Abcourt Reports His Fourth Quarter and Year-End Results FOR 2019 _________________________________________________________________
FOR IMMEDIATE RELEASE
TSX Venture – ABI.V
October 30th, 2019
ABCOURT REPORTS HIS FOURTH QUARTER AND YEAR-END RESULTS
FOR 2019
_________________________________________________________________
Rouyn-Noranda, Québec, Canada, October 30, 2019
Abcourt Mines Inc. ( TSX-V: ABI, Berlin: AML -BE and Frankfurt Stock Exchanges: AML -FF)
(“Abcourt” or the “Mines Abcourt inc.) reports his results to day for the fourth quart er and fiscal year
ended on June 30, 2019. All amounts are in Canadian dollars unless otherwise indicated.
Highlights :
• Fourth quarter revenues of $ 7.3 M from the sale of 4,137 ounces of gold. Best tonnage mined
at Elder mine with an average of 11 813 tonnes per month.
• Net loss in the fourth quarter of $ 2.5 M brought about by changes in accounting procedures
and non-recurrent production interruptions.
• Revenues of $ 24.1 M for 2019 fiscal period . Net profit of $ 161,561. Adjusted net profit of
$ 3.2 M.
• Update of Abcourt-Barvue feasibility study for silver-zinc project.
• Resources, reserves and feasibility study completed for Sleeping Giant mine.
• Cash of $ 2.8 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 rates 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.
Comparative table of results for the fourth quarter and the twelve-month period ended on March 31,
2019 and 2018
Description 3 months
June 30-19
12 months
June 30-19
3 months
June 30-18
12 months
June 30-18
Tonnes treated 32,539 107,412 30,647 113,398
Grade of treated tonnes g/t Au 3.88 4.34 4.83 4.38
Tonnes extracted 35,439 111,320 32,466 114,475
Grade of extracted tonnes g/t Au 3.96 4.23 4.22 4.36
Gold ounces sold 4,137 14,322 5,409 15,683
Gold ounces produced 3,959 15,067 4,601 15,380
Gold recovery 95.38% 96.63% 97.10% 96.90%
Revenues from the sale of gold/silver $ 7,300,737 24,110,906 9,094,173 26,044,120
Price of gold sold $/ounce 1,765 1,684 1,681 1,661
US$/ounce 1,332 1,270 1,288 1,311
Total cash costs per ounce of produced gold $/ounce 1,991 1,461 1,264 1,322
US$/ounce 1,503 1,103 968 1,044
All-in sustaining costs per ounce of produced gold $/ounce 2,169 1,691 1,388 1,563
US$/ounce 1,637 1,276 1,064 1,253
Gold and silver stock ready to be sold $ 86,257 86,257 60,900 60,900
Gold and silver inventory in circuit $ 1,205,460 1,205,460 1,064,870 1,064,870
Total gold and silver inventory $ 1,291,717 1,291,717 1,125,770 1,125,770
Profit before interests, taxes and amortization $ (1,181,621) 3,209,710 2,133,847 4,794,602
Net profit (loss) after taxes $ (2,463,817) 161,561 152,471 1,415,608
Mining tax $ (168,750) 161,250 1,262,732 1,402,850
Deferred taxes $ (677,185) (832,085) (18,000) 67,363
Cash flow from operations $ 2,022,540 4,240,966 828,935 5,235,406
Cash at the end $ 2,796,149 2,796,149 2,531,099 2,531,099
Variations from 2018 to 2019
• Tonnes treated • - 5%
• Gold ounces produced • - 2%
• Proceeds form sale of gold and silver • - 8%
• Total cash costs per ounce of gold produced • + 10%
• All-in sustaining costs per ounce of gold produced • + 6%
• Net profit after taxes • 2019 = $ 161 K
• 2018 = $ 1.4 M
• Profit before interests, taxes and amortization • 2019 = $ 3.2 M
• 2018 = $ 4.8 M
• Cash at the end of the period • $ 2,796,149
Comments :
For the annu al period ended on June 30, 2018, the tonnes treated dec reased from 113, 398 tonnes in
2018 to 107,412 tonnes in 2019. Following an unexpected premature break of a cone crusher, more than
one week of milling was lost. This event pre vented us from treating a st ock-pile of 5,500 tonnes of gold
mineralization on surface at the mill site.
At the Elder mine in the fourth quarter, an average of 11,813 tonnes were extracted per month. The best
quarterly production ever obtain ed. Tonnes extracted in the 2 019 period totaled 107,412 tonnes
compared to 113,398 in 2018.
During the fourth quarter , there was a two-week interruption of production to replace 17 met ers of
timbering i n the sh aft. This sha ft was sunk in 1952. T his timbering in the shaft was checked b y
independent en gineers and they established that the structure in the rest of the shaft was in good
conditions.
In the 2019 summer, our electrical circuit was struck by lightning and major repairs had to be done. We
also had to replace some electrical parts on our hoist on se veral occasions. Overall, we lo st almost one
month of production.
On the hoist, we changed all the elect rical contacts to prevent any future breakdown and we purchased
spare parts to replace failed parts more quickly if necessary. All the 2019 interruptions of production are
considered as non -recurrent. Without these interruptions, the mine production wou ld have been m uch
higher and costs lower.
Variations of costs, as indicated previously, results from new accounting procedure.
Broken muck in stopes
On June 30, 2019, there were about 8,000 tonnes of g old mineral ization bro ken in stope s. This
represents an investment of about $ 600 ,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 measures. T his data may not be
comparable to da ta presented by other gold producers. Non -GAAP financial per formance 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 the se 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 perform ance measures in the gold minin g
industry. The Company reports 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 the Fall of 201 9, 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 l ocated
properties 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, 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 results . Other risks ma y be set out in Abcourt’ annu al a nd per iodic 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.