Trading Symbols: TSX: CRJ; OTCQB: CLGRF
SASKATOON, May 8, 2014 /CNW/ - Claude Resources Inc. ("Claude" and or the "Company") today reported its 2014 first quarter
operating and financial results. All dollar amounts are in Canadian
dollars unless stated otherwise.
Q1 Highlights:
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Production of 11,344 ounces of gold was 40% higher period over period.
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Mine production costs of $10.6 million decreased by 9% period over
period.
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Revenue of $15.6 million from the sale of 10,865 ounces of gold.
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Total cash cost per ounce of gold (1) was $978 (U.S. $886).
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Net cash margin of $460 per ounce.
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Cash flow from operations before net changes in non-cash operating
working capital (1) of $1.8 million, or $0.01 per share.
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Net loss of $5.1 million, or $0.03 per share.
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Completed the sale of the Madsen Gold Project for gross proceeds of
$11.2 million in cash and equity of Laurentian Goldfields Inc.
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Raised $13.4 million in gross proceeds from the sale of a Net Smelter
Return Royalty on the Seabee Gold Operation with Orion Mine Finance.
Mike Sylvestre, Interim President and Chief Executive Officer,
commented, "We were able to achieve the best first quarter performance
in nearly a decade. We demonstrated a 40% increase in produced ounces,
a 34% increase in grade and a 4% increase in tonnes milled period over
period meanwhile decreasing our mine production costs by 9%. In
addition, we successfully completed the winter re-supply program and
are experiencing very positive results in our implementation of the new
Alimak mining method on the L62 deposit. The first quarter results
reflect our ongoing efforts to improve our production while ensuring
cash flow optimization. During the first quarter, we also completed the
sale of the Madsen Gold Project and partnered with Orion Mine Finance
through a royalty at the Seabee Gold Operation to strengthen our
balance sheet."
Financial Results
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Table 1: Highlights of Financial Results of Operations
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March 31
2014
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March 31
2013
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Revenue (in 000's)
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$
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15,624
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$
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15,278
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Divided by ounces sold
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10,865
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9,301
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Average realized price per ounce (CDN$)
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$
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1,438
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$
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1,643
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Production costs (in 000's)
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$
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10,628
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$
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11,584
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Divided by ounces sold
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10,865
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9,301
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Total cash costs per ounce (CDN$)
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$
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978
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$
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1,245
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Net cash margin per ounce sold
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$
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460
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$
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398
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Production royalty (in 000's)
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$
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58
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-
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Depreciation and depletion (in 000's)
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$
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5,593
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$
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4,549
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Gross loss (in 000's)
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$
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(655)
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$
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(855)
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Net loss (in 000's)
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$
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(5,111)
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$
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(2,537)
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Loss per share (basic and diluted)
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$
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(0.03)
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$
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(0.01)
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Gold revenue from the Company's Seabee Gold Operation for the three
months ended March 31, 2014 increased 2% to $15.6 million from $15.3
million reported in the first three months of 2013. The increase in
gold revenue period over period was attributable to 17% higher gold
sales volume (Q1 2014 - 10,865; Q1 2013 - 9,301 ounces) offset by a 12%
decline in Canadian dollar gold prices realized (Q1 2013 $1,438 (U.S.
$1,303); Q1 2013 - $1,643 (U.S. $1,629)).
During the quarter, mine production costs of $10.6 million (Q1 2013 -
$11.6 million) were 9% lower period over period. Total cash cost per
ounce of gold (1) for the first quarter decreased 21% to $978 (U.S. $886) per ounce from
$1,245 (U.S. $1,235) during the first quarter of 2013.
Cash flow from operations before net changes in non-cash operating
working capital (1) of $1.8 million, or $0.01 per share, was slightly up from $1.4 million,
or $0.01 per share, reported in the first quarter of 2013.
For the three months ended March 31, 2014, the Company recorded a net
loss of $5.1 million, or $0.03 per share (Q1 2013 - net loss of $2.5
million, or $0.01 per share).
Operations
During the first quarter of 2014, the Company milled 64,370 tonnes at a
grade of 5.76 grams of gold per tonne (Q1 2013 - 61,877 tonnes at a
grade of 4.31 grams of gold per tonne) for total production of 11,344
ounces of gold (Q1 2013 - production of 8,082 ounces of gold). This 40%
increase in ounces produced is attributable to a 34% increase in grade
and a 4% increase in tonnes milled period over period.
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Table 2: Seabee Gold Operation Production Statistics
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March 31
2014
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March 31
2013
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Operating Data
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Tonnes Milled
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64,370
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61,877
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Head Grade (grams per tonne)
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5.76
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4.31
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Recovery (%)
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95.1
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94.3
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Gold Ounces
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Produced
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11,344
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8,082
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Sold
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10,865
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9,301
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Santoy Gap Update
During the quarter, the Company continued to make steady progress in
developing the Santoy Gap towards production. To date, the Company has
completed approximately 200 metres of the 290 metre long ventilation
raise and expects to have the raise completed by the end of the second
quarter. The completion of the ventilation raise, which provides fresh
air underground, represents a significant milestone as it will allow
the Company to improve development rates by increasing the underground
activity. Also, the Company completed the initial access to the deposit
on 28 level and is currently developing the sill. Sampling results from
the development sill have demonstrated encouraging results to date and
are consistent with the Mineral Reserve. Development of the 24, 26 and
30 levels is progressing ahead of schedule, with anticipated
development ore production from all levels in the second quarter. In
addition, the Company is conducting a 27,000 metre infill drilling
program to better refine the Santoy Gap resource and optimize mine
design. To date, drilling results have been positive and support the
Company's model of the deposit.
Exploration
During the first quarter of 2014, exploration expenditures at the Seabee
Gold Operation 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.
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.
Quarterly operating results are expected to fluctuate throughout 2014;
as such, they will not necessarily be reflective of the full year
average.
Conference Call and Webcast
We invite you to join our Conference Call and Webcast on May 9, 2014 at
11:00 AM 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 May 16, 2014 by calling 1-855-859-2056 and entering the password
34474891.
To view and listen to the webcast on May 9, 2014 please use the
following URL in your web browser: http://www.newswire.ca/en/webcast/detail/1342355/1483995
A copy of Claude's 2014 Q1 Management's Discussion & Analysis, Financial
Statements and Notes thereto (unaudited) 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.
Footnotes
(1)
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See description and reconciliation of non-IFRS financial measures in the
"Non-IFRS Financial Measures and Reconciliations" section of the
Company's 2014 Q1 MD&A available on the Company's website at www.clauderesources.com or on www.sedar.com.
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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.