Benj Gallander Richmont Mines Inc. RIC-T COMMENT Nov 03, 2011

Sold 90% of his holdings. Virtually all the bad news is out. Wrote off the lot on the Franceour Mine so had loss of about $30 million. Without writing this mine off, they would’ve made a lot of money. Have over $50 million in the bank. Pretty clean balance sheet. Unfortunately they borrowed about $10 million at 7.5% and they didn’t need it. This is one of the far more reasonable goal plays out there and has the potential for a lot of upside.

Sold 90% of his position. He is more confident in what they are trying to do at this time. No debt. It predicates upon the price of gold.

(Market Call Minute) High cost Ontario/Quebec miner struggling to grow.

(Market Call Minute) They are going through huge changes.

This is one of the smallest holdings that he has. Revenues in the last quarter were up 26%, but the company lost a little bit of money. Just did a financing of 8 million shares for $1.45, which just about doubles the amount of money they have in the bank. They need this for the Island deep gold mine which they are developing. Very, very good potential play. Doesn’t have a lot of debt, about $5 million and less than 50 million shares outstanding.

Why are there a number of junior producers such as this, that are near 52 week highs while most seniors are near multiyear lows? You have to look at names on a individual fundamental basis. The reason this one is at a 52 week high is that they made a phenomenal new discovery at depth, below their existing mine in Northern Ontario. The wealth creation of that asset is a reason to own the name.

This has been a big win over the last number of years. Located in Canada. The grades, as you get lower, get quite a bit higher, so cash costs should come down. There is a lot of consolidation in the sector, especially within Canada, so it could be an acquisition target.

This is really a new story. It has been around for a long time, but in terms of developing its high-grade, underground operation, which is deeper than the original, it has rejuvenated the stock. It is now a matter of execution and getting the company to optimal production and generating positive free cash flow. He is very confident in management. Feels the valuation still has room to go.