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Abcourt Mines Reports Excellent Results for the Fourth Quarter and Annual Financial Period 2018; Elder Mine Delivers a Net Profit of $1.4M in the Fourth Quarter



Rouyn-Noranda, Quebec, Canada / TheNewswire / November 6, 2018 - Abcourt Mines Inc. (TSX-V: ABI, Berlin: AML-BE and Frankfurt Stock Exchanges: AML-FF) ("Abcourt" or the "Company is reporting operating and financial results for the fourth quarters and the annual periods ended on June 30, 2018 and June 30, 2017 with very good results.

Fourth quarter and annual highlights

Description

3 months

June 30, 2018

3 months

June 30, 2017

12 months

June 30, 2018

12 months

June 30, 2017

Tonnes treated

30,647

23,277

113,398

98,153

Tonnes extracted

32,466

24,041

114,475

97,425

Gold ounces sold

5,409

4,779

15,683

13,322

Gold ounces produced

4,601

3,774

15,380

13,405

Gold recovery

97.10 %

97.58 %

96.90 %

95.70 %

Revenues from the sale of gold and silver

9,094,173 $

8,013,483

26,044,120 $

22,251,954 $

Price of gold sold ($/ounce)

1,681

1,677

1,661

1,650

US$

1,288

1,262

1,311

1,249

Average cash production cost ($/ounce)

1,264

1,385

1,322

1,513

US$

968

1,043

1,044

1,145

Cost needed to maintain production

($/ounce)

124

88

241

300

US$

95

66

190

227

All inclusive cost of production ($/ounce)

1,388

1,473

1,563

1,813

US$

1,064

1,109

1,253

1,372

Gold and silver stock ready to be sold

60,900 $

32,652 $

60,900 $

32,652 $

Gold and silver inventory in circuit

1,064,870 $

1,497,364 $

1,064,870 $

1,497,364 $

Total Inventory

1,125,770 $

1,530,016 $

1,125,770 $

1,530,016 $

Net profit (loss) after taxes

152,471 $

1,039,392 $

1,415,608 $

(906,486) $

Mining tax

1,262,732 $

107,135 $

1,402,850 $

225,427 $

Deferred taxes

(18,000) $

(9,137) $

(67,363) $

(55,385) $

Cash flow from operations

829,212 $

593,582 $

5,235,406 $

(850,981) $

Cash at the end

2,531,099 $

1,289,470 $

2,531,099 $

1,289,470 $

Comments:

In the 4th quarter, tonnes treated in 2018 were 32% higher than those treated in 2017. Likewise, if we compare statistics for the 2017 and 2018 annual periods, a substantial improvement is obvious.

  • Tonnes treated

  • + 15,5%

  • Gold ounces produced

  • + 14,7%

  • Proceeds from sale of gold and silver

  • + 17,0%

  • Average cash cost of production

  • - 14%

  • All inclusive production cost

  • - 15,9%

  • Net profit (net loss)

  • 2018 = 1,4 M$; 2017 = (0,9 M)$

  • - Cash flow from operations

  • surplus of 5,2 M$ in 2018

    deficit of 0,8 M$ in 2017

  • Cash at the end

  • 2,5 M$ in 2018

    1,3 M$ in 2017

  • Mining Taxes

  • 1,4 M$ in 2018

    0,2 M$ in 2017

  • - During the latest annual period, assets increased by an amount of $4,048,785 from $37,458,247 in 2017 to $41,507,032 in 2018. The growth is in accordance with our strategy of creating value for our shareholders.

  • - The gross profit realized over the fiscal period with the Elder mine was $3,548,784 in 2018 ($728,624 in 2017).

  • - Overall, tonnes treated, ounces produced and revenues increased by about 15%. Average production costs were 15% lower.

  • - The 2018 cash flow from the operations produced a remarkable $5.2 M surplus but a loss of $0,8 M was realized in 2017.

  • - The 2018 mining taxes were inflated by a new notice of assessment for the 2016 period. In 2017, mining taxes amounted to $0.2 M. If that new notice of assessment had not been received in 2018, the net profit would have been very interesting.

  • - The 2018 net profit was $1,415,608. In 2017 a loss of $906,486 was made.

Refer to the NON-GAAP performance measures contained in the Annual Management's Discussion & Analysis.

  • - Abcourt has several gold assets of quality that is the Elder and Sleeping giant mines and several other properties with important gold mineralization. In zinc, there is the Abcourt-Barvue project with substantial mineable zinc and silver resources, mainly by an open pit and the following satellite properties: Vendome, Jonpol and Aldermac.

STRAGERY AND OUTLOOK

Currently, the Company is focussing on stabilizing and increasing the Elder production. Our objective is to produce 12,500 tonnes per month.

We wish to rise the full capacity of the Sleeping Giant mill by treating custom ore, to reduce the operating cost per tonnes treated.

For the long-term growth in the gold sector, the Company has started a drilling program on the Discovery and Flordin gold properties where substantial 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 and a positive P.E.A. study (2012). Abcourt is focusing on the exploitation of the Elder mine.

The Abcourt-Barvue property has silver-zinc resources (2014). A feasibility study was completed in 2007 by Roche / Genivar. An update is being prepared now.

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 the Plan Nord of the Quebec government. The mill has a capacity of 700 to 750 tonnes per day. A NI 43-101 resource estimate was recently filed.

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 "will", "shall" and other indications of future tense, are intended to identify forward-looking statements. The forward-looking statements are based on current expectations 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

F: 819 768-5475

Email: rhinse@abcourt.com

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.