Abcourt Reports an Adjusted Net Profit of $1M and a Net Profit of $87K FOR the Second Quarter 2020 _________________________________________________________________
FOR IMMEDIATE RELEASE
TSX Venture – ABI.V
March 11, 2020
ABCOURT REPORTS AN ADJUSTED NET PROFIT OF $1M AND A NET
PROFIT OF $87K FOR THE SECOND QUARTER 2020
_________________________________________________________________
Rouyn-Noranda, Québec, Canada, March 11, 2020
Abcourt Mines Inc. ( TSX-V: ABI, Berlin: AML -BE and Frankfurt Stock Exchanges: AML -FF)
(“Abcourt” or the “Mines Abcourt inc.) reports its results today for the second quarter ended December
31, 2019. All amounts are in Canadian dollars unless otherwise indicated.
These amounts and production results for the December 31 period have not been audited and have not
been reviewed by our auditors in accordance with the standards of the Chartered Professional
Accountants of Canada.
Highlights :
• Second quarter revenues of $6.9 M from the sale of 3,524 ounces of gold. A drop of 4 % over
the second quarter ended December 31, 2018.
• The average realized price of gold sold was C$1,949 per ounce.
• Net profit in the second quarter of $87K, compared to $237K in 2018.
• Adjusted net profit of $1M compared to $746K in 2018.
• Cash of $3.7M, an increase of 32 % over 2018.
• The Company has no long-term debt. It finances itself with its operating revenues.
Recent developments:
• Work currently being done on levels 4, 9 and 10 at the Elder mine to open new stopes.
• $ 728 000 recently raised by private placement for diamond drilling.
• Work started to reopen the Sleeping Giant mine.
Comparative table of results for the second quarter ended on December 31, 2019 and 2018
Description Dec. 31, 2019
3 months
Dec. 31, 2019
6 months
Dec. 31, 2018
3 months
Dec. 31, 2018
6 months
Tonnes treated 31,410 60,941 20,746 48,719
Grade of treated tonnes (g/t AU) 3,68 3,75 4,54 4,85
Tonnes extracted 29 448 55 103 25 586 50 248
Grade of extracted tonnes (g/t AU) 4,00 3,98 4,29 4,34
Gold ounces sold 3 524 7 147 3 673 6 863
Gold ounces produced 3 722 7 382 3 762 6 863
Gold recovery 95,1 % 95,1 % 96,53 % 96,90 %
Revenues from the sale of gold/silver 6 866 508 $ 13 996 496 $ 6 045 909 $ 11 365 342 $
Price of gold sold $/once 1 949 1 964 1 646 1 656
US$/once 1 478 1 490 1 250 1 258
Cash cost per ounce of produced gold $/once 1 599 1 638 1 441 1 314
US$/once 1 213 1 243 1 094 998
All-in sustaining costs per ounce of produced gold $/once 1 934 1 951 1 727 1 565
US$/once 1 468 1 480 1 311 1 188
Gold and silver stock ready to be sold $ 76 922 76 922 217 626 $ 217 626 $
Gold and silver inventory in circuit $ 1 016 187 1 016 187 1 189 155 $ 1 189 155 $
Total gold and silver inventory $ 1 093 109 1 093 109 1 406 781 $ 1 406 781 $
Adjusted net profit $ 993 105 $ 1 883 302 $ 746 358 $ 2 261 349 $
Net profit (loss) after taxes $ 86 630 $ 24 962 $ 236 614 $ 1 207 596 $
Mining tax $ - (14 850) $ 57 000 $ 207 000 $
Deferred taxes $ (51 000) $ (51 000) $ (131 750) $ (145 500) $
Cash flow from operations $ 2 436 630 $ 3 487 228 $ 1 626 583 $ 2 575 244 $
Cash at the end $ 3 660 844 $ 3 660 844 $ 3 085 311 $ 3 085 311 $
Comments:
Six-month variations from 2018 to 2019
• Tonnes treated • + 25 %
• Gold ounces produced • - 1 %
• Proceeds form sale of gold and silver • + 13.6 %
• Total cash costs per ounce of gold produced • + 11 %
• All-in sustaining costs per ounce of gold produced • + 12 %
• Adjusted net profit • + 33 %
• Cash at the end of the quarterly periods • 2018 = $ 3.1M
• 2019 = $ 3.7M
The Elder mine adjusted net profit continue to be significant at each quarter.
We take advantage of the favorable gold price and the exchange ra te of t he Canadian/US dollars to
move for ward in our variou s projects and to increase the value of the compa ny fo r the benefit of
shareholders. Despite a decrease of the grade, the Elder mine is still profitable.
Broken muck in stopes
As at December 31, 2019, there were about 6,000 tonnes of g old mineralization broken in stopes. This
represents an investment of about $ 450,000. If this amount had been c onsidered as an inventory,
results would have been better by that amount.
Non-GAAP Financial Performance Measures
This press release presents certain financial performance measures, total cash costs per ounce of gold
produced, s ustaining costs and all -in sustaining costs per ounce of gold produced which are non -
International Financial Reporting Sta ndards (IFRS) performances measu res. T his data may not be
comparable to da ta present ed by other gold producers. Non -GAAP financial performance m easures
should be considered together with other data prepared in accordance with IFRS.
The adjusted net profit is a measure of performance that members of the direction use to evaluate the
performance of ac tivities by the company. Without taking into account the accounting policies, taxation
laws and the structure of capital as th ese elements may potentially give a wr ong representation of the
capacity of the compa ny to gen erate cash with its oper ation. The adjusted net profit excludes inter est
expenses, taxes and amortization.
The cash costs and all -in sustaining costs are common performance measures in the gold minin g
industry. The Company repo rts cash cost per ounce based on ounces produce d. Ca sh cost include
operating mining cost s, royal ties but is exclus ive of amortization and depletion and sustai ning 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 e xpenses. The Compa ny
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 is 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 mill by opening the Sleeping Giant mine, to reduce
the operating cost per tonne treated.
For the long-term, in the gold se ctor, the Company ha d a drilling program, in th e Fall of 2019, on the
Abcourt-Barvue silv er and zinc project and the Sleeping G iant gold property where s ubstantial gold
mineralization is found.
ABOUT ABCOURT MINES INC.
Abcourt Mines Inc. is a gold producer and a Canadian exploration company with strategically located
properties in northwestern Quebec, Canada. The Elder property has gold resources (2018). Abcourt i s
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, A bcourt acquired the Sleeping Giant mine and mil l, located half-way between Amos and
Matagami, in Abitibi, Quebec, in the territory covered by the Plan Nord of the Quebec government. The
mill has a capacity of 700 to 750 tonnes per day. A NI 43-101 resource estimate and feasibility study was
recently completed.
To know more about Abcourt Mines Inc. (TSXV: ABI), please visit our web site at www.abcourt.com and
consult our filings under Abcourt’s profile on www.sedar.com.
This press release was prepared by Mr. Renaud Hinse, 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 that include risks and uncertainties. When used
in this news releas e, the words "estimate", "project", "anticipate", "expect", "i ntend", "b elieve", "hope",
"may" and similar expressions, as well as "will", "shall" and other indications of future tense, are intended
to id entify f orward-looking statements. The forward -looking statements are b ased on cu rrent
expectations and apply only as of the date on which they are made. Except as may be requi red by law,
the Corporation undertakes no obligation and d isclaims any responsibility to publicly update or revise
any forward-looking statements or information, whether as a re sult of new information, future events or
otherwise.
The factors that could ca use actual resul ts to differ materially from those indicated in such f orward-
looking statements include changes in the prevailing price of gold, the Canadian-United States exchange
rate, grade of ore mined and unfo reseen difficulties in mining operations t hat could affect revenue and
production costs. Other factors such as uncertainties regarding government regulations could also affect
the resul ts. Other risks ma y be set out in Abcourt’ annual a nd p eriodic reports. The f orward-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.