Richmont Mines (RIC) is a company that has been beaten down by investors because of poor previous performance. The sentiment on this company compared to other gold miners is extremely bearish, but when an investor looks deep into the fundamentals of the company there is quite a bit of value to be had in owning these shares.
A number of factors should push investors to buy these severely undervalued shares:
- Richmont's Q2FY13 was misunderstood by investors. By simply selling all the ounces that the company produced in the quarter (1200 ounces of gold were produced more than were sold) for the average realized price, the company's 3 cent loss per share would have been a