One of our favorite small producers continues to be Richmont Mines (RIC, TSX) which has been a star performer this year and appears to be on its way to another all-time high. The chart below with classic patterns really says it all. Richmont’s very bullish technicals reflect not only the company’s robust production growth profile and earnings momentum, but they also speak volumes about Gold’s primary direction.
Richmont, which trades on both the TSX and the AMEX, will likely be reporting its second quarter earnings sometime next month. At Friday’s closing price of $8.11, the stock in our estimation is trading anywhere from just eight to 10 times’ anticipated 2011 earnings. With Gold at record highs and its Wasamac Property west of Rouyn-Noranda emerging as a major new find along the Cadillac Break, one that we will be exploring in much more detail in the coming weeks, Golden times are certainly ahead for Richmont shareholders. John’s chart reveals several bullish indicators including a breakout Friday from a “cup with handle” formation.
Note: Both John and Jon continue to hold positions in Richmont Mines.
