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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (50203)	11/30/2012 7:57:59 PM
From: E_K_S	Respond to of 78751

Here is some info on the Richmont Mine closure: Richmont Mines Announces Immediate Closure of the Francoeur Mine and Provides Update on Wasamac Project Richmont continues to expect 2012 production of approximately 65,000 ounces. 2013 production is forecasted to be 65,000 - 70,000 ounces, down from 85,000 - 95,000 ounces previously. This revised 2013 guidance does not include potential bulk sample ounces from the Corporation's Monique and W Zone advanced exploration projects; So it looks like the closure represents at most 30% of their expected production. That production was their high cost ore from this closed mine. So perhaps mid year 2013, one should get a better picture of their current cost of production (for all of their operations). I suspect w/o looking at the detailed financials, management finally felt it was time to shut this down so they could generate a better margin on their current profitable production lines. Seems like a good value play. My position is small but I still think the market may have over reacted to this announcement. EKS