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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (63844)	2/28/2009 11:25:58 AM
From: loantech	Read Replies (1) \| Respond to of 78412

It may take until the August RIC report to see continued cost improvements: <Rivard attributes the higher operating costs to its Beaufor mine in Quebec where increased definition drilling and higher milling costs - due to prior high steel and zinc prices - hurt the bottom line. But with zinc and steel prices now lower, it is only a matter of time before those reduced costs make their way into Richmont's milling cost. "Unfortunately it takes a little bit more time getting the reductions," he says. "We don't get reductions as fast we get increases." He anticipates that such downward re-pricing of inputs will flow through to the company in the second quarter of this year.> But for the 1st quarter 2009 we will see higher gold prices.That will help until lower costs come in. I am waiting for an acquisition!!!<G> <Another key element to the Richmont story is the company's strong cash position and lack of debt -- two factors that speak to the carefulness with which the company has been built since going public in 1985. Richmont's having just 26 million shares outstanding is also testimony to its financial sharpness, and leaves it with many options when it comes to raising new funds. At year end cash and cash equivalents were $26 million, compared with $27.3 million at December 31, 2007. Being in such a strong position has Richmont looking to stay on the acquisition path. Rivard says any possible acquisition would be made with an eye towards strengthening the company's position in Ontario and Quebec. Still, Richmont isn't about to throw-off its carefully built balance sheet in a wild blaze of acquisitions. "We're not looking to get debt on the balance sheet," Rivard says. "We're focused on using our working capital to fund acquisition and for the right projects.">>>>>> I still wonder what is there that can add immediate production value? I know about the one but it seems fully priced?