Abcourt Reports a Profit of $236,614 FOR Its Second Quarter _____________________________________________________________
FOR IMMEDIATE RELEASE
TSX Venture – ABI.V
March 15, 2019
ABCOURT REPORTS A PROFIT of $236,614
FOR ITS SECOND QUARTER
_____________________________________________________________
Rouyn-Noranda, Québec, Canada, March 15, 2019
Abcourt Mines Inc. ( TSX-V: ABI, Berlin: AML -BE and Frankfurt Stock Exchanges: AML -FF)
(“Abcourt” or the “Mines Abcour t inc.) has filed , on February 28 last, its quarterly financial
statements and the management ’s disc ussion and analysis for the second quarter ended on
December 31, 2018. All amounts are in Canadian dollars unless otherwise indicated.
Highlights :
▪ Sales of gold and silver of $6.04 M or 3,673 ounces of gold and other revenues of
$942,943.
▪ Net profit of $236,614, or $0,00 per share compared to $784,748, or $0,00, last year.
▪ Available cash of $3.09 M compared to $2.53 M on June 30, 2018.
▪ Update of N I 43-101 resources for the Elder mine and Ta gami property and update of the
preliminary economic study prepared by Roche Consulting-Group in 2012.
▪ The prelimina ry 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considered current and has been superseded by the updated mineral resource estimate.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 ha ve demonstrated
economic viability”.
▪ Hiring of investor relations firm in December 2018.
▪ Update of the Abcourt-Barvue feasibility study which is summarized as follows :
Prices of metals and exchange rate used
zinc $ 1.10 $ US / lb
silver $15.00$ US / lb
exchange rate $ 1.00 $ US = $1.25 Can
▪ Proven and probable mineral reserves = 8.07 million tonnes @ 51.8 g/t silver and 2.83%
zinc
▪ Cash flow before taxes
▪ Cash flow after taxes
▪ Net present value after taxes discounted at 5%
▪ Project after-tax payback discounted at 8%
▪ Life of mine
$170.0 M
$106.7 M
$ 41,0 M
5.3 years
13 years
Comparative table of results for the second quarter and the six-month period
ended on December 31, 2018 and 2017
Description
3 months
Dec. 31-18
6 months
Dec. 31-18
3 months
Dec. 31-17
6 months
Dec.31-17
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 $/ounce
US$/ounce
1,727
1,311
1,565
1,188
1,526
1,202
1,701
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 fail ures, the Elder
mine remains profitable. See below:
• Tonnes treated • decrease of 27% for the second quarter
• increase of 7% for the 6 month period
• Gold ounces produced • increase of 7% for the second quarter
• increase of 13% for the 6 month period
• Proceeds form sale of gold and silver • decrease of 12% for the second quarter
• increase of 7% for the 6 month period
• Average cost of production • increase of 11% for the second quarter
• decrease of 9,5% for the 6 month period
• All inclusive production cost • Increase of 13% for the second quarter
• decrease of 9% for the 6 month period
• Net profit net after taxes • decrease of 63% for the second quarter
• increase of 147% for the 6 month period
• Cash flow at the end of the period • decrease of 10,5%
Non-GAAP Financial Performance Measures
This press release presents certain financial performance measures, total cash costs per ounce
of gold produced, sustaining costs and all-in sustaining costs per ounce of gold produced which
are non-International Financial Reporting Sta ndards (IFRS) performances measures. This data
may not be comparable to data presented by other gold producers. Non -GAAP financial
performance measures should be considered together with other data prepared in accordance
with IFRS.
The cash costs and all -in sustaining costs are common performance measures in the gold
mining industry. The Company reports cash cost per ounce based on ounces produce d. Cash
cost include operating mining costs, royalties but is exclusive of amortization and depletion and
sustaining capital expenditures. The all-in sustaining costs include costs of sales and sustaining
capital expenditures and administrative costs but e xcludes amortization and depletion and
accretion expenses. The Company believes that the all -in sustaining costs present a complete
picture of the Company’s operating performance or its ability to generate free cash flows from its
operation.
STRATEGY AND OUTLOOK
Currently, the Company i s focussing on stabilizing and increasing the Elder production . Our
objective is to produce 12,500 tonnes per month of gold mineralization.
We wish to use the full capacity of the Sleeping Giant m ill by treating custom ore, to reduce the
operating cost per tonne treated.
For the long -term, in the gold sector , the Company has sta rted a dr illing program on the
Discovery and Flordin gold properties where substantial gold mineralization is found.
ABOUT ABCOURT MINES INC.
Abcourt Mines I nc. is a gold producer and a Canadian exploration company wit h strategically
located proper ties i n northwester n Quebec, Canada. The Elde r proper ty ha s gold resource s
(2018) and a positive P.E.A. study (2012). Abcourt is focusing on the exploitation of the Elder
mine.
The Abcourt-Barvue property has silver–zinc reserves (2019). A feasibility study was completed
in 2007 by Roche / Genivar. An update was completed in January 2019.
In 2016, Abcourt acquired the Sleeping Giant mine and mill, located half -way between Amos
and Mat agami, in Abitibi, Quebec, in the territ ory covered by th e P lan Nord o f t he Quebec
government. The mill has a capa city of 700 to 750 tonnes pe r day. A NI 43 -101 resource
estimate was recently filed. Some custom milling is now being done.
To know more abo ut Ab court Mines Inc. (TSXV: ABI), pleas e visit our web s ite at
www.abcourt.com and consult our filings under Abcourt’s profile on www.sedar.com.
This press release was prepared by Mr. Renaud Hin se, Engineer and President of Abcourt
Mines Inc. Mr. Hinse is a “Qualified Persons” under the terms of Regulation 43-101. Mr. Hinse
has approved the scientific and technical disclosure.
FORWARD LOOKING STATEMENTS
This news release contains forward -looking statements th at inclu de ri sks and uncertainties.
When used in this news release, the words "estimate", "project", "anticipate", "expect", "intend",
"believe", "hope", "may" and similar expressions, as well as "will", "shall" and other indications of
future tense, are i ntended to id entify f orward-looking statements. The forward -looking
statements are based on current expectations and apply only as of the date on which they are
made. Except as may be required by law, the Corporation undertakes no obligatio n and
disclaims any resp onsibility to publicly update or revise any forward -looking statements or
information, whether as a result of new information, future events or otherwise.
The factors that could cause actual resul ts to differ materially from those indicated in such
forward-looking statements include changes in the prevailing price of gold, the Canadian-United
States exchange rate, gra de of ore mined and unfor eseen difficulties in mining operations that
could affect revenue and production costs. Othe r factors suc h as uncert ainties r egarding
government regulations could also affec t t he results . O ther risks ma y be set out in Abcourt’
annual and periodic reports. The forward-looking information contained herein is made as of the
date of this news release.
For more information, please contact:
Renaud Hinse, President and CEO
T : 819 768-2857 450 446-5511
F : 819 768-5475 450 446-3550
Email: [email protected]
Dany Cenac Robert, Investor Relations
Reseau ProMarket Inc.,
T: (514) 722-2276 x456
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined
in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.