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Abcourt Mines Inc
Symbol C : ABI
Shares Issued 299,534,170
Close 2019-03-14 C$ 0.055
Recent Sedar Documents

Abcourt Mines earns $236,614 in Q2

2019-03-15 08:24 ET - News Release

Mr. Renaud Hinse reports

ABCOURT REPORTS A PROFIT of $236,614 FOR ITS SECOND QUARTER

Abcourt Mines Inc. filed on Feb. 28 its quarterly financial statements and the management's discussion and analysis for the second quarter ended on Dec. 31, 2018.

Highlights:

  • Sales of gold and silver of $6.04-million or 3,673 ounces of gold and other revenues of $942,943;
  • Net profit of $236,614, or nil per share compared with $784,748, or nil per share, last year;
  • Available cash of $3.09-million compared with $2.53-million on June 30, 2018;
  • Update of National Instrument 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  • The preliminary economic study prepared by Roche Consulting-Group is no longer considered current and has been superseded by the updated mineral resource estimate.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 displayed in the attached table.


  PRICES OF METALS AND EXCHANGE RATE USED 

Zinc                 $1.10 (U.S.) per pound
Silver                        $15 (U.S.)/lb
Exchange rate   $1 (U.S.) = $1.25 (Canadian)
Proven and 
probable 
mineral reserves = 8.07 million tonnes at
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 DEC. 31, 2018, AND 2017

                                                   Three months      Six months   Three months     Six months
                                                          ended           ended          ended          ended
                                                         Dec. 31,       Dec. 31,       Dec. 31,       Dec. 31,
                                                            2018           2018           2017           2017
 
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             $6,045,909    $11,365,342     $6,873,133    $10,589,947
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
Gold and silver stock ready to be sold                  $217,626       $217,626        $55,651        $55,651
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
Cash at the end                                       $3,085,311     $3,085,311     $3,346,810     $3,346,810

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 per cent for the second quarter;
  • Increase of 7 per cent for the six-month period.

Gold ounces produced

  • Increase of 7 per cent for the second quarter;
  • Increase of 13 per cent for the six-month period.

Proceeds from sale of gold and silver

  • Decrease of 12 per cent for the second quarter;
  • Increase of 7 per cent for the six-month period.

Average cost of production

  • Increase of 11 per cent for the second quarter;
  • Decrease of 9.5 per cent for the six-month period.

All inclusive production cost

  • Increase of 13 per cent for the second quarter;
  • Decrease of 9 per cent for the six-month period.

Net profit net after taxes

  • Decrease of 63 per cent for the second quarter;
  • Increase of 147 per cent for the six-month period.

Cash flow at the end of the period

  • Decrease of 10.5 per cent.

Strategy and outlook

Currently, the company is focusing on stabilizing and increasing the Elder production. The company's objective is to produce 12,500 tonnes per month of gold mineralization.

The company wishes 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 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 preliminary economic assessment study (2012). Abcourt is focusing on the exploitation of the Elder mine.

We seek Safe Harbor.

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