When Stockhouse Editorial last caught up Quebec-based
Abcourt Mines Inc.(ABI) (
TSX-V.ABI,
OTCMKTS: ABMBF,
Forum), our investor audience got a firsthand look at
the awakening of a “Sleeping Giant” in gold exploration.
Fast-forward to today, and the company’s mining operations are now very wide awake and ready for growth at multiple sites.
Founded in 1971, Abcourt Mines, is an established and emerging gold producer with two gold mines, one zinc-silver mine, several gold and zinc projects in its current portfolio. The junior mining company offers excellent operating potential for gold, silver, and zinc in the historically prolific, stable, and mining-friendly Abitibi, Quebec region. Abcourt is currently focusing on the exploitation of its Elder mine and on the development of the aforementioned Sleeping Giant mine.
Its gold-producing asset is the Elder Mine. The company has a processing plant with a capacity of 750 tonnes per day. The mine is equipped with functional buildings plus all of the surface and underground equipment with a 2,600-ft shaft (793 metres) and 16 levels. The project is currently producing
15,000 to 18,000 ounces of gold per year.
(Click image to enlarge)
A second gold mine at Abcourt’s Sleeping Giant Property started mine development in mid-2020.
In 2016, Abcourt acquired the Sleeping Giant mine and mill – located approximately half-way between Amos and Matagami, in Abitibi, Quebec – in the territory covered by the Plan Nord of the Quebec government.
In the News
Of course, all junior mining companies are not created equal. But some are built to steadily generate more revenue than others. Case in point is the consistent and improving profitability demonstrated by Abcourt Mines, as the company continues to post positive revenue and earnings.
On November 30, 2020, ABI reported Q1 2020 revenues of over $7.8 million with adjusted net profit in excess of $1.7 million.
Highlights (All amounts are in Canadian dollars unless otherwise indicated):
- Revenues of $8,360,700 for the second quarter ended December 31, 2020 – the best to date.
- $7.5 million cost of sales compared to $6.6 million for the same quarter in the previous year.
- Net profit of $454,583 for the second quarter compared to $ 86,630 for the previous year.
- Adjusted net profit of $ 1,381,572 versus $ 993,105 for the same period in the previous year.
- Investment of $ 1.2 million in property, plant, and equipment at the Sleeping Giant mine over a six-month period, from June to December 2020.
- Gold and silver inventory of $1 million on December 31, 2020 compared to $2.5 million on June 30, 2020.
- 2,730 ounces of gold produced 3,431 ounces of gold sold in the second quarter ended on December 31, 2020.
- Cash cost of production of $1,961, USD$1,518 per ounce of gold.
All in sustaining cost of $ 2,221, or US $ 1,719 per ounce of gold.
- $ 3.2 million cash on December 31, 2020, compared to $ 3,7M on September 30,2020.
The reduction is due mostly to the $1.3 M deposit made for the restoration of the Sleeping Giant mine.
In a news release statement, the company commented on the report:
“This is a very good quarter, mainly due to the increase in the price of gold. Our operations generated $ 2.5M in cash. This enabled us to develop our Sleeping Giant project and to continue the development of the Elder mine.”
In addition to ABI’s strong performance in public markets (
TSX-V.ABI,
OTCMKTS: ABMBF), the company has also been raising capital.
On March 3rd, Abcourt announced that financing from the Royal Bank of Canada was completed to accelerate the development of the Sleeping Giant mine for a total of $6.5 million, which includes a credit facility of $1.5 million for the purchase of mining equipment – 100% guaranteed by the purchased equipment.
In Closing
Abcourt’s growth metrics are giving investors, both retail, institutional and private equity good reason to keep this gold explorer and producer on their close radar moving into 2021 and beyond. Investors and shareholders should also note that silver and zinc continue to raise, and ABI’s projects are located in the right place (Quebec’s historic and prolific Abitibi region) and are happening at the right time.
(Click image to enlarge)
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.