Abcourt Announces its Results for the Fourth Quarter and the Year ended June 30, 2022
For immediate release
TSX Venture: ABI.V
Abcourt Announces its Results for the Fourth Quarter and the Year ended June
30, 2022
Rouyn-Noranda, Canada, October 27, 2022 - Abcourt Mines Inc. (“ Abcourt” or the
“Company”) (TSX Venture: ABI) announces its results for the fourth quarter and the year ended
June 30, 2022, representing a net loss of $27.9 M following the reduction in production at the
Elder Mine and the devaluation in the book value of $23.8M from mining properties.
On May 9, 2022, the Company announced the cessation of operatio ns at the Elder mine for
August 1st 2022. Indeed, for several quarters, mining at the Elder mine had been becoming less
and less profitable. The financial results announced today clearly demonstrate this.
As of June 30, 2022, the Company determined that the significan t losses generated by the
extraction of ore at the Elder mine as well as the depletion of the reserves constituted facts and
circumstances indicating an impairment of these assets and conc luded that a devaluation was
necessary for the assets associated with the Elder mine. In add ition, a change in the strategic
orientations of the Company led to a reassessment of the book v alues of our mining properties
and required the devaluation of many projects such as Aldermac and Abcourt-Barvue.
Since May 9, Abcourt has been working on the development of the Sleeping Giant mine, and the
improvement of the Company's financial balance sheet. All amoun ts are in Canadian dollars
unless otherwise indicated.
Highlights of the Financial Year
Revenues of $20,394,883 for the year ended June 30, 2022, comp ared to $27,587,100
for the same period in 2021, a decrease of 26%, explained by the decrease in the number
of ounces of gold sold.
A net loss of $27,896,315, compared to a net profit of $2,424, 866 for the same period in
2021, explained by non-cash charges for the devaluation of the Company's assets, by the
increase in the cost of sales, and by the decrease in tonnage.
An adjusted net loss of $1,881,252, compared to an adjusted ne t income of $5,107,012
for the same period in 2021.
Cost of sales of $22,808,329 compared to $24,160,753, for the same period in 2021, a
decrease of 6%.
Cash of $720,512, compared to $2,454,645 in 2021. Company’s wo rking capital of
$(5,246,416) compared to $(413,103) in 2021. The decrease is explained by a significant
decrease in cash generated by the Company's operating activitie s and the significant
investment in property, plant and equipment.
Cash cost of $2,380 (US$1,889), compared to $1,845 (US$1,441) and an overall
production cost of $2,749 (US$2,182) compared to $2,157 (US$1,685) per ounce of gold
sold for the corresponding period of 2021. The increase in the cash cost is explained by
the decrease in the number of ounces sold by 25% compared to 2021 and by the decrease
in tonnage. During the year, the cash cost per ounce of gold so ld was higher than the
average realized price per ounce of gold sold, i.e. $2,301 (US$1,826).
Ounces produced were 8,364, compared to 11,398 ounces for the same period of 2021.
Ounces sold were 8,786, compared to 11,659 ounces for the same period of 2021, a
decrease of 27% in ounces produced and a 25% decrease in ounces sold. The decrease
in ounces produced and sold is explained by the decrease in ton nage for the fourth
quarter, which is due to the depletion of economic resources at the Elder mine and the
unplanned shutdown in the third and fourth quarters at the Elder mine.
Sale of approximately 1,399 ounces of gold from development wo rk at the Sleeping Giant
mine, for a total of $3,219,491; sale of 266 ounces of gold for $585,088 during the same
period of 2021.
The average price realized when selling gold in 2022 was $2,30 1 (US$1,826), compared
to $2,364 (US$1,847) in 2021, a decrease of 3%.
New Strategy
Since the beginning of the fourth quarter, the Company has made several changes and initiated
several projects to move the Company forward.
Appointment of Pascal Hamelin as President and Chief Executive Officer on April 4, 2022.
Cessation of mining activities at the Elder mine on August 1, 2022 until the geology of the
deposit is reassessed.
Mandate to an independent firm to update the mineral resources at the Sleeping Giant
mine no later than March 31, 2023.
Offer to purchase the neighboring company with strong potentia l Pershimex Resources
Corporation.
Mandate to an independent firm to update the mineral resources of the Flordin and
Discovery deposits, planned for the spring of 2023.
Major cleaning of the ore processing plant at Sleeping Giant t o recover gold following the
cessation of mining activities on August 1.
ABOUT ABCOURT MINES INC.
Abcourt Mines Inc. is a gold producer and a Canadian exploration corporation with strategically
located properties in northwestern Québec, Canada. Abcourt owns the Sleeping Giant mill and
mine where it concentrates its activities.
For further information, please visit our website at www.abcourt.com , and consult our filings under
Abcourt's profile on www.sedar.com, or contact:
Pascal Hamelin
President and CEO
T: (819) 768-2857
Dany Cenac Robert, Investor Relations
Reseau ProMarket Inc.,
T: (514) 722-2276, post 456
FORWARD-LOOKING INFORMATION
Certain information contained herein may constitute “forward-looking information” under Canadian
securities legislation. Generally, forward-looking information can be identified by the use of forward-looking
terminology such as “plans”, “seeks”, “expects”, “estimates”, “intends”, “anticipates”, “believes”, “could”,
“might”, “likely” or variations of such words, or statements that certain actions, events or results “may”, “will”,
“could”, “would”, “might”, “will be taken”, “occur”, “be achieved” or other si milar expressions. Forward-
looking statements, including the ex pectations of Abcourt’s management regarding the completion of the
Transaction, are based on Abcourt’s estimates and are subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of activi ty, performance or achievements of
Abcourt to be materially different from those expres sed or implied by such forward-looking statements or
forward-looking information. Forward-looking statements are subject to business and economic factors and
uncertainties, and other factors that could cause actual results to differ materially from these forward-looking
statements, including the relevant assumptions and ri sks factors set out in Ab court’s public documents,
available on SEDAR at www.sedar.com. There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ materially from those anticipated in such
statements. Although Abcourt believes that the assump tions and factors used in preparing the forward-
looking statements are reasonable, undue reliance should not be placed on these statements and forward-
looking information. Except where required by applicable law, Abcourt disclaims any intention or obligation
to update or revise any forward-looking statement, whether as a result of new information, future events or
otherwise.
The TSX Venture Exchange and its regulatory service provider (as defined in the policies of the TSX
Venture Exchange) assume no responsibility for the adequacy or accuracy of this press release.