Trading Symbols: TSX: CRJ; OTCQB: CLGRF
SASKATOON, May 8, 2014 /PRNewswire/ - 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:
- Production of 11,344 ounces of gold was 40% higher period over
period.
- Mine production costs of $10.6
million decreased by 9% period over period.
- Revenue of $15.6 million from the
sale of 10,865 ounces of gold.
- Total cash cost per ounce of gold (1) was
$978 (U.S. $886).
- Net cash margin of $460 per
ounce.
- Cash flow from operations before net changes in non-cash
operating working capital (1) of $1.8 million, or $0.01 per share.
- Net loss of $5.1 million, or
$0.03 per share.
- Completed the sale of the Madsen Gold Project for gross
proceeds of $11.2 million in cash and
equity of Laurentian Goldfields Inc.
- Raised $13.4 million in gross
proceeds from the sale of a Net Smelter Return Royalty on the
Seabee Gold Operation with Orion Mine Finance.
Mike Sylvestre,
Interim President and Chief Executive Officer, commented, "We were
able to achieve the best first quarter performance in nearly a
decade. We demonstrated a 40% increase in produced ounces, a 34%
increase in grade and a 4% increase in tonnes milled period over
period meanwhile decreasing our mine production costs by 9%. In
addition, we successfully completed the winter re-supply program
and are experiencing very positive results in our implementation of
the new Alimak mining method on the L62 deposit. The first quarter
results reflect our ongoing efforts to improve our production while
ensuring cash flow optimization. During the first quarter, we also
completed the sale of the Madsen Gold Project and partnered with
Orion Mine Finance through a royalty at the Seabee Gold Operation
to strengthen our balance sheet."
Financial Results
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Table 1: Highlights of Financial
Results of Operations |
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March 31
2014 |
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March 31
2013 |
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Revenue (in 000's) |
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$ |
15,624 |
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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$) |
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$ |
1,438 |
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$ |
1,643 |
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Production costs (in 000's) |
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$ |
10,628 |
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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$) |
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$ |
978 |
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$ |
1,245 |
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Net cash margin per ounce sold |
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$ |
460 |
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$ |
398 |
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Production royalty (in 000's) |
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$ |
58 |
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- |
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Depreciation and depletion (in 000's) |
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$ |
5,593 |
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$ |
4,549 |
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Gross loss (in 000's) |
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$ |
(655) |
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$ |
(855) |
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Net loss (in 000's) |
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$ |
(5,111) |
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$ |
(2,537) |
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Loss per share (basic and diluted) |
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$ |
(0.03) |
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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) |
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. |
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.