Trading Symbols: TSX: CRJ, OTCQB: CLGRF
SASKATOON, March 31, 2014 /CNW/ - Claude Resources Inc. ("Claude" and or the "Company") today reported its full year 2013
operating and financial results. All dollar amounts are in Canadian
dollars unless stated otherwise.
2013 Operating Highlights:
-
Record safety and environment performance.
-
Production of 43,850 ounces of gold.
-
Mine production costs of $44.1 million decreased by 9% year over year.
-
Record mine production tonnes and mill throughput at the Seabee Gold
Operation.
2013 Financial Highlights:
-
Decreased total corporate expenditures by over 20%.
-
Revenue of $63.8 million from the sale of 44,823 ounces of gold.
-
Total cash cost per ounce of gold (1) was $983 (U.S. $954).
-
Net cash margin of $440 per ounce.
-
Cash flow from operations before net changes in non-cash operating
working capital (1) of $13.8 million, or $0.08 per share.
-
Net loss of $73.4 million, or $0.42 per share, after impairment charges
totaling $63.8 million partially offset by a $1.4 million deferred
income tax recovery.
-
Adjusted net loss (1) of $10.7 million, or $0.06 per share.
Neil McMillan, President and Chief Executive Officer, commented that,
"Our team did an excellent job on achieving record operating
performance while substantially decreasing our costs throughout the
year while managing the difficult gold price environment. Although our
operating performance was excellent, it was overshadowed by lower than
budgeted grades which resulted in lower gold production. Over the past
six months, the Company made several changes to improve the grade in
2014 and, with the addition of Santoy Gap ore later in 2014, I am
confident that we will see significant improvements on grade going
forward. In addition, I would like to acknowledge the superb effort and
performance by our mine site employees on safety and environment."
Financial Results
A copy of Claude's 2013 Annual Management's Discussion and Analysis,
Audited Financial Statements and Notes thereto can be viewed at www.clauderesources.com.
|
|
|
|
|
|
|
|
|
Table 1: Highlights of Financial Results of Operations
|
|
|
|
|
|
|
|
|
December 31
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
Revenue (in 000's)
|
|
|
$
|
63,794
|
|
|
$
|
80,808
|
Divided by ounces sold
|
|
|
|
44,823
|
|
|
|
48,672
|
Average Realized Price per Ounce (CDN$)
|
|
|
$
|
1,423
|
|
|
$
|
1,660
|
|
|
|
|
|
|
|
|
|
Production costs (in 000's)
|
|
|
$
|
44,051
|
|
|
$
|
48,535
|
Divided by ounces sold
|
|
|
|
44,823
|
|
|
|
48,672
|
Total cash costs per ounce (CDN$)
|
|
|
$
|
983
|
|
|
$
|
997
|
|
|
|
|
|
|
|
|
|
Net Cash Margin per Ounce Sold (CDN$)
|
|
|
$
|
440
|
|
|
$
|
663
|
|
|
|
|
|
|
|
|
|
Depreciation and depletion (in 000's)
|
|
|
$
|
22,949
|
|
|
$
|
15,681
|
Gross profit (loss) (in 000's)
|
|
|
$
|
(3,206)
|
|
|
$
|
16,592
|
Net profit (loss) * (in 000's)
|
|
|
$
|
(73,423)
|
|
|
$
|
5,569
|
Earnings (loss) per share (basic and diluted) *
|
|
|
$
|
(0.42)
|
|
|
$
|
0.03
|
* 2013 results reflect: impairment charges of $22.2 million on the
Company's Seabee Gold Operation; and impairment charges of $41.6
million on the Company's Madsen Property.
|
Gold revenue from the Company's Seabee Gold Operation in 2013 decreased
21% to $63.8 million from $80.8 million reported in 2012. The decrease
in gold revenue year over year was attributable to a 14% decline in
Canadian dollar gold prices realized and 8% lower gold sales volume
(2013 - 44,823 ounces; 2012 - 48,672 ounces sold) which was impacted by
a 13% decrease in grade (2013 - 5.11 g/t; 2012 - 5.86 g/t).
For the year ended December 31, 2013, mine production costs of $44.1
million (2012 - $48.5 million) were 9% lower year over year. Total cash
cost per ounce of gold (1) for 2013 decreased 1% to $983 (U.S. $954) per ounce from $997 (U.S.
$998) in 2012, a result of a 9% decrease in production costs offset by
an 8% decrease in ounces sold.
In 2013, cash flow from operations before net changes in non-cash
operating working capital (1) of $13.8 million, or $0.08 per share, was down from $25.8 million, or
$0.15 per share, reported in 2012.
During 2013, the Company recorded a net loss of $73.4 million, or $0.42
per share (2012 - net profit of $5.6 million, or $0.03 per share),
after impairment charges of $63.8 million which were partially offset
by a $1.4 million deferred income tax recovery.
Adjusted net loss (1) was $10.7 million, or $0.06 per share (2012 - adjusted net profit of
$8.7 million, or $0.05 per share). Table 2 reconciles the 2013 adjusted
net profit (loss) with the Company's net profit (loss) as determined
under International Financial Reporting Standards (IFRS).
|
|
|
|
|
|
|
|
|
Table 2: Adjusted Net Profit (loss)
|
|
|
|
|
|
|
|
|
December 31(in 000's)
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
Net profit (loss)
|
|
|
$
|
(73,423)
|
|
|
$
|
5,569
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Impairment charges
|
|
|
|
63,835
|
|
|
|
-
|
|
Loss on investments
|
|
|
|
262
|
|
|
|
199
|
|
Deferred income tax (recovery) expense
|
|
|
|
(1,420)
|
|
|
|
2,972
|
Adjusted Net Profit (loss)
|
|
|
$
|
(10,746)
|
|
|
$
|
8,740
|
Weighted Average shares outstanding (basic)
|
|
|
|
175,562
|
|
|
|
172,933
|
Weighted Average shares outstanding (diluted)
|
|
|
|
175,562
|
|
|
|
173,232
|
Per share adjusted net profit (loss) (basic and diluted)
|
|
|
$
|
(0.06)
|
|
|
$
|
0.05
|
The total impairment charges of $63.8 million in 2013 were mainly
related to the Madsen Gold Project of $41.6 million, or $0.24 per
share, which was classified as held for sale and reflects
re-measurement (required by this classification) of this asset at the
lower of its carrying amount and fair value less costs to sell. The
remaining impairment charge of $22.2 million, or $0.13 per share, was
related to the Seabee Gold Operation, due to revised assumptions
relating to future gold price, mineable grade and cost assumptions.
Operations
During 2013, underground operations and the Central Milling Facility at
the Seabee Gold Operation mined and processed record tonnes; in
addition, development rates also increased by 25% over 2012, despite a
10% reduction in the Company's workforce. In addition to record
throughput during 2013, the Company also achieved record performance on
both safety and environment.
During 2013, the Company achieved record mill throughput of 280,054
tonnes at a grade of 5.11 grams of gold per tonne (2012 - 275,235
tonnes at a grade of 5.86 grams of gold per tonne) for total production
of 43,850 ounces of gold (2012 - production of 49,570 ounces of gold).
This decrease in ounces produced is attributable to a 13% decrease in
grade year over year.
|
|
|
|
|
|
|
Table 3: Seabee Gold Operation Production Statistics
|
|
|
|
|
|
|
December 31
|
|
2013
|
|
|
|
2012
|
|
|
|
|
|
|
|
Operating Data
|
|
|
|
|
|
|
Tonnes Milled
|
|
280,054
|
|
|
|
275,235
|
Head Grade (grams per tonne)
|
|
5.11
|
|
|
|
5.86
|
Recovery (%)
|
|
95.3
|
|
|
|
95.6
|
Gold Ounces
|
|
|
|
|
|
|
Produced
|
|
43,850
|
|
|
|
49,570
|
Sold
|
|
44,823
|
|
|
|
48,672
|
|
|
|
|
|
|
|
Exploration
Claude elected to reduce its exploration spending during 2013 to $1.6
million from the $2.7 million budgeted and the $14.2 million incurred
in 2012. Notwithstanding, drill results from the limited budget
yielded excellent results from the Santoy Mine Complex including 18.80
grams of gold per tonne over 13.86 metres and 330.35 grams of gold per
tonne over 1.55 metres.
At the Seabee Gold Operation, exploration expenditures focused on low
cost per ounce targets, proximal to infrastructure with the potential
to materially impact near-term production, drive resource growth and
positively impact the Company's Mineral Reserves and Mineral Resources.
Mineral Reserves and Mineral Resources
At the Seabee Gold Operation, year over year, Proven and Probable
Mineral Reserves decreased 24% to 422,900 ounces, Measure and Indicated
Mineral Resources increased 128% to 175,200 ounces and Inferred Mineral
Resources decreased by 3% to 582,900 ounces. Year over year, changes
in the Seabee Gold Operations Mineral Reserves and Mineral Resources
were driven by:
-
a decrease in gold price which increased cut-off grade;
-
reduced drilling meterage;
-
mining depletion; and
-
higher dilution assumptions.
The most significant change in the Mineral Reserves and Mineral
Resources was the addition of the Santoy Gap deposit. The Santoy Gap
deposit is growing in importance due its proximity to mine
infrastructure, low development cost and near-term production
potential. Furthermore, based on its high-grade nature and size, the
Santoy Gap deposit demonstrates the potential that exists to grow
production and margins at the Seabee Gold Operation. A copy of the
detailed Mineral Reserves and Mineral Resources table can be viewed on
the Company's website at www.clauderesources.com.
Outlook
For 2014, forecast gold production at the Seabee Operation is estimated
to range from 47,000 to 51,000 ounces of gold. Unit costs for 2014 are
expected to be comparable to 2013's unit cash costs of $983 per ounce.
All in costs at Seabee during 2014 are expected to be 10% less than
those in 2013. Quarterly operating results are expected to fluctuate
throughout 2013; as such, they will not necessarily be reflective of
the full year average.
Capital expenditures at the Seabee Gold Operation in 2014 are expected
to include continued investment and upgrades that are estimated to
total approximately $22.0 million, funded from a combination of
operating cash flow, the sale of the Madsen Gold Project and the sale
of the NSR royalty on the Seabee Gold Operation. This 28% reduction
from 2013 expenditures of $30.6 million is due to the completion of
several major projects, including the shaft extension.
|
|
|
|
|
|
|
|
|
|
|
|
Table 4: Capital Expenditures (CDN$ million)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
Estimate
|
|
|
|
|
2013
Actual
|
Capital
|
|
|
|
|
|
|
|
|
|
|
|
Development
|
|
|
|
|
$
|
11.0
|
|
|
|
$
|
18.1
|
Sustaining
|
|
|
|
|
|
5.5
|
|
|
|
|
7.9
|
Expansion
|
|
|
|
|
|
5.5
|
|
|
|
|
4.6
|
Total
|
|
|
|
|
$
|
22.0
|
|
|
|
$
|
30.6
|
Development expenditures are expected to be prioritized at Santoy Gap.
Sustaining capital costs include expenditures on equipment replacement
and tailings water treatment facilities. Expansion capital is expected
to focus in the Santoy Gap area to support the Company's Life of Mine
Plan and to generate future returns for the Company as the Santoy Gap
deposit represents one of the Company's best opportunities to build
shareholder value.
Conference Call and Webcast
We invite you to join our Conference Call and Webcast on April 1, 2014
at 1:30 PM Eastern Time.
To participate in the conference call please dial 1-647-427-7450 or
1-888-231-8191. A replay of the conference call will be available
until April 8, 2014 by calling 1-855-859-2056 and entering the password
14025814.
To view and listen to the webcast on April 1, 2014 please use the
following URL in your web browser: http://www.newswire.ca/en/webcast/detail/1321849/1459967
A copy of Claude's 2013 Annual Management's Discussion & Analysis,
Audited Financial Statements and Notes thereto can be viewed at www.clauderesources.com. Further information relating to Claude Resources Inc. has been filed
on SEDAR and may be viewed at www.sedar.com.
Claude Resources Inc. is a public company based in Saskatoon, Saskatchewan, whose shares
trade on the Toronto Stock Exchange (TSX: CRJ) and the OTCQB (OTCQB:
CLGRF). Claude is a gold exploration and mining company with an asset
base located entirely in Canada. Since 1991, Claude has produced over
1,000,000 ounces of gold from its Seabee Gold Operation in northeastern
Saskatchewan. The Company also owns 100 percent of the Amisk Gold
Project in northeastern Saskatchewan.
Qualified Persons
Brian Skanderbeg, P.Geo., Senior Vice President and Chief Operating
Officer and Peter Longo, P.Eng., Vice President, Operations, Qualified
Persons as defined by National Instrument 43-101, have reviewed the
contents of this news release for accuracy.
Footnotes
|
|
|
|
|
|
(1)
|
See description and reconciliation of non-IFRS financial measures in the
"Non-IFRS Financial Measures and Reconciliations" section of the
Company's 2013 Annual MD&A available on the Company's website at www.clauderesources.com or on www.sedar.com.
|
CAUTION REGARDING FORWARD-LOOKING INFORMATION
All statements, other than statements of historical fact, contained or
incorporated by reference in this news release and constitute
"forward-looking information" within the meaning of applicable Canadian
securities laws and "forward-looking statements" within the meaning of
the United States Private Securities Litigation Reform Act of 1995
(referred to herein as "forward-looking statements"). Forward-looking
statements include, but are not limited to, statements with respect to
the future price of gold, the estimation of mineral reserves and
resources, the realization of mineral reserve estimates, the timing and
amount of estimated future production, costs of production, capital
expenditures, costs and timing of the development of new deposits,
success of exploration activities, permitting time lines, currency
exchange rate fluctuations, requirements for additional capital,
government regulation of mining operations, environmental risks,
unanticipated reclamation expenses, title disputes or claims and
limitations on insurance coverage. Generally, these forward-looking
statements can be identified by the use of forward-looking terminology
such as "plans", "expects" or "does not expect", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates" or "does not anticipate" or "believes", or the negative
connotation thereof or variations of such words and phrases or state
that certain actions, events or results, "may", "could", "would",
"might" or "will be taken", "occur" or "be achieved" or the negative
connotation thereof.
All forward-looking statements are based on various assumptions,
including, without limitation, the expectations and beliefs of
management, the assumed long-term price of gold, that the Company will
receive required permits and access to surface rights, that the Company
can access financing, appropriate equipment and sufficient labour, and
that the political environment within Canada will continue to support
the development of mining projects in Canada.
Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of Claude to be
materially different from those expressed or implied by such
forward-looking statements, including but not limited to: actual
results of current exploration activities; environmental risks; future
prices of gold; possible variations in ore reserves, grade or recovery
rates; mine development and operating risks; accidents, labour issues
and other risks of the mining industry; delays in obtaining government
approvals or financing or in the completion of development or
construction activities; and other risks and uncertainties, including
but not limited to those discussed in the section entitled "Business
Risk" in the Company's Annual Information Form. These risks and
uncertainties are not, and should not be construed as being,
exhaustive.
Although Claude has attempted to identify important factors that could
cause actual results to differ materially from those contained in
forward-looking statements, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can be
no assurance that such statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place
undue reliance on forward-looking statements.
Forward-looking statements in this news release are made as of the date
of this news release and accordingly, are subject to change after such
date. Except as otherwise indicated by Claude, these statements do not
reflect the potential impact of any non-recurring or other special
items that may occur after the date hereof. Forward-looking statements
are provided for the purpose of providing information about
management's current expectations and plans and allowing investors and
others to get a better understanding of our operating environment.
Claude does not undertake to update any forward-looking statements that
are incorporated by reference herein, except in accordance with
applicable securities laws.
CAUTIONARY NOTE TO US INVESTORS CONCERNING RESOURCES ESTIMATES
The resource estimates in this document were prepared in accordance with
National Instrument 43-101, adopted by the Canadian Securities
Administrators. The requirements of National Instrument 43-101 differ
significantly from the requirements of the United States Securities and
Exchange Commission (the "SEC"). In this document, we use the terms
"measured", "indicated" and "inferred" resources. Although these terms
are recognized and required in Canada, the SEC does not recognize them.
The SEC permits U.S. mining companies, in their filings with the SEC,
to disclose only those mineral deposits that constitute "reserves".
Under United States standards, mineralization may not be classified as
a reserve unless the determination has been made that the
mineralization could be economically and legally extracted at the time
the determination is made. United States investors should not assume
that all or any portion of a measured or indicated resource will ever
be converted into "reserves". Further, "inferred resources" have a
great amount of uncertainty as to their existence and whether they can
be mined economically or legally, and United States investors should
not assume that "inferred resources".
SOURCE Claude Resources Inc.