Abcourt Reports an Adjusted Net Profit of $900K FOR the First Quarter 2020 _________________________________________________________________
FOR IMMEDIATE RELEASE
TSX Venture – ABI.V
November 29th, 2019
ABCOURT REPORTS AN ADJUSTED NET PROFIT OF $900K
FOR THE FIRST QUARTER 2020
_________________________________________________________________
Rouyn-Noranda, Québec, Canada, November 29, 2019
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 f irst quarter ended September
30, 2019. All amounts are in Canadian dollars unless otherwise indicated.
Highlights :
• First quarter revenues of $ 7.2 M from the sale of 3,624 ounces of gold. An increase of 42 %
over the first quarter ended September 30, 2018. One of the best quarters so far.
• The average realized price of gold sold was $1,978 per ounce.
• Net loss in the first quarter of $62K. The loss is mainly due to the lower grade of the tonnes of
mineralization extracted and treated, to a significant increase of the amortization and depletion
expenses and the non recognition of the inventory of the tonnes of gold mineralization broken
in stopes in 2019 as compared to the first quarter ended September 30, 2018.
• Adjusted net profit of $ 900K compared to $1.5M at September 30, 2018.
• Cash of $ 2.7 M.
• The Company has no long-term debt. It finances itself with its operating revenues.
Recent developments:
• Drilling programs planned for Elder and Sleeping Giant gold mines an d on -going drilling
program for Abcourt-Barvue silver-zinc project.
• $ 728 000 recently raised by private placement for diamond drilling.
• Work started to reopen the Sleeping Giant mine.
We take advantage of the favorable gold price and the exchange rate of the 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.
See above the table of changes from 2018 to 2019
Comparative table of results for the first quarter ended on September 30, 2019 and 2018
Description
September 30, 2019
3 months
Septembre 30, 2018
3 months
Tonnes treated 29,531 20,746
Grade of treated tonnes g/t Au 4,22 5,14
Tonnes extracted 25,655 24,662
Grade of extracted tonnes g/t Au 3,96 4,38
Gold ounces sold 3,624 3,191
Gold ounces produced 3,588 3,347
Gold recovery 94,71 % 97,66 %
Revenues from the sale of gold/silver $ 7,167,886 5,319,433
Price of gold sold $/ounce 1,978 1,573
US$/ounce 1,499 1,187
Cash cost per ounce of produced gold $/ounce 1,676 1,168
US$/ounce 1,270 882
All-in sustaining costs per ounce of produced gold $/ounce 1,967 1,378
US$/ounce 1,491 1,040
Gold and silver stock ready to be sold $ 21,639 65,315
Gold and silver inventory in circuit $ 1,072,563 1,381,211
Total gold and silver inventory $ 1,094,202 1,446,526
Adjusted net profit $ 890,197 1,514,991
Net profit (loss) after taxes $ (61,668) 970,982
Mining tax $ (14,850) 150,000
Deferred taxes $ - (13,750)
Cash flow from operations $ 1,050,598 948,661
Cash at the end $ 2,685,918 2,489,744
Comments:
Variations from 2018 to 2019
• Tonnes treated • + 42 %
• Gold ounces produced • + 7 %
• Proceeds form sale of gold and silver • + 35 %
• Total cash costs per ounce of gold produced • + 43 %
• All-in sustaining costs per ounce of gold produced • + 43 %
• Adjusted net profit • - 41 %
• Cash at the end of the quarterly periods • 2018 = $ 2.5M
• 2019 = $ 2.7M
The Elder mine adjusted net profit is still significant at $900K. The mining costs increased from $186.84 /
t in 2018 to $194,37 / t in 2019, an increase of only 4%.
Broken muck in stopes
As at September 30, 2019, there were about 7,500 tonnes of g old mineralization broken in stopes. This
represents an investment of about $ 560,000. 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 ca sh 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 presented 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 perfo rmance 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 operation . 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. Cash 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 Com pany’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 o f 2019, on the
Abcourt-Barvue silv er and zinc project and the Sleeping G iant gold property where s ubstantial go ld
mineralization is found.
ABOUT ABCOURT MINES INC.
Abcourt Mines Inc. is a gold producer and a Canadian exploration company with strategically located
properties i n northwester n Quebec, Canada. The Elder 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, 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 ap proved the
scientific and technical disclosure.
FORWARD LOOKING STATEMENTS
This news release contains fo rward-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 n o obligation and d isclaims any responsibility to publicly update or revise
any forward-looking statements or information, whether as a re sult of new i nformation, 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 unfor eseen 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’ annu al a nd p eriodic 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.