Island  Gold Mine (Image Richmont)

Island Gold Mine (Image Richmont)

Richmont Mines (RIC.T) stock is on a tear since early June providing shareholders an excellent return in the last five months. The company today named Renuad Adams as president and CEO. The announcement comes just one day after Renaud resigned from his position of president and COO at Primero Gold.

Richmont had been looking for a new CEO since early July when they fired Paul Carmel. Over the past couple months Elaine Ellingham a long time director of the company was interim president and CEO.

Greg Chamandy, executive chairman of Richmont's board of directors, commented on the appointment: "We are very pleased to have been able to attract a high-calibre individual like Mr. Adams to our team as president and CEO. His experience in the gold sector will be of tremendous benefit to Richmont and will enhance the development of our high-grade gold resource below our Island gold mine in Ontario, which is currently a 1.1-million-ounce inferred resource. I would like to extend my sincere thanks to our director, Ms. Elaine Ellingham, for her dedication during her time as interim president and CEO and greatly appreciate that she will be assisting Mr. Adams during the transition."

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Four reasons for the share price appreciation in 2014

  1. A doubling of the inferred resource just below the current operating Island gold mine in January to 1.1 million ounces at 9.6 g/t.
  2. Strong operational performance in the first half of 2014 generating net free cash flow of 12 cents per share.
  3. Consolidation of 100% of the Island gold mine property which allows for accelerated development of the mine into 2015.
  4. Management has increased yearly production guidance following the third quarter results.

Symbol: RIC.T

Share price: $2.62

Shares outstanding: 47.65 M

Market cap: $124.2 M

Cash: ~$38 million (September 30,2014)

Read: Richmont Mines Announces Appointment of Mr. Renaud Adams to the Position of President and Chief Executive Officer

I have no position in any of the stocks mentioned. This is not investment advice. As always please do your own due diligence.