Claude Res Inc CLGRF

RE: Q4 results

[oddykog]

The results for 2007 were certainly not pretty. The most shocking to my mind was the increase in the cost of producing one ounce of gold, which was C$610 in Q4 and a bit more than that for the full year. In the earlier quarters gold production was pretty low, but in Q4 it was above average and still the costs were very high! Not good. No wonder they want to spend money on improving productivity and costs at Seabee! About time, too, otherwise we will end up with gold at $1000 and costs at $950! Not a word about expectations for 2008. Possibly they wanted to get all the bad news out and give us something better when the time for the Annual Meeting comes up in May. I would hope that they can crank out at least 50 000 ounces in 2008. Certainly the market has given them a message, with the market value being down close to $100 million again despite the substantial dilution management has indulged in. The oil and gas segment was also operating at a loss last year after depreciation. Some operation when you cannot make money with oil at $100/barrel! Without Madsen Claude will remain a pretty disapointing investment. Let's hope we see some truly good news from there in 2008!