Trading Symbols: TSX: CRJ; OTCQB: CLGRF
SASKATOON,
Aug. 6, 2014 /PRNewswire/ - Claude
Resources Inc. ("Claude" and or the "Company") today reported
its 2014 second quarter operating and financial results. All dollar
amounts are in Canadian dollars unless stated otherwise.
Financial Highlights:
- Revenue of $24.7 million,
representing a 53% increase period over period, from the sale of
17,690 ounces of gold.
- Total cash cost per ounce of gold (1) was
$753 (U.S. $691), a 14% decrease from the second quarter in
2013.
- Cash flow from operations before net changes in non-cash
operating working capital (1) of $9.9 million, or $0.05 per share.
- Net profit of $3.3 million, or
$0.02 per share.
- Debt reduction totaling $7.1
million during the first half of 2014.
- Production and cost guidance revised to reflect better than
expected operating performance.
Operating Highlights:
- Set new highs in safety and environment performance.
- Record production of 18,742 ounces of gold, a 51% increase
period over period.
- 50% improvement on head grade from Q2 2013 of 7.7 grams per
tonne.
- Santoy Gap initial production averaged 110 tonnes per day at
approximately 7.1 grams per tonne in May and June.
Mike Sylvestre,
Interim President and Chief Executive Officer, commented, "The
increase in production and the decrease in unit costs were driven
by an increase in grade and the continued success of our cash flow
optimization plan. The Seabee and Santoy Mines have performed
consistently over the past four quarters by producing over 50,000
ounces and I expect that trend to continue. Based on our first half
performance, the Company has raised its production guidance to
50,000 to 54,000 ounces of gold for 2014."
"Not only did we improve operating performance,
we are also ahead of schedule in the development of the Santoy Gap
and will begin long-hole mining during the latter part of the third
quarter. Santoy Gap provides the Company with the ability to grow
our production profile and margins with minimal capital
expenditures. In addition, since the start of this year, we have
been able to reduce our debt by over $7.0
million. With improved production, lower unit costs and
continued debt reduction, the Company is well positioned to deliver
shareholder value."
Financial Results
|
Highlights of Financial Results of
Operations |
|
|
Three Months
Ended |
|
Six Months Ended |
|
|
June 30 |
|
June 30 |
|
June 30 |
|
June 30 |
|
|
2014 |
|
2013 |
|
2014 |
|
2013 |
|
|
|
|
|
|
|
|
|
Revenue |
$ |
24,718 |
$ |
16,070 |
$ |
40,342 |
$ |
31,348 |
Production costs |
$ |
12,594 |
$ |
10,088 |
$ |
23,222 |
$ |
21,672 |
Production royalty (NSR) |
$ |
734 |
$ |
- |
$ |
792 |
$ |
- |
Depreciation and depletion |
$ |
6,644 |
$ |
5,794 |
$ |
12,237 |
$ |
10,343 |
Gross profit (loss) |
$ |
4,746 |
$ |
188 |
$ |
4,091 |
$ |
(667) |
Net profit (loss) |
$ |
3,327 |
$ |
(9,915) |
$ |
(1,784) |
$ |
(12,452) |
Earnings (loss) per share (basic and diluted) |
$ |
0.02 |
$ |
(0.06) |
$ |
(0.01) |
$ |
(0.07) |
|
|
|
|
|
|
|
|
|
Average realized price per ounce (CDN$) |
$ |
1,397 |
$ |
1,393 |
$ |
1,413 |
$ |
1,505 |
Total cash costs per ounce (CDN$) |
$ |
753 |
$ |
875 |
$ |
841 |
$ |
1,040 |
Net cash margin per ounce sold (CDN$) |
$ |
644 |
$ |
518 |
$ |
572 |
$ |
465 |
Gold revenue from the Company's Seabee Gold
Operation for the quarter increased 53% to $24.7 million from $16.1
million reported in the second quarter of 2013. The increase
in gold revenue period over period was attributable to 53% higher
gold sales volume (Q2 2014 - 17,690; Q2 2013 - 11,532 ounces). Year
to date, the Company generated $40.3
million in revenue, a 29% increase over the first half of
2013.
During the quarter, mine production costs were
$12.6 million (Q2 2013 - $10.1 million). Total cash cost per ounce of gold
(1) for the second quarter decreased 14% to $753 (U.S. $691)
from $875 (U.S. $855) during the second quarter of 2013. Year to
date, cash cost per ounce of gold was $841 (U.S. $767), a
19% decrease from the cash cost per ounce of $1,040 (U.S. $1,024) reported during the first half of
2013.
Cash flow from operations before net changes in
non-cash operating working capital (1) of $9.9 million, or $0.05 per share, was significantly up from the
$3.7 million, or $0.02 per share, reported in the second quarter
of 2013. Year to date, cash flow from operations before net changes
in non-cash working capital (1) of $11.6 million, or $0.06 per share was considerably higher than the
$5.0 million or $0.03 per share during the comparable period.
During the second quarter, the Company recorded
net profit of $3.3 million, or
$0.02 per share (Q2 2013 - net loss
of $9.9 million, or $0.06 per share). For the six months ended
June 30, 2014, the Company recorded a
net loss of $1.8 million, or
$0.01 per share (YTD 2013 - net loss
of $12.5 million, or $0.07 per share). The increase in net profit is
primarily related to an increase in gold sales volume, the
successful integration of the Company's cash flow optimization plan
and continued operational improvements.
Operations
During the second quarter of 2014, the Company
milled 79,746 tonnes at a grade of 7.70 grams of gold per tonne (Q2
2013 - 79,077 tonnes at a grade of 5.13 grams of gold per tonne)
for total production of 18,742 ounces of gold (Q2 2013 - production
of 12,438 ounces of gold). This 51% increase in ounces produced is
attributable to a 51% increase in grade while tonnes milled were
consistent with the comparable period in 2013. The increase in
grade is mainly attributable to the L62 deposit and the production
ramp up of Santoy Gap. Year to date, the Company milled 144,116
tonnes at a grade of 6.83 grams per tonne for total production of
30,086 ounces of gold representing a 47% increase from the first
half of 2013.
In addition to record production, the Company
set new highs in safety and environment performance.
|
|
|
|
|
|
Seabee Gold Operation Production
Data |
|
|
|
|
|
|
|
Q2 |
Q2 |
YTD |
YTD |
|
|
2014 |
2013 |
2014 |
2013 |
Tonnes Milled |
|
79,746 |
79,077 |
144,116 |
140,954 |
Head Grade (grams per tonne) |
|
7.70 |
5.13 |
6.83 |
4.77 |
Recovery (%) |
|
95.0 |
95.3 |
95.0 |
94.9 |
Gold Produced (ounces) |
|
18,742 |
12,438 |
30,086 |
20,520 |
Gold Sold (ounces) |
|
17,690 |
11,532 |
28,555 |
20,833 |
Santoy Gap Update
In June, the Company completed the Santoy Gap
ventilation raise to surface ahead of schedule. This is a
significant milestone as it allows the Company to improve
development rates by increasing the underground activity to advance
the ore body towards safe and sustainable production.
During the quarter, development was ongoing in
the eastern portion of the ore body on four levels with long-hole
production expected to begin ahead of schedule during the third
quarter. Ramp-up will continue throughout 2014 with targeted
production of 200 to 300 tonnes per day by the end of the fourth
quarter.
To support the production ramp-up, the Company
is conducting a 27,000 metre infill drilling program to better
define the Santoy Gap resource and optimize mine design. To date,
the results have been very positive in terms of grade continuity
and are above the current Mineral Reserve grade.
Exploration
Drilling at the Seabee Gold Operation is
anticipated to increase to 60,000 metres (formerly 52,000
metres). Focus will continue to be on low cost per ounce
targets, proximal to infrastructure with the potential to
materially impact near-term production, drive resource growth and
to positively impact the Company's Mineral Reserves and Mineral
Resources.
Outlook
Based on the production improvements during the
first half of 2014, the Company has increased its total 2014 gold
production forecast to 50,000 to 54,000 ounces of gold (previously
47,000 to 51,000 ounces) from the Seabee Gold Operation. The
Company has also revised its unit cash cost target for 2014 to be
approximately 10% lower than 2013's unit cash cost 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 today 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 August 13, 2014 by calling 1-855-859-2056 and
entering the password 74718562.
To view and listen to the webcast please use the
following URL in your web browser:
http://www.newswire.ca/en/webcast/detail/1386603/1538291
A copy of Claude's 2014 Q2 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 mining and exploration
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 in the Company's 2014 Q2 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.