,000-95,000 Cash cost per ounce (CAN$) Island Gold Mine $935-$1,035 Beaufor Mine & Monique Mine $935-$1,035 Consolidated Cash cost/oz (CAN$) $935-$1,035 AISC (CAN$) Island Gold Mine $1,350-$1,495 Beaufor Mine & Monique Mine $1,125-$1,265 Consolidated AISC (CAN$) $1,335-$1,490 Cash cost per ounce (US$)(3) Island Gold Mine $750-$825 Beaufor Mine & Monique Mine $750-$825 Consolidated Cash cost per ounce (US$) $750-$825 AISC (US$)(3) Island Gold Mine $1,080-$1,200 Beaufor Mine & Monique Mine $900-$1,010 Consolidated AISC (US$) $1,075-$1,190 2015 Production and Cost Guidance Sustaining Capital (CAD$M) 2015 Guidance Island Gold Mine $19.1 Beaufor Mine & Monique Mine $6.2 Total sustaining capital (CAD$M) $25.3 Sustaining Capital (US$M)(3) Island Gold Mine $15.2 Beaufor Mine & Monique Mine $5.0 Total sustaining capital (US$M) $20.2 Project and Exploration Capital (CAN$M) Island Gold Mine $29.2 Beaufor Mine & Monique Mine $1.8 Project and Exploration Capital (CAN$M) $31.0 Project and Exploration Capital (US$M)(3) Island Gold Mine $23.4 Beaufor Mine & Monique Mine $1.4 Project and Exploration Capital (US$M) $24.8 2015 Capital Investment Guidance 1) Refer to the Non-GAAP performance measures contained in the Q3 MD&A. 2) Refer to full 2014 Reserve and Resource information at the end of this presentation 3) Using an exchange rate of 1.25 Canadian dollars to 1.0 US dollar
  • 24. www.richmont-mines.com 24 ISLAND GOLD MINE: C ZONE - METAL FACTOR (GRADE X WIDTH)
  • 25. www.richmont-mines.com 25 OUR VISION and STRATEGY Our vision is to become a leading intermediate gold producer focused on the Americas generating superior per share valuation. We are committed to a Sustainable Business Model and a strategy of long-term growth, and will fully utilize the Corporation’s strong balance sheet, assets, cash flow, capital structure and the extensive experience of the Corporations’ Board of Directors and Management Team to build the next leading Canadian based intermediate gold company. Our strategy, in the short term, will focus on becoming a leading junior gold producer by maintaining at all times a superior per share position on operational & financial metrics while maintaining a sustainable and risk adverse approach under a ‘Sustainable Business Model’. We are guided by our core corporate values to achieve long term value for all of our stakeholders. By cultivating a culture of responsible performance, we are focused on operating in a sustainable manner while holding ourselves accountable to all of our stakeholders.
  • 26. www.richmont-mines.com 26 OUR VALUES At the heart of this is a commitment to responsibility, integrity and accountability and the Corporation’s four corporate values of Family, Health & Safety, Growth and Team Work. Health and Safety “Zero tolerance…” Family “At the heart of what unites us…” Richmont Mines is a family. Our management team is easily accessible and actively listens to our employees and their families. Richmont has put a number of plans and activities in place, including programs that support work-family balance, scholarships, and student hiring. Health and safety is a cardinal value of the corporation. Richmont Mines makes every effort to safeguard the health and safety of all of its employees. We implement efficient health and wellness programs and support our objectives with recognition programs. The only truly acceptable result is zero accidents. Team Work “Working together...” Richmont Mines strives to create a unified team by encouraging the involvement and the participation of our employees and stakeholders. We want our employees to enjoy working together. Every position is important. Working together and promoting cooperation promotes continued success and the achievement of greater objectives. With an objective of becoming a leading junior gold producer in the short-term and an important intermediate gold producer, Richmont’s growth is supported by the development of our workforce, the health and safety of our employees, and cultivating good relations with the community, while having a transparent approach, driven by integrity and ethics. Growth “We are building the future…”
  • 27. www.richmont-mines.com 27 SUSTAINABLE BUSINESS MODEL We believe in developing Richmont based on the principles of sustainability, in order to deliver sustainable and superior value for all stakeholders with low risk exposure to precious metals. Sustainable Human Resources Sustainable Community Development Sustainable Process Improvement Sustainable Growth Principles Making work life sustainable through employee health & safety and wellness programs, improved supervisory & operational planning/implementation practices and skills through training programs. Develop potential leadership abilities through leadership program. Promote Life in Balance; family, work and personal development. Reducing inefficiency and waste through quality & performance management by implementation of “Lean” methods and balanced score card approach. Advanced knowledge and experience with energy efficiency, sustainable waste systems & construction/ building practices. Leadership and consulting skills for promoting comprehensive change toward sustainability in communities and developing world-class relationships with Aboriginal communities. Developing sustainable exploration, development, operational and financial practices in order to deliver superior per share value, mitigation/management of risk exposure and discipline approach toward preserving best- in-class balance sheet and capital structure.

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