VANCOUVER (miningweekly.com) – Boutique gold miner Richmont Mines has reported a slight drop in output and net earnings for the second quarter ended June 30, as a 24% improved performance at its Island Gold mine largely offset the depletion of the Monique stockpile earlier this year.

Adjusted earnings per share came in at C$0.07, beating analyst expectations by C$0.01 a share.

Net earnings totalled C$2.7-million, or $0.04 per share, 8% lower than the comparable quarter of 2015, as production and gold sales fell from 26 314 oz to 23 320 oz and 27 566 oz to 24 888 oz, respectively, during the period.

Company-wide all-in-sustaining costs (AISC) for the quarter were $1 330/oz, in-line with comparable period a year earlier and within current guidance estimates, the company advised. AISC for the Island Gold mine were $806/oz, a 21% decrease year-over-year and significantly below current guidance estimates.

Revenues for the quarter were C$40.6-million, consistent with the year-earlier second quarter.

"Positive grade and tonne reconciliations, as well as record mining and milling productivities at the Island Gold mine have driven better than expected production and cost performance in the first half of the year. For the remainder of the year, we expect Island Gold to continue its strong performance as well as see improved performance from the Beaufor mine [in Quebec] as stope mining from the higher grade Q Zone commences," CEO Renaud Adams stated.

Richmont advised that it expected weaker production during the current quarter owing to a planned three-week shutdown to undertake an electrical upgrade at the Island Gold mine, and the company was expected to revisit its full-year production guidance following the event.

Richmont stated that expected to meet, or exceed, the high end of its current production guidance and the low end of cash cost and AISC guidance.

"Our solid cash position and cash flow generation is expected to fully fund both our accelerated development activities and the Phase 2 exploration programme that are currently underway at the Island Gold mine, both of which could position this core asset for significant production growth and mine life extension,” Adams advised.