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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

Comment by Bottleson Nov 30, 2012 9:08am
138 Views
Post# 20665034

RE: They Are Pretty Much Out of Money

RE: They Are Pretty Much Out of Money

"According to the latest Q3 report cash on hand is less than $1 mill and working capital is NEGATIVE . It looks like they have burned through all their money on exploration."

 

In addition to exploration costs, Seabee upgrades made up the bulk of cash expenditures. Those benefits should start showing up in 2013 (ie: about a $30M capital investment). In addition, Santoy Gap is on track to join the production profile in late 2013/early 2014. Right now, CRJ is just getting started on Seabee Deep and L62 grades.

 

With word that CRJ does not seek to undertake an equity financing (ie: like financing Seabee resupply efforts), it looks as though the focus will be operational (ie: cash flows) and to a lessor extent, reports like a scoping study on Madsen and a PEA on Amisk. Exploration wise, I think CRJ will hold off on any major expenditures til the second half of 2013 thus concerving cash. As for resupply efforts, it should be noted that deisel prices were much higher last year than they are this year. Although still high and will be a big part of overall resupply costs, said costs are apt to be lower.

 

Mentioned in a conferenece call two Q's ago and no word of the same having been sold is about $3M in unsold gold on the books. Hence, should any cash crunch be experienced (which I strongly doubt), CRJ has gold to fall back on. Mr. M even travels around with a $50K rock that can always be sold for hard cash.

 

To close, I noticed increased poster activity on both Stockhouse and Yahoo. This signals to me that CRJ has both bottomed and unlike most of this past year, has started to actually attract investor attention.
 

 
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