Despite COVID-19, Abcourt Reports a Small Net Loss of $98k
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FOR IMMEDIATE RELEASE
TSX Venture – ABI.V
June 5, 2020
DESPITE COVID-19, ABCOURT REPORTS A SMALL NET LOSS OF $98k
FOR THE THIRD QUARTER ENDED MARCH 31, 2020
_________________________________________________________________
Rouyn-Noranda, Québec, Canada, June 5, 2020
Abcourt Mines Inc. (TSX -V: ABI, Berlin: AML -BE and Frankfurt Stock Exchanges: AML -FF)
(“Abcourt” or the “Mines Abcourt inc.), despite Covid-19, is pleased to report a small net loss of $97,604,
for the third quarter ended on March 31, 2020. All amounts are in Canadian dollars unless otherwise
indicated.
These amounts and production results for the March 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 :
• Third quarter revenues of $5.6 M from the sale of 2,585 ounces of gold. A drop of 28 % over the
third quarter ended March 31, 2019.
• The average realized price of gold sold in 2020 was C$2,158 per ounce (US$ 1,599).
• Despite the Covid-19, the net loss in the third quarter 2020 was only $98K, compared to a net
profit of $1.4M in 2019.
• Adjusted net profit of $638K compared to $2.13M in 2019. For details see page 3
• Cash of $2.1M, an increase of 28 % over 2019.
• 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 in 2020.
• Work started to reopen the Sleeping Giant mine.
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Comparative table of results for the third quarters ended on March 31, 2020 and 2019
Description March 31, 2020
3 months
March 31, 2020
6 months
March 31, 2019
3 months
March 31, 2019
6 months
Tonnes treated 23,858 84,799 26,154 74,873
Grade of treated tonnes (g/t AU) 3.60 3.72 4.07 4.54
Tonnes extracted 23,754 78,856 25,633 75,881
Grade of extracted tonnes (g/t AU) 3.99 3.98 3.92 4.20
Gold ounces sold 2,585 9,732 3,322 10,185
Gold ounces produced 2,542 9,545 4,000 11,109
Gold recovery 95.13 % 94.94 % 96.19 % 97.10 %
Revenues from the sale of gold/silver $5,579,186 $19,575,690 $5,745,652 $16,810,212
Price of gold sold $/once 2,158 2,012 1,730 1,680
US$/once 1,599 1,516 1,309 1,272
Cash cost per ounce of produced gold $/once 1,844 1,693 1,105 1,240
US$/once 1,366 1,276 837 943
All-in sustaining costs per ounce of produced gold $/once 2,129 1,998 1,362 1,493
US$/once 1,577 1,506 1,031 1,134
Gold and silver stock ready to be sold $ 63,502 63,502 680,563 680,563
Gold and silver inventory in circuit $ 1,115,621 1,115,621 2,184,521 2,184,521
Total gold and silver inventory $ $1,179,123 $1,179,123 $2,865,084 $2,865,084
Adjusted net profit $ 638,624 2,560,630 2,130,036 4,391,385
Net profit (loss) after taxes $ (97,604) (72,642) 1,417,794 2,625,390
Mining tax $ - - 123,000 330,000
Deferred taxes $ - (65,850) (9,400) (154,900)
Cash flow from operations $ (629,156) 2,858,072 (356,818) 2,218,426
Cash at the end $ $2,103,276 $2,103,276 $1,637,377 $1,637,377
Comments:
Nine-month variations for the period endd on March 31, 2019 and 2010
• Tonnes treated • + 13 %
• Gold ounces produced • - 14 %
• Proceeds form sale of gold and silver • + 16 %
• Total cash costs per ounce of gold produced • + 37 %
• All-in sustaining costs per ounce of gold produced • + 34 %
• Adjusted net profit • + 42 %
• Cash at the end of the quarterly periods • 2020 = $ 2.1M
• 2019 = $ 1.6M
The Elder mine adjusted net profit continues to be significant at each quarter.
We take advantage of the favorable gold price and the exchange rate of the Canadian/US dollars to move
forward in our various gold projects and to increase the value of the company for the benefit of
shareholders.
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Broken muck in stopes
As at March 31, 20 20, there were about 6,000 tonnes of gold mineralization broken in stopes. This
represents an investment of about $ 800,000. If this amount had been considered 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, sustaining costs and all -in sustaining costs per ounce of gold produced which are non -
International Financial Reporting Standards (IFRS) performance s 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 adjusted net profit is a measure of performa nce that members of the direction use to evaluate the
performance of activities by the company. Without taking into account the accounting policies, taxation
laws and the structure of capital as these elements may potentially give a wrong representation of the
capacity of the company to generate cash with its operation. The adjusted net profit excludes interest
expenses, taxes and amortization.
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 produced. 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
excludes 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.
Adjusted annual net profit (non GAAP financial performance measure)
2020 2019
3 months 9 months 3 months 9 months
$ $ $ $
Operating results (97,604) (72,642) 1,549,901 2,834,960
Adjustments:
Interest and penalties on taxes 16,887 47,454 49,914 54,105
Amortization and depletion 717,325 2,579,328 528,204 1,496,269
Amortization 2,160 6,490 2,017 6,051
Sub-total 736,228 2,633,272 580,135 1,556,425
Adjusted net profit 638,624 2,560,630 2,130,036 4,391,385
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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. This should
reduce the operating cost per tonne treated.
For the long -term, in the gold sector, the Company is planning a drilling program at the Sleeping Giant
gold property where substantial unexplored 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 is
focusing on the exploitation of the Elder mine.
In 2016, Abcourt acquired the Sleeping Giant mine and mill, located half -way between Amos and
Matagami, in Abitibi, Quebec, in the territory covered by th e 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.
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.
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 release, the words "estimate", "project", "anticipate", "expect", "intend", "believe", "hope", "may"
and similar expressions, as well as "wil l", "shall" and other indications of future tense, are intended to
identify forward-looking statements. The forward -looking statements are based on current expectations
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and apply only as of the date on which they are made. Except as may be required by law, the Corporation
undertakes no obligation and disclaims any responsibility 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 results 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,
grade of ore mined and unforeseen difficulties in mining operations that could affect revenue and
production costs. Other factors such as uncertainties regarding government regulations could also affect
the results. Other risks may 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.