GREY:CLGRF - Post by User
Post by
oddykogon Apr 02, 2008 11:38am
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Post# 14930343
Certainly punished by the market
Certainly punished by the marketClaude has been punished by the market for the poor results in 2007. Now below $1 again for the first time in a few years. The valuation at this level has dropped below the $100 million mark and is certainly too low to allow them a stock issue. Reading the AIF on Sedar there are signs that 2008 will be better. Here are some of them:
1) The C$, which hit $1.10 in October last year is now back to arount 98 cents US. That has a big impact on Claude.
2) Gold is much higher in Q1 than it was in Q4/07.
3) Sales of gold in 2007 were 4000 ounces below production, so the pipeline should be filled
4) In the AIF they state that they completed the capacity increase of the mill in Q4/07, so we may see bigger production, now that the Seabee ore is being supplemented with 200 tons per day of ore from Santoy 7.
All in all, at this price Claude appears to me to be a bargain, particularly with the prospect of serious drilling being planned at Madsen this year - and there is always the chance that someone will want to own them.