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Claude Res Inc CLGRF

"Claude Resources Inc is engaged in the acquisition, exploration, and development of gold and other precious metal properties. Its projects include Seabee Property and various exploration properties located at Laonil Lake. It also owns Amisk Gold Property."


GREY:CLGRF - Post by User

Bullboard Posts
Post by oddykogon Feb 16, 2007 10:24am
418 Views
Post# 12249723

Financing

FinancingAs I read it they got only about $4 million out of the royalty agreement (the fee) because the entire royalty payment was passed on to a financial institution to provide the interest income to actually pay the royalty over the years. Nonetheless $4 million should allow them to keep running without much in the way of financing. I believe the cost of de-watering Madsen is the responsibility of GG and the drilling itself should not be a major step-up for a company that has been drilling quite a bit already at Seabee, particularly since it is all surface drilling for the time being. So I don't think there is going to be a major escalation of exploration cost in 2007 and what there is should be taken care of by extra cash-flow from a) higher C$ prices for gold; b)higher gold production. As far as the oil&gas is concerned, I think $40 million is not unreasonable. Let's not forget that every year we get closer to having met the old royalty agreement (which maxes out at a total of $140 million, if I remember it correctly) and thereafter the cash flow to Claude steps up big time. However, I expect they will use that value to actually build a deep mine shaft at Madsen or at any rate a drift at depth if they find the gold at depth, as they expect. If that gold is truly there this company will be valued at $300 million, not $120 million
Bullboard Posts