Sales Desk Presentation

34
TSXNYSE MKT: RIC POSITIONING FOR SUSTAINABLE GROWTH Sales Desk Presentation January 2016

Transcript of Sales Desk Presentation

Page 1: Sales Desk Presentation

TSX–NYSE MKT: RIC

POSITIONING FOR SUSTAINABLE GROWTH

Sales Desk Presentation

January 2016

Page 2: Sales Desk Presentation

www.richmont-mines.com 2RIC: TSX NYSE-MKT

FORWARD LOOKING STATEMENTS

Safe Harbor Statement & Cautionary Note to U.S. Investors Concerning

Resource Estimates

This presentation contains forward-looking statements that include risks and uncertainties. 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-U.S. 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 detailed from time to time in Richmont Mines Inc.’s

periodic reports and annual notice.

The resource estimates in this presentation were prepared in accordance with NI 43-101 adopted by the Canadian

Securities Administrators. The requirements of NI 43-101 differ significantly from the requirements of the United States

Securities and Exchange Commission (the “SEC”). In this presentation, we use the terms “Measured”, “Indicated” and

“Inferred” Resources. Although these terms are recognized and required to be used in Canada, the SEC does not

recognize them. The SEC permits U.S. mining corporations, in their filings with the SEC, to disclose only those mineral

deposits that constitute “Reserves”. Under United States standards, mineralization may not be classified as a Reserve

unless the determination has been made that the mineralization could be economically and legally extracted at the time

the determination is made. United States investors should not assume that all or any portion of a Measured or

Indicated Resource will ever be converted into “Reserves”. Furthermore, “Inferred Resources” have a great amount of

uncertainty as to their existence and whether they can be mined economically or legally, and United States investors

should not assume that “Inferred Resources” exist or can be legally or economically mined, or that they will ever be

upgraded to a more certain category.

U.S. Investors are urged to consider the disclosure in our annual report on Form 20-F, File No. 001-14598, which may

be obtained from us or from the SEC’s web site: http://sec.gov/edgar.shtml.

(All amounts are in Canadian dollars, unless otherwise indicated.)

Page 3: Sales Desk Presentation

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RICHMONT MINES OVERVIEW

Quality Asset Base in Canada

Growing Production Profile

Decreasing Cost Structure

Growing Cash Flow Streams

Significant Exploration Potential

Strong Balance Sheet

Favourable Canadian Dollar Exposure

Low Shares Outstanding (58M)

Page 4: Sales Desk Presentation

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CAPITAL STRUCTURE

Capital Structure(1)

Issued & Outstanding Shares 58.1M

Options 4.2M

Fully Diluted 62.5M

Cash(1) C$61

Total Debt(1)(2) C$6M

Ticker RIC:TSX–NYSE

Market Capital (Jan. 11/16) C$280M

(1) As of Sept. 30, 2015

(2) Long-term debt is comprised of capital lease obligations

$61MCASH

$6MDEBT

Analyst Coverage

CIBC Kevin Chiew

Macquarie Capital Markets Michael Gray

National Bank Financial Adam Melnyk

PI Financial Brian Szeto

TD Securities Daniel Earle

Paradigm Capital Don Blyth

Cormark Securities Kyle MacPhee

RIC (as of Jan. 11, 2016)

TSX

C$

NYSE MKT

US$

Closing price $4.81 $3.41

52-week range $3.14-$5.27 $2.27-$3.75

Market Cap (M’s) $280M $199M

3-month daily trading avg. 86,315 195,657

Page 5: Sales Desk Presentation

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SOLID PERFORMANCE AND ORGANIC GROWTH

Q4

20152015

2015

Guidance

Gold produced (oz) 22,380 98,031 87,000-95,000

Gold sold (oz) 21,576 96,895 -

Q3

2015

9-months

2015

2015

Guidance

Cash cost per oz. (CAN$)(1)(2) $926 $961 $935-$1,035

AISC (CAN$)(1)(2) $1,311 $1,290 $1,335-$1,490

Cash cost per oz. (US$)(1)(2) $707 $763 $750-$825

AISC (US$)(1)(2) $1,001 $1,024 $1,075-$1,190

(1) Fourth quarter and annual cash cost per ounce and AISC will be reported as part of the Corporation’s fourth

quarter and annual financial results on Feb. 22, 2016.

(2) Refer to the Non-GAAP performance measures contained in the Q3 MD&A.

-

200

400

600

800

1,000

1,200

40,000

50,000

60,000

70,000

80,000

90,000

100,000

FY-15 FY-16 FY-17 FY-18

Cash c

osts

per

oz.

(CA

D$)

Gold

Pro

duction (

oz)

Source: ThomsonOne Consensus Data

Production (oz) Cash Costs (CAD$/oz)

Growing Production - Decreasing Cash Costs

0.00

0.20

0.40

0.60

0.80

1.00

1.20

FY-15 FY-16 FY-17 FY-18

Cash F

low

per

share

(C

$)

Source: ThomsonOne Consensus Data (Dec. 31/15)

OCF/PS

Growing Cash Flow Streams

Page 6: Sales Desk Presentation

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ISLAND GOLD MINE OVERVIEW

High-grade underground mine in Canada

Expansion opportunity to grow production

Growing production and declining cost structure

Potential to expand reserve and resource base

Exploration potential laterally and at depth

Q4

20152015

2015

Guidance

Gold Production (oz) 14,203 55,040 45,000-50,000

Gold Sold (oz) 13,504 52,363 -

Q3

2015

9-months

2015

2015

Guidance

Cash costs/oz (C$)(1)(2) $890 $1,036 $935-$1,035

AISC (C$)(1)(2) $1,267 $1,416 $1,350-$1,495

Cash costs/oz (US$)(1) $680 $823 $748-$828

AISC (US$) (1)(2) $968 $1,125 $1,080-$1,196

Reserves (oz)(3)/Grade (g/t) 183,750 6.39

M&I (oz)(3) /Grade (g/t) 219,050 9.29

Inferred (oz)(3)/Grade (g/t) 1,002,750 8.79

(1) Refer to the Non-GAAP performance measures contained in the Q3 MD&A.

(2) Fourth quarter and 2015 cash cost per ounce and AISC will be reported as part of the

Corporation’s fourth quarter and annual financial results on Feb. 22, 2016.(3) Refer to full 2014 Reserve and Resource information at the end of this presentation

Page 7: Sales Desk Presentation

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Growing Production and

Decreasing Costs(1)(2)

Mining and Milling Ramp-up(1)(2)

ISLAND GOLD: ON TRACK FOR RECORD 2015

0

500

1,000

1,500

2,000

2,500

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Q4 14 Q1 15 Q2 15 Q3 15 Q4 15

Canadia

n $

per

ounce

Ounces P

roduced

Gold Production Cash Costs AISC

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

0

100

200

300

400

500

600

700

800

900

Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 15-Dec

g/t

Tonnes p

er

day

Underground tpd Mill tpd Head grade (g/t)

Island Gold

Q1

2015

Q2

2015

Q3

2015

Q4

20152015

2015

Guidance

Gold produced (oz) 10,764 14,997 15,076 14,203(3) 55,040 45,000-50,000

Gold sold (oz) 8,923 15,703 14,233 13,504(3) 52,363 -

Cash cost per ounce (CAN$)(1)(2) $1,414 $954 $890 - - $935-$1,035

AISC (CAN$)(1)(2) $1,843 $1,307 $1,267 - - $1,350-$1,495

Cash cost per ounce (US$)(1),2) $1,139 $776 $680 - - $748-$828

AISC (US$)(1),2) $1,485 $1,063 $968 - - $1,080-$1,196

(1) Fourth quarter and annual cash cost per ounce and AISC will be reported as part of the Corporation’s fourth quarter and annual financial results on Feb. 22, 2016.

(2) Refer to the Non-GAAP performance measures contained in the Q3 MD&A.

(3) Fourth quarter production and mine and mill productivity includes a 3-week scheduled underground mine shutdown in October

(1) Fourth quarter and annual cash cost per ounce and AISC will be reported as part of the Corporation’s fourth quarter and annua l financial results on Feb. 22, 2016.

(2) Fourth quarter production and mine and mill productivity includes a 3-week scheduled underground mine shutdown in October

Page 8: Sales Desk Presentation

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Underground Mine Productivity Mill Productivity

ISLAND GOLD: POSITIONING FOR GROWTH

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

0

100

200

300

400

500

600

700

800

900

Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 15-Dec PEABaseCase

Gra

ms p

er

tonne

Tonnes p

er

day

Underground tpd Head grade (g/t)

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

0

100

200

300

400

500

600

700

800

900

Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 15-Dec PEABaseCase

Recoveries (

%)

Tonnes p

er

Day

Mill tpd Recoveries (%)

Island Gold

Q1

2015

Q2

2015

Q3

2015

Q4

20152015

Underground tpd 552 759 669 657(2) 659

Mill tonnes 43,785 71,584 66,416 60,352 242,137

Mill tpd 487 787 722 656(2) 663

Head grade (g/t) 7.87 6.73 7.27 7.62 7.31

Recoveries (%) 97.19 96.78 97.12 96.00 96.80

Sustaining Costs ($000’S)(1) 3,828 5,555 5,371 - -

Project and non-sustaining exploration costs ($000’s)(1) 4,739 5,151 8,234 - -

(1) Fourth quarter and annual capital investment will be reported as part of the Corporation’s fourth quarter and annual financia l results on Feb. 22, 2016.

(2) Fourth quarter production and mine and mill productivity includes a 3-week scheduled underground mine shutdown in October

Fourth quarter production and mine and mill productivity includes a 3-week scheduled underground mine shutdown in October

Page 9: Sales Desk Presentation

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Development Ore vs. Unit Costs

$1,101

$1,565

1000

1100

1200

1300

1400

1500

1600

1700

1800

As of Dec. 31, 2015USD Gold CAD Gold

ISLAND GOLD: OPTIMIZING UNIT COSTS

$44SG&A (20%)

2015 YTD(1) Unit Cost Allocation

$139MINING (62%)

$32MILLING

(14%)

$8ROYALTIES (4%)

Strong Leverage to Canadian Dollar95% of Cash Outflows in CAD$

70% 65% 60% 55% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5%

Q1 2015 (70%)

Q4 2014 (50%)

Q3 2015 $114/tonne

(46%) Q3 2014(43%)

Q2 2015(39%)

PEA (2017-2022)$74/tonne

0

50

100

150

200

250

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Unit M

inin

g C

AD

$ p

er

Tonne

Perc

ent

Develo

pm

ent

Ore

Development Ore Unit Mining Costs

(1) As of Sept. 30, 2015

Page 10: Sales Desk Presentation

www.richmont-mines.com 10RIC: TSX NYSE-MKT

ISLAND GOLD: PEA OVERVIEW

• Potential for increased production and lower AISC

0

200

400

600

800

1000

1200

Q4 2014 Q1 2015 Q2 2015 Q3 2015 PermittedCapacity

Permitted Capacity 900tpd

Base Case 800tpd

• Phased approach with Phase 1 (800 tpd)

• Mining from a depth of 450 to 860 metres over three long-hole mining horizons

• Excludes resources above the 450 metre level, isolated resource blocks and parallel zones

• Avg. production of approx. 78,000 gold ounces per year from 2017 to 2022 at

$552/oz cash costs

• Potential Expansion Case to 1,150 tpd in H1 2017

PEA Summary 2017-2022

Tonnes Milled (Mt) 1.7

Head Grade (g/t) 8.67

Mine life excl. transition period (years) 6

Daily mine production (tpd) 801

Gold recovery (%) 96.5

Production (Koz) 464.6

Average annual gold production (Koz) 78

Total operating cost ($M) 256

Average cash operating cost ($/t) 148

Average cash operating cost ($/oz) 552

Transition Period Project Capital 2015-2016 ($M) 62

Sustaining Capital ($M) (2017-2022) 40.5

Mill Expansion OpportunityExpanded Case: 1,150tpd

Page 11: Sales Desk Presentation

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ISLAND GOLD MINE: PEA BASE CASE (800TPD)

Developing deeper resource to create substantial long-term growth.

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ISLAND GOLD MINE: PEA BASE CASE (800TPD)

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ISLAND GOLD MINE: PLANNED NEAR-MINE EXPLORATION DRILLING (C-Zone)

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www.richmont-mines.com 14RIC: TSX NYSE-MKT

ISLAND GOLD MINE: PLANNED REGIONAL EXPLORATION DRILLING

Page 15: Sales Desk Presentation

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BEAUFOR MINE OVERVIEW

Q4

20152015

Gold Production (oz) 5,652 26,411

Gold Sold (oz) 5,237 26,875

Q3

2015

9-months

2015

Cash costs/oz (C$)(1)(2) $974 $974

AISC (C$) (1)(2) $1,225 $1,144

Cash costs/oz (US$)(1)(2) $744 $773

AISC (US$) (1)(2) $936 $908

Reserves (oz)(3) 32,750

Gold Grade (g/t)(3) 7.06

M&I Resources (oz)(3) 189,850

Gold Grade (g/t)(3) 6.44

(1) Refer to the Non-GAAP performance measures contained in the Q3 MD&A.

(2) Fourth quarter and annual cash cost per ounce and AISC will be reported as part of the

Corporation’s fourth quarter and annual financial results on Feb. 22, 2016.(3) Refer to full 2014 Reserve and Resource information at the end of this presentation

Development of the Q Zone extends mine life

Target of reaching the mineralized structure by early 2016

28,000m of exploration drilling and 8,000m of definition drilling year to date

Page 16: Sales Desk Presentation

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MONIQUE MINE & CAMFLO MILL OVERVIEW

Camflo Mill

Monique MineQ4

20152015

Gold Production (oz) 2,525 16,580

Gold Sold (oz) 2,835 17,657

Q3

2015

9-months

2015

Cash costs/oz (C$)(1)(2) $1,005 $745

AISC (C$)(1)(2) $1,020 $762

Cash costs/oz (US$)(1)(2) $768 $592

AISC (US$)(1)(2) $779 $605

(1) Refer to the Non-GAAP performance measures contained in the Q3 MD&A

(2) Fourth quarter and annual cash cost per ounce and AISC will be reported as part of the

Corporation’s fourth quarter and annual financial results on Feb. 22, 2016.

Milling of the lower-grade cash-flow accretive stockpiled ore during Q3

Processing of the lower grade stockpile essentially completed by the end of 2015

Cash margin on processing stockpiled ore of approx. $746 per ounce in Q3

Toll milling opportunities at the 1,200 tpd Camflo Mill

Page 17: Sales Desk Presentation

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WELL POSITIONED FOR SUSTAINABLE GROWTH

Significant Exploration Potential

Strong Balance Sheet

Favourable Canadian Dollar Exposure

Low Shares Outstanding (58M)

-

200

400

600

800

1,000

1,200

-

20,000

40,000

60,000

80,000

100,000

120,000

FY-15 FY-16 FY-17 FY-18

Cash c

osts

per

oz.

(CA

D$)

Gold

Pro

duction (

oz)

Source: ThomsonOne Consensus Data

Production (oz) Cash Costs (CAD$/oz)

Growing Production - Decreasing Cash Costs Growing Cash Flow Streams

Quality Asset Base in Canada

Growing Production Profile

Decreasing Cost Structure

Growing Cash Flow Streams

0.00

0.20

0.40

0.60

0.80

1.00

1.20

FY-15 FY-16 FY-17 FY-18

Cash F

low

per

share

(C

$)

Source: ThomsonOne Consensus Data

OCF/PS

Page 18: Sales Desk Presentation

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APPENDIX

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RICHMONT MINES: MANAGEMENT TEAM

RENAUD ADAMS

President and

Chief Executive Officer

NICOLE VEILLEUX

Vice-President

Finance

STEVE BURLETON

Vice-President,

Business Development

DANIEL ADAM

Vice-President

Exploration

GEO PHD CPA, CA CFA, MBA

ANNE DAY

Vice-President,

Investor Relations

MBA

MAXIME GRONDIN

Director, Human Resources

and Health & Safety

MIGUEL MENDOZA

Director,

Business Performance

Management and Infrastructure

JEAN BASTIEN

Island Gold Mine

General Manager

MARC-ANDRÉ LAVERGNE

Beaufor and Monique

Division General Manager

BSC ISE P. ENG, MBA P. ENGCIRC

P. ENG

Legal Counsel &

Corporate Secretary

MÉLISSA TARDIF

Page 20: Sales Desk Presentation

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RICHMONT MINES: BOARD OF DIRECTORS

GREG CHAMANDY

Director

RENAUD ADAMS

Director, President

and Chief Executive Officer

ELAINE ELLINGHAM

Director

MICHAEL PESNER

Director and Chairman of

the Audit Committee

RENÉ MARION

Chairman of the Board

P. Geo., MBA CAP. ENG P. ENG

Co-Founder and Former

CEO of Gildan Activewear

Previously TSX,

IAMGOLD, Campbell

Resources, Rio Algom

President of Hermitage

Canada Finance,

previously KPMG

Former CEO AuRico Gold CEO of Richmont Mines

Page 21: Sales Desk Presentation

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49,196 oz

(1) Resources are exclusive of Reserves, and do not have demonstrated economic viability at this time.

(2) Established on December 31/14, using a gold price of US$1,200/oz and an exchange rate of CAN

$1.0833=US$1.00. In 2013, a price of US$1,225/oz and an exchange rate of CAN$1.06=US$1.00 were used.

(3) Underground Resources established for the C Zone and six other lateral zones below a vertical depth of

-400 metres.

As of Dec. 31, 2014 As of Dec. 31, 2013

Richmont Mines Inc.

Mineral Reserves and Resources 1

Tonnes

(metric)

Grade

(g/t Au)

Au ozs

contained

Tonnes

(metric)

Grade

(g/t Au)

Au ozs

contained

Island Gold

P & P Reserves 2 (above -400 m) 463,500 6.04 90,000 644,500 6.01 124,450

P & P Reserves 2,3 (below -400 m) 431,500 6.76 93,750 88,500 6.70 19,050

Total P & P Reserves 2 895,000 6.39 183,750 733,000 6.09 143,500

M & I Resources (above -400 m) 295,500 6.83 64,850 283,500 7.07 64,450

Indicated Resources 3 (below -400 m) 438,000 10.95 154,200 456,000 11.52 168,900

Total M & I Resources 733,500 9.29 219,050 739,500 9.81 233,350

Inferred Resources (above -400 m) 369,500 6.97 82,800 363,000 7.09 82,750

Inferred Resources 3 (below -400 m) 3,178,000 9.00 919,950 3,196,000 9.29 954,600

Total Inferred Resources 3,547,500 8.79 1,002,750 3,559,000 9.07 1,037,350

Beaufor 4

P & P Reserves 2 144,500 7.06 32,750 212,500 6.43 43,950

M & I Resources 917,000 6.44 189,850 911,000 6.44 188,500

Inferred Resources 743,000 6.51 155,600 906,000 6.50 189,200

Monique 5P & P Reserves2 14,500 3.16 1,450 416,000 2.30 30,700

Indicated Resources 107,500 4.88 16,850 107,500 4.88 16,850

Francoeur 6M & I Resources 320,000 6.47 66,600 320,000 6.47 66,600

Inferred Resources 18,000 7.17 4,150 18,000 7.17 4,150

Wasamac 7M & I Resources 15,251,500 2.86 1,402,250 15,251,500 2.86 1,402,250

Inferred Resources 18,759,000 2.66 1,605,400 18,759,000 2.66 1,605,400

Total Gold

P & P Reserves 1,054,000 6.43 217,950 1,361,500 4.98 218,150

M & I Resources 17,329,500 3.40 1,894,600 17,329,500 3.42 1,907,550

Inferred Resources 23,067,500 3.73 2,767,900 23,242,000 3.80 2,836,100

MINERAL RESERVES AND RESOURCES

(4) W Zone and 350 Zone Reserves and Resources are included with the Beaufor Mine as

at December 31, 2014..

(5) Monique Reserves are open-pit, and Resources are located underground directly below

the open-pit.

(6) Underground Resources established as of December 31, 2012.

(7) Francoeur Mine closed in November 2012.

Page 22: Sales Desk Presentation

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2015 GUIDANCE

Gold ounces produced (oz) 2015 Guidance

Island Gold Mine 45,000-50,000

Beaufor Mine & Monique Mine 42,000-45,000

Total ounces produced (oz) 87,000-95,000

Cash cost per ounce (CAN$)

Island Gold Mine $935-$1,035

Beaufor Mine & Monique Mine $935-$1,035

Consolidated Cash cost/oz (CAN$) $935-$1,035

AISC (CAN$)

Island Gold Mine $1,350-$1,495

Beaufor Mine & Monique Mine $1,125-$1,265

Consolidated AISC (CAN$) $1,335-$1,490

Cash cost per ounce (US$)(3)

Island Gold Mine $750-$825

Beaufor Mine & Monique Mine $750-$825

Consolidated Cash cost per ounce (US$) $750-$825

AISC (US$)(3)

Island Gold Mine $1,080-$1,200

Beaufor Mine & Monique Mine $900-$1,010

Consolidated AISC (US$) $1,075-$1,190

2015 Production and Cost Guidance

Sustaining Capital (CAD$M) 2015 Guidance

Island Gold Mine $19.1

Beaufor Mine & Monique Mine $6.2

Total sustaining capital (CAD$M) $25.3

Sustaining Capital (US$M)(3)

Island Gold Mine $15.2

Beaufor Mine & Monique Mine $5.0

Total sustaining capital (US$M) $20.2

Project and Exploration Capital (CAN$M)

Island Gold Mine $29.2

Beaufor Mine & Monique Mine $1.8

Project and Exploration Capital (CAN$M) $31.0

Project and Exploration Capital (US$M)(3)

Island Gold Mine $23.4

Beaufor Mine & Monique Mine $1.4

Project and Exploration Capital (US$M) $24.8

2015 Capital Investment Guidance

1) Refer to the Non-GAAP performance measures contained in the Q3 MD&A.

2) Refer to full 2014 Reserve and Resource information at the end of this presentation3) Using an exchange rate of 1.25 Canadian dollars to 1.0 US dollar

Page 23: Sales Desk Presentation

www.richmont-mines.com 23

TOP SHAREHOLDERS

Firm Name % O/S Shares Held City

Oxbridge Group, Inc. 6.93 4,020,854 Montreal

Renaissance Technologies LLC 5.59 3,241,100 New York

Caisse de Depot et Placement du Quebec 4.70 2,730,000 Montreal

ZPR Investment Management Inc. 4.35 2,524,360 Orange City

Sentry Investments Inc. 3.88 2,252,300 Toronto

1832 Asset Management L.P. 3.53 2,050,000 Toronto

RBC Global Asset Management Inc. 3.29 1,906,900 Toronto

U.S. Global Investors, Inc. 2.97 1,725,000 San Antonio

OppenheimerFunds, Inc. 2.84 1,650,000 New York

Mackenzie Financial Corporation 2.77 1,605,300 Toronto

Connor, Clark & Lunn Investment Management Ltd. 2.26 1,309,849 Vancouver

Ruffer LLP 2.04 1,185,000 London

Picton Mahoney Asset Management 1.85 1,075,000 Toronto

Chamandy (H Gregory) 1.72 995,509 Montreal

Fonds de Solidarité FTQ 1.69 980,000 Montreal

Fiera Capital Corporation 1.36 787,789 Montreal

Norrep Capital Management Ltd. 1.32 764,400 Calgary

Dimensional Fund Advisors, L.P. 1.25 725,000 Austin

Formula Growth Ltd. 0.95 550,000 Montreal

AGF Investments Inc. 0.94 546,600 Toronto

Manulife Asset Management Limited 0.93 537,400 Toronto

James Investment Research Inc. 0.78 455,415 Xenia

Gabelli Funds, LLC 0.78 450,000 Rye

Phillips, Hager & North Investment Management 0.71 413,500 Vancouver

Mason Hill Advisors, LLC 0.62 360,000 New York

(1) Shares held by H. Greg Chamandy, Director– Richmont Mines

Page 24: Sales Desk Presentation

www.richmont-mines.com 24

ISLAND GOLD MINENear-Mine Lateral Exploration

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www.richmont-mines.com 25

ISLAND GOLD MINEDeep Directional Drilling (Phase 1)

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zISLAND GOLD MINEEastern Lateral Exploration

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www.richmont-mines.com 27

ISLAND GOLD MINESWestern Lateral Exploration

Page 28: Sales Desk Presentation

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WASAMAC: ADVANCED DEVELOPMENT PROJECT

Resources TonnesGrade

(g/t Au)

Gold

Ounces

Measured Resources 3,124,500 2.75 276,550

Indicated Resources 12,127,000 2.89 1,125,700

Inferred Resources 18,759,000 2.66 1,605,400

(1) Refer to full 2014 Reserve and Resource information at the end of this presentation

15km west of Rouyn-Noranda, Quebec

100% owned, no royalties

Close proximity to existing infrastructure

Located in the Abitibi gold mining district

Significant exploration potential

NI 43-101 PEA released in March 2012

Page 29: Sales Desk Presentation

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RICHMONT MINES ASSETSVALD’OR AREA – EXPLORATION PROPERTIES

Page 30: Sales Desk Presentation

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RICHMONT MINES ASSETSROUYN-NORANDA AREA / EXPLORATION PROPERTIES

Page 31: Sales Desk Presentation

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RICHMONT MINES ASSETSTIMMINS AREA / EXPLORATION PROPERTIES

Page 32: Sales Desk Presentation

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OUR VISION and STRATEGY

Our vision is to become a leading intermediate gold producer focused on

the Americas generating superior per share valuation. We are committed to a

Sustainable Business Model and a strategy of long-term growth, and will fully

utilize the Corporation’s strong balance sheet, assets, cash flow, capital

structure and the extensive experience of the Corporations’ Board of

Directors and Management Team to build the next leading Canadian based

intermediate gold company.

Our strategy, in the short term, will focus on becoming a leading junior

gold producer by maintaining at all times a superior per share position on

operational & financial metrics while maintaining a sustainable and risk

adverse approach under a ‘Sustainable Business Model’.

We are guided by our core corporate values to achieve long term value

for all of our stakeholders. By cultivating a culture of responsible

performance, we are focused on operating in a sustainable manner while

holding ourselves accountable to all of our stakeholders.

Page 33: Sales Desk Presentation

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OUR VALUES

At the heart of this is a commitment to

responsibility, integrity and accountability

and the Corporation’s four corporate

values of Family, Health & Safety,

Growth and Team Work.

Health

and Safety

“Zero tolerance…”

Family

“At the heart of

what unites us…”Richmont Mines is a family. Our

management team is easily accessible

and actively listens to our employees and their

families. Richmont has put a number of plans and

activities in place, including programs that

support work-family balance, scholarships,

and student hiring.

Health and safety is a cardinal value

of the corporation. Richmont Mines

makes every effort to safeguard the health

and safety of all of its employees. We implement

efficient health and wellness programs and

support our objectives with recognition programs.

The only truly acceptable result is zero accidents.

Team Work

“Working together...”Richmont Mines strives to create a unified

team by encouraging the involvement and

the participation of our employees and

stakeholders. We want our employees to

enjoy working together. Every position is

important. Working together and promoting

cooperation promotes continued success and

the achievement of greater objectives.

With an objective of becoming a leading junior

gold producer in the short-term and an important

intermediate gold producer, Richmont’s growth is

supported by the development of our workforce, the

health and safety of our employees, and cultivating

good relations with the community, while having

a transparent approach, driven by integrity

and ethics.

Growth

“We are building the future…”

Page 34: Sales Desk Presentation

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SUSTAINABLE BUSINESS MODEL

We believe in developing Richmont based

on the principles of sustainability,

in order to deliver sustainable and

superior value for all stakeholders

with low risk exposure

to precious metals.Sustainable

Human Resources

Sustainable

Community Development

Sustainable

Process Improvement

Sustainable

Growth Principles

Making work life sustainable through

employee health & safety and wellness

programs, improved supervisory & operational

planning/implementation practices and skills

through training programs. Develop potential

leadership abilities through leadership program.

Promote Life in Balance; family, work and

personal development.

Reducing inefficiency and waste

through quality & performance

management by implementation of

“Lean” methods and balanced score

card approach. Advanced knowledge

and experience with energy efficiency,

sustainable waste systems & construction/

building practices.

Leadership and consulting skills for

promoting comprehensive change

toward sustainability in communities and

developing world-class relationships

with Aboriginal communities.

Developing sustainable exploration,

development, operational and financial

practices in order to deliver superior per share

value, mitigation/management of risk exposure

and discipline approach toward preserving best-

in-class balance sheet and capital structure.