10 11-2016 q3 webcast presentation

TSX – NYSE MKT: RIC

Third Quarter 2016 Financial ResultsNovember 10, 2016

www.richmont-mines.com 2

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

This presentation contains forward-looking statements that include risks and uncertainties. When used in this presentation, the words“estimate”, “projects”, “anticipate”, “expects”, “intend”, “believe”, “hope”, “may”, and similar expressions, as well as “will”, “shall”, and otherindications of future tense, are intended to identify forward-looking statements. The forward looking statements are based on current expectationsand apply only as of the date on which they were made. Except as required by law or regulation, Richmont undertakes no obligation and disclaimsany responsibility to publicly update or revise any forward looking statements of information, whether as a result of new information, future eventsor otherwise. The factors that could cause actual results to differ materially from those indicated in such forward-looking statements includechanges in the prevailing price of gold, the Canadian-U.S. exchange rate, grade of ore mined and unforeseen difficulties in mining operations thatcould 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 Annual Information Form.

The resource estimates in this presentation were prepared in accordance with National Instrument 43-101 Standards of Disclosure of MineralProjects (“NI 43-101”) adopted by the Canadian Securities Administrators. The requirements of NI 43-101 differ significantly from the requirementsof 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. TheSEC permits U.S. mining corporations, in their filings with the SEC, to disclose only those mineral deposits that constitute “Reserves”. UnderUnited States standards, mineralization may not be classified as a Reserve unless the determination has been made that the mineralization couldbe economically and legally extracted at the time the determination is made. United States investors should not assume that all or anyportion of a Measured or Indicated Resource will ever be converted into “Reserves”. Furthermore, “Inferred Resources” have a great amount ofuncertainty 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.

For additional information regarding the Mineral Reserves and Resources referred to in this presentation, please refer to the technical reportentitled “Amended Technical Report on the Mineral Reserve and Mineral Resource Estimates as of Dec. 31, 2015 for the Island Gold Mine” datedApril 5, 2016 and effective as of Dec. 15, 2016.

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 fromthe SEC’s web site: http://sec.gov/edgar.shtml.

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

FORWARD LOOKING STATEMENTS

http://sec.gov/edgar.shtml


(1) Refer to the Non-IFRS performance measures contained in the Q3 2016 MD&A.(2) The revised guidance assumes an exchange rate of 1.33 for January to June and 1.30 for July to December

Q3 2016 Operational Highlights

All amounts are in Canadian Dollars unless otherwise indicated

Consolidated Results Q3 2016 9 Months 2016 2016 Revised Guidance

Gold produced (oz) 18,856 74,545 98,000 - 106,000

Gold sold (oz) 17,774 74,901 -

Cash cost per ounce ($)(1) 1,063 899 885 – 945

AISC per ounce ($)(1) 1,604 1,296 1,230 – 1,335

Cash cost per ounce (US$)(1)(2) 815 680 675 – 720

AISC per ounce (US$)(1)(2) 1,230 980 935 – 1,015

Pivotal quarter for Island Gold; completion of electrical upgrade supports growth

Island Gold mine and mill productivity a base case average of approx. 900 tpd in QTD

Improved performance expected at Beaufor with increased stope mining in Q Zone

Increased production and lower costs company-wide expected in Q4

On track to meet company-wide revised guidance


(1) Before changes in non-cash working capital.(2) Refer to the Non-IFRS performance measures contained in the Q3 2016 MD&A.

Revenues of $31.2 million

Earnings of $0.2M (nil per share)

Adjusted operating cash flow(1)(2) per share of $0.09

Solid cash position of $78.9 million

Expansion Case PEA (H1 2017); 900 tpd Base Case vs.1,100 Exp. Case

Expansion funded with strong cash position and growing cash flow

Q3 2016 HIGHLIGHTS

WELL POSITIONED FOR ORGANIC GROWTHAll amounts are in Canadian Dollars unless otherwise indicated

FINANCIAL HIGHLIGHTS


FINANCIAL RESULTS HIGHLIGHTS

Q3 2016 Financial Results

Strong cash position of $78.9M as of Sept. 30, 2016 and growing cash flow stream is expected to support a fully

funded potential 1,100 tpd expansion

(in thousands, except per share amounts)

Quarter EndedSept. 30, 2016


9 MonthsSept. 30, 2016


Revenue from mining operations 31,244 34,107 124,496 111,869

Net earnings per share, basic 0.00 0.06 0.19 0.19

Operating cash flow, per share 0.05 0.20 0.59 0.63

Adj. Operating cash flow, per share(1)(2) 0.09 0.20 0.64 0.56

Net free cash flow, per share(2)(3) (0.26) (0.02) (0.20) 0.11

(1) Before changes in non-cash working capital(2) Refer to the Non-IFRS performance measure in the Q3 2016 MD&A.(3) Net free cash flow per share is comprised of the Corporation’s operating cash flow, after changes in non-cash working capital, less investments in property, plant and

equipment


OPERATIONS & OVERVIEW


ISLAND GOLD: IN-LINE RESULTS Q3 2016

Island Gold MineQ3 2016 9 Months 2016 2016 Revised

Guidance

Gold produced (oz) 14,031 59,237 75,000 – 80,000

Gold sold (oz) 13,673 59,851 -

Cash cost per ounce ($)(1) 958 770 800 – 840

AISC per ounce ($)(1) 1,330 1,025 1,040 – 1,110

Cash cost per ounce (US$)(1)(2) 734 583 610 – 640

AISC per ounce(US$)(1)(2) 1,019 776 795 - 845(1) Refer to the Non-IFRS performance measures contained in the Q3 2016 MD&A(2) The revised guidance assumes an exchange rate of 1.33 for January to June and 1.30 for July to December


Quarter included 25-day mill and 16-day mine shutdown (electrical upgrade)

Underground (890 tpd) and mill productivity (878 tpd), excluding shutdown

Q3 positive reconciliation of 37%; (15% tonnes / 19% grade)

Development ore 44% in Q3; YTD 49% (2016 plan of 40%)

On track to meet, or exceed, revised production and cost guidance

Development in ore initiated in higher grade third mining horizon in Q4


ISLAND GOLD: OPERATING KPIsIsland Gold Mine Q3 2016 9 Months 2016 2016E

Underground tpd 890(1) 884(1) 810

Mill tonnes 58,836 214,666 292,000

Mill tpd 878(1) 862(1) 810

Head grade (g/t gold) 7.70 8.91 8.20 – 8.70

Recoveries (%) 96.3 96.4 96.5

Sustaining Costs ($000’s) 5,090 15,283 18,900

Project Costs ($000’s) 13,457 28,390 46,100

Non-sustaining exploration Costs ($000’s) 3,509 10,903 16,000

Underground Mine Productivity

-

20,000

40,000

60,000

80,000

100,000

120,000

2014 2015 2016E(1) Base Case900tpd(2)

Exp. Case1100tpd(2)

Island Gold Production Upside


(1) Mid-range of revised 2016 guidance(2) Potential production for 2018 based on Base Case and Expansion Case scenarios outlined in Nov. 1, 2016 Press

Release using Dec. 31, 2015 Reserve and Resource estimates.

(1) Q3 2016 productivity excludes 16-day electrical upgrade shutdown of the underground mine

0.00

2.00

4.00

6.00

8.00

10.00

12.00

0

200

400

600

800

1000

1200

Gra

ms

per t

onne

Tonn

es p

er d

ay

Underground tpd Head grade (g/t)

(1) Excludes a 16-day underground mine shutdown and a 25-day mill shutdown


ISLAND GOLD:2016 DEVELOPMENTAND MINE PLAN

First Mining HorizonTonnes Grade (g/t) Ounces

P&P 433,681 6.30 87,786

Third Mining HorizonTonnes Grade (g/t) Ounces

P&P 616,039 10.59 209,705Inferred 342,967 11.18 123,167

Second Mining HorizonTonnes Grade (g/t) Ounces

P&P 566,272 8.57 156,048

Fourth Mining Horizon Tonnes Grade (g/t) Ounces

Inferred 665,957 8.80 188,403


ISLAND GOLD: GROWTH OPPORTUNITIES

• Expanded resource area east-west of main reserve area (most contiguous portion)

• Mining from a depth of 450 to 1,000 metres over 4 mining horizons

• Base Case of 900 tpd increasing to Expansion Case 1,100 tpd utilizing existing ramp system

• Incorporation of December 31, 2016 Reserve and Resource estimates, that will consider

• Positive reconciliation of 32% achieved YTD (25% on grade and 6% on tonnes)

• Encouraging near-mine delineation and exploration drill results

• New Life of Mine (LoM) and operating costs and capital estimates

• Minimal capital requirements for mine and mill expansion; fully funded internally

• Maximize mining capacity without new infrastructure

• Increased milling capacity to 1,200 tpd would allow future growth at minimal cost (~C$15M)

Potential for a further upside scenario of up to 1,200 tonnes per day as additional resources are included in the mine plan.

Expansion Case PEA (H1 2017)


ISLAND GOLD: 2016 Near-Mine Delineation Drilling


ISLAND GOLD: 2016 Near-Mine Exploration Drilling


ISLAND GOLD:Phase 2 Exploration Program, H2 2016 (36,000m)ISLAND GOLD: Phase 2 Exploration Program, H2 2016 (58,000m)


ISLAND GOLD:Regional Surface Exploration Phase 2 (20,000m)


Lower production due to low underground mobile equipment availability

6,000 tonnes of broken ore at 7.0 g/t available for processing in Q4

Prioritized waste development efforts to support stope mining in the higher-grade Q Zone

Cash costs & AISC expected to decrease as stope mining increases in the Q Zone

BEAUFOR MINE: OPERATIONAL HIGHLIGHTS

(1) Includes 1,165 ounces of gold produced (1,171 ounces sold) from the Monique Mine at an average cash cost of $1,185 per ounce and AISC of $1,189 per ounce(2) Refer to the Non-IFRS performance measures contained in the Q3 MD&A.(3) The revised guidance assumes an exchange rate of 1.33 for January to June and 1.30 for July to December

Beaufor Mine Q3 2016 9 Months 2016 2016 Revised Guidance1

Gold produced (oz) 4,825 14,143 23,000 – 26,000

Gold sold (oz) 4,101 13,879 -

Cash cost per ounce ($)(2) 1,411 1,433 1,150 – 1,300

AISC per ounce ($)(2) 1,893 1,837 1,420 – 1,610

Cash cost per ounce (US$)(2)(3) 1,082 1,084 875 – 1,000

AISC per ounce (US$)(2)(3) 1,451 1,390 1,080 – 1,235

Underground tpd 282 297 -

Mill tonnes 27,426 85,025 -

Head grade (g/t gold) 5.62 5.28 -

Recoveries (%) 97.3 98.0 -

Sustaining Costs ($000’s) 1,979 5,611 -



Q3 IN-LINE PRODUCTION AT ISLAND GOLD:Positive Reconciliation To Reserves Continues

9-Month Reserve Reconciliation

Reserves (as of Dec 31, 2015) Mined (reconciled) Variations (Mined vs Reserves)

Diluted Tonnes

Diluted Grade

Diluted Ounces

ReconciledTonnes

ReconciledGrade

ReconciledOunces Tonnes Grade Ounces

Total Development Q3 24,571 4.82 3,807 29,741 6.12 5,853 121% 127% 154%

Total Stope Q3 34,211 7.07 7,778 37,906 8.26 10,063 111% 117% 129%

Total U/G Q3 58,782 6.13 11,585 67,647 7.32 15,916 115% 119% 137%

In-line production in Q3; Higher than planned milled grades of 7.70 g/t

Positive reconciliation of 37%: (19% grade / 15% tonnes)

Percentage of higher cost development ore to total ore of 49% YTD; 2016 plan of 40%

Development primarily in lower-grade extensions of the second mining horizon

YTD reconciliation from mining in first and second mining horizons only. Development in ore initiated in higher grade third mining horizon in Q4

Reserves (as of Dec 31, 2015) Mined (reconciled) Variations (Mined vs Reserves)

Diluted Tonnes

Diluted Grade

Diluted Ounces

ReconciledTonnes

ReconciledGrade

ReconciledOunces Tonnes Grade Ounces

Total Development 2016 113,399 6.33 23,094 112,522 8.23 29,756 99% 130% 129%

Total Stope 2016 101,539 7.53 24,596 115,642 8.99 33,427 114% 119% 136%

Total U/G 2016 214,938 6.90 47,690 228,164 8.61 63,183 106% 125% 132%

Q3 Reserve Reconciliation

The reconciliation to date is based on mining in the first and second mining horizons only, and should not be extrapolated to the third and fourth mining horizons.


ISLAND GOLD MINE

Histogram of the Ext C Samples


ISLAND GOLD MINE

Log Normal Probability Plot (Ext C Drill Hole Samples)


2016 REVISED OPERATIONAL ESTIMATES2016 Production and Cost Guidance

2016 Capital Investment Guidance

Revised 2016 Operational Estimates Island GoldRevised 2016 Guidance

Beaufor Revised 2016 Guidance Original 2016 Guidance Revised 2016

Guidance

Gold Ounces Produced(1) 75,000 - 80,000 23,000 - 26,000 87,000 – 97,000 98,000 – 106,000

Cash Costs per Ounce (CAD$)(2) $800 - $840 $1,150 - $1,300 $930 - $1,000 $885 - $945

Sustaining Capital per Ounce (CAD$) $240 - $270 $270 - $310 $250 - $280 $250 - $280

Corporate G&A per Ounce (CAD$) - - $95 - $110 $95 - $110

All-in Sustaining Costs per Ounce (CAD$)(2) $1,040 - $1,110 $1,420 - $1,610 $1,275 - $1,390 $1,230 - $1,335

Cash Costs per Ounce (US$)(2)(3) $610 - $640 $875 - $1,000 $680 - $730 $675 - $720

Sustaining Capital per Ounce (US$)(3) $185 - $205 $205 - $235 $185 - $205 $185 - $205

Corporate G&A per Ounce (US$)(3) - - $70 - $80 $75 - $90

All-in Sustaining Costs per Ounce (US$)(2)(3) $795 - $845 $1,080 - $1,235 $935 - $1,015 $935 - $1,015

Revised 2016 Capital and Exploration ($M) Island GoldRevised 2016 Guidance

Beaufor Revised 2016 Guidance Original 2016 Guidance Revised 2016

Guidance

Sustaining Capital (CAD$) $18.9 $7.0 $24.1 $25.9

Project Capital (CAD$) $46.1 - $43.4 $46.1

Exploration (CAD$) $16.0 $1.1 $15.5 $17.1

Sustaining Capital (US$)(3) $14.4 $5.3 $17.7 $19.7

Project Capital (US$)(3) $35.2 - $31.8 $35.2

Exploration (US$)(3) $12.2 $0.8 $11.4 $13.1(1) Revised guidance estimates include 1,165 ounces produced from the Monique Mine in Q1 2016, which were not included in original guidance.(2) Cash cost and AISC are non-IFRS measures. Refer to the Non-IFRS performance measures section in the third quarter MD&A.(3) An exchange rate of 1.36 Canadian dollars to 1.0 US dollar was used for the original 2016 guidance issued on Feb. 11, 2016. The revised guidance assumes an exchange rate of 1.33 for January to June and

1.30 for July to December.


CONSOLIDATED OPERATIONAL HIGHLIGHTS

Production Growth and In-Line CostsQuarter EndedSept. 30, 2016




Gold produced (oz) 18,856 23,478 74,545 75,651

Gold sold (oz) 17,774 22,962 74,901 75,319

Cash cost per ounce (CAN$)(1) 1,063 926 899 961

AISC per ounce (CAN$)(1) 1,604 1,311 1,296 1,290

Realized gold price per ounce (CAN$) 1,754 1,482 1,659 1,482

Cash cost per ounce (US$)(1) 815 707 680 763

AISC per ounce (US$)(1) 1,230 1,001 980 1,024

Realized gold price per ounce (US$) 1,344 1,132 1,255 1,176

(1) Refer to the Non-IFRS performance measures contained in the Q3 2016 MD&A.


10 11-2016 q3 webcast presentation

Investor Relations

Transcript of 10 11-2016 q3 webcast presentation