Richmont Mines, Inc. (RIC)

[greendolphin11]

welcome, bigone

I agree with the potential for profits in RIC

The cost basis of my holdings is a little hgiher than the current price, and I will be looking to average down soon

I think I read somewhare that their all-in costs were right at 1000 per oz

The potential for them to increase production is very good, and chronicled in their recent PR's, in my opinion

Their debt to equity ratio is very good, better than almost all of their industry peers.

Despite having to cut into their cash hoard due to the closing of the Francoeur mine and other issues, they still have a lot of cash on hand - as of Dec 31 of 2012 they had $55 million, but i think that number has gone down to closer to $40 mil

That still would mean that they have $1 per share in cash, as they only have 40 million shares outstanding

In my opinion, almost all of their bad news is behind them, they have taken the hard road and made difficult decisions NOW so they can reap the rewards later

This is a stock that is highly correlated to the price of Gold, whcih is a major reason why it trades so low, along with all of the financial moves they have made

IMO, the future is very bright for RIC, as I believe that Gold is going to retest its 2011 highs in the next 12 months

The last time that Gold was at 1900, RIC traded as high as $13 per share

Technically, there is near-term resistance at 1.80 and 2.00

Support should be found every 10 cents lower from here, at 1.60, 1.50, and 1.40

You can take a partial position here, and average up or down depending on what the stock does

Again, welcome, and good luck!!

GD11