Trading Symbols: TSX: CRJ, OTCQB: CLGRF
SASKATOON,
March 31, 2014 /PRNewswire/ -
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 $0.06 per share.
Neil McMillan,
President and Chief Executive Officer, commented that, "Our team
did an excellent job on achieving record operating performance
while substantially decreasing our costs throughout the year while
managing the difficult gold price environment. Although our
operating performance was excellent, it was overshadowed by lower
than budgeted grades which resulted in lower gold production. Over
the past six months, the Company made several changes to improve
the grade in 2014 and, with the addition of Santoy Gap ore later in
2014, I am confident that we will see significant improvements on
grade going forward. In addition, I would like to acknowledge the
superb effort and performance by our mine site employees on safety
and environment."
Financial Results
A copy of Claude's 2013 Annual Management's
Discussion and Analysis, Audited Financial Statements and Notes
thereto can be viewed at www.clauderesources.com.
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Table 1: Highlights of Financial Results of
Operations |
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December 31 |
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2013 |
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2012 |
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Revenue (in 000's) |
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$ |
63,794 |
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$ |
80,808 |
Divided by ounces sold |
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44,823 |
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48,672 |
Average Realized Price per Ounce (CDN$) |
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$ |
1,423 |
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$ |
1,660 |
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Production costs (in 000's) |
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$ |
44,051 |
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$ |
48,535 |
Divided by ounces sold |
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44,823 |
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48,672 |
Total cash costs per ounce (CDN$) |
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$ |
983 |
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$ |
997 |
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Net Cash Margin per Ounce Sold (CDN$) |
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$ |
440 |
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$ |
663 |
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Depreciation and depletion (in 000's) |
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$ |
22,949 |
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$ |
15,681 |
Gross profit (loss) (in 000's) |
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$ |
(3,206) |
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$ |
16,592 |
Net profit (loss) * (in 000's) |
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$ |
(73,423) |
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$ |
5,569 |
Earnings (loss) per share (basic and diluted)
* |
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$ |
(0.42) |
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$ |
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 $0.05 per share). Table 2 reconciles the 2013
adjusted net profit (loss) with the Company's net profit (loss) as
determined under International Financial Reporting Standards
(IFRS).
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Table 2: Adjusted Net Profit
(loss) |
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December 31(in
000's) |
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2013 |
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2012 |
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Net profit (loss) |
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$ |
(73,423) |
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$ |
5,569 |
Adjustments: |
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Impairment charges |
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63,835 |
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- |
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Loss on investments |
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262 |
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199 |
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Deferred income tax (recovery) expense |
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(1,420) |
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2,972 |
Adjusted Net Profit (loss) |
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$ |
(10,746) |
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$ |
8,740 |
Weighted Average shares outstanding
(basic) |
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175,562 |
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172,933 |
Weighted Average shares outstanding
(diluted) |
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175,562 |
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173,232 |
Per share adjusted net profit (loss)
(basic and diluted) |
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$ |
(0.06) |
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$ |
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.
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Table 3: Seabee Gold Operation
Production Statistics |
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December 31 |
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2013 |
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2012 |
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Operating Data |
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Tonnes Milled |
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280,054 |
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275,235 |
Head Grade (grams per tonne) |
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5.11 |
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5.86 |
Recovery (%) |
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95.3 |
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95.6 |
Gold Ounces |
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Produced |
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43,850 |
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49,570 |
Sold |
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44,823 |
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48,672 |
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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 $30.6 million is due to the completion of several
major projects, including the shaft extension.
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Table 4: Capital Expenditures (CDN$
million) |
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2014
Estimate |
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2013
Actual |
Capital |
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Development |
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$ |
11.0 |
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$ |
18.1 |
Sustaining |
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5.5 |
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7.9 |
Expansion |
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5.5 |
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4.6 |
Total |
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$ |
22.0 |
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$ |
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
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(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.