RNC Announces Q2 2017 Results

TORONTO, Aug. 10, 2017

TORONTO, Aug. 10, 2017 /CNW/ - RNC Minerals (TSX: RNX) ("RNC") announces its review of activities and financial results for the quarter ended June 30, 2017. All amounts are expressed in Canadian dollars, unless otherwise noted, and are based on the unaudited financial statements for the quarter ended June 30, 2017.

Mark Selby, President and CEO, commented, "Performance at Beta Hunt rebounded significantly during the second quarter due to strong improvement in production mining, mine development and an ongoing focus on improving grades as ounces mined increased by 50% to 8,281 and mining rates accelerated to 1,800 tonnes per day by June – a 59% improvement versus the first quarter. Gold grade mined improved by 24% during the quarter to 2.09 g/t compared to the first quarter. Production in June was over 3,900 ounces of gold translating into an annualized rate of 47,000 ounces. With the ramp-up in production and improvement in grades, mining cash costs declined by $US850 per ounce - from $US 1,669 in the first quarter to $819 per ounce in June 2017.  We expect costs to continue to improve as production ramps up through the remainder of 2017."

to US$1,211/oz in the second quarter of 2017 compared to first quarter 2017 costs of US$1,669/oz."

Q2 2017 and Recent Highlights

• Gold material mined at Beta Hunt during the second quarter was 1,351 tonnes per day, up 27% compared to the first quarter of 2017 and pre-commercial gold production was 8,281 ounces in the second quarter of 2017, up 50% compared to the first quarter of 2017. Gold sales were 5,891 ounces a decrease of 4% compared to 6,132 ounces sold in the first quarter of 2017.
  
  
• For the second quarter of 2017, gold mining cash cost per ounce declined by 27% to US$1,211 per ounce from US$1,669 per ounce in the first quarter. On a cost per ounce sold basis, gold cash costs, net of by-product credits were US$1,739 per ounce sold, and all-in sustaining costs net of by-product credits were US$1,786 per ounce sold, higher than the first quarter of 2017 by 6%. As production volumes ramp up and grades improve through the year, costs are expected to decline towards target levels. Reference is made to the Non-IFRS Measures section of RNC's MD&A for the period ended June 30, 2017.
   
  
• Reed Mine second quarter 2017 copper contained in concentrate production was 3.1 million pounds (1.14 kt) (30% basis). Cash costs were US$1.58 per pound sold and all-in sustaining costs were US$1.66 per pound sold. RNC's share of gold in concentrate production for the second quarter of 2017 from the Reed Mine was 293 ounces. Reference is made to the Non-IFRS Measures section of RNC's MD&A for the period ended June 30, 2017.
  
  
• Combined operating loss from Beta Hunt and Reed Mine was a breakeven for the three months ended June 30, 2017. Until June 30, 2017 Beta Hunt gold cost of sales, net of gold revenue, were capitalized to property, plant and equipment.
  
  
• On June 20, 2017, RNC announced commercial production was achieved at the Beta Hunt Mine by producing at least 3,500 contained ounces of gold over a one month period (equivalent to an annualized production rate of 42,000 ounces). Gold sales and related costs will be reflected in earnings effective July 1, 2017.
  
  
• RNC had net earnings of $4.9 million ($0.02 per share) for the three months ended June 30, 2017, compared to a net loss of $5.0 million ($0.03 per share) for the same period in 2016 primarily as a result of the positive deferred tax impact of $4.9 million associated with the second quarter disposition of the Dumont Property.
  
  
• On July 7, 2017, RNC announced its True North Nickel ("TNN") subsidiary arranged approximately $6.4 million in financing to fund the 2017 exploration programs at its Qiqavik property in northern Québec and the Jones-Keystone/Loflin and Landrum-Faulkner properties located in the Carolina Gold Belt. RNC also confirmed its intention to transfer its 68% interest in TNN's exploration assets to Focused Capital Corp. ("Focused") through an amalgamation (the "Amalgamation") to be implemented under an amalgamation agreement to be entered into by Focused and TNN. Following the Amalgamation, which is expected to be completed in September 2017, the resulting issuer will hold all of TNN's assets and will be renamed Orford Mining Corporation ("Orford") and trade under the symbol "ORM".

Q2 2017 Results and Outlook

The following is a summary of Q2 2017 Production from Beta Hunt Mine: