Momentum Stock Watch: Richmont Mines Inc. (RIC)

Company Profile:

Richmont Mines Inc. engages in the mining, exploration, and development of mining properties in Canada. The company holds interests in the Island Gold mine in Ontario; and the Beaufor mine and Camflo Mill in Quebec. As of December 31, 2016, it had proven and probable reserves of 752,200 ounces of gold at the Island Gold Mine; and 44,920 ounces of gold at the Beaufor Mine. The company was formerly known as Ressources minières Rouyn inc. and changed its name to Richmont Mines Inc. in 1991. Richmont Mines Inc. was founded in 1981 and is headquartered in Rouyn-Noranda, Canada.

Recent News:

Alamos will acquire all of the issued and outstanding shares of Richmont, was approved by 98.46% of votes cast by Alamos shareholders and 92.56% of votes cast by Richmont shareholders. The Transaction is expected to close on November 23, 2017.

For the third quarter ended September 30, 2017, the company reported revenues of $36.5 (US$29.2) million. Net earnings of $4.8 million , or $0.08 per share.

 

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

RIC’s strengths can be seen in its better profitability and better solvency compared with its peers. Its revenue has increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator, RSI (14) stands at 48.38 with positive bias. We rate Richmont Mines Inc. (RIC) a STRONG BUY.

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