Louvem earns $336,844 in Q1 2009
2009-05-07 09:58 ET - News Release
Mr. Martin Rivard reports
LOUVEM MINES REPORTS ITS 2009 FIRST QUARTER RESULTS
Louvem Mines Inc. has released financial results for the first quarter, which ended March 31, 2009. Financial results are based on Canadian generally accepted accounting principles and dollars are reported in Canadian currency, unless otherwise noted.
Revenues were $3,393,656 for the first quarter of 2009, compared with $3,840,314 during the same period in 2008. In all, 3,000 ounces of gold were sold at an average price of $1,124 in the first quarter of 2009, compared with 4,001 ounces of gold sold at an average price of $955 for the same period in 2008. The decrease in revenues is mainly attributable to the decrease in quantity of ounces sold but was offset by the increase in the average price per ounce of gold sold.
The company posted net earnings of $336,844, or one cent per share for the first quarter of 2009, compared with net earnings of $906,426, or three cents per share for the same period in the previous year. Cash flow from operations was $322,958 for the first quarter of 2009, compared with the same period in the prior year, in which $1,394,285 was generated.
Total expenses for the first quarter of 2009 were $2,869,725, compared with $2,629,164 incurred in the same period in 2008. Operating costs for the first quarter of 2009 were $2,290,095, compared with $2,114,226 in the same period in 2008. First quarter, 2009, expenses for exploration were $278,850, compared with $160,771 in the same period the prior year due to the costs associated to the continuing exploration program. Depreciation and depletion decreased from $160,052 in 2008, to $75,013 in 2009, reflecting a lower depreciation and depletion rate per ounce of gold sold which is calculated based on the proven and probable reserves which were similar at the Beaufor mine as at Dec. 31, 2008, when compared with Dec. 31, 2007.
Beaufor Mine
During the first quarter of 2009, 29,463 tonnes of ore from the Beaufor mine were processed at an average recovered grade of 6.34 grams per tonne and 6,001 ounces of gold were sold at an average $1,124 per ounce. Louvem's share was 3,000 ounces. In the same quarter the prior year, 30,697 tonnes of ore were processed at an average recovered grade of 8.11 grams per tonne and 8,003 ounces of gold were sold at an average price of $955 per ounce. Louvem's share was 4,001 ounces. The cash cost of production in the first quarter of 2009 was $763 per ounce sold, up from $528 in the first quarter of 2008, due to increased definition drilling, higher mining costs and a 22-per-cent lower recovered grade, compared with the same period in 2008.
The Beaufor Mine is intensifying its efforts to reduce the operating costs, while maintaining a significant exploration program of approximately 45,000 metres of drilling for 2009.
Annual General Meeting
Louvem's annual general meeting will be held on May 20, 2009, at 161 Avenue Principale, Rouyn-Noranda, Que., at 9 a.m. ET.
KEY FINANCIAL DATA
Three-month Three-month
period ended period ended
March 31, March 31,
2009 2008
Results ($)
Revenues 3,393,656 3,840,314
Net earnings 336,844 906,426
Cash flow from operations 322,958 1,394,285
Results per share ($)
Net earnings basic 0.01 0.03
Financial position ($)
Total assets 9,310,534 9,281,325
Working capital 5,761,855 5,468,777
|
In breaking with tradition today, Martin Rivard released Louvem's quarterly earnings ahead of its parent, Richmont Mines. Excitement for Richmont continues to be focused by the direction of their combined 45,000 metre forecast drilling program in their 50% owned Beaufor Mine along with their 70% ownership of the Louvem who owns the other half of the mine for 2009. Richmont owns directly and indirectly 85% of the Beaufor Mine. Proposed drilling at Beaufor will be increased by 3,000 metres over the 42,000 metres drilled last year. Paul Penna said years ago that "mines are made not found." The key to building the Beaufor Miine into a larger producing gold mine will be determined by continuing positive results which are currently being experienced, especially in the "Q zone."