Trading Symbols: TSX: CRJ; OTCQB: CLGRF
Q3 and Year-to-date Highlights:
- Record quarterly gold production of 20,614 ounces, nearly
doubled (96% increase) from Q3 2013
- Mill head grade of 8.88 grams per tonne for the quarter, a 68%
increase from Q3 2013
- Total cash cost per ounce of gold (1) of
$735(2) (U.S. $675), a 20% decrease from Q3 2013
- All in sustaining cost per ounce of gold (1) of
$1,063 (U.S. $976), a 32% decrease from Q3 2013
- Santoy Gap year to date production of over 28,000 tonnes at
approximately 8.60 grams of gold per tonne
- Debt reduction totaling $9.7
million during the first nine months of 2014
- Increased gold production guidance to 61,000 to 64,000 ounces
(previously 50,000 to 54,000 ounces)
SASKATOON, Nov. 3, 2014 /CNW/ - Claude Resources Inc.
("Claude" and or the "Company") today reported third-quarter net
profit of $6.9 million ($0.04 per share), which compared to a net loss of
$33.9 million ($0.19 per share) in the same period last year.
The improvement in financial performance reflected a significant
increase in gold production and sales volumes, improved ore grades
and operational efficiencies that reduced our cost per ounce on
both a cash and all in sustaining cost basis. Year-to-date net
profit grew to $5.1 million
($0.03 per share), up from a net loss
of $46.3 million ($0.26 per share) in the first nine months of
2013.
"Higher than budgeted grades from the L62 and Santoy Gap
deposits resulted in a strong third quarter performance that
exceeded the top end of our guidance," stated Mike Sylvestre, Interim President and Chief
Executive Officer. "Our commitment in 2014 was to deliver
consistent operating results while staying focused on improving
margins. Strong production and improved cost performances over
consecutive quarters has allowed us to reduce debt and increase our
cash on hand. With a strengthened balance sheet, increased
confidence in our production profile and strategies in place to
manage gold price volatility, we are well positioned to continue
delivering strong consecutive quarters."
Financial Review
Third-quarter gold revenue of
$24.3 million was 62% higher than the
$15.0 million reported in the third
quarter of 2013. The increase was attributable to a 63% increase in
gold sales volumes, which reached 17,578 ounces compared to 10,781
ounces in the same period last year. Year-to-date revenue of
$64.7 million grew 40% from the first
nine months of 2013, as a 46% increase in gold sales volume
– 46,133 ounces compared to 31,614 ounces – more than
offset a 4% decline in the average gold price realized.
With continued operational improvements, our total cash cost per
ounce of gold (1) decreased by 20% for both the quarter
and year to date – to $735 per
ounce (U.S. $675) for the third
quarter and $801 (U.S. $732) for the first nine months. The increase in
production from mining more tonnes at higher grades decreased our
all in sustaining cost per ounce of gold (1) by 32% for
the quarter to $1,063 (U.S.
$976) and by 35% for first nine
months to $1,265 (U.S. $1,155).
Cash flow from operations before net changes in non-cash
operating working capital (1) of $10.4 million, or $0.06 per share, was up significantly from the
$4.3 million, or $0.02 per share, reported in the third quarter of
2013. Year to date, cash flow from operations before net changes in
non-cash operating working capital (1) of $22.0 million, or $0.12 per share, more than doubled the
$9.3 million or $0.05 per share reported during the comparable
period and allowed us to reduce debt by $9.7
million through the first nine months of 2014.
|
Q3
|
Q3
|
YTD
|
YTD
|
Highlights
of Financial Results
|
2014
|
2013
|
2014
|
2013
|
|
|
|
|
|
Revenue
|
$24,323
|
$14,976
|
$64,665
|
$46,324
|
Production
costs
|
$12,021
|
$9,909
|
$35,243
|
$31,581
|
Impairment
charge
|
-
|
$45,187
|
-
|
$56,034
|
Gross profit
(loss)
|
$6,796
|
($293)
|
$10,887
|
($960)
|
Net profit
(loss)
|
$6,852
|
($33,871)
|
$5,068
|
($46,323)
|
Earnings (loss) per
share (basic and diluted)
|
$0.04
|
($0.19)
|
$0.03
|
($0.26)
|
|
|
|
|
|
Average realized
price per ounce
|
$1,384
|
$1,389
|
$1,402
|
$1,465
|
Average realized
price per ounce ($U.S)
|
$1,270
|
$1,338
|
$1,281
|
$1,432
|
Total cash cost per
ounce (1)
|
$735
|
$919
|
$801
|
$999
|
Total cash cost per
ounce ($U.S.) (1)
|
$675
|
$885
|
$732
|
$976
|
All-in sustaining
cost per ounce (1)
|
$1,063
|
$1,574
|
$1,265
|
$1,957
|
All-in sustaining
cost per ounce ($U.S.) (1)
|
$976
|
$1,516
|
$1,156
|
$1,912
|
Operations Review
Record third-quarter gold
production of 20,614 ounces was 96% more than was produced in the
same period in 2013 – a product of higher-than-budgeted ore
grades and increased mill throughput. The 74,930 tonnes fed to the
mill was up 16% from last year as our Santoy Gap deposit ramped up
ahead of schedule, which also contributed to a 68% improvement in
ore grade, measured at 8.88 grams per tonne.
Year to date, the Company milled 219,046 tonnes at a grade of
7.53 grams per tonne for total gold production of 50,700 ounces.
The key drivers of the 63% increase in production and 52% increase
in grade over the first nine months of 2013 were positive
reconciliation on tonnes, grade and ounces from the L62 deposit and
the replacement of the lower margin Santoy 8 ore with higher margin
Santoy Gap ore.
|
Q3
|
Q3
|
YTD
|
YTD
|
Seabee Gold
Operation Production Highlights
|
2014
|
2013
|
2014
|
2013
|
|
|
|
|
|
Tonnes
milled
|
74,930
|
64,642
|
219,046
|
205,596
|
Head grade (grams per
tonne)
|
8.88
|
5.30
|
7.53
|
4.94
|
Recovery
(%)
|
96.4
|
95.8
|
95.6
|
95.2
|
Gold produced
(ounces)
|
20,614
|
10,541
|
50,700
|
31,061
|
Gold sold
(ounces)
|
17,578
|
10,781
|
46,133
|
31,614
|
Santoy Gap Update
Production ramp up at the Santoy Gap is well ahead of schedule
and is expected to be the main contributor of tonnes and ounces
from the Santoy Mine Complex for the remainder of 2014. To date,
the Santoy Gap deposit has produced over 28,000 tonnes at
approximately 8.60 grams per tonne which is significantly higher
than the current Mineral Reserve grade of 6.40 grams per tonne.
Santoy Gap production during the fourth quarter is expected to be
250 to 350 tonnes per day. The increase in tonnes mined from Santoy
Gap is expected to have a positive impact on margins going
forward.
The Company continues to achieve excellent results from its
27,000-metre infill drilling program. The program is intended to
better define the Santoy Gap resource and support mine plan
optimization. Results from the program, which include an
intersection of 26.77 grams of gold per tonne over 8.7 metres true
width, have demonstrated that all three structures that are hosted
within the Santoy Gap continue to show significant grades and
widths.
Outlook
Based on our improved operating
performance, the Company has increased its total 2014 gold
production forecast at the Seabee Gold Operation to 61,000-64,000
ounces (previously 50,000-54,000 ounces). During the fourth
quarter, gold production from L62 deposit will be reduced while
throughput from Santoy Gap deposit is expected to increase. Based
on year to date performance and the addition of higher-margin
tonnes from Santoy Gap, the Company has revised our unit cash cost
target for 2014 to be approximately 20% lower than 2013's unit cash
cost of $983 per ounce.
"The strong performance of the past two quarters is a measure of
the fundamental improvements in our operations and the
higher-quality ore bodies we are now mining," said Sylvestre. "We
believe we can continue to build on these results and deliver
greater value to our shareholders."
Conference Call and Webcast
We invite you to join our Conference Call and Webcast today 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 November 10, 2014 by
calling 1-855-859-2056 and entering the password 21337581.
To view and listen to the webcast please use the following URL
in your web browser:
http://www.newswire.ca/en/webcast/detail/1427494/1585874
A copy of Claude's 2014 Q3 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 gold exploration and
mining company based in Saskatoon,
Saskatchewan, with an asset base located entirely in
Canada. Its shares trade on the
Toronto Stock Exchange (TSX: CRJ) and the OTCQB (OTCQB: CLGRF).
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 Q3 MD&A available on the Company's website at
www.clauderesources.com or on www.sedar.com.
|
(2)
|
All dollar amounts
are in Canadian dollars unless stated otherwise.
|
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.