Claude Res Inc CLGRF

Bottom probably in

[oddykog]

The 5 year chart of Claude Resources shows 2 spikes to the $2.20 level and 2 spikes down to the low 80 cent level.  We are around the second spike down at present and this is likely to be the bottom.  Holders over the last 5 years have seen endless dilution as cash has been plowed into Seabee and Madsen (and the Seabee operation has disapointed as a very poor cash producer).  There are signs that is changing.

Firstly, this year they are raising capital as debt  -12% coupon, 5 year term - but no new dilution.  Last year they raised $20 million selling at $1.60 and those investors are unlikely to be coming back for more.  This should ensure the capital required for the year is there.

Secondly, there are signs gold production at Seabee will at last ramp up.  The target for 2008 is 48-52 000 ounces, which may not sound like much, but with only about 8000 ounces in Q1 will require an average of 13 000 in the remaining quarters to reach.

Thirdly one sees a new urgency about producing big results at Madsen with underground drilling now set to begin in Q4.

It all suggests that they expect to be a very different company by the time 2010 rolls around - and about time, too.  I would think that buyers at these levels could be happy down the road.